Developer Keppel Land saw its net profit drop 17.2 percent to $72.6 million in the first quarter of 2015.
During Q1, revenue fell 2.3 percent year-on-year to $278.4 million, primarily due to lower sales from its property trading division.
In a statement, said lower revenue from property trading was largely due to the lack of revenue from The Lakefront Residences in Singapore which obtained TOP last May, as well as lower contribution from Plot 2-2 of The Springdale in Shanghai, which was completed in March 2014.
But these were mitigated by higher sales at The Luxurie in Singapore, and phases four and five of 8 Park Avenue in Shanghai, including the new revenue streams from phase one of Seasons Residence in Shanghai and phase one of Park Avenue Heights in Chengdu which were both completed last December.
Looking ahead, Keppel Land said it will remain focused on Asia, with Singapore and China as its core markets and Vietnam and Indonesia as its growth markets, while seeking opportunities in key global cities with good growth potential.
Meanwhile, Keppel Corp noted that it concluded its voluntary offer for Keppel Land on 31 March and obtained 95.1 percent of the company’s shares, which is just short of the 95.5 percent compulsory acquisition threshold.
“In the coming weeks, we will be taking steps to delist Keppel Land as well as notify remaining shareholders on the process by which they may request Keppel Corporation to acquire their shares at S$4.38 each.”
Romesh Navaratnarajah, Singapore Editor at PropertyGuru, edited this story. To contact him about this or other stories email romesh@propertyguru.com.sg
