KLL Fa 16Mm(27Mar (Converted)-1

Contents

Living Landmarks Corporate Profile 05 Significant Events 150 Awards and Accolades 152 Regional Network 156 CORPORATE STEWARDSHIP Chairman’s Statement 06 STATUTORY REPORTS AND ACCOUNTS Board of Directors 12 Building Sustainable Earnings Senior Management 20 Directors’ Report 162 Profile of Directors and Senior Management 24 Statement by the Directors 167 Interested Persons Transactions 27 Auditors’ Report 168 Group Financial Highlights 28 Consolidated Profit and Loss Account 169 Simplified Balance Sheet 29 Balance Sheets 170 Five-year Financial Profile 30 Consolidated Statement of Changes in Equity 171 Group Quarterly Results 31 Consolidated Cashflow Statement 173 Summary of Significant Accounting Policies 175 Driving Growth Notes to the Financial Statements 184 Corporate Governance 34 Significant Subsidiary and Investor Relations 44 Associated Companies 211 People Review 48 Corporate and Social Responsibility 55 CORPORATE INFORMATION Corporate Directory 217 Leveraging Strengths Key Personnel 218 Special Feature: Township Developments in Asia 66 Calendar of Financial Events 220 Corporate Structure 221 OPERATING AND FINANCIAL REVIEW Property Portfolio 223 Managing Risks Structure of Keppel Land Group 78 SHAREHOLDER INFORMATION Strategic Directions and Outlook 79 Statistics of Shareholdings 237 Financial Review 82 Notice of Annual General Meeting and Sensitivity Analysis 87 Closure of Books 238 Property Portfolio Analysis 88 Share Transaction Statistics 241 Value Added Statement 90 Proxy Form 243 Productivity Analysis 92 Economic Value Added 94 Corporate Liquidity and Capital Resources 95 Risk Management 97 Business Dynamics and Risk Factors 100 Critical Accounting Policies 101

Carving Competitive Edge Operations and Market Review 104 Contents

Carving Competitive Edge Operations and Market Review 104 Signature work, conceived through wit and grit, marks every Keppel Land endeavour. Local wisdom quickens our minds and hands as we script the future, push limits and reap rewards.

Living Landmarks Signature work, conceived through wit and grit, marks every Keppel Land endeavour. Local wisdom quickens our minds and hands as we script the future, push limits and reap rewards.

Living Landmarks Corporate Profile

Keppel Land is the property arm of the Keppel Group, one of Singapore’s largest multinational groups with key businesses in offshore and marine, infrastructure, and property.

With beginnings that date back to 1890, Keppel Land is today a leading property development company in Asia recognised for its award-winning premier residential developments and investment-grade commercial properties, and its high standards of corporate transparency and disclosure. It is geographically diversified in Asia with a current focus in Singapore, China, India, Vietnam, Indonesia and Thailand.

The Company is one of the largest listed property companies by total assets on the Singapore Exchange. It is part of the MSCI Singapore and FTSE EPRA/NAREIT indices. Keppel Land’s return on equity is among the highest in the property industry in Singapore. In 2005, the Company’s share of profits from overseas grew to 59% of net profit, exceeding the 50% target set for 2005.

Keppel Land aims to be a leading developer of quality properties in the region and a premier manager of property funds. Riding on strong economic growth and homeownership aspirations, favourable demographics and urbanisation trends, the Company has continued its expansion drive in the housing sector into new countries, cities and segments.

It has also embarked on developing large-scale residential townships in the region to tap on the demand for quality housing from the growing middle class population. The Group has a pipeline of more than 20,000 homes in residential townships across China, Indonesia and Vietnam.

In another step to unlock value for shareholders, Keppel Land is setting up K-REIT Asia, a real estate investment trust with an initial portfolio of four prime office buildings valued at $630 million. Apart from redeploying capital tied up in its investment buildings into development projects which provide quicker returns, K-REIT Asia will enlarge Keppel Land’s platform to generate fee-based income, in addition to the funds which have been established under its property fund management vehicle Alpha Investment Partners.

04 05 Corporate Profile

Keppel Land is the property arm of the Keppel Group, one of Singapore’s largest multinational groups with key businesses in offshore and marine, infrastructure, and property.

04 05 Chairman s Statement ’ On behalf of the Board, I present the Keppel Land Group report for the year ended 31 December 2005.

Dear Shareholders,

Financial Performance 2005 saw continued growth for Asia led by the two strong economies of China and India. Against this backdrop, Keppel Land continued to increase its development and investment activities in ASEAN, China and India during the year, recognizing that the incidence of home ownership in Asia is still relatively low compared with that of the developed economies.

Group turnover grew 23% from $476 million in 2004 to $586 million due to increased contribution from trading projects in Singapore and overseas. Operating and pre-tax profits were both higher by about 30% at $146.6 million and $183.4 million respectively.

Share of profits from overseas has exceeded 50% of the Group’s net profit, a target set for 2005 three years ago. Overseas contribution grew to 59% of net profit from 43% for last year due to strong residential sales, especially in China.

During the year, Keppel Land swapped its interest in the retail mall Parco Bugis Junction to raise its stake in the office tower Bugis Junction Towers to 100%. The exceptional gain of $37.8 million from the transactions was offset by provisions made for the diminution in the value of the Group’s investment in associated companies ($14.9 million) and hotels in Myanmar ($21.7 million). Taking into account the net exceptional gain of $1.2 million, Group net profit was $155.7 million, 17.3% higher than last year’s.

Net tangible assets per share increased by nine cents to $2.35. Return on equity increased from 8.6% for last year to 9.5%, which is among the highest in the property industry.

Net debt/equity ratio increased to 1.14 from 0.96 a year ago as a result of borrowings to finance new acquisitions in Singapore and overseas, and fund management activities.

Proposed Dividend The Board is recommending to shareholders a final one-tier dividend of 10% or 5 cents per share. Going forward, Keppel Land will be formalizing its dividend policy. In good years, the Company hopes to provide higher dividends to shareholders in tandem with better performance.

The dividend payout amounting to about $35.8 million is subject to shareholders’ approval at the Annual General Meeting scheduled on 28 April 2006. If approved, the dividend will be paid on 23 May 2006.

07 Chairman s Statement ’ On behalf of the Board, I present the Keppel Land Group report for the year ended 31 December 2005.

Dear Shareholders,

Net tangible assets per share increased by nine cents to $2.35. Return on equity increased from 8.6% for last year to 9.5%, which is among the highest in the property industry.

Net debt/equity ratio increased to 1.14 from 0.96 a year ago as a result of borrowings to finance new acquisitions in Singapore and overseas, and fund management activities.

