Overseas Realty records Rs 2.9 b profit in 2016

Overseas Realty (Ceylon) Plc recorded a Group Profit After Tax of Rs. 2.9 billion for 2016, marginally down from the Rs. 3 billion it recorded in 2015.

Revenue of Rs. 1,878 million 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. 259 million, which is an increase of 27% over 2015. However, Revenue from Apartment Sales reduced from Rs. 974 million to Rs. 285 million due to the inability to recognise 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 the units had been presold. 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 Ordinary Shares for every five, totaling 355,151,309 new Ordinary Shares at a price of Rs. 20.50 per share to raise Rs. 7.2 billion towards 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 28 December 2016. The Commercial Development will comprise an office tower and shopping mall built to international standards.

The company increased its shareholding in Mireka Capital Land Ltd. (MCL) from 60% to 100% by purchasing the balance 40% shareholding in MCL at a total consideration of Rs. 3.880 billion on 30 December 2016.

The group earnings per share for the year stood at Rs. 3.33.