Overseas Realty profits grow in Q1
Consolidated profits of Overseas Realty (Ceylon) PLC recorded Rs
192.7 mn for the first quarter 2010 an increase of Rs 80.8 mn or 72.1
percent over the previous year's corresponding quarter of Rs 112.0 mn.
The World Trade Centre |
The growth in profits was primarily on account of profits realized
from sale of apartments at Havelock City.
Group Managing Director Thilan Wijesinghe said that completing the
construction of two apartment towers, the vast landscaped gardens and
tastefully appointed show-units helped apartment sales.
Total group revenue however recorded a decline of 13 percent mainly
due to the decline in revenue recorded for apartment sales. The first
quarter 2010 sales reflect the actual sales of apartments committed
whereas the first quarter of 2009 reflects the sales apportioned based
on progressive revenue recognition on all apartments sold up to that
period as construction was not completed at that time.
Phase One of Havelock City residential development comprising 226
apartments was completed end of last year and many residents have now
moved in.
According to Wijesinghe, seeing the end product has been a
significant advantage to potential buyers as they can first-hand observe
the built quality, design, availability of facilities such as landscaped
gardens (the largest in Colombo) and car parking.
One of Sri Lanka's best known architects, Murad Ismail has commenced
designs of a Rs 250 mn clubhouse which will be unique to condominium
living in Sri Lanka.
The access bridge from Skelton Road is now completed and a link road
from Duplication Road is now under construction.
"Sales are on track for us to start the next phases of development of
Havelock City," he stated.
While the condominium business will grow due to the unique
positioning of Havelock City, recurrent profit growth will also be
generated from World Trade Centre (WTC) rentals. Income and profits from
WTC, Rs 184 mn and Rs 68 mn respectively for first quarter 2010, were
flat in comparison to the same period last year.
The fact that the rental business from WTC operations is on an upward
trend is underscored by rental income growing eight percent and net
profits growing 19 percent in first quarter 2010 compared to the fourth
quarter of 2009.
"The rental pipeline is very healthy, and we expect occupancy to be
considerably higher by year end," Wijesinghe said. |