Perennial Real Estate's net profit skyrockets to $34.5m

Thanks to the gain from the revaluation of Xi’an Plot 4.

Perennial Real Estate Holdings Limited managed to record a net profit of $34.5m, skyrocketting from the $2.4m a year ago.

According to the group, this is due to the fair value gain of $16.6m from the revaluation of Xi’an North High-Speed Railway Integrated Development Plot 4.

Meanwhile, the group registered a revenue of $17.9m, lower than last year's $24.1m. This is attributed to the lower project management fees as well as the absence of revenue from TripleOne Somerset as a result of the deconsolidation following the divestment of a 20.2% equity stake on 31 March.

In Singapore, major enhancement works continued to progress at TripleOne Somerset and AXA Tower,
and the full suite of works is expected to complete progressively by 2019.

Total strata sales to-date at TripleOne Somerset has increased to about S$21.6 million, with a number of strata office units transacted at an average price of about $2,788 psf. Potential buyers are also provided with an option to buy the strata office units with tenancy.

In end-July 2017, Perennial and its consortium of investors announced that it has received a number of en bloc sales inquiries and is contemplating the en bloc sale of AXA Tower at no less than $1.65b, equivalent to about $2,150 psf based on its post-enhancement total strata area of about 767,358 sq ft.

Taking into account the enhancement cost of $140m that is fully debt-funded, which will be borne by the potential new owner, the post-enhancement strata value would be about $2,333psf.