CapitaLand is one of the largest property companies in Asia.
UPDATED: CapitaLand’s revenue surged 35.3 percent year-on-year to $1.34 billion in Q2 2018, while net profit increased 4.4 percent to $605.5 million, according to an SGX filing on Wednesday (8 Aug).
The strong growth in revenue is attributed to a higher handover of residential units in China. The surge in revenue was also driven by the acquisition and opening of properties in Singapore, China and Germany, as well as the consolidation of revenue from CapitaLand Mall Trust (CMT), CapitaLand Retail China Trust (CRCT) and RCS Trust (RCST) effective in August 2017.
In Singapore, the group sold a total of 37 units, including in Sky Habitat, and there are 33 unsold units remaining in the city-state. The Strata Title Board also issued a Sales Order on 1 August 2018 for the collective sale of Pearl Bank Apartments.
More: Pearlbank Apartments Sold To CapitaLand For $728m
Over in China, more than 1,486 units with a combined value of 2.2 billion yuan were taken up due to the completion of phases at New Horizon in Shanghai, Citta Di Mare in Guangzhou and Century Park West in Chengdu during the second quarter. Revenue in the country is recognised upon the handover of units to home buyers.
As of 30 June, CapitaLand found buyers for 8,000 units in the country collectively worth 16.2 billion yuan, but these have not yet been handed over. More than half of these properties are expected to be delivered in the second half of 2018.
In addition, the purchase of a prime 32ha mixed-use site in Chongqing provides the developer with a landbank for retail and commercial space as well as 2,100 residential units.
In Vietnam, CapitaLand sold 524 residential units with a combined value of S$186 million in the second quarter. Of this, 456 (S$77 million) have been handed over primarily at Vista Verde and Seasons Avenue.
Out of the 2,680 yet-to-be completed units in the country, over 30 percent are targeted to be delivered and recognised this year. The group has also acquired a 1.0ha site in Hanoi, Vietnam for a future project.
“In Q2 2018, we divested Twenty Anson and Sembawang Shopping Centre in Singapore, and at the same time, reallocated capital to a prime mixed-use site in Chongqing, China and Gallileo, our second Grade A office in Frankfurt, Germany,” said CapitaLand Group President & Group CEO Lim Ming Yan.
“We have also expanded our operating platforms, with two new retail management contracts in Guangzhou and Chengdu this quarter, and a robust growth of 5,348 units in our lodging platform Ascott through management contracts and strategic partnerships, moving us closer towards the 2023 target of 160,000 units,” he added.
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Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories, email firstname.lastname@example.org