Page 30 - ar2011

BUSINESS REVIEW continued
PROPERTY
2 011 saw another year of steady performance
from the Property division, including Straits
Media, as revenue rose 56% year-on-year
to $82.1 million compared with $52.8 million in
2010. The increase in revenue was attributable
to healthy sales of premium lifestyle residential
developments and higher commercial property
rental. Consequently, the Property division’s
contribution to the Group’s revenue increased
from 4% in FY2010 to 5% in FY2011.
SINGAPORE
The division continued its focus on premium lifestyle
developments in FY2011 when it obtained Temporary
Occupation Permits (TOPs) for the following projects:
1) Two new Good Class Bungalows (GCBs) along
Cable Road.
2) The Holland Collection – a 26-unit lifestyle
condominium project along Holland Road (of
which we own 14 units for investment).
3) Five Chancery – a collection of 12 luxury strata
bungalows along Chancery Lane.
On the back of a healthy recovery in Grade A
commercial offce demand, the fagship Straits Trading
Building secured 100% occupancy in FY2011 with
an increase in average rentals. Overall occupancy
at China Square Central in FY2011 was 94%. Our
Master Lease agreement for China Square Central
expired in March 2012.
The Company has continued with its policy of divesting
completed non-core residential properties. With the
completion of the Circle Line, there is good demand
from local and expatriate homebuyers and investors
keen on premium properties located beside the
Singapore Botanic Gardens.
Going forward, the Property division will pursue
opportunistic acquisitions that are accretive and
contribute proftably to the Group. The geographical
focus for residential developments are currently in the
prime and popular districts.
In the commercial and retail sector, the focus will be
on investing in medium-sized projects within the city;
as well as in the prime retail precincts of Singapore.
Five Chancery
The Holland Collection
28 TRANS FORMATION