Kwek Leng Beng, Executive Chairman, CDL. (Photo: CDL)
Despite challenging market conditions, Singapore-listed City Developments Limited (CDL) posted a record net profit of $410.5 million for Q4 2015, up 6.6 percent from the previous record of $384.9 million in Q4 2014.
The increase was fuelled by gains from monetising CDL’s three prime office assets in Singapore – 7 & 9 Tampines Grande, Manulife Centre and Central Mall (Office Tower), valued at $1.1 billion, and the $12 million contribution from the sale of a UK property.
Profit recognition from pre-sold projects in Singapore was also higher in Q4 2015, compared to the previous year.
Full-year net profit was $773.4 million, which CDL said was comparable to the $769.6 million for FY2014.
The property developer noted that its residential projects are still attracting buyers.
The Brownstone, a 638-unit joint venture (JV) executive condominium (EC) near the future Canberra MRT station, was the best-selling EC in Singapore for 2015. To date, about 55 percent of the project has been sold.
The 944-unit Coco Palms in Pasir Ris, CDL’s other JV condominium, is about 88 percent sold. Going forward, it is also looking to develop a condo project with over 500 units on a site at Lorong Lew Lian in Serangoon, which it won in a public tender last November.
As for its South Beach project, CDL said the integrated development comprising 190 residential apartments, an office tower, luxury hotel and retail spaces, is on track to be completed by the second half of this year.
Earlier reports revealed that the residential component would launch when market conditions are more favourable.
CDL also announced that its international growth strategy is on track with new acquisitions in the UK and Australia, and good progress on projects in China and Japan.
“Our 2015 financial performance reflects our ability to navigate through difficult times,” said Kwek Leng Beng, Executive Chairman of CDL.
“We are well-poised to deploy our strong balance sheet towards investments in a period of market dislocation, capitalising on available opportunities, while maintaining discipline in our investments.”
Romesh Navaratnarajah, Senior Editor at PropertyGuru, wrote this story. To contact him about this or other stories email romesh@propertyguru.com.sg
