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10th February 2014

Singapore Real Estate

Life after Sentosa Cove for Ho Bee

The Metropolis provides a strong recurring income base while London, Australia acquisitions reduce concentration risk in China, chairman Chua Thian Poh tells 

Source: Business Times / Companies

HO Bee Land, formerly Ho Bee Investment, is probably most associated with Sentosa Cove, having developed more homes in the upscale waterfront residential district than any other developer. The bumper profits reaped from its projects there made it a stockmarket darling in 2006-2010.

Following the global financial crisis (GFC) in 2008, the developer has been focusing on building a strong recurring income base from property investment. It sold off fringe investment properties here and bought a site in 2010 next to Buona Vista MRT Interchange Station, which it has developed into a 1.08 million square foot project with two office towers called The Metropolis.

"GFC was an experience that made us rethink our strategy of just focusing on our development engine for growth," chairman Chua Thian Poh tells BT. "Our development model was based on rapid recycling of capital through pre-sales.

"We decided that it was equally important to develop our investment engine as well for recurring income. The investment income will help smoothen out our lumpy earnings and more importantly, act as a stabiliser in times of crisis."

-By Kalpana Rashiwala

Real Estate Companies' Brief

Profit recognition boosts Oxley Q2 net to $25.1m

Source: Business Times / Companies

OXLEY Holdings said that net profit for its second quarter ended Dec 31, 2013 more than doubled to $25.1 million, from $11.4 million the same period a year ago.

This was mostly due to an accounting requirement that caused the entirety of profit to be recognised for a completed 131-unit commercial and industrial project, The Commerze@Irving.

Profit continued to be recognised for partial completion of 12 mixed-residential projects, as well as share of profit from a joint venture and foreign exchange adjustment gains, offset by fair value losses from marking currency swaps to market.

Revenue for the quarter increased by more than two times to $202.2 million, from $59.8 million a year ago, boosted by revenue recognition for The Commerze@Irving.

-By Cai Haoxiang