CAPITALAND on Monday updated its profit guidance for the six months ended June 30, 2020 with expectations that its total Patmi (profit after tax and minority interests) will be reduced by 85-95 per cent from the S$875.4 million recorded a year ago.

 

This is after taking into account a S$159.9 million effective share of revaluation losses from two of its listed investments, CapitaLand Mall Trust (CMT) and CapitaLand Commercial Trust (CCT), the property group said in a bourse filing.

 

It added that the trusts' financial results incorporated a loss on revaluation of their respective investment properties totalling about S$553.9 million. 

 

The group has an interest of 28.49 per cent in CMT, and 29.42 per cent in CCT. CMT posted its Q2 results on July 23, and CCT on July 22.

 

CapitaLand added that there are no changes to the expected reduction in operating Patmi and cash Patmi disclosed in its earlier profit guidance on July 6.

 

The company said then that its operating Patmi - which refers to profit from business operations excluding any gains or losses from divestments, revaluations and impairments - is expected to decline by 25 per cent to 35 per cent for H1 2020, from the S$361.3 million it posted a year ago.

 

Meanwhile, cash Patmi - comprising operating Patmi and portfolio gains - is expected to tumble by 40 to 50 per cent, from S$496 million previously.

 

CapitaLand will release its results before the start of trading on Aug 7.

REAL estate giant CapitaLand is commencing construction for the first phase of the International Tech Park Chennai (ITPC), Radial Road.

 

Located along Chennai&rsquo s IT corridor, the 23.3 acre (9.3 hectare) IT park has 4.6 million square feet (sq ft) of development potential for premium Grade A office space.

 

The first phase of the development will comprise two buildings offering 2.6 million sq ft of office space for IT and IT-enabled services (ITeS) companies. The first block will be operational by Q4 2022, while the second block will be up and running by Q2 2024.

 

When fully developed, the tech park will have amenities such as restaurants, food courts, a fitness centre, a clinic, a childcare centre and event spaces.

 

Chennai is one of CapitaLand&rsquo s key markets for growth. &ldquo It is the most diversified market for us in India and we have invested in IT parks, industrial townships, warehousing and lodging in the city,&rdquo said Vinamra Srivastava, chief executive of business parks at CapitaLand India.

 

The group&rsquo s two operational IT parks in Chennai - ITPC at Taramani and CyberVale - are both fully occupied. 

 

The new park will thus offer more options for IT and ITeS companies to expand their businesses in the city. 

 

ITPC, Radial Road has been pre-certified with a Platinum rating by the Indian Green Building Council. It will be designed with green features to achieve water and energy efficiencies, such as having office spaces that are 75 per cent naturally lit as well as luscious landscape complementing Chennai&rsquo s weather and ecosystem. 

 

This will be a draw as tenants increasingly place sustainability as a top priority, said C Velan, head of Chennai operations at CapitaLand India.

 

The group on Monday unveiled ITPC, Radial Road in a virtual ceremony graced by Tamil Nadu Chief Minister Shri Edappadi Palaniswami.

 

It will be CapitaLand&rsquo s third IT park in India and eighth property in Chennai. The other properties include OneHub Chennai, a 1,250 acre integrated industrial township two logistics and warehouse facilities and two lodging properties.

 

In India, CapitaLand has a portfolio of over 20 business and IT parks, industrial, lodging and logistics properties across seven cities: Bangalore, Chennai, Goa, Gurgaon, Hyderabad, Mumbai and Pune.

 

Said Mr Srivastava: &ldquo We will continue to balance our growth across key markets in India as we look to increase our assets under management in the country.

 

&ldquo To achieve this, we are investing in developing a strong pipeline of projects and working with potential capital partners to grow our fund management business in India in the next few years.&rdquo

 

Separately, CapitaLand on Monday morning said it now expects total profit after tax and minority interests to fall by 85-95 per cent for the first six months of this year, from the S$875.4 million recorded a year ago.