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Frasers Centrepoint banking on strong overseas growth

SINGAPORE — Property developer Frasers Centrepoint’s strategy of venturing overseas will put it in a good position for further growth, given the increasingly cautious sentiment in the local property market, Group Chief Executive Lim Ee Seng said yesterday.

SINGAPORE — Property developer Frasers Centrepoint’s strategy of venturing overseas will put it in a good position for further growth, given the increasingly cautious sentiment in the local property market, Group Chief Executive Lim Ee Seng said yesterday.

“We are cognizant of the overall market sentiment in the Singapore residential market, which has been affected by cooling measures,” he said, noting that in the last quarter of 2013, local private residential prices declined for the first time in two years, by 0.9 per cent.

“Against this backdrop, our strategy of expanding our overseas footprint is standing us in good stead. We continue to enjoy a robust pipeline of activities in our various segments that provide clear earnings visibility,” he added.

Mr Lim’s comments were made as the developer reported a first quarter net profit of S$120.8 million, 7.5 per cent lower than the same period a year ago, when the company recorded some one-off gains that lifted profit.

Revenue surged 87.4 per cent to S$631.6 million, helped mainly by better sales of properties developed by Frasers Centrepoint in Australia, China and United Kingdom.

Overseas revenue in the October-December period jumped from S$29 million in 2012 to S$353 million last year.

However, revenue from Singapore fell by 18 per cent to S$181 million, with lower contribution from its Eight Courtyards and Watertown projects.

The company said it is looking to replenish its landbank in the mass and mid-market segments, as residential projects in good locations can still attract demand from buyers. Its latest residential project, RiverTrees Residences in Sengkang, will be launched at the end of this month.

“We will remain focused on selectively acquiring sites to replenish our landbank while continuing to deliver our pipeline in our core markets of Singapore, Australia and China,” Mr Lim said.

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