Business Times: Wed, Apr 27
PROPERTY group Ho Bee Investment, which posted a 30.8 per cent year-on-year hike in first-quarter 2011 net profit to $54.5 million, has sold 44 strata units at One Pemimpin, a high-tech industrial project, since it began to preview the project last month. The 999-year leasehold units are mostly 1,000-1,200 sq ft and are priced at about $800 per sq ft on average.
Ho Bee Group chairman & CEO Chua Thian Poh said sales from this industrial project, together with progressive income recognition from residential projects sold, would contribute to the group's earnings for the rest of this year.
On Sentosa Cove, where the group has developed more condos than any other developer, Ho Bee's joint-venture project with Malaysia's IOI Group Seascape obtained Temporary Occupation Permit in February this year. So far, 38 of the project's 151 units have been sold.
Ho Bee began previewing the project last year at an average price of about $2,800 psf and is expected to soon begin an official launch, marked by the start of an advertising campaign.
Ho Bee has another tie-up with IOI for a 302-unit condo development on the Pinnacle collection site at Sentosa Cove. This has yet to be released for sale. The project is expected to be completed in 2013.
For the first quarter ended March 31, 2011, Ho Bee booked an $18.1 million gain from the sale of investment properties - comprising two retail units at Samsung Hub and an industrial building, Platinum 28. The divestments helped to provide a fillip to Ho Bee's bottom line despite a 14.9 per cent drop in revenue to $78.6 million.
The weaker topline was due to lower revenue recognition from property development. The Orange Grove and Trilight are the residential development projects which contributed to Ho Bee's revenue in Q1 2011.
Ho Bee is developing an office project at One-North which is slated for completion by Q4 2013.
Earnings per share rose from 5.7 cents in Q1 2010 to 7.4 cents in Q1 2011. Net asset value per share climbed from $2.01 at Dec 31, 2010, to $2.08 at March 31, 2011.
On the stock market yesterday, Ho Bee closed two cents lower at $1.46.