07 Unlocking Value for Shareholders uptrend. Keppel Land benefited from the upturn as it Also in July 2005, the government relaxed several housing developments integrated with retail, commercial Keppel Land made further progress in the unlocking of sold more residential units and its office buildings saw measures for home buyers such as reducing the and leisure amenities. value from its office portfolio. It is setting up K-REIT Asia, higher occupancies. down payment, raising the loan quantum, and allowing a real estate investment trust with an initial portfolio of foreigners to qualify for permanent residence through China four prime office buildings valued at $630 million. K-REIT The office market in 2005 saw a take-up of almost investment in private property. Sentiments improved and China continued its strong growth with a GDP of 9.8% Asia is expected to be listed on the Singapore Exchange 2 million sf of new space, the highest in five years. drove sales volumes to almost 9,000 new homes for in 2005. To put a lid on escalating prices, the Chinese by way of an introduction, in the first half of 2006. According to CB Richard Ellis, average occupancy for 2005, some 50% higher than the previous year’s. government introduced anti-speculation measures in Grade A buildings was 92.5% at end-2005. Average April 2005. However, apart from Shanghai, the Group’s K-REIT Asia is important to Keppel Land’s two-pronged Grade A rentals rose 23% from a year ago to $5.70 psf Although an overall modest price increase of 3.9% was residential sales in Beijing and Chengdu were relatively strategy of property development for sale and property with a further projected growth of 25% for 2006. captured by the Urban Redevelopment Authority’s Private unaffected. About 90% of the 1,250 launched units at fund management. By setting up K-REIT Asia, Keppel Residential Property Price Index, higher-end projects The Seasons in Beijing, and more than 80% of 1,023 Land will be able to redeploy capital tied up in its Office demand came from the expansion of the financial with unique qualities saw brisk sales and higher price launched units at The Waterfront in Chengdu have investment buildings into development projects such sector, in areas such as wealth management, and the increases. Likewise, Caribbean at Keppel Bay and two been sold. as residential townships across Asia. simultaneous growth in professional services. According newly launched projects Park Infinia at Wee Nam and to the latest issue of Global Market Rentals, a publication The Belvedere saw good take-up. Two of the three 8 Park Avenue benefited from the revival of interest Besides, K-REIT Asia will help enlarge the Group’s platform by CB Richard Ellis, Singapore ranks 63rd trailing behind remaining good class Cluny Hill bungalow plots were in the Shanghai city centre in the third quarter of 2005. to grow its fee-based income, in addition to the funds Asian capitals Hongkong (8th), Seoul (19th), Mumbai also sold. In total, Keppel Land sold about 600 homes in To-date, some 98% of the 456 launched units have which have been established under its property fund (23rd), Taipei (31st), Ho Chi Minh City (39th), Shanghai Singapore in 2005. been sold. management vehicle Alpha Investment Partners. Pudong (43rd) and Shanghai Puxi (47th). Singapore’s competitive office rentals will attract multinationals and For 2006, the Company has lined up several exciting The resilience of the housing market strengthens the The creation of a second listed instrument will also give other companies wishing to have an Asian presence to residential developments, including unique waterfront Group’s resolve to enter secondary cities to tap on the shareholders more choice and flexibility on how they can tap on the growth of the region. Both Keppel Land and lifestyle projects in Marina Bay and Keppel Bay. World- genuine demand for good quality housing. It will continue invest in the Keppel Land Group. K-REIT Asia aims to K-REIT Asia will benefit from the demand for quality acclaimed architect Daniel Libeskind, known for designing to pursue township development to cater to the middle- provide shareholders with stable dividend income and office space in the good locations over the next few Freedom Tower to be built over the site of the former income segment, where demand is more resilient and long-term growth by investing in quality and high yielding years. World Trade Center in New York, will be designing the sustainable as most purchasers are actual end-users and commercial developments. In this regard, K-REIT Asia 1,000-unit condominium development in Phase Two of not speculators. will benefit from having a pipeline of assets which may In July 2005, Keppel Land jointly tendered for and won Keppel Bay, which is adjacent to Caribbean at Keppel Bay. be injected into its portfolio from the Group. the Business & Financial Centre (“BFC”) site, the second The Group’s joint venture township in Chengdu with In Specie site it will be developing in the new downtown at Marina Keppel Bay is located within Singapore’s true waterfront Surbana Corporation (previously known as HDB Keppel Land will return capital of approximately Bay with consortium partners Cheung Kong Holdings district which encompasses Sentosa Island with its Corporation) called The Botanica sold its first phase of 970 $264 million to shareholders by way of a Distribution and Hongkong Land. upcoming Integrated Resort, and VivoCity, the country’s units within eight months. The Botanica will be launching in the form of approximately 144.3 million upcoming largest retail and entertainment hub located about 1,500 units in its second phase later this year. K-REIT Asia units (comprising 60% of total units). The Located at the gateway to the new downtown, the first within the HarbourFront precinct. Distribution In Specie also transfers the benefit of the site One Raffles Quay has served as a barometer in The Group also jointly secured with Surbana a second Company’s entire remaining balance of Section 44A tax gauging the demand for prime Grade A office space. Situated within the waterfront enclave, a marina club is township development in Wuxi to build 5,000 homes credits of about $53.2 million to shareholders. Ahead of its completion this year, the development which being developed on Keppel Island. It will provide residents for the growing middle class. Keppel Land also signed offers 122,000 sm of space, has seen a pre-commitment of Keppel Bay with a unique waterfront lifestyle at their a Memorandum Of Understanding with Tianjin-Binhai Shareholders will receive 200 K-REIT Asia units for every of more than 70%. Blue-chip companies Ernst & Young, doorstep. Apart from providing berths to luxury yachts, Mass Transit Development Co, a subsidiary of Tianjin 1,000 ordinary shares held. Societal Generale Private Banking and Barclays Capital there will be a members’ lounge, alfresco and fine-dining Economic Development Area to explore opportunities have joined anchor tenants ABN AMRO, Deutsche Bank restaurants and spa facilities. for townships at strategic locations along the mass Shareholders will benefit from higher dividends from and UBS at One Raffles Quay. rail lines. properties under K-REIT Asia as its distribution policy is to distribute at least 90% of its taxable income every With confidence in Singapore’s continued development Overseas Entering a new segment in China, Keppel Land will also year. K-REIT Asia will distribute 100% of its taxable as the financial services hub of Asia, the consortium Strong demand for residential homes overseas, especially be launching its first villas in Shanghai and Tianjin in 2006. income for 2006, and at least 95% of its taxable income decided to embark on developing 244,000 sm of gross in China and India, has reinforced the Group’s decision for 2007. floor area (“GFA”) in the first phase of BFC. This is more to expand into the region for sustainable earnings. In India than twice the minimum area required and comprises total, the Group sold more than 2,700 residential units India, which is expected to register a GDP growth rate To demonstrate commitment, Keppel Land will retain 56% of the total GFA for the entire 3.55 ha site. The overseas. The Company has recently upped its stake of of 8%, is the second most attractive destination in Asia approximately 40% of K-REIT Asia units. Both Keppel consortium also purchased an option to buy the rest of Dragon Land Limited to 67%, making it a subsidiary of for foreign direct investment. Land and its majority shareholder Keppel Corporation the site within the next eight years. Keppel Land. It will reposition the China-focused developer have undertaken not to divest their shares of K-REIT Asia to capitalize on the middle-income housing market in Keppel Land jointly secured a second parcel of land in units for a year. Phase One will comprise two office towers (74% of secondary cities in China. Bangalore for a 1,100 unit high-rise condominium at GFA), and a 61-storey residential tower designed by Kanakapura Road with Puravankara, the same partner Major Developments world-renowned architects Kohn Penderson Fox Across Asia, there is inadequate good quality housing to of its first project Elita Promenade at J P Nagar. Elita Singapore Associates. Totalling about 400 units, the high-end match the rising aspirations of the growing affluent upper- Promenade, which comprises about 1,500 units, has seen Singapore grew at a robust GDP rate of 6.4% for 2005 residential homes are slated for launch in late-2006 to middle and middle-income groups. Keppel Land will encouraging response since its launch in August 2005. driven by manufacturing and services sectors. The tap on the strong demand for luxurious city living. pursue these opportunities in its residential projects as recovery in the office and residential sectors, which well as in its residential townships, which are large-scale 08 began in the second quarter of 2004, continued its 09 Unlocking Value for Shareholders uptrend. Keppel Land benefited from the upturn as it Also in July 2005, the government relaxed several housing developments integrated with retail, commercial Keppel Land made further progress in the unlocking of sold more residential units and its office buildings saw measures for home buyers such as reducing the and leisure amenities. value from its office portfolio. It is setting up K-REIT Asia, higher occupancies. down payment, raising the loan quantum, and allowing a real estate investment trust with an initial portfolio of foreigners to qualify for permanent residence through China four prime office buildings valued at $630 million. K-REIT The office market in 2005 saw a take-up of almost investment in private property. Sentiments improved and China continued its strong growth with a GDP of 9.8% Asia is expected to be listed on the Singapore Exchange 2 million sf of new space, the highest in five years. drove sales volumes to almost 9,000 new homes for in 2005. To put a lid on escalating prices, the Chinese by way of an introduction, in the first half of 2006. According to CB Richard Ellis, average occupancy for 2005, some 50% higher than the previous year’s. government introduced anti-speculation measures in Grade A buildings was 92.5% at end-2005. Average April 2005. However, apart from Shanghai, the Group’s K-REIT Asia is important to Keppel Land’s two-pronged Grade A rentals rose 23% from a year ago to $5.70 psf Although an overall modest price increase of 3.9% was residential sales in Beijing and Chengdu were relatively strategy of property development for sale and property with a further projected growth of 25% for 2006. captured by the Urban Redevelopment Authority’s Private unaffected. About 90% of the 1,250 launched units at fund management. By setting up K-REIT Asia, Keppel Residential Property Price Index, higher-end projects The Seasons in Beijing, and more than 80% of 1,023 Land will be able to redeploy capital tied up in its Office demand came from the expansion of the financial with unique qualities saw brisk sales and higher price launched units at The Waterfront in Chengdu have investment buildings into development projects such sector, in areas such as wealth management, and the increases. Likewise, Caribbean at Keppel Bay and two been sold. as residential townships across Asia. simultaneous growth in professional services. According newly launched projects Park Infinia at Wee Nam and to the latest issue of Global Market Rentals, a publication The Belvedere saw good take-up. Two of the three 8 Park Avenue benefited from the revival of interest Besides, K-REIT Asia will help enlarge the Group’s platform by CB Richard Ellis, Singapore ranks 63rd trailing behind remaining good class Cluny Hill bungalow plots were in the Shanghai city centre in the third quarter of 2005. to grow its fee-based income, in addition to the funds Asian capitals Hongkong (8th), Seoul (19th), Mumbai also sold. In total, Keppel Land sold about 600 homes in To-date, some 98% of the 456 launched units have which have been established under its property fund (23rd), Taipei (31st), Ho Chi Minh City (39th), Shanghai Singapore in 2005. been sold. management vehicle Alpha Investment Partners. Pudong (43rd) and Shanghai Puxi (47th). Singapore’s competitive office rentals will attract multinationals and For 2006, the Company has lined up several exciting The resilience of the housing market strengthens the The creation of a second listed instrument will also give other companies wishing to have an Asian presence to residential developments, including unique waterfront Group’s resolve to enter secondary cities to tap on the shareholders more choice and flexibility on how they can tap on the growth of the region. Both Keppel Land and lifestyle projects in Marina Bay and Keppel Bay. World- genuine demand for good quality housing. It will continue invest in the Keppel Land Group. K-REIT Asia aims to K-REIT Asia will benefit from the demand for quality acclaimed architect Daniel Libeskind, known for designing to pursue township development to cater to the middle- provide shareholders with stable dividend income and office space in the good locations over the next few Freedom Tower to be built over the site of the former income segment, where demand is more resilient and long-term growth by investing in quality and high yielding years. World Trade Center in New York, will be designing the sustainable as most purchasers are actual end-users and commercial developments. In this regard, K-REIT Asia 1,000-unit condominium development in Phase Two of not speculators. will benefit from having a pipeline of assets which may In July 2005, Keppel Land jointly tendered for and won Keppel Bay, which is adjacent to Caribbean at Keppel Bay. be injected into its portfolio from the Group. the Business & Financial Centre (“BFC”) site, the second The Group’s joint venture township in Chengdu with In Specie site it will be developing in the new downtown at Marina Keppel Bay is located within Singapore’s true waterfront Surbana Corporation (previously known as HDB Keppel Land will return capital of approximately Bay with consortium partners Cheung Kong Holdings district which encompasses Sentosa Island with its Corporation) called The Botanica sold its first phase of 970 $264 million to shareholders by way of a Distribution and Hongkong Land. upcoming Integrated Resort, and VivoCity, the country’s units within eight months. The Botanica will be launching in the form of approximately 144.3 million upcoming largest retail and entertainment hub located about 1,500 units in its second phase later this year. K-REIT Asia units (comprising 60% of total units). The Located at the gateway to the new downtown, the first within the HarbourFront precinct. Distribution In Specie also transfers the benefit of the site One Raffles Quay has served as a barometer in The Group also jointly secured with Surbana a second Company’s entire remaining balance of Section 44A tax gauging the demand for prime Grade A office space. Situated within the waterfront enclave, a marina club is township development in Wuxi to build 5,000 homes credits of about $53.2 million to shareholders. Ahead of its completion this year, the development which being developed on Keppel Island. It will provide residents for the growing middle class. Keppel Land also signed offers 122,000 sm of space, has seen a pre-commitment of Keppel Bay with a unique waterfront lifestyle at their a Memorandum Of Understanding with Tianjin-Binhai Shareholders will receive 200 K-REIT Asia units for every of more than 70%. Blue-chip companies Ernst & Young, doorstep. Apart from providing berths to luxury yachts, Mass Transit Development Co, a subsidiary of Tianjin 1,000 ordinary shares held. Societal Generale Private Banking and Barclays Capital there will be a members’ lounge, alfresco and fine-dining Economic Development Area to explore opportunities have joined anchor tenants ABN AMRO, Deutsche Bank restaurants and spa facilities. for townships at strategic locations along the mass Shareholders will benefit from higher dividends from and UBS at One Raffles Quay. rail lines. properties under K-REIT Asia as its distribution policy is to distribute at least 90% of its taxable income every With confidence in Singapore’s continued development Overseas Entering a new segment in China, Keppel Land will also year. K-REIT Asia will distribute 100% of its taxable as the financial services hub of Asia, the consortium Strong demand for residential homes overseas, especially be launching its first villas in Shanghai and Tianjin in 2006. income for 2006, and at least 95% of its taxable income decided to embark on developing 244,000 sm of gross in China and India, has reinforced the Group’s decision for 2007. floor area (“GFA”) in the first phase of BFC. This is more to expand into the region for sustainable earnings. In India than twice the minimum area required and comprises total, the Group sold more than 2,700 residential units India, which is expected to register a GDP growth rate To demonstrate commitment, Keppel Land will retain 56% of the total GFA for the entire 3.55 ha site. The overseas. The Company has recently upped its stake of of 8%, is the second most attractive destination in Asia approximately 40% of K-REIT Asia units. Both Keppel consortium also purchased an option to buy the rest of Dragon Land Limited to 67%, making it a subsidiary of for foreign direct investment. Land and its majority shareholder Keppel Corporation the site within the next eight years. Keppel Land. It will reposition the China-focused developer have undertaken not to divest their shares of K-REIT Asia to capitalize on the middle-income housing market in Keppel Land jointly secured a second parcel of land in units for a year. Phase One will comprise two office towers (74% of secondary cities in China. Bangalore for a 1,100 unit high-rise condominium at GFA), and a 61-storey residential tower designed by Kanakapura Road with Puravankara, the same partner Major Developments world-renowned architects Kohn Penderson Fox Across Asia, there is inadequate good quality housing to of its first project Elita Promenade at J P Nagar. Elita Singapore Associates. Totalling about 400 units, the high-end match the rising aspirations of the growing affluent upper- Promenade, which comprises about 1,500 units, has seen Singapore grew at a robust GDP rate of 6.4% for 2005 residential homes are slated for launch in late-2006 to middle and middle-income groups. Keppel Land will encouraging response since its launch in August 2005. driven by manufacturing and services sectors. The tap on the strong demand for luxurious city living. pursue these opportunities in its residential projects as recovery in the office and residential sectors, which well as in its residential townships, which are large-scale 08 began in the second quarter of 2004, continued its 09 Demand is coming from young professionals employed In early 2005, Alpha’s first fund Asia No1 Property Fund, Renowned architect Daniel Libeskind has also been Keppel Land as part of the Keppel Group has taken active in Bangalore, also known as India’s Silicon Valley, which managed by a joint venture with Henderson Global commissioned to design the Marina Bay IR for the bid. measures in putting together a framework and has one of the country’s fastest growing urban populations. Investors, had a final closing with a total fund size of It is envisaged that the IR will be one of the gems in the methodology for managing risks in all the Group’s Both residential projects will cater to the middle-to-upper- about US$243 million. The fund, which has invested in “necklace of attractions” in Marina Bay alongside the businesses. This importance of risk management is middle income groups seeking good quality residential properties in Hongkong, Singapore, Malaysia, South BFC and the Esplanade. underscored by the recent formation of a Board Risk developments with amenities and facilities. Korea and Japan, has the mandate to take on more risks Committee which is made up of five independent including development risks and may invest in markets Directors. Preparedness will help to mitigate the negative Vietnam such as China and Thailand. It has a diverse investor Corporate Governance and Transparency impact of the inevitable uncertainties. Vietnam continued to grow robustly with a GDP rate of base from UK, Europe, Australia, Asia and North America. Keppel Land received several awards for its efforts at 8.4% in 2005. Vietnam’s attempt at accession to the corporate disclosure and transparency. It was the only Keppel Land staff members have worked hard in growing World Trade Organisation and pledge of full realization Alpha’s second fund, Alpha Core Plus Real Estate Fund, property developer which made it to the Top 20 in the our business in Singapore and the region, against an of Asean Free Trade Area in 2006 are expected to spur had its first closing of US$165 million after securing two Business Times Corporate Transparency Index 2005 in increasingly competitive landscape. I wish to thank them further economic growth. institutional cornerstone investors from Europe and an expanded list of 644 companies from both the main for embracing the new challenges that lie in new markets Australia. The fund is expected to have its second closing and secondary boards of the Singapore Exchange. and businesses. Keppel Land’s first villa project in Ho Chi Minh City called soon with a fund size exceeding its initial target of US$250 Villa Riviera continues to see interest from wealthy locals million. This fund seeks to achieve more stable long- Keppel Land took the prestigious Gold Award for best I would also like to take this opportunity to thank and Viet Kieus or overseas Vietnamese. Some 64% of term returns by investing in the more mature markets annual report for companies with market capitalization shareholders, business partners and customers for their the 25 units launched have been sold at more than of Asia. of $500 million or more at the inaugural Singapore support. With the Board’s guidance and the efforts of US$400,000 each. Corporate Awards organized by The Business Times and management and staff, Keppel Land will continue to In October 2005, Alpha landed its first Islamic mandate supported by the Singapore Exchange. strive for sustainable earnings growth and increase To cater to the demand from the middle income group, to manage an existing US$150 million portfolio of Shariah shareholder value. the Group will build some 3,000 high-rise apartments in compliant properties in Asia. Alpha will also seek new For the Securities Investors Association of Singapore large-scale integrated development Saigon Sports City. investments to grow the portfolio to a target size of over Investors’ Choice Award, Keppel Land was The first phase is expected to be ready for sale in 2007. US$300 million by end-2007. The investments will be runner-up for Most Transparent Company under the conducted according to Islamic principles. Properties category. It also won a Merit Award for Indonesia corporate governance. With economic recovery, the rise of the middle income So far, the performances of the funds have exceeded group has seen a rise in demand for better quality homes investors’ expectations. When the three funds are Keppel Land also continues to hold the “Best in Class” in the suburbs of Jakarta. The Group’s township fully invested, assets under management (“AUM”) would status awarded by Norwegian financial institution development in Cakung will cater to this demand. The be about US$2 billion ($3.2 billion). Including K-REIT Storebrand for environment and social performance. The first phase of 300 homes is expected to be launched at Asia’s portfolio of $630 million, total AUM of the Keppel Company was also among six finalists for the Singapore the end of the year. Land Group would be about US$2.4 billion ($3.8 billion). Environment Reporting Award organized by the Alpha will continue to pursue opportunities in Asia to Association of Chartered Certified Accountants Singapore. In Surabaya, BG Junction, a retail-cum-commercial grow the fee-based income stream for Keppel Land. complex in the Central Business District, will see anchor The Company’s good track record in corporate disclosure tenant Carrefour starting its operations in mid 2006. This and transparency is a strength which supports all the Carrefour outlet, occupying some 12,000 sm, is the Integrated Resort Bid Group’s business activities including Keppel Land’s French hypermarket’s largest in the city. In April 2005, the Singapore government made the fund management business and integrated resort bid, Yours Sincerely, decision to proceed with two Integrated Resorts (“IRs”) providing assurance to investors, partners and associates. Thailand in Marina Bay and Sentosa. Keppel Land will continue to leverage on this area to The Thai economy displayed resilience despite surging grow our businesses. oil prices and rising interest rates. The residential market Keppel Land is focused on putting together a competitive should continue to grow at a moderate rate in line with bid with US-based Harrah’s Entertainment to develop a Acknowledgements economic growth. word-class IR in Singapore. The Keppel Land-Harrah’s Although the region seems to be on the path of recovery bid is one of four remaining for the Marina Bay IR. after reeling from the effects of 9/11, Bali bombing of Demand for landed housing remains positive. At Keppel Submissions will close on 29 March 2006. The 2002 and the severe acute respiratory syndrome outbreak Thai Properties (“KTP”)’s first development Villa Arcadia government is expected to award the bid in mid- 2006. in 2003, some uncertainties such as fluctuating oil prices LIM CHEE ONN at Srinakarin, about 50 villas have been sold as of end If the joint bid is successful, the Marina Bay IR will enable and Avian flu prevail. Both will have serious consequence Chairman February 2006. KTP will also launch Villa Arcadia at Keppel Land to tap into the tourism segment and generate in all markets. Furthermore, rising interest rates may Watcharapol comprising 270 double-storey landed homes a new stream of income. It may also be a platform for affect market sentiment in some markets. 28 February 2006 with modern tropical design in 2006. new business opportunities in countries in the region.

