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CDL’s profit was up to $199.6 million, and is looking for more investments in China.
City Developments Limited (CDL) has achieved a more-than-double net profit of $199.6 million for its first quarter up to 31 March, compared to $85.3 million for the same period last year, reported The Straits Times.
This comes on the heels of strong profit margins for development projects and the realisation of the $144.3 million pre-tax gain under the divestment of Manulife Centre.
Earnings per share was pegged at 22 cents compared to 9.4 cents previously, with shares going down 0.23 percent, at $8.66.
Additionally, revenue dropped 29.5 percent to only $746.2 million during Q1 2019 compared to $1.06 billion last year.
CDL also revealed that it has entered into a deal which would allow it to invest 5.5 billion yuan ($1.1 billion), and get a 24 percent stake in China’s Sincere Property Group.
Sincere owns residential projects ranging from low and high-rise condominiums to villas, more than 15 business parks currently in development or in operation, two serviced residences, five hotels and 14 retail malls.
The amount, comprising a four-year interest-bearing loan and share subscription, will be finalised after completion. CDL expects the investment to be completed by 4Q 2019.
CDL also has entered into an agreement with Sincere to purchase a 70 percent stake in Shanghai Hongqiao Sincere Centre (Phase 2), for 1.2 billion yuan ($238.7 million).
The Hongqiao property is spread across 11 blocks with a gross floor area of 35,739 sq m, and is comprised of a retail component, serviced apartments, offices and a basement car park.
The second investment is expected to be completed by 3Q 2019.
Victor Kang, Digital Content Specialist at PropertyGuru, edited this story. To contact him about this or other stories, email victorkang@propertyguru.com.sg
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