Singapore JTC Corp net surplus surges 51% to $1.17b
Performance fuelled by strong results across all segments, write-back of losses
By EMILYN YAP
DRIVEN by the strong economy and buoyant industrial property market, JTC Corporation yesterday reported a group net surplus of $1.17 billion for the financial year ended March 31, 2008 - a 51 per cent jump from the previous year.
Mrs Ow: ‘We will keep a close watch on the market and share information on projected demand with private developers and industry associations’
The big improvement was fuelled by strong results across all segments. A write-back of impairment losses in a rising industrial space market also contributed to performance. Excluding the write-back and other exceptional items, the group net surplus is about 30 per cent higher than the previous year.
The FY2007 results do not take into account JTC’s divestment of $1.7 billion of flatted factories, stack-up buildings and ready-built assets to Mapletree Investments in July.
JTC still has similar properties in smaller parcels to sell. ‘There will be some that we are going to sell by trade sale,’ said CEO Ow Foong Pheng. ‘We will work through the programme and assess the best timing.’
The divestment plans are part of JTC’s strategy to gradually withdraw from industrial market segments with active private sector participation. But as the agency sells its portfolio of ready-built properties, it will continue to ensure the market stays competitive.
‘We will keep a close watch on the market and share information on projected demand with private developers and industry associations,’ Mrs Ow says in JTC’s annual report.
‘We will enhance supply mechanisms such as concept price tenders and Government Land Sales to include technical and user specifications where necessary, to plug any specific demand gaps that may arise.’
JTC saw record take-up rates for industrial land and space in FY2007. Net take-up for ready-built space was 2.65 million sq ft, while that for industrial land was 360 hectares - the highest level in 10 years.
Mrs Ow said demand for industrial space could slow as economic growth moderates. But JTC will continue to prepare industrial land ahead of time so it can meet higher demand once it comes.
Looking ahead, JTC will focus more on strategic projects to support Singapore’s industrial needs. ‘Innovation will be key to ensuring JTC’s sustained success,’ said Mrs Ow. The agency is working on projects that include a shared waterfront facility, small footprint high plot ratio factories and a ‘Very Large Floating Structure’ for oil storage.
JTC is also rejuvenating old industrial estates to optimise land use. For instance, it is redeveloping Tanjong Kling in the Jurong Industrial Estate into a focal point for high value-added manufacturing activity in food, electronics, environmental technology and oil and gas.
The JTC group has three subsidiaries - Ascendas, Jurong International and Jurong Port. Asked if there are plans to privatise any of them, Mrs Ow said: ‘We are still looking at it.’
Source : Business Times - 30 July 2008
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