To enhance the total offering for the bid, the Keppel Fund Management Land-Harrah’s joint venture has forged alliance with some Keppel Land’s fund management arm Alpha Investment of the finest industry players: Meetings, Incentives, Partners (“Alpha”) has been able to tap on the strong Conferences and Exhibitions specialists SMG and CEMS, interest in Asian property from foreign funds. and leading convention venue Suntec Singapore; live entertainment company AEG Live; high-end retail giants 10 Gordon Group and Taubman Asia; and modern art 11 museum operator Centre Pompidou. Demand is coming from young professionals employed In early 2005, Alpha’s first fund Asia No1 Property Fund, Renowned architect Daniel Libeskind has also been Keppel Land as part of the Keppel Group has taken active in Bangalore, also known as India’s Silicon Valley, which managed by a joint venture with Henderson Global commissioned to design the Marina Bay IR for the bid. measures in putting together a framework and has one of the country’s fastest growing urban populations. Investors, had a final closing with a total fund size of It is envisaged that the IR will be one of the gems in the methodology for managing risks in all the Group’s Both residential projects will cater to the middle-to-upper- about US$243 million. The fund, which has invested in “necklace of attractions” in Marina Bay alongside the businesses. This importance of risk management is middle income groups seeking good quality residential properties in Hongkong, Singapore, Malaysia, South BFC and the Esplanade. underscored by the recent formation of a Board Risk developments with amenities and facilities. Korea and Japan, has the mandate to take on more risks Committee which is made up of five independent including development risks and may invest in markets Directors. Preparedness will help to mitigate the negative Vietnam such as China and Thailand. It has a diverse investor Corporate Governance and Transparency impact of the inevitable uncertainties. Vietnam continued to grow robustly with a GDP rate of base from UK, Europe, Australia, Asia and North America. Keppel Land received several awards for its efforts at 8.4% in 2005. Vietnam’s attempt at accession to the corporate disclosure and transparency. It was the only Keppel Land staff members have worked hard in growing World Trade Organisation and pledge of full realization Alpha’s second fund, Alpha Core Plus Real Estate Fund, property developer which made it to the Top 20 in the our business in Singapore and the region, against an of Asean Free Trade Area in 2006 are expected to spur had its first closing of US$165 million after securing two Business Times Corporate Transparency Index 2005 in increasingly competitive landscape. I wish to thank them further economic growth. institutional cornerstone investors from Europe and an expanded list of 644 companies from both the main for embracing the new challenges that lie in new markets Australia. The fund is expected to have its second closing and secondary boards of the Singapore Exchange. and businesses. Keppel Land’s first villa project in Ho Chi Minh City called soon with a fund size exceeding its initial target of US$250 Villa Riviera continues to see interest from wealthy locals million. This fund seeks to achieve more stable long- Keppel Land took the prestigious Gold Award for best I would also like to take this opportunity to thank and Viet Kieus or overseas Vietnamese. Some 64% of term returns by investing in the more mature markets annual report for companies with market capitalization shareholders, business partners and customers for their the 25 units launched have been sold at more than of Asia. of $500 million or more at the inaugural Singapore support. With the Board’s guidance and the efforts of US$400,000 each. Corporate Awards organized by The Business Times and management and staff, Keppel Land will continue to In October 2005, Alpha landed its first Islamic mandate supported by the Singapore Exchange. strive for sustainable earnings growth and increase To cater to the demand from the middle income group, to manage an existing US$150 million portfolio of Shariah shareholder value. the Group will build some 3,000 high-rise apartments in compliant properties in Asia. Alpha will also seek new For the Securities Investors Association of Singapore large-scale integrated development Saigon Sports City. investments to grow the portfolio to a target size of over Investors’ Choice Award, Keppel Land was The first phase is expected to be ready for sale in 2007. US$300 million by end-2007. The investments will be runner-up for Most Transparent Company under the conducted according to Islamic principles. Properties category. It also won a Merit Award for Indonesia corporate governance. With economic recovery, the rise of the middle income So far, the performances of the funds have exceeded group has seen a rise in demand for better quality homes investors’ expectations. When the three funds are Keppel Land also continues to hold the “Best in Class” in the suburbs of Jakarta. The Group’s township fully invested, assets under management (“AUM”) would status awarded by Norwegian financial institution development in Cakung will cater to this demand. The be about US$2 billion ($3.2 billion). Including K-REIT Storebrand for environment and social performance. The first phase of 300 homes is expected to be launched at Asia’s portfolio of $630 million, total AUM of the Keppel Company was also among six finalists for the Singapore the end of the year. Land Group would be about US$2.4 billion ($3.8 billion). Environment Reporting Award organized by the Alpha will continue to pursue opportunities in Asia to Association of Chartered Certified Accountants Singapore. In Surabaya, BG Junction, a retail-cum-commercial grow the fee-based income stream for Keppel Land. complex in the Central Business District, will see anchor The Company’s good track record in corporate disclosure tenant Carrefour starting its operations in mid 2006. This and transparency is a strength which supports all the Carrefour outlet, occupying some 12,000 sm, is the Integrated Resort Bid Group’s business activities including Keppel Land’s French hypermarket’s largest in the city. In April 2005, the Singapore government made the fund management business and integrated resort bid, Yours Sincerely, decision to proceed with two Integrated Resorts (“IRs”) providing assurance to investors, partners and associates. Thailand in Marina Bay and Sentosa. Keppel Land will continue to leverage on this area to The Thai economy displayed resilience despite surging grow our businesses. oil prices and rising interest rates. The residential market Keppel Land is focused on putting together a competitive should continue to grow at a moderate rate in line with bid with US-based Harrah’s Entertainment to develop a Acknowledgements economic growth. word-class IR in Singapore. The Keppel Land-Harrah’s Although the region seems to be on the path of recovery bid is one of four remaining for the Marina Bay IR. after reeling from the effects of 9/11, Bali bombing of Demand for landed housing remains positive. At Keppel Submissions will close on 29 March 2006. The 2002 and the severe acute respiratory syndrome outbreak Thai Properties (“KTP”)’s first development Villa Arcadia government is expected to award the bid in mid- 2006. in 2003, some uncertainties such as fluctuating oil prices LIM CHEE ONN at Srinakarin, about 50 villas have been sold as of end If the joint bid is successful, the Marina Bay IR will enable and Avian flu prevail. Both will have serious consequence Chairman February 2006. KTP will also launch Villa Arcadia at Keppel Land to tap into the tourism segment and generate in all markets. Furthermore, rising interest rates may Watcharapol comprising 270 double-storey landed homes a new stream of income. It may also be a platform for affect market sentiment in some markets. 28 February 2006 with modern tropical design in 2006. new business opportunities in countries in the region.

Board of Directors From left to right

Remuneration Committee Tsui Kai Chong Board Risk Committee

Audit Committee

Member Member Member

Remuneration Committee

Chairman Lim Chee Onn Nominating Committee Board Risk Committee Lim Ho Kee

Chairman Member Member

Board Risk Committee Member Nominating Committee Member Khor Poh Hwa

Managing Director Kevin Wong Kingcheung

13 12

Board of Directors From left to right

Remuneration Committee Tsui Kai Chong Board Risk Committee

Audit Committee

Member Member Member

Remuneration Committee

Chairman Lim Chee Onn Nominating Committee Board Risk Committee Lim Ho Kee

Chairman Member Member

Board Risk Committee Member Nominating Committee Member Khor Poh Hwa

Managing Director Kevin Wong Kingcheung

13 14 Board of Directors

Board Risk Committee Member Nominating Committee Member Niam Chiang Meng Lee Ai Ming

Audit Committee

Member

Board Risk Committee Chairman Heng Chiang Meng Choo Chiau Beng Teo Soon Hoe

Remuneration Committee Tan Yam Pin

Chairman From left to right

15 14 Board of Directors

Board Risk Committee Member Nominating Committee Member Niam Chiang Meng Lee Ai Ming

Audit Committee

Member

Board Risk Committee Chairman Heng Chiang Meng Choo Chiau Beng Teo Soon Hoe

Remuneration Committee Tan Yam Pin

Chairman From left to right

15 16 Mr Thai is a Certified Public Accountant. (Pte) Ltd. of Dynasty Corporation (S) Pte Ltd, Director United Engineers Limited and Prudential Assurance Company Singapore Mr Thai was a Director of Keppel Land Limited until his resignation on 16 March 2006. He is also Deputy Chairman Thai Chee Ken, 67 a Master degree from the Massachusetts Institute of Technology, USA. Mr Wong holds a Bachelor Degree in Civil Engineering with First Class Honours from Imperial College, London, and UK, USA and Singapore. Prior to joining Keppel Land Limited, Mr Wong had diverse experience in the industry working with companies of Commerce. is also a Director of K-Reit Asia Management Pte Ltd, Singapore Hotel Association and International Chamber and Director of Keppel Thai Properties Public Co Limited, Vice-Chairman and Director, Dragon Land Limited. He Executive Director since November 1993. He is Chairman and of Keppel Philippines Properties, Inc., Mr Wong has been Managing Director, Keppel Land Limited since January 2000. Prior to this appointment, he was Kevin Wong Kingcheung, 50 and remained as Member of Parliament until December 1992. June 1983 and concurrently Minister without Portfolio, Prime Minister’s Office from September 1980 to July 1983, 1978 to September 1980. Mr Lim was Secretary-General of the National Trades Union Congress from May 1979 to Member of Parliament in July 1977. He served as Political Secretary, Ministry of Science and Technology from August Mr Lim started his career in the Civil Service. He was Deputy Secretary, Ministry of Communications until elected as on Economic Issues, and a Member of the INSEAD Singapore International Council. to the ASEAN Business Advisory Council. Mr Lim is also Counsellor of The Conference Board’s Global Advisory Council Government of Yunnan Province, PRC. He is a member of the Singapore-US Business Council and Singapore representative Business Advisory Council, Economic Advisor to the Jiangsu Provincial Government, PRC and Consultant People’s In addition, Mr Lim is Co-Chairman of the Philippines-Singapore Business Council, Deputy Chairman Seoul International in the Advisory Board of Harvard Singapore Foundation. and k1 Ventures Limited. Mr Lim is the Honorary Chairman of National Heritage Board as well Deputy and Singapore-Suzhou Township Development Pte Ltd, and Board Member of the Monetary Authority Singapore Mr Lim is Executive Chairman of Keppel Corporation Limited. He Land Limited, MobileOne Ltd, (Honorary), Glasgow University. He is a Member of the Wharton Society Fellows, University Pennsylvania. Administration, Edward S. Mason Fellow, Kennedy School of Government, Harvard University; and a Doctor in Engineering Mr Lim holds a Lim Chee Onn, 61 Board of Directors Bachelor of Science (First Class Honours) in Naval Architecture, Glasgow University; a Master Public He received his PhD in Finance from New York University in 1988 and his Certified Financial Analyst qualification 1993. Eurodollar futures market. on prediction of corporate financial distress, capital structure, dividend policy, stock price behaviour and the His current research interests include financial markets and risk management. He has studied published papers School of Business. He is a Member the Board Governors, IP Academy, Singapore. Accounting, Faculty of Business Administration, the National University Singapore and Deputy Director Graduate the Singapore Management University. He was previously an Associate Professor in the Department of Finance and He was founding Dean of the School Business and Vice Provost of Undergraduate and Graduate Education at and Director of Fullerton Fund Management Company Ltd. He is currently Provost Professor SIM University. Professor Tsui is a Director of Keppel Land Limited since 2001. He also Chairman K-REIT Asia Management Tsui Kai Chong, 50 degree in 1968. Mr Lim studied at the London School of Economics where he obtained his Bachelor Science (Economics) Honours May 1997 to October 1998. December 1989 to October 1991. He was a member of the Committee on Singapore’s Competitiveness from Divestment Committee in 1987. He also sat on the Singapore Government’s Economic Planning Committee from Mr Lim served on the Board of Civil Service College as well Singapore Government’s Public Sector UBS (East Asia) and Member of the group executive board in Zurich. September 2000 as well Chairman of its Finance and Investment Committee. He was also previously Science (Singapore) Pte Ltd. He was a Director of Singapore Telecommunications Limited from October 1986 till private and public companies including Cycle & Carriage Limited, MCL Land CWT Distribution Ltd Herbal Mr Lim is Director of Keppel Land Limited. He Chairman Singapore Post Limited and a number Lim Ho Kee, 61 Mr Khor is a civil engineering graduate with Bachelor and Master degrees from the National University of Singapore. of the Society Project Managers. the President of Singapore-Suzhou Club (since its formation in February 2002) and immediate Past Mr Khor is a Member of the Network China Steering Committee, Singapore-British Business Advisory Council. He Suzhou Industrial Park Pte Ltd. Mr Khor is the Senior Adviser to CPG Corporation, Director of Keppel Land Limited since 1998 and China-Singapore Khor Poh Hwa, 56

