Eastern & Oriental Bhd (E&O) expects the maiden property launch of Seri Tanjung Pinang Phase 2A (STP2A) located off Tanjung Tokong in Penang island to take place in the second half of its current financial year ending March 31, 2022 (FY22).
Its managing director Kok Tuck Cheong said the group has continued to steer its course towards the imminent launch of the STP2A maiden project on the island which was delayed in FY21 due to the ongoing Movement Control Order arising from the Covid-19 pandemic.
Besides STP2A, E&O is also preparing to launch a high-end development in Damansara Heights, which is jointly developed with Mitsui Fudosan Asia Malaysia) Sdn Bhd.
Kok said that the group has received keen interest in the Damansara Heights project and finds this positive given the current market environment.
On the hospitality segment, besides E&O Hotel in Penang, the group will commence operations on Lincoln Suites, its first service apartment property in London at the end of this month, said Kok.
The 54-suites service apartment is operated by Cycas Hospitality and is located opposite the London School of Economics along Kingsway.
The timing of the opening coincides with the ending of Covid-19 restrictions in the United Kingdom in July 2021, said Kok in a statement issued today after the group's shareholders meeting.
E&O registered a revenue of RM304.7 million, which was 37 per cent lower year on year.
It said that revenue from the properties and hospitality segments fell 31 per cent and 76 per cent respectively over the same period, after being impacted negatively by the Covid-19 pandemic.
Given the continued uncertainties, E&O made further net impairments to its investment and property development assets of RM133.8 million resulting in a net loss of RM69.2 million for FY21.