Perennial Real Estate's Q1 profit surges 150% on fair-value gain

PERENNIAL Real Estate Holdings posted a 150 per cent surge in net profit for the first quarter ended March 31, 2016, to S$8.47 million, fuelled by a fair-value gain of S$7.5 million.

The fair-value gain stemmed from a revaluation of Chengdu East High Speed Railway (HSR) Integrated Development Plot D2, which was reclassified to investment property following the change of use from strata sales to long-term holding for lease as eldercare and retirement homes.

The property is equally held by the group and Shanghai Summit Property Development.

Group revenue during the quarter inched up 9 per cent to S$29.49 million, mainly due to higher project management fee and higher revenue recorded by Perennial Qingyang Mall in Chengdu.

Giving an update on its developments, the group said TripleOne Somerset in Singapore has received all approvals for the proposed asset enhancement works and strata-sale of the office spaces and medical suites.

Cost of the enhancement works is not expected to exceed S$150 million. The enhancement works and strata-sale are on-track to commence in May-June this year.

In China, construction works are progressing steadily at Chengdu East HSR Integrated Development, Xi'an North HSR Integrated Development and Beijing Tongzhou Integrated Development, the group said.