Stamford Land Corporation plans to adopt an asset light strategy by divesting part of its hotel portfolio, while keeping the hotel management business.
The company will then reinvest proceeds from the divestment into what it sees is its core of investment properties, and will continue to expand its development business taking into consideration its track record in development.
The company will continue to explore the expansion of these sectors outside of Australia, New Zealand and the United Kingdom into other mature or developed markets.
“Stamford wishes to inform all shareholders that through its exploration exercise, it is likely to receive and review many divestment opportunities which are in line with its corporate growth strategy. Some of these may be in the nature of acquisitions, divestments and joint ventures,” the company says.
“As of today, no definitive agreements or arrangements have been entered into. There is no certainty that any of such divestments, acquisitions or joint ventures will materialise,” the company says in an SGX filing on March 27.
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In a separate announcement on March 19, the company announced it has completed the divestment of Stamford Green (formerly known as Dynons Plaza), a freehold property at 905 – 919 Hay Street, Perth Western Australia for A$67.8 million.
On Nov 12 2020, the company reported earnings of $1.5 million for the six months ended Sept 30 2020, down 89.8% y-oy. Revenue for the same period was down 57.7% to $40.1 million, as impact from the pandemic hits and the company temporary closed several of its hotels.
As at Sept 30 2020, the company’s net asset value was 65 cents per share, up slightly from 62 cents as of March 31 2020.
Stamford Land shares closed March 26 at 39 cents, up 4.05%.
