First Sponsor cautiously optimistic about a market turnaround in China

As a result, pre-sales for its China projects remained subdued. 

First Sponsor is cautiously optimistic about a market turnaround for its businesses in China, despite a weak property market sentiment in the third quarter of the year (Q3 2024), following recent Chinese regulatory easing measures.

According to the company, the weak sentiment caused pre-sales for its China property development projects to remain subdued in Q3. Most of these are at an advanced stage of construction, with some expected to be handed over within the next 15 months. 

Meanwhile, its 90.5%-owned entity which previously only owned the hotel component at Pitt Street in Australia has acquired the commercial space for $21.6m last September. 

As for its European portfolio, the group said that it performed strongly in Q3, with a total operating income of $21.2m, reflecting a 6% increase from the same period last year. 

The increase was driven by the newly acquired Allianz Tower Rotterdam as well as contributions from its hotel properties in Germany and the Netherlands. 

Moreover, the company expects the completion of its property-holding projects including redevelopments of hotels, office and residential components to enhance its recurring income.