Overseas Realty profits rise to Rs 287 m in Q2

The Overseas Realty (Ceylon) PLC) Group posted impressive results for the first half of the year with the second quarter showing significant growth over the first quarter and the previous year.

The quarter ending June achieved a revenue growth of 58 percent and net profit growth of 30 percent over the previous quarter laying the foundation for healthy profit growth during the year under review.

The Group recorded revenue of Rs 1,130 mn and net profit of Rs 287 mn which is an increase of 25 percent and 79 percent respectively over the first six months of the previous year.

The profits also included unrealized exchange gains of Mireka Group its main subsidiary. The comparative growth in profit year on year adjusted for such exchange gains is 64 percent.

The reported profit excludes fair value gains on substantial investment properties owned by the company. Rental income from WTC for the six months grew by 12 percent over the previous year with occupancy increasing by almost 10 percent over June 2010 and over 5 percent from December 2010.

The net profit of the Company which reflects the WTC operations was Rs 177 mn for the six months which is an increase of 39 percent from the previous year.

The Havelock City project is entering a rapid development stage with construction of two more residential towers and the state-of-the-art Clubhouse scheduled to commence from September this year.

The commercial development which will house the country’s biggest shopping mall and two office towers is in its design finalization stages with construction expected to start in the first quarter of 2012. Group CEO Pravir Samarasinghe said Havelock City Clubhouse will be unparalleled in terms of design and offerings and will include among other facilities squash courts, a modern gymnasium, sauna, a large swimming pool, Jacuzzi,dedicated children’s pool, badminton court, basketball hoops, day care centre, function rooms with banquet facilities and barbecue areas for the exclusive use of the residents.