17 16 Mr Thai is a Certified Public Accountant. (Pte) Ltd. of Dynasty Corporation (S) Pte Ltd, Director United Engineers Limited and Prudential Assurance Company Singapore Mr Thai was a Director of Keppel Land Limited until his resignation on 16 March 2006. He is also Deputy Chairman Thai Chee Ken, 67 a Master degree from the Massachusetts Institute of Technology, USA. Mr Wong holds a Bachelor Degree in Civil Engineering with First Class Honours from Imperial College, London, and UK, USA and Singapore. Prior to joining Keppel Land Limited, Mr Wong had diverse experience in the industry working with companies of Commerce. is also a Director of K-Reit Asia Management Pte Ltd, Singapore Hotel Association and International Chamber and Director of Keppel Thai Properties Public Co Limited, Vice-Chairman and Director, Dragon Land Limited. He Executive Director since November 1993. He is Chairman and of Keppel Philippines Properties, Inc., Mr Wong has been Managing Director, Keppel Land Limited since January 2000. Prior to this appointment, he was Kevin Wong Kingcheung, 50 and remained as Member of Parliament until December 1992. June 1983 and concurrently Minister without Portfolio, Prime Minister’s Office from September 1980 to July 1983, 1978 to September 1980. Mr Lim was Secretary-General of the National Trades Union Congress from May 1979 to Member of Parliament in July 1977. He served as Political Secretary, Ministry of Science and Technology from August Mr Lim started his career in the Civil Service. He was Deputy Secretary, Ministry of Communications until elected as on Economic Issues, and a Member of the INSEAD Singapore International Council. to the ASEAN Business Advisory Council. Mr Lim is also Counsellor of The Conference Board’s Global Advisory Council Government of Yunnan Province, PRC. He is a member of the Singapore-US Business Council and Singapore representative Business Advisory Council, Economic Advisor to the Jiangsu Provincial Government, PRC and Consultant People’s In addition, Mr Lim is Co-Chairman of the Philippines-Singapore Business Council, Deputy Chairman Seoul International in the Advisory Board of Harvard Singapore Foundation. and k1 Ventures Limited. Mr Lim is the Honorary Chairman of National Heritage Board as well Deputy and Singapore-Suzhou Township Development Pte Ltd, and Board Member of the Monetary Authority Singapore Mr Lim is Executive Chairman of Keppel Corporation Limited. He Land Limited, MobileOne Ltd, (Honorary), Glasgow University. He is a Member of the Wharton Society Fellows, University Pennsylvania. Administration, Edward S. Mason Fellow, Kennedy School of Government, Harvard University; and a Doctor in Engineering Mr Lim holds a Lim Chee Onn, 61 Board of Directors Bachelor of Science (First Class Honours) in Naval Architecture, Glasgow University; a Master Public He received his PhD in Finance from New York University in 1988 and his Certified Financial Analyst qualification 1993. Eurodollar futures market. on prediction of corporate financial distress, capital structure, dividend policy, stock price behaviour and the His current research interests include financial markets and risk management. He has studied published papers School of Business. He is a Member the Board Governors, IP Academy, Singapore. Accounting, Faculty of Business Administration, the National University Singapore and Deputy Director Graduate the Singapore Management University. He was previously an Associate Professor in the Department of Finance and He was founding Dean of the School Business and Vice Provost of Undergraduate and Graduate Education at and Director of Fullerton Fund Management Company Ltd. He is currently Provost Professor SIM University. Professor Tsui is a Director of Keppel Land Limited since 2001. He also Chairman K-REIT Asia Management Tsui Kai Chong, 50 degree in 1968. Mr Lim studied at the London School of Economics where he obtained his Bachelor Science (Economics) Honours May 1997 to October 1998. December 1989 to October 1991. He was a member of the Committee on Singapore’s Competitiveness from Divestment Committee in 1987. He also sat on the Singapore Government’s Economic Planning Committee from Mr Lim served on the Board of Civil Service College as well Singapore Government’s Public Sector UBS (East Asia) and Member of the group executive board in Zurich. September 2000 as well Chairman of its Finance and Investment Committee. He was also previously Science (Singapore) Pte Ltd. He was a Director of Singapore Telecommunications Limited from October 1986 till private and public companies including Cycle & Carriage Limited, MCL Land CWT Distribution Ltd Herbal Mr Lim is Director of Keppel Land Limited. He Chairman Singapore Post Limited and a number Lim Ho Kee, 61 Mr Khor is a civil engineering graduate with Bachelor and Master degrees from the National University of Singapore. of the Society Project Managers. the President of Singapore-Suzhou Club (since its formation in February 2002) and immediate Past Mr Khor is a Member of the Network China Steering Committee, Singapore-British Business Advisory Council. He Suzhou Industrial Park Pte Ltd. Mr Khor is the Senior Adviser to CPG Corporation, Director of Keppel Land Limited since 1998 and China-Singapore Khor Poh Hwa, 56

17 18 Town Corporation. Corporation Limited and Garratt’s Ltd. He also sits on the Board of Jurong Port Private Limited, a subsidiary Econ International Limited, Macquarie Infrastructure Fund Ltd, Orchard Parade Holdings Thakral Mr Heng was appointed to the Board on 1 March 2005. He holds directorships in various listed companies including Heng Chiang Meng, 60 He obtained a Master in Public Administration from Harvard University 1991. Mr Niam graduated from National University of Singapore with a Bachelor Social Sciences degree in Economics. Secretary with the Ministry of Health, and Vice President (News) with the Television Corporation of Singapore. the Ministry of Information, Communications and Arts, Permanent Secretary with Law, Deputy of the Housing & Development Board, Chairman Singapore Broadcasting Authority, Permanent Secretary with positions in other Singapore Government Ministries and Statutory Boards. He had served as Chief Executive Officer Prior to his current appointment with the Ministry of Community Development, Youth and Sports, Mr Niam held various Totalisator Board. SMRT Trains Ltd, SMRT Road Holdings Ltd and Singapore Sports School Ltd. He is a Member of the Development, Youth and Sports. He is also a Director in several companies, namely SMRT Corporation Ltd, Mr Niam was appointed to the Board on 1 June 2003. He is Permanent Secretary of Ministry Community Niam Chiang Meng, 47 of British Columbia and is a member the Canadian Institute Chartered Accountants. Mr. Tan holds a Bachelor of Arts in Economics, University Singapore, Master Business Administration, PowerSeraya Limited (as non-executive Chairman). He is also a Board Member of International Enterprise Singapore. Limited A/S (Denmark), Great Eastern Holdings Limited, Singapore Post Cisco Security Pte and Mr. Tan currently holds non-executive directorships in BlueScope Steel Limited (Australia), The East Asiatic Company Fraser and Neave Group. Mr. Tan has been a Member of the Public Service Commission Singapore since 1990. Breweries Limited, a subsidiary of Fraser and Neave Group in 1993 was appointed the Managing Director Director of the Fraser and Neave Group in October 2002. Mr. Tan served as Chief Executive Officer of Asia Pacific Mr. Tan was appointed a Director on 1 June 2003. A Chartered Accountant by profession, he retired as Managing Tan Yam Pin, 65 of the Supreme Court Singapore. Mrs Lee holds a Bachelor of Laws (Honours) degree from the University Singapore, and is an Advocate & Solicitor Neutrals of the International Trade Marks Association. Association – Singapore Group; Chairperson of the ASEAN subcommittee and Member International Panel and the Federation Internationale des Conseils en Propriété Industrielle; Vice-Chairperson, Asian Patent Attorney’s Mrs Lee serves on various other forums, including as Executive Committee Member of the Singapore Law Society Member of the Audit Committee HTL Holdings Limited. and intellectual property. Mrs Lee is also an independent Director, Chairperson of the Nomination Committee and of Rodyk & Davidson. She has practised law for more than 20 years in the areas commercial litigation, real estate Mrs Lee was appointed to the Board in November 2002. She is currently Deputy Managing Partner of law firm Lee Ai Ming, 51 Wharton Society of Fellows, University Pennsylvania. Mr Teo holds a Bachelor of Business Administration degree from the University Singapore. He is Member of Group Finance Director in 1985. the ranks and was seconded several times to various subsidiaries of Keppel Group before assuming position Mr Teo commenced his career with the Keppel Group when he joined Shipyard Pte Ltd in 1975. He rose through is a Director of several companies within Keppel Group including Offshore and Marine Ltd. Director of MobileOne Limited, k1 Ventures Limited and Singapore Petroleum Company Limited. In addition, Mr Teo Limited, Chairman of Keppel Telecommunications and Transportation Limited and Keppel Philippines Holding, Inc. Mr Teo is a Director of Keppel Land Limited, Senior Executive and Group Finance Corporation Teo Soon Hoe, 57 He is Singapore’s Non-Resident Ambassador to Brazil. Committee and Special on Mobile Offshore Drilling Units. of the American Bureau Shipping and Member Shipping’s Southeast Asia Regional MBA Advisory Committee. He is also Chairman of Det Norske Veritas South East Asia Committee and Council Member of Singapore Maritime Foundation and Port Authority Singapore. He is a Member the Nanyang Mr Choo sits on the Board of Directors k1 Ventures Limited and EDB Investment Pte Ltd is a Board Member Singapore Refining Company Pte Ltd and SMRT Corporation Ltd. Senior Executive Director of Keppel Corporation Limited and Chairman Singapore Petroleum Company Limited, Mr Choo is a Director of Keppel Land Limited, Chairman and Chief Executive Officer Offshore & Marine Ltd, Member of the Wharton Society Fellows, University Pennsylvania. upon Tyne. He attended the Programme for Management Development in Harvard Business School 1982 and is a Plan Scholarship to study Naval Architecture); and a Master of Science in Architecture, University Newcastle Mr Choo holds a Bachelor of Science (First Class Honours), University Newcastle upon Tyne (awarded the Colombo Choo Chiau Beng, 58 National Environment Agency. He is also Patron to Ju Eng Home for Senior Citizens. In community organisations, Mr Heng is Chairman of the Singapore Environment Council and a Board member San Community Development Council and Cheng Town Council. the Government Parliamentary Committees for Communications and Environment as well Ang Mo Kio-Cheng On the public front, Mr Heng served four terms as a Member of Parliament from 1984 to 2001 during which, he chaired Group from 1996 to 1998. Limited. Prior to his appointment in LKN-Primefield Limited, Mr Heng was Executive Director the Far East Organization He was a Director of LKN-Primefield Limited, listed regional hospitality company formerly known as Lim Kah Ngam and Overseas Union Bank Limited. He has held senior positions in several financial institutions including Citibank NA, Monetary Authority of Singapore, with Honours from the University of Singapore. Mr Heng began his career in the financial sector 1970 after graduating with a Bachelor of Business Administration

