Delays in securing final payments from buyers of Monarch apartments of the Asian Hotels and Properties Ltd (AHPL), the John Keells Holdings (JKH) subsidiary, was the main reason for JKH’s 60% decline in profit for the quarter to 31 December 2009 in the property development sector, according to analysts.
“The bottom-line was impacted due to the expected profit recognition in the Monarch apartments not being entered in the books as they are not getting those last installments,” an analyst said. He said the ‘Emperor’ block too is reportedly behind schedule and is facing this same situation till 2012. The analyst, quoting company officials, said the remaining 36 apartments at Monarch are expected to be handed over in March 2009 and early January 2010.
He also noted that sales of the ongoing project ‘The Emperor’ have also been affected by the declining property value and the challenging economic situation. “Only 80% is pre sold though the company has not revised its original prices.
The construction of the project has also been affected due to road closures and the stringent security situation in the area,” he added. |
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