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OUE net profit surges to S$1b in Q1

Property developer OUE has posted a sharp increase in its first quarter earnings, largely due to gains from the disposal of Mandarin Orchard Singapore and Mandarin Gallery to OUE Hopsitality Trust.

SINGAPORE: Property developer OUE has posted a sharp increase in its first quarter earnings, largely due to gains from the disposal of Mandarin Orchard Singapore and Mandarin Gallery to OUE Hopsitality Trust.

For the three months ended March 31, 2014, net profit came in at S$1 billion, up from S$2 million a year ago.

The gain from unlocking the values of Mandarin Orchard Singapore and Mandarin Gallery alone came up to S$986.4 million.

OUE also booked a net fair value gain of S$114.8 million on the sale of Lippo Plaza.

However, OUE said the gains were offset by an allowance for foreseeable loss of S$105 million provided on its Twin Peaks project, based on the latest valuation. Twin Peaks is a residential development project at Leonie Hill.

For Q1 2014, OUE's revenue rose 1.5 per cent on-year to S$106.9 million.

Looking ahead, OUE said it will continue to focus on the ongoing asset enhancement at OUE Downtown and on active lease management to generate returns from its portfolio of investment properties.

However, it notes that the market environment for high-end residential property remains challenging and it will continue to drive the sale of units at Twin Peaks. 

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