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Tuesday, May 18, 2010

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.

source - www.dailynews.lk