Friday, August 28, 2009

GuocoLand slips into $70m net loss

PROPERTY developer GuocoLand slipped into the red with a net loss of $70.2 million for the year ended June 30, reversing a net profit of $161.8 million a year earlier.

The company took an $80.9 million revaluation loss on Tung Centre in Collyer Quay.

It also suffered write-downs in values of development properties in Malaysia and a net foreign exchange loss of $34.3 million comprising translation loss on US-dollar bank loans, the firm said.
Revenue fell 24 per cent to $513 million due to lower contributions from development properties in Singapore and China.

Some developers have had a rough time, but things are looking much brighter now. Guoco-Land said it has so far sold 206 units in its prime project Sophia Residence in Sophia Road, which it launched last month.

In China, it has sold all 594 units in the first phase of Ascot Park, a 1,112-unit project in Nanjing. Construction work on its Dongzhimen project in Beijing is in progress.

The various legal actions taken by its China subsidiary to defend and protect its 90 per cent interest in the project are pending hearing and/or adjudication before the courts, it added.
The global economy appears to be on the recovery path, which is positive for the group as property values in Singapore and China have improved, said GuocoLand in a statement yesterday.

The developer will be launching a freehold condo, Elliot At The East Coast, later this year. It had bought the site in a collective sale back in 2007.

The group is proposing a dividend of five cents per share, down from eight cents a share a year ago. Loss per share was 8.55 cents, compared with earnings per share of 20.17 cents a year earlier.

Net asset value per share was $2.37 as at June 30, down from $2.41 a year earlier.
Shares of GuocoLand closed one cent lower at $2.22 yesterday.

Source, Straits Times, 28 Aug 2009

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