Latest: Slim rise for Massachusetts trust, Rampart trust reports loss, Shangri-La Hotels up 15%, Parkway Singapore healthcare down 40%, General Property Trust to modernise Floreat Forum, Kumagai Gumi sells rest of Melbourne Central to General, Mirvac buys out industrial trust at Royal Domain, $S462m tender wins Singapore redevelopment project, big turnaround for Hotel Properties, green light for Sunset Strip project, Kennedy-Wilson buys distribution centres, work starts on Maryland tower, downturn for construction materials distributor Hughes Supply, DBS plans HK onslaught, Hutchison Whampoa gets another Chinese port, 11th St Regis for Starwood in San Francisco redevelopment.
25 March 2001
HRPT Properties Trust of Massachusetts increased revenue and funds from property operations by 1.7% in the December quarter over pro forma results for the fourth quarter of 1999, which assumed certain sales and the spinoff of its majority interest in Senior Housing Properties Trust occurred at the start of the quarter. Revenue for the quarter was $US100.5 million and earnings $US35.6 million. For the year, revenue rose 15% to $US405 million, and funds from property operations 2.4% to $US145 million and those earnings/share by 2.8%.
Rampart Capital Corp of Houston reported a $US1.2 million net loss on $US3.8 million revenue for 2000, said its stock was trading below book value, 2000 was not “a characteristic year,” and acquisitions and capex of $US 8.5 million during the year would have future benefit. Several projects were extended into 2001, such as acquisition of a distressed residential subdivision and golf operation in Newport, where it spent $US2 million on capex and renovation, then collected $US1.2 million from selling a half-interest in 480 lots.
Hotel group Shangri-La Asia raised profit 15% to $$US77 million last year, on strong performances in Hong Kong and China. Occupancy rates were 79% in Hong Kong and Singapore and 68% in China, up from 69% in Hong Kong , 68% in Singapore and 6% in China in 1999. Shangri-La is part of Robert Kuok’s Kerry Group.
Singaporean private healthcare services group Parkway Holdings Ltd earned 40% less, $S23.5 million, on revenue up 1.4% to $S380.6 million last year. But chairman Anil Thadani said the company had sold non-core assets and was in a good position to expand. After selling Parkway Parade last June, the company’s property profits fell 27% to $S15 million, but it was also able to cut its debt by 44% to $S362 million.
General Property Trust of Australia will modernise its Floreat Forum shopping centre in Perth at a cost of $A45 million, with an expected yield of 9%.
General Property Trust also said it had bought Kumagai Gumi’s remaining interest in the Melbourne Central complex of four linked buildings. The complex has a 46-storey office tower, a shopping centre and two carparks. General bought in for $A408 million in 1999 and has paid Kumagai Gumi $A17 million to take its holding to 100%.
Mirvac Group has taken full control of the Royal Domain Centre on St Kilda Rd in Melbourne, paying joint venture partner Macquarie Goodman Industrial Trust $A41.7 million. The industrial trust inherited its stake in 1999, but is concentrating on industrial property and suburban office parks.
A consortium of Hongkong Land, Cheung Kong (Holdings) and Keppel Land has won the tender for the white site at Raffles Quay/Marina Boulevard in Singapore, with a price of $S461.8 million for the 147,770mÂ² gross floor area, which is designated for commercial, residential and hotel development. The property was offered for sale by Singapore’s Urban Redevelopment Authority on a 99-year lease.
Hotel Properties Ltd, of Singapore, raised pre-everything operating profit 28% to $S118 million on turnover up 32% to $S407 million. The big difference in the bottom line came from earnings attributed to associates, $S18.8 million in 2000 but a $S68 million loss in 1999. The bottom line was a $S43 million profit, turning round from the $S57.2 million loss the year before.
24 March 2001
California’s Appeal Court has rejected Save the Sunset Strip Coalition’s claims against the Sunset Millennium Project and West Hollywood City over redevelopment of three blocks of the Strip, approved two years ago. The main retail component and renovation of Playboy’s offices are under construction. Work on a hotel offices and more shops is to start next year.
Kennedy-Wilson International Inc has paid $US10 million for two distribution centres in San Antonio, Texas, containing 35,800mÂ² in five buildings, with 5.7ha of development land available to build an extra 22,300mÂ².
22 March 2001
Fremont Properties, an arm of the started work this week on the Washingtonian II tower in Gaithersburg, Maryland. The 29,400mÂ² first tower in the development was sold to the state government.
Hughes Supply Inc of Orlando said the US construction market slowdown and bad weather combined to cut its fourth-quarter net profit before after-tax charges by 30% to $US8 million, or from 49c to 4c/share. The charges, and a gain on sale of its pool business, took the bottom line to a $US9.1 million loss. The company distributes construction and industrial materials.
21 March 2001
The Development Bank of Singapore has set aside about $S6 billion for expansion into Hong Kong. The Singapore Government has sold down its interest in DBS from 58% to 38%.
Hutchison Whampoa has won the bidding for 49% of the second phase of Ningpo’s Beilun port, next to Shanghai, conditional on Chinese Government approval. The company already controls eight Chinese ports and handled 25% of all Chinese container traffic last year.
Starwood Hotels & Resorts has been joined by Massachusetts contractor Carpenter & Co to build the St Regis Museum Tower on land bought from the San Francisco Redevelopment Agency. The first 20 floors of the 40-storey tower will have 269 hotel rooms, with 100 apartments of 130-520mÂ² above. It’s the last significant project of the Yerba Buena redevelopment plan and is in the city’s fastest growing area, South of Market. The project, due for completion in 2003, will incorporate an African American cultural centre and the historic Williams Building will be rehabilitated.