SINGAPORE (Aug 30): OKH Global, the construction and property group, reported full year losses widened to $70.34 million in FY17 from $16.89 million in FY16 due to $66.27 million in impairment and revaluation losses.
The group undertook a property valuation exercise on all its property assets resulting in an impairment loss on property, plant and equipment of $15.86 million, a loss on revaluation of its investment properties of $27.22 million, a loss on revaluation of asset held for sale of $11.46 million and a loss on revaluation of completed property held for sale of S$10.47 million.
Full year revenue came in 77.6% higher at $134.54 million compared to $75.78 million a year ago largely due to the group’s property development segment as a result of its development project, Ace@Buroh which has obtained its temporary occupancy permit (TOP) during the financial year.
Revenue from property development rose by 91.1% in FY17 to $122.82 million compared to $64.26 million in FY16 with revenue recognition from Ace@Buroh which achieved its TOP in March.
Revenue recognised from the provision of construction services to third parties was down by 83.4% to $0.16 million due to the completion of most of the group’s third parties construction contracts.
Revenue from property investment increased by 9.3% to $11.57 million mainly due to rental income received from the leased units in Loyang Enterprise Enterprise.
Despite the current state of the industrial real estate market in Singapore, OKH says it will start looking for attractive industrial land for development opportunities.
Given its success in Addition & Alteration (A&A) works and rental income from its Kim Yam Road, Herencia property, the group will continue to look out for opportunities to undertake A&A to similar buildings to generate a recurrent income stream.
OKH will also be tapping on its business networks to pursue overseas businesses in the region.
Shares in OKH closed 0.2 cent lower at 4.1 cents on Tuesday.
