Friday, April 27, 2012

WTC developer riding high on positive business environment

Overseas Realty (Ceylon) PLC, the developers and managers of the iconic World Trade Centre (WTC) towers in the heart of Colombo, has reported a 32 percent increase in net profits amounting to Rs. 584 million for the year ended December 31, 2011, and the company is confident the buoyant macroeconomic environment would attract enough demand which would make it possible to achieve a higher rentals index this year.

 "The property market is the biggest business enterprise in any leading city in the world. Thus our Company is a direct beneficiary of economic stability, growth and business confidence in the country.

 Whilst we have recorded significant operational growth in 2011 the Company will explore every property related opportunity available in order to maximize shareholder value," the company’s Chairman S. P. Tao told shareholders.

"In 2011 your Company was able to position itself as the premier property development, property management and property owning company in Sri Lanka as a result both of the environment in which we operate i.e. increased investor confidence in the country, pro-business policies of the Government and economic stability arising from peace and the high standards of quality and service that we are able to consistently maintain and deliver. This is reflected in the Group’s Profit after Tax (excluding fair value gains) of Rs. 584 Mn, a 32% increase compared to the previous year.

The concomitant increase in demand for quality office space in the World Trade Center Colombo and residential apartments in Havelock City enabled the Group to record a Gross Revenue of Rs. 2,491 Mn, an increase of 47% compared to that achieved in 2010," he said.

Significant twin increases in occupancy (89% achieved in December 2011) and average rental rates in World Trade Centre Colombo contributed to a strong performance for the Company.

2011 saw strong growth in demand for commercial and office space as a result of a growing economy and positive business sentiments in the country. Revenue generated through leasing of space at the World Trade Centre (WTC) Colombo of Rs. 847 Mn saw significant growth of 21% over the previous year. Occupancy which was at 72% at the start of the year closed at 89% with committed occupancy being 95%. Additionally, the lack of quality commercial space in Colombo augurs well for the Company’s ability to demand higher rates and enhance its yields in the future, the company’s recently published annual report said.

2011 has been one of the best performing years in the Company’s history with occupancy at the WTC Colombo reaching 89% by December 2011 and committed occupancy being 95%.

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