GuocoLand posts full-year profit of $134.3m

Property developer GuocoLand Ltd. has posted a full year profit of $134.3 million, recovering from a $70.2 million loss in the previous year, when it recorded a net forex loss of $34.3 million and a revaluation loss of $80.9 million.

Gross profit nearly doubled to $245.4 million from last year’s $113.5 million, mainly attributed to the good recognitions from strong sales in China.

For the fourth quarter that ended June 2010, the company’s net profit reached $51.98 million compared to a net loss of $73.1 million over the same period last year. This was mainly due to the absence of a revaluation loss on investment properties.

Revenue also increased 164 percent to $71.2 million, while revenue jumped 19 percent on-year to $165.8 million.

Q4 profit was contributed mainly from Singapore and China projects, including Goodwood Residence in Singapore, Ascot Park in Nanjing, Changfeng SOHO in Shanghai and West End Point in Beijing.

Meanwhile, GuocoLand has announced that it plans to raise $532 million through a rights issue to finance a potential acquisition and to further strengthen its balance sheet, as well as enhance its financial flexibility.

It also said that the Chinese party which signed a one billion yuan deal to acquire an office block in Shanghai had asked GuocoLand for a deferral of completion and payment of the acquisition until the end of next year.

So far, the Chinese buyer has paid the company S$19.5 million (S$19.5 million), or 10 percent of the total purchase price. The 50-year leasehold site comprises a 24-storey office tower, which is expected to be completed by end of this year.