Credit House Limited

In 2010, management was focussed on completing the major capital expenditure works and securing new and existing tenants within the building. Whist this has made for a challenging year, the significant progress made in both these critical areas has positioned the building well for the coming years.

Credit House Limited recorded an operating profit before tax of K4.00 million in 2010 and whilst this is slightly lower than 2009, it should be noted that the tenancy movements and interest on the loan facility for the major upgrades have impacted on profitability. Having secured good new tenants on long term leases and re-signing existing tenants, the building is now well positioned to achieve increased profitability in the coming years.

The two major projects completed in 2011 were the upgrade of the lifts and the retrofit of a new air conditioning system in the building. For the duration of these projects, all tenants remained in-situ and normal building operations were maintained throughout; probably the first time this has ever been successfully achieved in a commercial building in Port Moresby.

In 2011 we will be completing the final stage of the major capital expenditure works, being the main entry and exterior upgrade. This is expected to be completed by the middle of the year and will greatly enhance and modernise the building aesthetics.

Era Dorina Limited

The Stage 4 apartment building, including the gymnasium facility, lap pool and walking track have greatly improved the standard of living and enjoyment for tenants residing at Era Dorina Estate. Whilst demand for residential accommodation remained high throughout the year, these additional facilities, and the high standard of service we maintain, have generated a lot more interest in the market with more prospective tenants registering on the waiting list.

We are pleased to report that Era Dorina Limited posted another record operating profit before tax of K11.18 million in 2010, an increase of 54% from the previous year. We expect this performance to continue in 2011.

With the property enjoying this level of success, the Board has approved the development of a further twenty, one-bedroom apartments. This development will be located below the existing Stage 3 and Stage 4 residences and once completed, the property will boast the full range of residential accommodation.

Just as important will be the interior upgrade of the Stage 1 and Stage 2 townhouses and apartments, as well as the expansion of the gymnasium facilities. The interior upgrade in particular will ensure the tenants currently residing in these two stages not only enjoy modern facilities but also guarantees the accommodation we provide will remain competitive against the newer developments being completed around the city.

Although demand may be affected by new units coming on line, we believe the service, facilities and standard of accommodation will ensure the Era Dorina Estate continues to perform well in the coming years.

Rennie Wekina
General Manager Properties