DESPITE a tripling in revenue from a year ago, Wheelock Properties (Singapore) posted an 85.3 per cent slump in net profit for the second quarter ended June 30, 2015, to S$17.74 million on the back of higher costs associated with development projects.
While revenue surged to S$80.1 million from S$24.1 million as the group recognised sales from residential project The Panorama based on percentage of completion and the sales from Scotts Square, cost of sales jumped by 7.5 times to S$55.3 million during the period.
As at June 30, a total of 451 of the 698 units at The Panorama have been sold at an average price of S$1,250 per square foot (psf). About 82 per cent or 276 of the 338 units at freehold luxury project Scotts Square were sold at an average price of S$4,000 psf.
"With the weak demand for sales in the luxury sector, our current focus is on leasing. For the same period, 30 units were leased at average rental of S$5,100 per month," Wheelock said in its financial statement.
Five units at Ardmore Three, an 84-unit freehold development along Ardmore Park, were sold as at June 30 at an average price of S$3,300 psf. Marketing of the development is on-going.
Investment properties held by the group include Wheelock Place and Scotts Square Retail. The overall occupancy rate at Wheelock Place was 97 per cent as at June 30 with a blended monthly rent of about S$14 psf.
Without providing occupancy rate figures for Scotts Square Retail, Wheelock said the mall transformation is now in progress. In the interim, short-term leases, its collaboration with K+ Workshop as well as a full calendar of advertising and promotion events will ensure continuous activities for the mall.
"The retail market is facing many challenges with retailers consolidating operations, lower sales and online shopping," the group said.