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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.

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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.