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Perennial posts S$24.7m profit for October-March period

INTEGRATED real estate owner Perennial Real Estate Holdings on Friday posted a profit after tax and minority interest (Patmi) of S$24.7 million for the five months from October 2014 to March 2015, post-completion of the reverse takeover (RTO) of St James Holdings on Oct 27 last year.

Excluding the one-off transaction cost of S$11.4 million, arising from the RTO and the group's voluntary general offer (VGO) for Perennial China Retail Trust, Patmi for the period after the RTO amounted to S$36.1 million.

Operating Patmi for the first three months of the year was S$3.4 million, largely contributed by TripleOne Somerset and CHIJMES in Singapore, the predominantly retail China portfolio held by Perennial China Retail Trust, a subsidiary of the group post-completion of the VGO, as well as fee-based management business.

In late April, the group completed the acquisition of a 31.2 per cent stake in AXA Tower.

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In addition to providing the group with a one-off acquisition fee of about S$11.7 million, which will be recognised for the period from April to June, the acquisition provides the group with a new source of recurrent income.

As at end-March, the group's net debt to equity ratio stood at 0.6 times.

With the recent completion of the acquisition of about 30 per cent interest and a 23.3 per cent interest in Beijing Tongzhou Integrated Development Phase 1 and Phase 2 respectively on April 10, and the resultant issuance of 356.6 million new shares of the holdings, the group's market capitalisation rose to about S$1.75 billion.

This is based on the holding's closing share price of S$1.065 on Thursday.

Taking into account the completion of the deferred Beijing acquisition, the group's net debt to equity ratio falls to about 0.38 times.