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Frasers Centrepoint's Q2 net profit up 44%

Frasers Centrepoint posted a 44 per cent rise in net profit to S$107.1 million in its fiscal second quarter ended March.

SINGAPORE: Frasers Centrepoint has posted a 44 per cent rise in quarterly net profit, boosted by property sales in Australia and the UK as well as an improved operational performance from its hospitality operations.

The former property arm of Frasers and Neave achieved S$107.1 million in attributable profit before fair value change and exceptional items for the fiscal second quarter ended March, up from S$74.2 million in the same period a year ago.

Frasers Centrepoint's hospitality unit -- which includes Fraser serviced residences -- delivered a 9 per cent rise in revenue to S$46.7 million.

"With an expanded portfolio of 8,402 apartments under management following the launch of three new properties in Jakarta, Kuala Lumpur and Wuxi during the quarter, the group is well on-track to achieving its target of managing over 10,000 apartments by the end of 2014," the company said on Friday.

Looking ahead, Frasers Centrepoint said it will proceed with the initial public offering (IPO) of its hospitality business when it considers it appropriate to do so.

The firm had obtained an "eligibility-to-list" letter for the proposed IPO of Frasers Hospitality Trust (FHT) in March, and the next step would be to convene an extraordinary general meeting to seek shareholders' approval.

Frasers Centrepoint is also paying close attention to possible land banking opportunities in Singapore -- amid the moderation in land bidding activity -- as it believes demand remains healthy for residential projects with the right location. 

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