The property division of YTL Corporation Berhad performed significantly better in the first half of its current fiscal year, which ends June 30, 2022, due to sales recorded under the Brabazon project in the United Kingdom (UK).
The division earned RM459.1 million in total revenue for the six months ended December 31, 2021, up from RM83 million in the previous corresponding six months ended December 31, 2020, and returned to profitability.
Brabazon, a mixed-use development scheme - a new neighbourhood for Bristol - is being built on the former Filton Airfield, the largest brownfield site in the South West - by YTL Developments (UK) Ltd.
The construction of the 143.3 hectare (ha) Brabazon will take more than ten years.
The current masterplan calls for the construction of 2,675 homes, including studio, one, two, and three-bedroom apartments, as well as two, three, and four-bedroom houses, as well as 25.1ha of commercial space and community amenities such as schools, a library, a doctor's surgery, and sports facilities.
The first phase, with 302 houses and apartments, is the Hangar District.
YTL Developments has sold more than 75 per cent of its first batch of 40 houses and apartments, which were released last year. The majority of the units sold range in price from £300,000 to £450,000.
Due to high demand, the UK firm is reportedly planning to build 1,000 more homes at Brabazon as part of a revised master plan.
The new figure of 3,675 homes could nearly double to 6,500 in the future, if infrastructure permits, under a "flexible framework" sought by the developer.
For the six months ended December 31, 2021, YTL reported higher revenue and net profit at the group level, owing to improved performance not only in its property segment but also in utilities.
Group revenue increased by 35.9 per cent to RM11.92 billion from RM8.77 billion the previous year. Net profit increased by 79.9 per cent to RM241.3 million from RM134.1 million.
Tan Sri (Sir) Francis Yeoh Sock Ping, YTL's executive chairman, said in a statement that YTL also received a larger share of profits from Starhill Global REIT in Singapore.
YTL Starhill Global REIT Management Limited manages Starhill Global REIT, and YTL indirectly owns all of its shares.
Since its initial listing in Singapore in September 2005, the REIT has expanded its portfolio from two landmark properties on Singapore's Orchard Road to ten properties in Singapore, Australia, Malaysia, China, and Japan, valued at approximately S$2.97 billion as of June 30, 2021.
YTL also has a stake in YTL Hospitality REIT, which reported a 14 per cent increase in revenue to RM180 million.
Its distributable income grew by four per cent to RM36 million, while its net property income (NPI) grew by 11.1 per cent to RM113.5 million.
Yeoh, the executive chairman of Pintar Projek Sdn Bhd, the Trust's Manager, said that revenue and NPI in the Trust's hotel segment increased due to improved performance by its Australian portfolio as a result of participation in the government isolation group business programme as well as internal cost-cutting efforts.
Revenue and NPI in the property rental segment remained stable at similar levels to the same period last year, he said.
"In the meantime, in our hotels segment, better performance of our hotels in the UK and Malaysia led to higher revenue in the current period," Yeoh said.