19 18 Town Corporation. Corporation Limited and Garratt’s Ltd. He also sits on the Board of Jurong Port Private Limited, a subsidiary Econ International Limited, Macquarie Infrastructure Fund Ltd, Orchard Parade Holdings Thakral Mr Heng was appointed to the Board on 1 March 2005. He holds directorships in various listed companies including Heng Chiang Meng, 60 He obtained a Master in Public Administration from Harvard University 1991. Mr Niam graduated from National University of Singapore with a Bachelor Social Sciences degree in Economics. Secretary with the Ministry of Health, and Vice President (News) with the Television Corporation of Singapore. the Ministry of Information, Communications and Arts, Permanent Secretary with Law, Deputy of the Housing & Development Board, Chairman Singapore Broadcasting Authority, Permanent Secretary with positions in other Singapore Government Ministries and Statutory Boards. He had served as Chief Executive Officer Prior to his current appointment with the Ministry of Community Development, Youth and Sports, Mr Niam held various Totalisator Board. SMRT Trains Ltd, SMRT Road Holdings Ltd and Singapore Sports School Ltd. He is a Member of the Development, Youth and Sports. He is also a Director in several companies, namely SMRT Corporation Ltd, Mr Niam was appointed to the Board on 1 June 2003. He is Permanent Secretary of Ministry Community Niam Chiang Meng, 47 of British Columbia and is a member the Canadian Institute Chartered Accountants. Mr. Tan holds a Bachelor of Arts in Economics, University Singapore, Master Business Administration, PowerSeraya Limited (as non-executive Chairman). He is also a Board Member of International Enterprise Singapore. Limited A/S (Denmark), Great Eastern Holdings Limited, Singapore Post Cisco Security Pte and Mr. Tan currently holds non-executive directorships in BlueScope Steel Limited (Australia), The East Asiatic Company Fraser and Neave Group. Mr. Tan has been a Member of the Public Service Commission Singapore since 1990. Breweries Limited, a subsidiary of Fraser and Neave Group in 1993 was appointed the Managing Director Director of the Fraser and Neave Group in October 2002. Mr. Tan served as Chief Executive Officer of Asia Pacific Mr. Tan was appointed a Director on 1 June 2003. A Chartered Accountant by profession, he retired as Managing Tan Yam Pin, 65 of the Supreme Court Singapore. Mrs Lee holds a Bachelor of Laws (Honours) degree from the University Singapore, and is an Advocate & Solicitor Neutrals of the International Trade Marks Association. Association – Singapore Group; Chairperson of the ASEAN subcommittee and Member International Panel and the Federation Internationale des Conseils en Propriété Industrielle; Vice-Chairperson, Asian Patent Attorney’s Mrs Lee serves on various other forums, including as Executive Committee Member of the Singapore Law Society Member of the Audit Committee HTL Holdings Limited. and intellectual property. Mrs Lee is also an independent Director, Chairperson of the Nomination Committee and of Rodyk & Davidson. She has practised law for more than 20 years in the areas commercial litigation, real estate Mrs Lee was appointed to the Board in November 2002. She is currently Deputy Managing Partner of law firm Lee Ai Ming, 51 Wharton Society of Fellows, University Pennsylvania. Mr Teo holds a Bachelor of Business Administration degree from the University Singapore. He is Member of Group Finance Director in 1985. the ranks and was seconded several times to various subsidiaries of Keppel Group before assuming position Mr Teo commenced his career with the Keppel Group when he joined Shipyard Pte Ltd in 1975. He rose through is a Director of several companies within Keppel Group including Offshore and Marine Ltd. Director of MobileOne Limited, k1 Ventures Limited and Singapore Petroleum Company Limited. In addition, Mr Teo Limited, Chairman of Keppel Telecommunications and Transportation Limited and Keppel Philippines Holding, Inc. Mr Teo is a Director of Keppel Land Limited, Senior Executive and Group Finance Corporation Teo Soon Hoe, 57 He is Singapore’s Non-Resident Ambassador to Brazil. Committee and Special on Mobile Offshore Drilling Units. of the American Bureau Shipping and Member Shipping’s Southeast Asia Regional MBA Advisory Committee. He is also Chairman of Det Norske Veritas South East Asia Committee and Council Member of Singapore Maritime Foundation and Port Authority Singapore. He is a Member the Nanyang Mr Choo sits on the Board of Directors k1 Ventures Limited and EDB Investment Pte Ltd is a Board Member Singapore Refining Company Pte Ltd and SMRT Corporation Ltd. Senior Executive Director of Keppel Corporation Limited and Chairman Singapore Petroleum Company Limited, Mr Choo is a Director of Keppel Land Limited, Chairman and Chief Executive Officer Offshore & Marine Ltd, Member of the Wharton Society Fellows, University Pennsylvania. upon Tyne. He attended the Programme for Management Development in Harvard Business School 1982 and is a Plan Scholarship to study Naval Architecture); and a Master of Science in Architecture, University Newcastle Mr Choo holds a Bachelor of Science (First Class Honours), University Newcastle upon Tyne (awarded the Colombo Choo Chiau Beng, 58 National Environment Agency. He is also Patron to Ju Eng Home for Senior Citizens. In community organisations, Mr Heng is Chairman of the Singapore Environment Council and a Board member San Community Development Council and Cheng Town Council. the Government Parliamentary Committees for Communications and Environment as well Ang Mo Kio-Cheng On the public front, Mr Heng served four terms as a Member of Parliament from 1984 to 2001 during which, he chaired Group from 1996 to 1998. Limited. Prior to his appointment in LKN-Primefield Limited, Mr Heng was Executive Director the Far East Organization He was a Director of LKN-Primefield Limited, listed regional hospitality company formerly known as Lim Kah Ngam and Overseas Union Bank Limited. He has held senior positions in several financial institutions including Citibank NA, Monetary Authority of Singapore, with Honours from the University of Singapore. Mr Heng began his career in the financial sector 1970 after graduating with a Bachelor of Business Administration

19 Senior Management

Standing from left: Standing from left: Loh Chin Hua, Managing Director, Alpha Investment Partners Limited Quah Kim Boon, President, Keppel Services Staff Union Tan Swee Yiow, Director, Singapore Commercial Vincent Tan, Vice President, Sedona Hotels International Pte Ltd Ang Wee Gee, Director, Regional Investments Lim Tow Fok, General Manager, Property Management Augustine Tan, General Manager, Singapore Residential Tong Kok Wing, General Manager, Retail Management Seated from left: Seated from left: Choo Chin Teck, Director, Corporate Services and Chief Financial Officer Yeo Kah Tiang, General Manager, Group Finance and Administration 20 Kevin Wong Kingcheung, Managing Director Dennis Tay Choon Kuan, General Manager, Marketing 21 22 Management Committee of the Real Estate Developers’ Association Singapore. is currently a Member of the Building Construction Authority’s Construction Excellence Awards Committee, and the of Singapore and a Master Business Administration in Accountancy from the Nanyang Technological University. He Mr Tan holds a Bachelor of Science Degree (First Class Honours) in Estate Management from the National University investment. Prior to joining Keppel Land Limited, Mr Tan was with a banking group, advising property valuation, taxation and of Project Development and Corporate before assuming his present appointment. investment and development operations in Singapore. He has held various positions within the Group, including Head Mr Tan Swee Yiow joined Keppel Land Group in 1990, and is currently the Director overseeing Group’s commercial Tan Swee Yiow, 46 of Science summa cum laude from the University Denver, USA. Mr Ang holds a Master of Business Administration from Imperial College, University London. He received his Bachelor Keppel Land Limited, and a number of other Group’s subsidiaries and associated companies. of Thailand, respectively. He is also a Director of Sedona Hotels International Pte Ltd, the hotel management arm Limited, property companies listed on the Singapore Exchange, Philippines Stock Exchange and The Mr Ang is a Director of Dragon Land Limited, Keppel Philippines Properties, Inc and Thai Properties Public Co in the property, hotel and management consultancy business in the USA, Hong Kong Singapore. overseas investments. Prior to joining Keppel Land Group in 1991, Mr Ang had many years of diversified experience Mr Ang is Director, Regional Investments, of Keppel Land International Limited in charge Group’s Ang Wee Gee, 44 Associate of the Chartered Institute Management Accountants, UK. the University of Singapore, he received gold medal for being best all-round student. Mr Choo is also an He holds a Master of Business Administration from Brunel University, UK. As a Bachelor of Accountancy graduate from corporate treasury, human resource management, investor relations and corporate secretarial experience. Public Accountants of Singapore and also a Fellow CPA Australia. He has many years of accounting, audit, taxation, number of subsidiaries and associated companies Keppel Land Limited. Mr Choo is a Fellow the Institute Certified He has held various senior positions in Keppel Land Group for about 33 years, and is presently also a Director of Secretary, Keppel Land Limited. Mr Choo is Director, Corporate Services, Keppel Land International Limited and Chief Financial Officer Company Choo Chin Teck, 61 Senior Management Senior also a registered valuer with the New Zealand Institute of Valuers. Pepperdine University’s Presidential/Key Executive MBA Programme. Mr Loh is a Chartered Financial Analyst and Mr Loh, a Colombo Plan scholar, graduated from Auckland University with a Bachelor of Property Administration and real estate group in London before returning to Singapore head the Asian group. During his ten years with GIC, Mr Loh held appointments in the San Francisco office and was head of European Mr Loh started his career in real estate investment with the Government of Singapore Investment Corporation (GIC). built up GRA into one of the more established fund managers in Asia. responsible for overseeing all investment and asset management activities the funds that GRA managed. Mr Loh management arm of the Prudential Insurance Company America. During his eight years at GRA, Mr Loh was Prior to joining Alpha, Mr Loh was the Managing Director of GRA (Singapore) Pte Ltd (GRA), Asian real estate fund and fund management. of the Keppel Land Group. He joined Alpha in September 2002 and has 21 years experience real estate investing Mr Loh is the Managing Director of Alpha Investment Partners Limited (Alpha), real estate fund management arm Loh Chin Hua, 45 Land Group’s subsidiaries and associated companies. Institute of Surveyors and Valuers and is a Director in Keppel Land International Limited number of other pursuing a Master of Business Administration from the University Birmingham. He is Member Singapore Mr Tan holds a Bachelor of Science in Estate Management from the National University Singapore and is currently estate developers. retail developments to multinational companies and the sale of residential with other listed real Prior to joining Keppel Land Limited, Mr Tan has extensive experience in the leasing of prime commercial and Land Group’s developments and investments in Singapore overseas prior to assuming his present appointment. developments and investments in Singapore. He was General Manager, Marketing, overseeing the marketing of Keppel Mr Tan joined Keppel Land Group in 1991 and is currently General Manager overseeing the Group’s residential Augustine Tan Wee Kiong, 47

23 22 Management Committee of the Real Estate Developers’ Association Singapore. is currently a Member of the Building Construction Authority’s Construction Excellence Awards Committee, and the of Singapore and a Master Business Administration in Accountancy from the Nanyang Technological University. He Mr Tan holds a Bachelor of Science Degree (First Class Honours) in Estate Management from the National University investment. Prior to joining Keppel Land Limited, Mr Tan was with a banking group, advising property valuation, taxation and of Project Development and Corporate before assuming his present appointment. investment and development operations in Singapore. He has held various positions within the Group, including Head Mr Tan Swee Yiow joined Keppel Land Group in 1990, and is currently the Director overseeing Group’s commercial Tan Swee Yiow, 46 of Science summa cum laude from the University Denver, USA. Mr Ang holds a Master of Business Administration from Imperial College, University London. He received his Bachelor Keppel Land Limited, and a number of other Group’s subsidiaries and associated companies. of Thailand, respectively. He is also a Director of Sedona Hotels International Pte Ltd, the hotel management arm Limited, property companies listed on the Singapore Exchange, Philippines Stock Exchange and The Mr Ang is a Director of Dragon Land Limited, Keppel Philippines Properties, Inc and Thai Properties Public Co in the property, hotel and management consultancy business in the USA, Hong Kong Singapore. overseas investments. Prior to joining Keppel Land Group in 1991, Mr Ang had many years of diversified experience Mr Ang is Director, Regional Investments, of Keppel Land International Limited in charge Group’s Ang Wee Gee, 44 Associate of the Chartered Institute Management Accountants, UK. the University of Singapore, he received gold medal for being best all-round student. Mr Choo is also an He holds a Master of Business Administration from Brunel University, UK. As a Bachelor of Accountancy graduate from corporate treasury, human resource management, investor relations and corporate secretarial experience. Public Accountants of Singapore and also a Fellow CPA Australia. He has many years of accounting, audit, taxation, number of subsidiaries and associated companies Keppel Land Limited. Mr Choo is a Fellow the Institute Certified He has held various senior positions in Keppel Land Group for about 33 years, and is presently also a Director of Secretary, Keppel Land Limited. Mr Choo is Director, Corporate Services, Keppel Land International Limited and Chief Financial Officer Company Choo Chin Teck, 61 Senior Management Senior also a registered valuer with the New Zealand Institute of Valuers. Pepperdine University’s Presidential/Key Executive MBA Programme. Mr Loh is a Chartered Financial Analyst and Mr Loh, a Colombo Plan scholar, graduated from Auckland University with a Bachelor of Property Administration and real estate group in London before returning to Singapore head the Asian group. During his ten years with GIC, Mr Loh held appointments in the San Francisco office and was head of European Mr Loh started his career in real estate investment with the Government of Singapore Investment Corporation (GIC). built up GRA into one of the more established fund managers in Asia. responsible for overseeing all investment and asset management activities the funds that GRA managed. Mr Loh management arm of the Prudential Insurance Company America. During his eight years at GRA, Mr Loh was Prior to joining Alpha, Mr Loh was the Managing Director of GRA (Singapore) Pte Ltd (GRA), Asian real estate fund and fund management. of the Keppel Land Group. He joined Alpha in September 2002 and has 21 years experience real estate investing Mr Loh is the Managing Director of Alpha Investment Partners Limited (Alpha), real estate fund management arm Loh Chin Hua, 45 Land Group’s subsidiaries and associated companies. Institute of Surveyors and Valuers and is a Director in Keppel Land International Limited number of other pursuing a Master of Business Administration from the University Birmingham. He is Member Singapore Mr Tan holds a Bachelor of Science in Estate Management from the National University Singapore and is currently estate developers. retail developments to multinational companies and the sale of residential with other listed real Prior to joining Keppel Land Limited, Mr Tan has extensive experience in the leasing of prime commercial and Land Group’s developments and investments in Singapore overseas prior to assuming his present appointment. developments and investments in Singapore. He was General Manager, Marketing, overseeing the marketing of Keppel Mr Tan joined Keppel Land Group in 1991 and is currently General Manager overseeing the Group’s residential Augustine Tan Wee Kiong, 47

