STAMFORD LAND CORPORATION LTD
CHAIRMAN’S MESSAGE
DEAR SHAREHOLDERS,
Despite a challenging year, I am pleased to
announce that the Group’s operating profit
increased 31.9% to S$65million on an increased
turnover of S$307million for the year ended 31
March 2015.
Of the three divisions under the Group (Property
Development, Investment and Hotels), property
development was the main contributor at
S$21.5million. S$4.2million in sales commission
for Macquarie Park Village (“MPV”) and a fair value
write down of S$7.8million for property investment
were also accounted for.
A key factor in the improved performance of the
property development division was our decision
to take profit with the sale of the Dulwich Hill site.
This resulted in a pre-tax gain of S$24million, an
outcome comparable to our seeing through the
completion and sale of units.
As an update, Stamford Grand North Ryde officially
ceased operations in January 2015 after 21 years
of service and contribution to the Group. In its
place, at 648 units, MPV ranks among the biggest
residential projects in Sydney, and is favourably
located in one of the most sought after precincts.
Construction at MPV commenced in February
2015 following the signing of the construction
contract in December 2014. This was followed by
the inking of the construction loan agreement and
the award of the project management contract to
an external party. With the prospects of yet more
projects, it is imperative to engage professional
project managers to coordinate the development
process. This will also ensure cost discipline,
keeping fixed costs down with variable overheads
and fees commensurate with ongoing projects.
Last year, I reported having pre-sold, off the
plan, 622 units (or 96% of total available units) at
MPV. It transpired that approval for development
application (DA) for a portion of the carparks was
not granted and as such the sale of some 142
units subsequently bereft of carparks is under
reconsideration, with some potentially being
rescinded. Consequently, a resale campaign is
underway. The buoyant Sydney property market
means that many of these units could be resold at
valuations higher than earlier listed.
Earlier, I also informed shareholders about the
proposed value enhancement to our property Sir
Stamford at Circular Quay on the historic Macquarie
Street. We had submitted a DA to prepare for
redevelopment if necessary.
Following the submission, redevelopment plans
were challenged by the owner of an adjacent
building and adjudicated before the courts.
Although our application had not been approved
in its current form, it is within the prerogative and
strategy of the Group to continue to seek the best
use of our assets. Besides alternative uses, the
property continues to turn in stellar results in the
5-star hotel market for FY2015.
PROSPECTS
For the hotel owning and management segment,
while revenue suffered a slight dip, gross operating
margins were maintained, in part due to improving
operational efficiency. With the completion of
staged refurbishment works, average room rates
are expected to improve.
Over the years, the Group’s dedication to service
excellence has been consistently recognised.
Adding to the collection of global awards, Stamford
Hotels and Resorts was honoured to receive
the 2014 WORLDHOTELS Annual Conference
Best Online Marketing Award. In addition, for the
second consecutive year, Stamford Plaza Sydney
Airport won the accolade for 2015 Best Airport
