Samrand bounces back

Posted On Monday, 23 December 2002 10:01 Published by
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Property development group Samrand Development Holdings moved back into the black for the six months to end- September, with interim headline earnings a share of 2,6c compared with a loss of 2,3c in the previous comparable period
Property development group Samrand Development Holdings moved back into the black for the six months to end- September, with interim headline earnings a share of 2,6c compared with a loss of 2,3c in the previous comparable period. The improvement follows a decision to diversify the group's operations into commercial property holdings.

The group, owned by Malaysian investor Samsudin Abu Hassan, reported revenue of R24m up from R3,9m.

Samrand went through a major restructuring process during the 2001 financial period. It disposed of some of its major assets, including the multimillion rand residential golf estate in Midrand, the Blue Valley Estate (formerly the Samrand Golf and Country Estate).

It acquired the remaining 50% interests in Samstocks for a consideration of R2m. Samstocks, previously a 50%owned Samrand arm, is an investment vehicle holding commercial properties in Pretoria, Cape Town, Durban, Port Elizabeth and Sun City

The group said its interim land sales, which added up to R3m, came in below expectations due to depressed trading conditions within the property development market. However, rental income of R21m from the various office and commercial complexes owned by the group, have met expectations.

The group said rental income was impressive despite some unexpected vacancies caused by tenants whose businesses ceased trading during the period.

It said the interim profit of R3,6m compared favourably with the loss reported for the same period last year.

Looking ahead, the group said a market survey on the potential of its Midrand real estate showed the land needed to be developed as it was poised to become more attractive due to the expansion of the Johannesburg/Pretoria link.

Business Day


Publisher: Business Day
Source: Inet Bridge

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