23 24 Lim Ho Kee Keppel Hitachi Zosen Limited (Resigned on 16 March 2006) Thai Chee Ken Kevin Wong Kingcheung Lim Chee Onn held by the Directors in past five years are as follows: Details for the Directors’ present responsibilities and qualifications are set out on pages 16 to 19. Principal directorships Directors (a) Profile of Directors and Senior Management MCL Land Limited Vertex Venture Holdings Ltd Singapore Post Limited Jardine Cycle & Carriage Ltd Keppel TatLee Bank Limited k1 Ventures Limited Union Bank of Switzerland Singapore Telecommunications Limited Lindeteves-Jacoberg Ltd Tuan Sing Holdings Limited Natsteel Limited Natsteel Electronics Limited Natsteel Broadway Ltd Inchcape Motors Limited Various subsidiaries and associated companies of Keppel Land Limited HDB Corporation Pte Ltd Keppel TatLee Finance Limited Temasek Holdings (Pte) Ltd Singapore Airlines Limited PT Nongsa Point Marina Parksville Development Pte Ltd Natsteel Limited Myanmar Investment Fund (S) Pte Ltd Keppel Telecoms Pte Ltd Keppel TatLee Bank Limited Keppel Power Systems Pte Ltd Keppel Harbour Redevelopment Ltd Keppel Capital Holdings Ltd Keppel Asia Ltd Kepital Holdings Ltd K Investment Holdings Ltd K1 eBiz Holdings Pte Ltd Glory Central Holdings Ltd China-Singapore Suzhou Industrial Park Development Co Ltd Choo Chiau Beng Heng Chiang Meng Niam Chiang Meng Tan Yam Pin Lee Ai Ming Tsui Kai Chong Various subsidiaries and associated companies in the Keppel Group WIIG Global Ventures Pte Ltd Pacven Walden Management Singapore Pte Ltd Pacven Investment Ltd Hydro Asia Pacific Pte Ltd LKN-Primefield Limited Macquarie International Infrastructure Fund Ltd Wujiang Dafa Real Estate Development Co Ltd Nutrilife Private Ltd Jurong Port Pte Ltd Temasek Management Services Ltd Singapore Totalisator Board Singapore Sports School Ltd Singapore Pools (Pte) Ltd SMRT Road Holdings Ltd SMRT Trains Ltd SMRT Corporation Ltd Singapore Broadcasting Authority National Heritage Board National Arts Council Inland Revenue Authority of Singapore Housing and Development Board Council on Governance of Institutions a Public Character Board of Trustees for the Sporting Singapore Fund Board of Trustees for the Community Assistance Fund Bioethics Advisory Committee Singapore Post Limited Fraser & Neave Limited Centrepoint Properties Limited HTL Holdings Limited Keppel TatLee Bank Limited Keppel Capital Holdings Ltd

25 24 Lim Ho Kee Keppel Hitachi Zosen Limited (Resigned on 16 March 2006) Thai Chee Ken Kevin Wong Kingcheung Lim Chee Onn held by the Directors in past five years are as follows: Details for the Directors’ present responsibilities and qualifications are set out on pages 16 to 19. Principal directorships Directors (a) Profile of Directors and Senior Management MCL Land Limited Vertex Venture Holdings Ltd Singapore Post Limited Jardine Cycle & Carriage Ltd Keppel TatLee Bank Limited k1 Ventures Limited Union Bank of Switzerland Singapore Telecommunications Limited Lindeteves-Jacoberg Ltd Tuan Sing Holdings Limited Natsteel Limited Natsteel Electronics Limited Natsteel Broadway Ltd Inchcape Motors Limited Various subsidiaries and associated companies of Keppel Land Limited HDB Corporation Pte Ltd Keppel TatLee Finance Limited Temasek Holdings (Pte) Ltd Singapore Airlines Limited PT Nongsa Point Marina Parksville Development Pte Ltd Natsteel Limited Myanmar Investment Fund (S) Pte Ltd Keppel Telecoms Pte Ltd Keppel TatLee Bank Limited Keppel Power Systems Pte Ltd Keppel Harbour Redevelopment Ltd Keppel Capital Holdings Ltd Keppel Asia Ltd Kepital Holdings Ltd K Investment Holdings Ltd K1 eBiz Holdings Pte Ltd Glory Central Holdings Ltd China-Singapore Suzhou Industrial Park Development Co Ltd Choo Chiau Beng Heng Chiang Meng Niam Chiang Meng Tan Yam Pin Lee Ai Ming Tsui Kai Chong Various subsidiaries and associated companies in the Keppel Group WIIG Global Ventures Pte Ltd Pacven Walden Management Singapore Pte Ltd Pacven Investment Ltd Hydro Asia Pacific Pte Ltd LKN-Primefield Limited Macquarie International Infrastructure Fund Ltd Wujiang Dafa Real Estate Development Co Ltd Nutrilife Private Ltd Jurong Port Pte Ltd Temasek Management Services Ltd Singapore Totalisator Board Singapore Sports School Ltd Singapore Pools (Pte) Ltd SMRT Road Holdings Ltd SMRT Trains Ltd SMRT Corporation Ltd Singapore Broadcasting Authority National Heritage Board National Arts Council Inland Revenue Authority of Singapore Housing and Development Board Council on Governance of Institutions a Public Character Board of Trustees for the Sporting Singapore Fund Board of Trustees for the Community Assistance Fund Bioethics Advisory Committee Singapore Post Limited Fraser & Neave Limited Centrepoint Properties Limited HTL Holdings Limited Keppel TatLee Bank Limited Keppel Capital Holdings Ltd

25 26 Loh Chin Hua Augustine Tan Wee Kiong Tan Swee Yiow Ang Wee Gee Choo Chin Teck directorships held by senior management in the past five years are as follows: Details of Senior Management’s present responsibilities and qualifications are set out on pages 22 23. Principal Senior Management (b) Teo Soon Hoe The HarbourFront Pte Ltd Mapletree Investments Pte Ltd InterRoller Engineering Limited GRA (Singapore) Pte Ltd Various subsidiaries and associated companies of Keppel Land Limited Various subsidiaries and associated companies of Keppel Land Limited Various subsidiaries and associated companies of Keppel Land Limited Various subsidiaries and associated companies of Keppel Land Limited Various subsidiaries and associated companies in the Keppel Group Steamers Perak Shipping Pte Ltd Steamers Kimanis Shipping Pte Ltd Steamers Fortune Shipping Pte Ltd Southern Bank Bhd KF Limited Keppel TatLee Finance Limited Keppel TatLee Bank Limited Keppel-SPH Investment Pte Ltd Keppel T&T Venture Capital Pte Ltd Keppel Philippines Marine, Inc. Keppel Insurance Pte Ltd Keppel Factors Pte Ltd Keppel Capital Holdings Ltd KAC Holdings Limited Centurion Bank Limited Keppel Bank Philippines Inc

Junction office subsidiary in Bugis Company’s purchase of the CapitaMall Trust and the Sale of Parco Bugis Junction to (d) immediate family member the Company and their developments to Directors of in overseas residential Consideration for the sale of units the Company Group with the Directors of Transactions entered into by the (c) Temasek Group Other services Management and support services Management fees paid Treasury – interest expense Treasury – interest income Listing Manual Group : Keppel Corporation Limited (b) Other services and products - Pursuant to Rule 920) Marketing commission Property management fees management fees Project and development Rental Group : Keppel Corporation Limited (a) Property transactions - Name of Interested Person Interested Persons Transactions

au falItrse esnValue of all Value of all Interested Person 148,000

hrhles adt of the SGX Shareholders’ Shareholders’ Mandate (excluding Transactions $’000 2005 779

rnatosdrn Interested Person Transactions during esta 1000Mandate Pursuant less than $100,000 ------h iaca erTransactions the Financial Year

odce ne to Rule 920 conducted under

ne eiwconducted under under Review

Aggregate

1,226 $’000 2004

------(36,538) (6,324) (2,359) (2,971) 3,655 2,961 1,955 $’000 2005 132 430 52 - -

(19,979)

(5,285) (2,066) (2,144) 2,137 1,737 2,073 $’000 2004

132 304

- -

27 26 Loh Chin Hua Augustine Tan Wee Kiong Tan Swee Yiow Ang Wee Gee Choo Chin Teck directorships held by senior management in the past five years are as follows: Details of Senior Management’s present responsibilities and qualifications are set out on pages 22 23. Principal Senior Management (b) Teo Soon Hoe The HarbourFront Pte Ltd Mapletree Investments Pte Ltd InterRoller Engineering Limited GRA (Singapore) Pte Ltd Various subsidiaries and associated companies of Keppel Land Limited Various subsidiaries and associated companies of Keppel Land Limited Various subsidiaries and associated companies of Keppel Land Limited Various subsidiaries and associated companies of Keppel Land Limited Various subsidiaries and associated companies in the Keppel Group Steamers Perak Shipping Pte Ltd Steamers Kimanis Shipping Pte Ltd Steamers Fortune Shipping Pte Ltd Southern Bank Bhd KF Limited Keppel TatLee Finance Limited Keppel TatLee Bank Limited Keppel-SPH Investment Pte Ltd Keppel T&T Venture Capital Pte Ltd Keppel Philippines Marine, Inc. Keppel Insurance Pte Ltd Keppel Factors Pte Ltd Keppel Capital Holdings Ltd KAC Holdings Limited Centurion Bank Limited Keppel Bank Philippines Inc

au falItrse esnValue of all Value of all Interested Person 148,000

hrhles adt of the SGX Shareholders’ Shareholders’ Mandate (excluding Transactions $’000 2005 779

rnatosdrn Interested Person Transactions during esta 1000Mandate Pursuant less than $100,000 ------h iaca erTransactions the Financial Year

odce ne to Rule 920 conducted under

ne eiwconducted under under Review

Aggregate

1,226 $’000 2004

------(36,538) (6,324) (2,359) (2,971) 3,655 2,961 1,955 $’000 2005 132 430 52 - -

(19,979)

(5,285) (2,066) (2,144) 2,137 1,737 2,073 $’000 2004

132 304

- -

27 Group Financial Highlights Simplified Balance Sheet

2005 2004 % Increase/ $'000 $'000 (Decrease)

For the Year Sales - excluding associated companies 586,391 476,165 23.1 Total Liabilities Owed Profit and Capital Invested Total Assets Owned Operating 146,602 111,051 32.0 Before tax Before exceptional items 183,449 139,915 31.1 After exceptional items 184,637 139,915 32.0 6,000 After tax and minority interests 155,709 132,684 17.4 Funds used in operations (24,143) (154,674) 84.4 Development expenditure 656,367 376,655 74.3 Capital expenditure 4,549 1,409 222.8 Dividends paid 28,543 22,742 25.5 Value added from operations 205,000 19.6 245,200 5,000

1,679 (30%) At Year-end 1,908 (35%) Share capital 357,576 355,975 0.4 Shareholders’ funds 1,678,932 1,606,806 4.5 Minority interests 280,577 225,627 24.4 Short and long-term borrowings 4,000 2,832,196 2,154,633 31.4 1,607 (35%) Total funds invested 4,791,705 3,987,066 20.2 1,756 (38%) 281 (5%) Debt-equity ratio (%) 214 (4%) 64 (1%) Excluding minority interests 133 110 20.9 644 (12%) What We Owned Including minority interests 114 96 18.8 Fixed Assets and Investment Properties 226 (5%) 1,237 (22%) 186 (4%) 64 (1) Properties Held for Development 3,000 Per Share Investments Profit before tax but after exceptional items (cents)26.7 19.0 40.5 Profit after tax but before exceptional items (cents) 21.7 18.7 16.0 908 (20%) Properties Held for Sale Profit after tax and exceptional items (cents) Trade Debtors 21.8 18.7 16.6 523 (11%) Dividends Cash and Bank Balances One-tier/taxable (cents)* 5.0 4.0 25.0 2,625 (48%) 1,380 (25%) Other Assets Gross equivalent (cents) 5.0 5.0 - 2,000 1,829 (41%) Cover (no. of times) 4.4 4.6 (4.3) 1,124 (25%) Net tangible assets ( $ ) 2.35 2.26 4.0 What Our Shareholders Invested

21 (-) Shareholders’ Funds 49 (1%) Return on Shareholders’ Equity (%) 598 (11%) Minority Interests 393 (9%)

Before tax but after exceptional items11.6 8.7 33.3 326 (7%) 1,000 207 (4%) After tax but before exceptional items 9.4 8.6 9.3 142 (3%) 159 (3%) What We Owed After tax and exceptional items 9.5 8.6 10.5 Trade Creditors

Other Liabilities Employees Long-term External Borrowings Number (average) 2,083 1,975 5.5 Short-term External Borrowings Wages and salaries ($’000) 51,758 44,173 17.2 0 Pre-tax profit per employee ($’000) 84.6 56.4 50.0 2005 2004 2005 2004 $5,500m (100%) $4,575m (100%) $5,500 m (100%) $4,575m (100%)

*Dividend for 2005 is a one-tier dividend of 5 cents per share (2004: 5 cents per share, less 20% tax). 28 29 Group Financial Highlights Simplified Balance Sheet

2005 2004 % Increase/ $'000 $'000 (Decrease)

21 (-) Shareholders’ Funds 49 (1%) Return on Shareholders’ Equity (%) 598 (11%) Minority Interests 393 (9%)

*Dividend for 2005 is a one-tier dividend of 5 cents per share (2004: 5 cents per share, less 20% tax). 28 29 Five -Year Group Financial Profile Group Quarterly Results

