Free audio stream, including stories that are padlocked on our site. Listen on any device, anywhere. Updated twice daily. The audio stream takes several seconds to start on Android devices.Launch Radio player
CDL Investments, the residential property developer controlled by Millennium & Copthorne Hotels New Zealand [NZX: MCK], posted a 44 percent gain in first-half profit after doubling its sales of sections at developments in Auckland, Hamilton and Rolleston.
Profit rose to $8.2 million in the six months ended June 30, from $5.7 million a year earlier, the Auckland-based company said in a statement. Sales rose to $24.9 million from $15.3 million.
CDL sold 133 sections in the first half from its Harrowglen development in Auckland, Magellan in Hamilton and Stonebrook at Rolleston, south of Christchurch. It sold 68 sections in the same period last year. The company expects the pace of sales to slow in the second half in the face of rising mortgage rates and increased availability of property. As a result, full-year profit was expected to be in line with its 2013 earnings of $13.4 million, it said.
"We do expect sales to be slightly softer in the second half of the year than the first," said managing director Boo Keng Chiu. "Forecast increases in mortgage interest rates and property availability generally will impact the property markets."
The shares, which are 67 percent owned by Millennium & Copthorne, rose about 2 percent to 52 cents. The stock has declined about 9 percent in the past 12 months while the NZX 50 Index gained 14 percent. Millennium & Copthorne rose 5.8 percent to $1.27.
CDL said it had acquired a further 4.1 hectares of land in Auckland, while completing additional stages of subdivisions in Hamilton and Rolleston and progressing with earthworks at its Prestons Road site in Christchurch.