KUALA LUMPUR: Eastern & Oriental Bhd (E&O) announced its financial results for the nine months ended Dec 31, 2019, where total revenue achieved for the period was RM390.6mil as compared to RM636.3mil in the nine months ended Dec 31, 2018.
The lower group revenue was mainly attributable to the lower revenue by the property segment which recorded a revenue of RM339.4mil in YTD 3Q2020 as compared to RM569.5mil in YTD 3Q2019. This was due to lower revenue recognition from Seri Tanjung Pinang 1, namely The Tamarind and the Ariza Seafront Terraces which were completed in the previous financial year.
The group’s three joint venture projects, namely Avira in Medini Iskandar and The Mews and Conlay in Kuala Lumpur City Centre contributed a total revenue of RM67.5mil in YTD 3Q2020 which was comparable to the total revenue of RM67.6mil achieved in YTD 3Q2019.
On the other hand, the group’s hospitality segment registered a revenue of RM47.3mil in YTD 3Q2020 as compared to RM64.9mil in YTD 3Q2019. This was mainly due to the temporary closure of the Heritage Wing of Eastern & Oriental (E&O) Hotel from March to December 2019 for an extensive refurbishment exercise.
The Heritage Wing re-opened for business in December 2019 with newly appointed suites, F&B concepts and secured bookings for the refreshed grand ballroom. Commenting on the financial results, E&O managing director Kok Tuck Cheong said, “Moving forward, our sales and marketing efforts are focused on Conlay serviced residences centrally located in Kuala Lumpur City Centre.”
This iconic development with a gross development value (GDV) of RM968mil marks our second joint venture residential development with Mitsui Fudosan Group, Japan’s largest real estate developer.
“We are currently previewing the first phase of 297 units and have garnered interest from both the local and international market,” he said, adding that the successful partnership with Mitsui was further cemented with the signing of a third joint venture in December 2019, testament of the confidence that the E&O brand garners.
This latest partnership is to develop 3.94 acres of freehold land in the most prime and elevated parcel of land in Damansara Heights. Comprising low rise condo-villas totalling 54 units with a GDV of RM348mil, the development is slated for launch in the second half of 2020.
“On the hospitality front, we are extremely proud of the re-opening of the refurbished Heritage Wing of the E&O Hotel. Conserving the legacy of this heritage icon, the refreshed suites and new F&B outlets have resulted in higher occupancy levels and increased average room rates,” Kok concluded.