Jan 18, 2017

Overseas Realty records Rs 2.9 billion profit in 2016

Overseas Realty (Ceylon) PLC recorded a Group Profit after tax of Rs 2.9 Billion for 2016 marginally down from Rs. 3.0 Billion in 2015.

Revenue of Rs 1,878Mn was recorded from Property Leasing at the World Trade Center (WTC) Colombo and the Company expects to maintain good occupancy levels during 2017. Revenue from Other Services was Rs 259Mn which is an increase of 27% over the previous year 2015.However, the Revenue from Apartment Sales reduced from Rs 974Mn to Rs 285Mn due to the inability to recognize revenue of Havelock City Phase 3 sales during this period.

Havelock City Residential Phase 3 was launched in March 2016 and as at the yearend around 31% of theunits have been pre-sold. While construction of Havelock City Phase 3 is currently underway, pilling works for Phase 4 is scheduled to be completed by April 2017.
The Rights Issue of Two(02) Ordinary Shares for every Five (05), totaling to 355,151,309 new Ordinary Shares at a price of Rs 20.50, per Share to raise Rs. 7.2Bntowards the investment in the proposed Mixed Development Project of Havelock City, has been provisionally allotted.
Havelock City successfully concluded the Ground Breaking Ceremony and the Inauguration of its Commercial Development on 28th December 2016.The Commercial Development would comprisean Office Tower and a Shopping Mall built to International Standards.
The Company increased its Shareholding in Mireka Capital Land (Pvt) Ltd, (MCL) from 60% to 100% by purchasing the balance 40% Shareholding in MCL at a total consideration of Rs 3.880 Bn on 30th December 2016.
The Group Earnings per Share for the year stood at Rs 3.33.