2001 2002 2003 2004 2005 Total Quarter 1 Quarter 2 Quarter 3 Quarter 4 Year Income Statement ($’000) $'000 % $'000 % $'000 % $'000 % $'000 Sales 300,537 298,968 678,781 476,165 586,391 Operating profit 123,874 119,215 127,783 111,051 146,602 Profit/(loss) before taxation Sales Before exceptional items 112,180 129,189 135,074 139,915 183,449 2005 94,469 16 144,145 25 162,945 28 184,832 31 586,391 After exceptional items (371,514) 61,303 109,274 139,915 184,637 2004 112,141 24 173,131 36 96,026 20 94,867 20 476,165 Profit / (loss) after taxation and exceptional items (385,675) 28,523 97,842 137,034 149,075 Profit / (loss) after tax and minority interests (368,357) 26,373 100,363 132,687 155,709 Operating profit 2005 41,628 28 36,919 25 29,814 20 38,241 27 146,602 2004 22,764 20 33,172 30 33,511 30 21,604 20 111,051 Balance Sheet ($’000) Fixed assets and investment properties 2,622,603 1,876,296 1,734,728 1,755,983 1,908,557 Profit before taxation and Investments 808,882 784,636 897,032 908,118 1,236,702 exceptional items Properties held for development 168,061 169,798 195,147 186,437 213,801 2005 45,720 25 38,532 21 40,846 22 58,351 32 183,449 Net current assets (Note 1) 933,833 1,229,242 1,300,771 1,164,995 1,479,990 2004 29,471 21 36,039 26 41,651 30 32,754 23 139,915 Proceeds from sale of residential receivables - (302,000) (302,000) - - Deferred liabilities (35,059) (36,443) (31,527) (28,467) (47,345) Profit before taxation but Assets employed 4,498,320 3,721,529 3,794,151 3,987,066 4,791,705 after exceptional items 2005 45,720 25 38,532 21 40,846 22 59,539 32 184,637 Shareholders’ funds 1,582,349 1,480,288 1,486,904 1,606,806 1,678,932 2004 29,471 21 36,039 26 41,651 30 32,754 23 139,915 Minority interests 277,904 189,604 206,302 225,627 280,577 Short and long-term borrowings 2,638,067 2,051,637 2,100,945 2,154,633 2,832,196 Profit attributable to shareholders Total funds invested 4,498,320 3,721,529 3,794,151 3,987,066 4,791,705 2005 36,247 23 30,750 20 33,172 21 55,540 36 155,709 2004 29,444 22 30,462 23 32,410 24 40,371 31 132,687 Per Share Earnings (cents) (Note 2) Before tax but after exceptional items (54.3) 7.7 15.8 19.0 26.7 After tax but before exceptional items 12.2 13.3 17.8 18.7 21.7 Turnover was highest in the fourth quarter due to more progressive revenue recognition for residential developments After tax and exceptional items (52.0) 3.7 14.2 18.7 21.8 such as 8 Park Avenue in Shanghai, The Seasons in Beijing and The Waterfront in Chengdu as well as Urbana, and Dividends Park Infinia at Wee Nam in Singapore. One-tier (cents) - - - - 5.0 Less tax (cents) 2.3 2.7 3.1 4.0 - Gross equivalent (cents) 3.0 3.5 4.0 5.0 5.0 Operating profit was $41.6 million in the first quarter, contributed by the sale of a residual site in Botanic Cove, the Cover (no. of times) (23.0) 1.4 4.4 4.6 4.4 Group’s residential project in Sydney, Australia as well as income from 8 Park Avenue, The Seasons and The Waterfront. Net tangible assets $2.23 $2.09 $2.09 $2.26 $2.35 Contributions also came from the write-back of provisions for Butterworth 8 and Amaranda Gardens upon these projects obtaining certificates of statutory completion.

Financial Ratios Return on shareholders’ equity (%) (Note 3) However, profit before taxation and exceptional items at $58.4 million was highest in the fourth quarter due to the Before tax but after exceptional items (20.1) 3.6 7.5 8.7 11.6 write-back of provisions upon recovery of the Group’s loan following the disposal of Bintan Lagoon Resort and a marked- After tax but before exceptional items 4.5 6.4 8.5 8.6 9.4 to-market gain from the Group’s interest rate hedging instruments as required by financial reporting standards. After tax and exceptional items (19.2) 1.7 6.8 8.6 9.5 Interest cover (before exceptional items) 1.3 2.4 2.9 3.9 3.4 At the attributable profit level, 2005 results were better in all quarters compared with those for the corresponding Debt-equity ratio (%) (Note 4) 130 109 95 96 114 quarters in 2004 with the fourth quarter recording a profit of $55.5 million. The better performance in 2005 came on the back of higher contributions from residential projects in China and Singapore and the write-back of provisions during Employees the year. Higher profits from BG Junction, the Group’s retail development in Surabaya, Indonesia as well as gains from Number 1,840 1,831 1,835 1,975 2,083 the sale of Parco Bugis Junction to CapitaMall Trust and Bugis Junction Towers to the Company have also contributed Wages and salaries ($’000) 33,702 33,498 38,200 44,173 51,758 to higher attributable profit. Pre-tax profit per employee ($’000) (Note 5) 56 62 61 56 85 Notes: 1. In arriving at net current assets, short-term borrowings have been excluded. 2. Earnings per share are calculated by reference to the weighted average number of shares in issue during the year. 3. In calculating returns on shareholders’ equity, the simple average basis has been used. 30 4. In the calculation of the debt/equity ratio, debt includes borrowings net of cash and equity includes minority interests in non-wholly owned subsidiary companies. 31 5. In the calculation of pre-tax profit per employee, the profit of associated companies and exceptional items are excluded. Five -Year Group Financial Profile Group Quarterly Results

Your actions run as causes, and return to you as results.

Singapore Driving growth of our assets for higher returns

Your actions run as causes, and return to you as results.

Singapore Corporate Governance Board Matters The Board’s Conduct of its Affairs Principle 1 : Effective Board to lead and control the Company The Board oversees the effectiveness of Management as well as the corporate governance of the Company to the best interests of shareholders. Every Board member is equally responsible to oversee the business and affairs of Corporate Governance Structure the Company.

The Board focuses its activities on the key requirements of the Company, such as the review and approval of the Group's corporate strategies and directions, annual budget, major investments, divestments and funding proposals, review of the Group's financial performance, risk management and other corporate governance practices. The Company has in place financial authority and approval guidelines for investments, divestments, loans and lines of credit. Shareholders Matters which are delegated to Board Committees are reported to and monitored by the Board.

Nominating Committee The Board meets regularly on a quarterly basis and as warranted. Telephonic and video-conferencing meetings of the Board are allowed under the Company's Articles of Association.

Audit Committee Board of Directors Remuneration Committee The Directors' attendances at the meetings of the Board and Board Committees are as shown below:

Group Internal Audit Board Risk Committee Board Committees Board Committees Board Audit Nominating Remuneration Board Risk* No. of meetings held 45121 Management Directors No. of Meetings Attended Lim Chee Onn 4 Kevin Wong Kingcheung 4 Thai Chee Ken 3 5 1 Khor Poh Hwa 4 1 1 Property Development Property Services Hotels, Serviced Property Fund Lim Ho Kee 4 1 2 1 & Investment Apartments & Resorts Management Tsui Kai Chong 3 5 2 1 Lee Ai Ming 4 5 Tan Yam Pin 4 2 Niam Chiang Meng 3 1 Heng Chiang Meng 3 1 (Appointed on 1 March 2005) The Company's Directors and Management firmly believe that a full commitment to and high standards of corporate Choo Chiau Beng 3 governance are essential to protect shareholders' interests and maximise long-term shareholder value. Effective Teo Soon Hoe 4 corporate governance supports the Company's belief in transparency, and in being forward-looking with fresh ideas, and more decisive in the execution of strategies and initiatives. It is also an effective safeguard against frauds and *The Board Risk Committee was established on 1 December 2005. The Committee's first meeting was held on 28 February 2006. irregularities.

These standards include having clear policies, best practices and sound internal controls as well as a system of Directors are given appropriate briefing when they are first appointed to the Board. They are updated regularly on continuous improvements. To further strengthen the Company's risk management processes and culture, a Board Risk accounting and regulatory changes, and are also given further appropriate training from time to time. Committee was formed during the year. Details on the composition and responsibilities of the Committee can be found on pages 36 and 41. In November 2005, the Board and Management held a strategic review meeting in Kunming, China, to get a better grasp of the Group's businesses and business environment. The Company has received many awards for achieving high standards in its corporate governance. Information on these awards is set out under Communication with Shareholders on page 42. Board Composition and Balance Principle 2 : Strong and independent element on the Board. As required by the Listing Manual of the Singapore Stock Exchange Securities Trading Limited ("SGX-ST"), the following Presently, there are 12 Directors, 11 of whom are non-executive Directors. Eight out of the 12 Board members are sections describe how the Company has effectively applied the principles, policies and practices of Singapore's Code independent Directors. The Board is of the view that its size is appropriate, taking into account the scope and nature of Corporate Governance ("the Code"). of the operations of the Company.

34 35 Corporate Governance Board Matters The Board’s Conduct of its Affairs Principle 1 : Effective Board to lead and control the Company The Board oversees the effectiveness of Management as well as the corporate governance of the Company to the best interests of shareholders. Every Board member is equally responsible to oversee the business and affairs of Corporate Governance Structure the Company.

Nominating Committee The Board meets regularly on a quarterly basis and as warranted. Telephonic and video-conferencing meetings of the Board are allowed under the Company's Articles of Association.

Audit Committee Board of Directors Remuneration Committee The Directors' attendances at the meetings of the Board and Board Committees are as shown below:

34 35 The independence of each Director is reviewed annually by the Nominating Committee, based on the definition of The Directors submit themselves for re-nomination and re-election at regular intervals of about once every three years. independence as stated in the Code. One-third of the Directors retires at the Company’s Annual General Meeting each year. The years of initial appointment and re-election of the Directors are set out below: The nature of the Directors’ appointments on the Board, and details of their memberships in the Board Committees are set out below: Date of Initial Date of Last Director Position Age Appointment Re-election Board Committee Membership Lim Chee Onn Non-executive Chairman 61 28 October 1983 29 April 2005 Director Membership Audit Nominating Remuneration Board Risk (Director) Lim Chee Onn Non-executive Chairman 1 January 1997 Non-ID (Chairman) Kevin Wong Kingcheung Managing Director Kevin Wong Kingcheung Managing Director 50 1 November 1993 28 April 2004 Non-ID (Executive Director) Thai Chee Ken ID Chairman Member 1 January 2000 Khor Poh Hwa ID Member Member (Managing Director) Lim Ho Kee ID Chairman Member Member Thai Chee Ken Director 67 1 June 1997 28 April 2004 Tsui Kai Chong ID Member Member Member Khor Poh Hwa Director 56 1 April 1998 28 April 2004 Lee Ai Ming ID Member Lim Ho Kee Director 60 8 November 2001 29 April 2005 Tan Yam Pin ID Chairman Tsui Kai Chong Director 50 8 November 2001 29 April 2005 Niam Chiang Meng ID Member Member Lee Ai Ming Director 51 1 November 2002 20 May 2003 Heng Chiang Meng ID Chairman Tan Yam Pin Director 65 1 June 2003 28 April 2004 Choo Chiau Beng Non-ID Niam Chiang Meng Director 47 1 June 2003 28 April 2004 Teo Soon Hoe Non-ID Heng Chiang Meng Director 61 1 March 2005 29 April 2005 Choo Chiau Beng Director 58 21 January 1985 16 May 2002 Teo Soon Hoe Director 56 16 May 1991 20 May 2003 Three out of four non-independent Directors, namely Mr Lim Chee Onn, Mr Choo Chiau Beng and Mr Teo Soon Hoe are considered nominees of Keppel Corporation Limited, a substantial shareholder of the Company. Board Performance As a Group, the Directors possess all the necessary competencies to lead and govern the Company effectively. Brief Principle 5 : Formal assessment of the effectiveness of the Board as a whole and the contribution by each Director details of the Directors’ responsibilities and qualifications are set out on pages 16 to 19. The Nominating Committee has implemented a process for evaluating the effectiveness of the Board as a whole and the contribution of each Director to the effectiveness of the Board, and has also implemented objective performance Chairman and Managing Director criteria for evaluation which allow comparison with the Company’s peers. Principle 3 : Chairman and Managing Director to be two separate persons to ensure a clear division of responsibilities and balance of power and authority The evaluation of the Board is done once a year by each member of the Nominating Committee and the process is To ensure an appropriate balance of power, increased accountability and a greater capacity of the Board for independent managed by an Independent Co-ordinator. He will consolidate the evaluation returns and present a report to the members decision-making, the Company has a clear division of responsibilities at the top of the Company, with the non-executive of the Committee for discussion. Thereafter, he will present the final report to the Board with the recommendations Chairman and Managing Director having separate roles. of the Committee.

The Chairman leads the Board and is responsible for the management of the Board, while the Managing Director is Similarly, the evaluation of individual Director is also done once a year by Directors on a peer evaluation basis. The responsible for the implementing the Company’s strategies and policies as well for the day-to-day operation and evaluation returns submitted by the Directors will be consolidated by the Independent Co-ordinator who will then administration of the Company. present a report to the members of the Committee for discussion. Thereafter, the Independent Co-ordinator will discuss the final consolidated report with the Chairman of the Committee and the Chairman of the Board so that they may Board Membership provide the Board with the necessary feedback with a view to improving Board performance and shareholder value. Principle 4 : Formal and transparent process for the appointment of new Directors The Company has in place a Nominating Committee, whose main role is to make the process of Board appointments Access to Information and Accountability and re-appointments transparent, and to assess the effectiveness of the Board as a whole and the contribution of Principle 6 : Board members to have complete, adequate and timely information individual Directors to the effectiveness of the Board. The Committee is made up of four independent Directors whose duties include recommending the appointment or re-appointment of Directors, annual review of the skills required by Principle 10 : The Board’s accountability to the shareholders and Management’s accountability to the Board. the Board and the size of the Board. Management provides the Board with complete, accurate and adequate information in a timely manner in recognition The Committee has guidelines to address the issue of multiple board appointments. of its obligation to do so. The provision of such information, e.g. the management accounts on a monthly basis, enables the Directors to keep abreast of the Group’s financial performance and position, key issues and prospects.

