Zhitong Financial App News, LHN (01730) announced that as far as the Group's space optimization business is concerned, it is expected that the residential business division will achieve strong performance in the second half of fiscal year 2023, mainly driven by Coliwoo's cohabitation business (including student dormitories, serviced apartments, residences and hotels). As of June 30, 2023 (third quarter of fiscal year 2023), the Group managed a total of 2,064 properties, divided into its Singapore Cohabitation Project and 85 SOHO projects.
The occupancy rate of its major projects remained strong in the third quarter of fiscal year 2023. As of September 7, 2023, the occupancy rate of Coliwoo Orchard, the largest co-habitation house in the Orchard Road area, was 90%, while the occupancy rates of Coliwoo Lavender and Coliwoo 298 River Valley were 85% and 100%, respectively. In the third quarter of fiscal year 2023, the average rent for the Coliwoo project ranged from SGD 2,200 to SGD 3,500.
404 Pasir Panjang and 48 and 50 Arab Street are undergoing construction and/or renovation works and will be converted into co-living spaces. It is hoped that they will be put into operation in the second quarter of the fiscal year ending September 30, 2024.
As far as the property development business is concerned, 55 Tuas South's industrial property is currently in the substructure and foundation engineering stage, and is expected to be put into operation in the fourth quarter of the financial year ending September 30, 2024.
As far as the facility management business is concerned, Xianneng is committed to becoming a trustworthy and reliable supplier that provides various facility management services (including cleaning, pest control, disinfection and fumigation), thereby expanding its market share. Since May 2023, the Group has been through the subsidiary Industrial & Commercial Goods Management Pte. (ICFM) successfully obtained 35 new facility management contracts and re-tendered 22 contracts to provide worry-free and comprehensive integrated facility management services.
The Group is also committed to providing intelligent parking solutions to optimize space utilization, thereby becoming a leading provider of parking services and solutions in Singapore and Hong Kong. Since May 2023, the Group has launched 6 car park projects (with 760 parking spaces), and its parking capacity continues to grow.
As far as the energy business is concerned, the Group is actively expanding its energy business portfolio. To date, LHN Energy has successfully installed and managed a total of 21 solar projects, with a total renewable energy generation capacity of 3.1 megawatts. Four more projects are underway and are expected to generate 0.6 megawatts.
Furthermore, the Group signed a 15-year power purchase agreement with Management Corporation Strata Title No. 695 (MCST 695) in July 2023, including LHN Energy Resources Pte, a wholly-owned subsidiary of the Group. Ltd. will invest in installing a peak solar photovoltaic system of approximately 352 kilowatts on the roof of the MCST 695 building in the 200 Jalan Sultan Textile Center.
The system is being installed and is expected to be put into operation by the end of October 2023. The system consists of 618 solar panels and is expected to provide up to 369 megawatt-hours of electricity per year. LHN Energy Resources Pte. Ltd. will own and maintain the system during the contract period, and use the project to demonstrate how solar energy can be used in a multi-storey building to reduce operating costs.
As far as the logistics service business is concerned, in August 2023, the Group completed the sale of all 84.05% of LHN Logistics Limited's shares to Milkyway International Chemical Supply Chain Pte. Ltd. (Milkyway Chemical Supply Chain Service Co. Ltd. (a subsidiary of Ltd.), at a cost of SGD 31.9 million. The Group reduced the net cash available for injection of SGD 28.8 million (that is, income of SGD 31.9 million, minus LHN Group Pte. Ltd.'s JTC expenses of SGD 3.1 million) reduced its net asset liability ratio and will be used for other general working capital purposes.
In addition to spin-off and sale of LHN Logistics Limited, the Group has also been very active in implementing capital circulation plans since the beginning of 2023. In January 2023, the group spun off the car-sharing platform GetGo Technologies Pte for 7.9 million Singapore dollars. 20% equity interest in Ltd. Subsequently, the group sold Coliwoo East Pte in April 2023. 50% of Ltd's shares earned a net gain of S$11.8 million.
These capital cycle plans are implemented to ensure a healthy balance sheet and fund the growth of Coliwoo's business. The total cash proceeds received from these capital rotation schemes amounted to SGD 48.5 million. The Group continues to seek asset cash out opportunities that can enhance shareholder value.