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Singapore-listed Roxy-Pacific Holdings profit after tax surged by 210 percent to S$46.3 million in Q1 2015 from S$15 million in the same period a year ago, the company revealed in an SGX filing.
The increase in net profit is attributed to the 149 percent jump in revenue to S$198.2 million during the first quarter compared to just S$79.5 million in Q1 2014 due to the robust growth in its property development and real estate investment business, which more than offset a marginal drop in its hotel segment.
The large gain in net profit is also attributed to the January 2015 completion of Centropod@Changi (pictured), an office and retail project located on the former Changi Hotel site, said Roxy-Pacific’s CEO and Executive Chairman Teo Hong Lim.
Currently, the company is still prudently searching for possible land acquisitions in Singapore, but the local property market is expected to remain relatively sluggish this year.
“To counter this, we have selectively expanded into markets in the region where we see good growth potential, including Malaysia, Hong Kong, Australia, Thailand and Japan, to build up our quality asset base in both the property and hotel segments.”
In line with this strategy, Roxy-Pacific’s 49-percent-owned associate in Australia has completed its purchase of a freehold land parcel in the heart of Perth’s central business district in Q1 2015, which will be used for the development of the 332-room Marriot Courtyard Hotel.
At the Australian city, the company has also entered into a second partnership with Hostplus during the first quarter to buy a 4.4-ha land plot for a mixed-use development.
Furthermore, its 47-percent-owned associate in Malaysia inked a sales and purchase agreement in Q1 2015 for a freehold site in Negeri Selangor intended for a commercial project, Teo added.
Image source : Roxy-Pacific Holdings
Nikki De Guzman, Editor at CommercialGuru, wrote this story. To contact her about this or other stories email nikki@propertyguru.com.sg
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