Allco Finance Group’s venture in Singapore has passed with flying colours. Allco Commercial Real Estate Investment Trust’s quarterly results exceeded forecasts made in the prospectus.
The trust which invests in commercial office properties in Singapore and Perth as well as invested interests in properties in Sydney and Melbourne, has reported a revenue of $S11.25 million for the third quarter of 2006 – 2.2% higher than the forecast amount of $S11.04 million.
However, the trust’s net property income for the quarter fell slightly short of forecasts at $S9.31 million, against its prospectus forecast of $9.54 million.
The trust it was 2.5% lower due to a timing mismatch between the average exchange rate for the 3Q 2006 used for the quarterly results and the hedged Australian net property income at $S1:$0.81.
More importantly, the amount available for distribution to unitholders was 5.5% higher at $7.56 million when compared to the prospectus forecast of $7.16 million.
Allco Singapore’s executive director Nicholas McGrath said the ongoing strength of both the Singapore and Perth office property market continue to support strong fundamentals of Allco REIT.
McGrath has also announced a distribution of 1.53 cents for the period, taking the annualised distribution to 6.06 cents.
Allco REIT’s portfolio comprises 100% interest in the China Square Central Property, a 50% interest in Central Park in Perth.
In addition, the trust has an investment of $A48 million in the Allco Wholesale Property Fund, which has a 50% interest in each of the Ernst and Young Centre and World Square Retail Complex and Public Car Park in Sydney; a 100% in 222 Exhibition Street in Melbourne and 100% interest in Neeta Shopping Centre in Sydney.
By Nelson Yap
