Singapore real estate developer City Developments Limited (CDL) posted a 44.5 per cent on-year decline in its first-quarter net profit at S$156.8 million.
In a statement issued on the Singapore Exchange, CDL said its revenue rose 9.4 per cent on-year to S$846.7 million for the three months to 31 March 2012.
CDL added that its net profit for Q1 did not register a corresponding increase partly due to substantial gains recognised in Q1 2011 on the disposal of the corporate office.
The developer said its property development segment remained the largest contributor to the group’s pre-tax profit. During the quarter, CDL launched two new developments – The Rainforest at Choa Chu Kang area and Bartley Residences along Bartley Road.
It added that The Rainforest, a 466-unit Executive Condominium (EC), has been well received with 94 per cent of the units sold. Meanwhile, 290 units out of the 350 units launched under Phase 1 at Bartley Residences have been sold.
CDL said it is preparing to launch the trendy UP @ Robertson Quay along Singapore River very shortly. The new property will comprise 70 high-end apartments and loft residences as well as a 300-room new lifestyle concept hotel known as M Social.
Another project which CDL plans to launch in the first half of this year is HAUS @ SERANGOON GARDEN, a landed housing development with 96 terrace units.
CDL also believes that its Quayside Isle project in Sentosa has not reached its full potential, and the full value of the property will be more evident in the second half of the year when the retail component and the hotel are operational.
The Quayside Isle project includes The Residences at W Singapore Sentosa Cove, a 240-room W Singapore Sentosa Cove hotel and retail outlets.
Going forward, CDL said it is optimistic that the gradual economic recovery will help improve sentiments for the high-end residential market.
It added that the strong Singapore dollar, liquidity in the market, low interest rate environment, favourable housing loans and lack of other stabilised investment products are also factors that have continued to sustain property investments in Singapore.
CDL said with its diversified portfolio of assets, strong balance sheet and prudent management, it expects to remain profitable in the current year.
Source : CNA – 10 May 2012
