KUALA LUMPUR: Eastern & Oriental Bhd’s (E&O) completion of the reclamation of Seri Tanjung Pinang Phase 2A (STP2A) last month marks a significant milestone for the group’s next growth trajectory.

“Our resources are focused towards the creation of a new prime seafront address, building further on the success we achieved in STP1,” said its managing director Kok Tuck Cheong.

“We are currently finalising the masterplan design, incorporating several bold, game-changing components to anchor STP2A as the truly unique and first choice destination to live, play and work in Penang. The maiden launch for STP2A is currently scheduled for the end of 2020.” 

Despite a muted property market this year, E&O continued to focus on inventory reduction and managed to sell RM181.9mil worth of properties in the first half of the group’s financial year, Kok said.

“This is a strong indication that our projects continue to command a market premium and appeal to astute investors. 

“We anticipate continued demand for properties in strategic locations backed by a reputable brand name. As such, we recently unveiled Conlay serviced residences centrally located in Kuala Lumpur City Centre and across from the Conlay Station Integrated Development.

“This is our second joint venture residential development with Mitsui Fudosan Group widely regarded as Japan’s largest real estate developer and is designed by renowned Kerry Hill Architects.

“We believe the strong fundamentals of Conlay; fine craftsmanship, a choice location and the partnership of two leading brand names make for a prime investment choice,” he said.

Meanwhile, E&O’s total revenue achieved for the first half ended Sept 30, 2019 (1H2020) decreased to RM271.4mil as compared to RM379.4mil recorded in the corresponding period last year.

The decrease in the group’s revenue was mainly attributed to the property segment, which recorded a revenue of RM240.4mil in 1H2020 as compared to RM334.9mil recorded in 1H2019.

The property segment was impacted by lower revenue recognition as the development projects in STP 1, namely The Tamarind and Ariza Seafront Terraces, were completed in the previous financial year. However, this was mitigated by continuing sales of the remaining inventories in STP1. 

The group’s hospitality segment registered a revenue of RM28.9mil in 1H2020 as compared to RM42.6mil in 1H2019. The decrease was mainly due to the temporary closure of the Heritage Wing of Eastern & Oriental Hotel since March for an extensive refurbishment exercise.

The Heritage Wing is set to re-open for business this month with newly appointed suites, F&B concepts and secured bookings for the refreshed Grand Ballroom. 

The group’s pre-tax profit for the current financial period was dampened by the unrealised foreign exchange loss amounting to RM16.3mil as compared to an unrealised foreign exchange gain of RM0.2mil in the previous corresponding financial period.

This led to a loss of RM10.7 mil recorded for 1H2020 as compared to the profit after tax after minority interest of RM32.5mil in the previous financial period.