Overseas Realty (Ceylon) PLC recorded a steady growth in Revenue and Profitability, primarily driven by the Havelock City Residential sales, to record a Group Revenue of Rs. 10,538 million and a Group Profit Before Tax of Rs 4,346 Mn for the second quarter ended June 30, 2022.
The Company Revenue of Rs 1,061 Mn at the World Trade Center, Colombo was5% higher than the corresponding period of last year, due mainly to higher rental rates. Revenue of Rs 9,285 Mn was recorded by 30th June 2022 from Residential sales of Havelock City, compared to Rs 1665 Mn in the previous period.
The strong growth in Revenue and Profitability was fronted by the robust performance of Havelock City Residential sales during the first four months of 2022. Expectation of the weakening Sri Lankan Rupee and an increase in inflation in the past few months resulted in a strong demand for residential property.
“Amidst the many difficulties including the economic crisis and import restrictions and with support extended to the contractor, 95.5% of the works of the Mireka Tower and Shopping Mall at Havelock City were completed by the end of June 2022. However, the acute shortage of foreign exchange in the Country, and the consequential inability to repay foreign currency borrowings and the resultant forex exposure is a concern.” stated Group Director/ CEO of Overseas Realty (Ceylon) PLC, Pravir Samarasinghe.
“The steep depreciation of the LKR by 80% during the second quarter resulted in the group recording a significant exchange loss on the foreign currency loans. Further, since then, the velocity of Residential sales has reduced drastically.” added Samarasinghe.
Havelock City Commercial Development comprising a 50 storey Office Tower named Mireka Tower offering Grade “A” premium office space and an International Standard Shopping Mall providing a range of fashion, food and beverage and entertainment experiences is currently under construction and is expected to be opened by October 2022. Pre-leasing for both Office and shopping space have commenced. The Group Net Asset Value per Share as at June 30, stood at Rs 39.74 and the Earnings per Share for the periodwas Rs. 3.07