Hongkong Land Holdings says underlying profit in in the first half of 2010 was US$477 million ($652 million) compared with US$281 million in the first half of 2009.

While rental income from the group’s commercial portfolio was stable, profit from the group’s residential activities increased significantly as two large projects in Singapore were completed. The results also benefited from a US$39 million share of a reversal of a writedown previously made in respect of The Estuary development in Singapore.

Profit attributable to shareholders was US$1,391 million including a US$914 million gain on investment property revaluations. The adjusted net asset value per share was US$7.21, a 9% increase from Dec 31, 2009.

This reflected the results of an independent valuation of the group’s investment properties at June 30, 2010, including the group’s share of properties in joint ventures.

Hongkong Land has declared an interim dividend of US¢6.00 per share, unchanged from 2009.

Commercial property
Vacancy in the group’s office portfolio in Hong Kong stood at 4.2% at June 30, 2010. Average rents remained stable and rent reversions were largely neutral. The retail portfolio in the Central district was fully leased.

In Singapore, there was growing demand from financial service companies for quality office space in Marina Bay. As a result, achieved rents were relatively firm despite the new supply of commercial space being built.

Construction of the group’s joint venture development, Marina Bay Financial Centre, continued on schedule. The first office tower is now completed with the second due by the year end.

Both towers, which comprise a total lettable area of 159,000 sqm, are almost fully let. Construction of a 122,000 sqm third tower is underway with completion expected in 2012, of which 55% is already committed.

The group’s joint venture in Jakarta commenced construction of a 61,000 sqm, 30-storey tower within its existing office development in the city, due for completion in 2012.

Residential property
The contribution from residential property was significant during the period. Two projects which had previously been pre-sold were completed, Marina Bay Residences, in which the group has a 33% interest, and MCL Land’s Waterfall Gardens project.

The second residential tower of the Marina Bay project, Marina Bay Suites, which will be completed in late 2013, is selling well with almost 60% of the 221 units sold. The launch in February of MCL Land’s project, The Estuary, was well received and all 608 units have been pre-sold. During the period, MCL Land acquired an additional site for future development.

The Serenade in Hong Kong is due to complete in the second half of the year, and approximately a third of the apartments were sold by the end of June. The profit arising on sale of apartments in Tower 4 of the 47%-held One Central Macau will also be recognised in the second half. The Group has announced the launch of 92 branded apartments to be sold in One Central Macau, which will be managed by Mandarin Oriental following the opening of its 213-room hotel in late June.

Another phase of the joint venture development Bamboo Grove in Chongqing comprising 261 townhouses, all but two of which have been sold, is scheduled for completion later this year. A further 427 units, including high rise apartments to be completed in later years, were released to the market and 254 had been sold by the end of June. In Beijing, sales continued at Maple Place, while development work on the Group’s other projects continued. Recent government measures to dampen the market have led to reduced sales throughout the country.