Despite a challenging market, City Developments Limited (CDL) recorded a revenue of SGD783.8 million in Q1 2017, up 8.4% from the SGD723.3 million in the same period a year ago, revealed an SGX filing on Thursday (11 May).
“The increase is attributable to improved performance from the property development segment which posted a 33.9% increase in contribution, primarily led by the progressive handover of units in Phase One of Suzhou Hong Leong City Center (HLCC) and a strong take up for Gramercy Park.”
However, net profit declined 18.9% to SGD85.5 million compared to SGD105.3 million in Q1 2016.
The lower net profit is due to various factors, such as the lacklustre performance by the group’s subsidiary Millennium & Copthorne Hotels plc and the absence of contribution from two joint venture projects completed last year — Echelon and Bartley Ridge.
Another reason is the lower income gained from the realisation of an investment in a private property fund, Real Estate Capital Asia Partners, and exchange losses incurred primarily from the repayment of a New Zealand dollar denominated intercompany loan under the group’s indirect subsidiary, CDL Hospitality Trusts (CDLHT).
Earlier this month, the group was awarded the tender for a 99-year leasehold residential site at Tampines Avenue 10 after it submitted the highest bid of SGD370.1 million. It is considering to develop a 15-storey condominium there with around 800 units.
In the second half of 2017, CDL also plans to launch New Futura, which consists of two 36-storey towers housing 124 units of freehold luxury condos.
Meanwhile, CDL Executive Chairman Kwek Leng Beng said Singapore’s housing market is starting to show some signs of recovery.
“Property prices appear to be stabilising, especially in the high-end market, and there is increased investor confidence as Singapore remains a relatively safe haven in a highly volatile marketplace.”
“Recent policy relaxations are measured and prudent, and support the aim of buying property as a form of long-term investment. We are confident that the Singapore Government will continue to monitor market conditions closely and make the necessary tweaks to the other property cooling measures as and when the situation warrants,” he added.
Senior Content Producer, Christopher Chitty, edited this story.
