Published October 18, 2008
GuocoLand in the red over forex paper losses
By ARTHUR SIM

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GUOCOLAND Ltd has reported a net loss of $2.8 million for the first quarter ended Sept 30, compared with a net profit of $27.7 million a year ago.
It attributed this mainly to unrealised mark-to-market foreign exchange loss of $19.2 million arising from the revaluation of US$300 million in bank loans as the US dollar appreciated against the Singapore dollar.
Group revenue fell 20 per cent to $153.1 million from a year ago due mainly to lower revenue recognised for property development projects in China. But it said that this was partially offset by higher revenue and cost of sales recognised for property development projects in Singapore. Cash and cash equivalents for the quarter came to $620.66 million, down from $1.53 billion a year ago.
The aggregate amount of the group's borrowings and debt securities repayable in one year or less (or on demand) at end-September was $163.75 million (secured) and $705.66 million (unsecured).
The amount repayable after one year as at end-September was $1.29 billion (secured) and $871.66 million (unsecured).
GuocoLand launched three developments in Singapore - Le Crescendo, The Quartz and The View @ Meyer. As at Oct 16, it said that it had achieved sales of 93 per cent for Le Crescendo, 91 per cent for The View @ Meyer and 68 per cent for The Quartz. In addition, Goodwood Residence is 17 per cent sold.
In China, its residential development at West End Point, in Feng Sheng, Xicheng District of Beijing, is 97 per cent sold and the retail units are currently being launched for sale.
In August, it launched 354 units in its Changfeng project called Guoson Centre Changfeng in Putuo District of Shanghai. To-date, 11 per cent has been sold.
It said that construction is in progress for the three developments located in Dong Cheng District of Beijing, Qixia District of Nanjing and Putuo District of Shanghai.
The group's 64.98 per cent subsidiary, GuocoLand (Malaysia) Berhad, currently has eight mixed residential development projects located in Rawang, Sungai Buloh, Cheras, Kajang, Sepang, Damansara Heights and Jalan Klang Lama.
GuocoLand also reported that Phase 1 in The Canary, a development located next to Vietnam Singapore Industrial Park in Binh Duong Province, is 96 per cent sold to date.
Loss per ordinary share for the period came to 0.34 of a cent. At the close of trading yesterday, Guocoland shares ended one cent down at $1.40.