CapitaLand to offer mix of homes and offices

PHOTO: CapitaLand to offer mix of homes and offices

Property giant CapitaLand will focus on mixed-use developments to capitalise on what it sees as the increasing popularity of projects combining homes and commercial outlets.

The firm said in a statement on Thursday that it believed demand for new homes and offices "will remain positive" due to a resilient economy and projected population growth.

"With a streamlined organisational structure and robust balance sheet, CapitaLand is well positioned to capitalise on new growth opportunities," noted group chief executive Lim Ming Yan in the statement.

"The group will be focusing on integrated and mixed developments."

The remarks came as the developer reported an 8.7 per cent slide in third-quarter earnings to $135.5 million from the same period a year earlier.

This came despite revenue leaping 52.5 per cent to $1.05 billion in the three months to Sept 30.

CapitaLand said earnings fell due to lower gains from the sale of investments. It sold its stakes in three investment properties in Britain in the quarter for a profit of $15.8 million, lower than the $58.7 million gain it made from divestments in the corresponding period a year earlier.

It also said its development projects in Singapore, China, Vietnam and Australia and its malls generated increased revenue, but the cost of sales rose at a faster rate because the project costs of units sold in the quarter were relatively higher.

CapitaLand sold 468 homes in Singapore in the third quarter, amounting to $560 million in total, up from 70 units worth a total of $166 million in the corresponding period last year.

Most of the sales in the quarter came from its Sky Vue project in Bishan, which was launched in September. It sold 433 units at Sky Vue at a median price of $1,401 psf that month.

Earnings per share was 3.2 cents for the quarter, down from 3.5 cents the preceding year, while net asset value per share was $3.74 as at Sept 30, an increase from $3.55 as at Dec 31.

Capitaland shares closed four cents lower at $3.12 on Thursday.

melissat@sph.com.sg


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