36 37 The independence of each Director is reviewed annually by the Nominating Committee, based on the definition of The Directors submit themselves for re-nomination and re-election at regular intervals of about once every three years. independence as stated in the Code. One-third of the Directors retires at the Company’s Annual General Meeting each year. The years of initial appointment and re-election of the Directors are set out below: The nature of the Directors’ appointments on the Board, and details of their memberships in the Board Committees are set out below: Date of Initial Date of Last Director Position Age Appointment Re-election Board Committee Membership Lim Chee Onn Non-executive Chairman 61 28 October 1983 29 April 2005 Director Membership Audit Nominating Remuneration Board Risk (Director) Lim Chee Onn Non-executive Chairman 1 January 1997 Non-ID (Chairman) Kevin Wong Kingcheung Managing Director Kevin Wong Kingcheung Managing Director 50 1 November 1993 28 April 2004 Non-ID (Executive Director) Thai Chee Ken ID Chairman Member 1 January 2000 Khor Poh Hwa ID Member Member (Managing Director) Lim Ho Kee ID Chairman Member Member Thai Chee Ken Director 67 1 June 1997 28 April 2004 Tsui Kai Chong ID Member Member Member Khor Poh Hwa Director 56 1 April 1998 28 April 2004 Lee Ai Ming ID Member Lim Ho Kee Director 60 8 November 2001 29 April 2005 Tan Yam Pin ID Chairman Tsui Kai Chong Director 50 8 November 2001 29 April 2005 Niam Chiang Meng ID Member Member Lee Ai Ming Director 51 1 November 2002 20 May 2003 Heng Chiang Meng ID Chairman Tan Yam Pin Director 65 1 June 2003 28 April 2004 Choo Chiau Beng Non-ID Niam Chiang Meng Director 47 1 June 2003 28 April 2004 Teo Soon Hoe Non-ID Heng Chiang Meng Director 61 1 March 2005 29 April 2005 Choo Chiau Beng Director 58 21 January 1985 16 May 2002 Teo Soon Hoe Director 56 16 May 1991 20 May 2003 Three out of four non-independent Directors, namely Mr Lim Chee Onn, Mr Choo Chiau Beng and Mr Teo Soon Hoe are considered nominees of Keppel Corporation Limited, a substantial shareholder of the Company. Board Performance As a Group, the Directors possess all the necessary competencies to lead and govern the Company effectively. Brief Principle 5 : Formal assessment of the effectiveness of the Board as a whole and the contribution by each Director details of the Directors’ responsibilities and qualifications are set out on pages 16 to 19. The Nominating Committee has implemented a process for evaluating the effectiveness of the Board as a whole and the contribution of each Director to the effectiveness of the Board, and has also implemented objective performance Chairman and Managing Director criteria for evaluation which allow comparison with the Company’s peers. Principle 3 : Chairman and Managing Director to be two separate persons to ensure a clear division of responsibilities and balance of power and authority The evaluation of the Board is done once a year by each member of the Nominating Committee and the process is To ensure an appropriate balance of power, increased accountability and a greater capacity of the Board for independent managed by an Independent Co-ordinator. He will consolidate the evaluation returns and present a report to the members decision-making, the Company has a clear division of responsibilities at the top of the Company, with the non-executive of the Committee for discussion. Thereafter, he will present the final report to the Board with the recommendations Chairman and Managing Director having separate roles. of the Committee.

36 37 As a general rule, Board papers are sent to Directors about seven days before Board meetings so that Directors may The level and mix of remuneration of Directors and the Company’s top five senior managers for the year ended 31 better understand the matters before the meetings, and the Board meeting time may be conserved and discussion December 2005 are as follows: time focused on questions that the Directors may have on the Board papers. Managers who can provide additional insight into the matters to be discussed will be present at the relevant time during the Board meetings. The Directors (a) Directors are also provided with the names and contact details of the Company’s senior managers and the Company Secretary to facilitate direct access to Management and the Company Secretary. Remuneration Band Base/ Annual Director’s Share Options The Company Secretary is responsible to ensure that Board procedures are followed and that applicable rules and And Name of Director Fixed Salary Performance Fees Granted* regulations, including requirements of the Companies Act, are complied with, with the assistance of the relevant senior Incentive managers. The Company Secretary attends all Board meetings. Above $1,750,000 to $2,000,000 Kevin Wong Kingcheung 42% 52% - 6% The Board takes independent professional advice as and when necessary to enable it or the independent Directors to discharge its or their responsibilities effectively. Subject to the approval of the Chairman, Directors may seek and Below $250,000 obtain independent professional advice to assist them in their duties. The cost of such advice is borne by the Company. Lim Chee Onn - - 100% - Thai Chee Ken - - 100% The Board is committed to provide shareholders with a balanced and understandable assessment of the Company’s Khor Poh Hwa - - 100% - financial performance and position, and prospects. Since 2002, the Company has been making quarterly announcements Lim Ho Kee - - 100% - to shareholders. Tsui Kai Chong - - 100% - Lee Ai Ming - - 100% - Tan Yam Pin - - 100% - Remuneration Matters Niam Chiang Meng - - 100% - Procedures for Developing Remuneration Policies Heng Chiang Meng - - 100% Principle 7 : Formal and transparent procedure for fixing the remuneration packages of individual directors Choo Chiau Beng - - 100% - Teo Soon Hoe - - 100% - Level and Mix of Remuneration Principle 8 : Remuneration of directors to be adequate and not excessive (b) Top Five Senior Managers Disclosure of Remuneration Principle 9 : Clear disclosure on remuneration policy, level and mix of remuneration, and the procedure for setting remuneration Remuneration Band and Base/ Annual Director’s Share Options Name of Senior Managers Fixed Salary Performance Fees Granted* The Remuneration Committee consists of three independent Directors whose responsibility is to review the Incentive appropriateness, transparency and accountability to shareholders on remuneration issues of the Directors and senior Above $500,000 to $750,000 managers in the Company. The aim of the Committee is to motivate and retain Directors and executives, and ensure Choo Chin Teck 52% 36% - 12% that the Company is able to attract the best talent in the market in order to maximise shareholder value. Ang Wee Gee 47% 43% - 10% Tan Swee Yiow 48% 39% - 13% No member of the Committee or any other Director will be involved in deliberations in respect of any remuneration, Loh Chin Hua 61% 39% - - compensation, option or any form of benefits to be granted to him or her.

Above $250,000 to $500,000 Directors’ fees are established annually for the Chairman and the other Directors. Additional fees are paid, where Augustine Tan Wee Kiong 51% 36% - 13% applicable, for participation in Board Committees. The level of fees takes into account the size and complexity of the Company’s operations, and the responsibilities and workload requirements of Directors.

*The value of the share options granted is based on the Black-Scholes model with a 5-year maturity. For the Managing Director and other senior managers, the Company advocates a performance-based remuneration system that is highly flexible and responsive to the market and the Company’s business units and individual performances. No employee of the Company and its subsidiaries was an immediate family member of any Director and whose The total remuneration mix for the Managing Director and senior managers comprises three key components, namely remuneration exceeded $150,000 during the financial year ended 31 December 2005. “Immediate family member” annual fixed cash, annual performance incentive and long-term incentive. The annual fixed cash component comprises means the spouse, child, adopted child, stepchild, brother, sister and parent. the annual basic salary plus any other fixed allowances. The annual performance incentive is tied to the Company’s and individual manager’s performances. The long-term incentive is presently in the form of share options which are Details of the KLL Share Option Scheme can be found on pages 163 to 165. granted based on individual manager’s performance and contribution.

To enable the Committee to carry out its duties, the Committee has access to expert advice in the field of executive compensation inside and / or outside the Company, where necessary. During the year, the Committee engaged external consultants to review the compensation framework and package for the Managing Director and senior managers. 38 Several meetings were held between the Committee and the external consultants in connection with this review. 39 As a general rule, Board papers are sent to Directors about seven days before Board meetings so that Directors may The level and mix of remuneration of Directors and the Company’s top five senior managers for the year ended 31 better understand the matters before the meetings, and the Board meeting time may be conserved and discussion December 2005 are as follows: time focused on questions that the Directors may have on the Board papers. Managers who can provide additional insight into the matters to be discussed will be present at the relevant time during the Board meetings. The Directors (a) Directors are also provided with the names and contact details of the Company’s senior managers and the Company Secretary to facilitate direct access to Management and the Company Secretary. Remuneration Band Base/ Annual Director’s Share Options The Company Secretary is responsible to ensure that Board procedures are followed and that applicable rules and And Name of Director Fixed Salary Performance Fees Granted* regulations, including requirements of the Companies Act, are complied with, with the assistance of the relevant senior Incentive managers. The Company Secretary attends all Board meetings. Above $1,750,000 to $2,000,000 Kevin Wong Kingcheung 42% 52% - 6% The Board takes independent professional advice as and when necessary to enable it or the independent Directors to discharge its or their responsibilities effectively. Subject to the approval of the Chairman, Directors may seek and Below $250,000 obtain independent professional advice to assist them in their duties. The cost of such advice is borne by the Company. Lim Chee Onn - - 100% - Thai Chee Ken - - 100% The Board is committed to provide shareholders with a balanced and understandable assessment of the Company’s Khor Poh Hwa - - 100% - financial performance and position, and prospects. Since 2002, the Company has been making quarterly announcements Lim Ho Kee - - 100% - to shareholders. Tsui Kai Chong - - 100% - Lee Ai Ming - - 100% - Tan Yam Pin - - 100% - Remuneration Matters Niam Chiang Meng - - 100% - Procedures for Developing Remuneration Policies Heng Chiang Meng - - 100% Principle 7 : Formal and transparent procedure for fixing the remuneration packages of individual directors Choo Chiau Beng - - 100% - Teo Soon Hoe - - 100% - Level and Mix of Remuneration Principle 8 : Remuneration of directors to be adequate and not excessive (b) Top Five Senior Managers Disclosure of Remuneration Principle 9 : Clear disclosure on remuneration policy, level and mix of remuneration, and the procedure for setting remuneration Remuneration Band and Base/ Annual Director’s Share Options Name of Senior Managers Fixed Salary Performance Fees Granted* The Remuneration Committee consists of three independent Directors whose responsibility is to review the Incentive appropriateness, transparency and accountability to shareholders on remuneration issues of the Directors and senior Above $500,000 to $750,000 managers in the Company. The aim of the Committee is to motivate and retain Directors and executives, and ensure Choo Chin Teck 52% 36% - 12% that the Company is able to attract the best talent in the market in order to maximise shareholder value. Ang Wee Gee 47% 43% - 10% Tan Swee Yiow 48% 39% - 13% No member of the Committee or any other Director will be involved in deliberations in respect of any remuneration, Loh Chin Hua 61% 39% - - compensation, option or any form of benefits to be granted to him or her.

The role of the Committee includes, inter-alia, reviewing the annual audit plan, internal audit process, adequacy of The Company also has a whistle-blower protection policy to encourage the reporting in good faith of suspected reportable internal controls, interested person transactions, audit and other fees of external auditors and the independence of conduct by establishing clearly defined processes through which such reports may be made with the confidence external auditors. The Committee also reviews the quarterly and full-year results prior to their submission to the Board that employees and other persons making such reports will be treated fairly and, to the extent possible, protected for approval, and meets with the external and internal auditors once a year without the presence of Management. from reprisal.

The Committee has full access to and co-operation of Management, and full discretion to invite any Director or executive Board Risk Committee staff to attend its meetings. The Company has in place a Enterprise Risk Management Committee ("ERMC") which meets quarterly to ensure that the actions to mitigate or reduce the risks that have been identified have been implemented, and to report on the The Committee held five meetings during the year. The members’ attendances at these meetings are disclosed on effectiveness of the actions or improvements to the risk mitigating actions. The ERMC reports to the Audit Committee page 35. The external and internal auditors, the Director (Corporate Services) and the Managing Director were invited quarterly on the mitigating actions taken to control the top 11 risks of the Company. In December 2005, as part of the to attend the meetings of the Committee. The Company’s internal auditors and external auditors report their audit effort to further strengthen the Company’s risk management processes, a Board Risk Committee was formed to assist findings and recommendations independently to the Committee. the Board in examining the effectiveness of the Company’s risk management system. The ERMC will henceforth report to Board Risk Committee which consists of five independent Directors. The new Committee aims to meet at least During the year, the Committee performed independent reviews of the financial statements of the Company before four times a year to review the Group’s risk profile, the Company’s processes to identify and manage significant risks, the announcements of the results. The reviews included an assessment of the quality of key accounting principles risk mitigation strategies and risk policies. applied and management judgements which have major impact on the financial statements. On a quarterly basis, Management reported to the Committee all interested person transactions ("IPTs") in accordance with the Company’s Internal Audit shareholders’ mandate for IPTs. The IPTs were audited by the internal auditors on a semi-annual basis and their findings Principle 13 : Independent internal audit function . reported to the Committee. The Company has its own in-house Internal Audit Department ("Group Internal Audit") that is independent of the activities it audits. Group Internal Audit reports directly to the Chairman of the Audit Committee and administratively to the The Committee reviewed the internal auditors’ and external auditors’ plans to ensure they are sufficient for the review Director (Corporate Services). of the significant internal controls of the Company. The Committee also reviewed the independence and objectivity of the external auditors, which included the nature and extent of their non-audit services to the Company. The key role of Group Internal Audit is to assist the Audit Committee to ensure that the Company maintains an adequate system of internal controls by periodic reviews of material controls and procedures to test their effectiveness. Internal Controls Principle 12 : Sound system of internal controls Group Internal Audit is expected to meet or exceed the Standards for the Professional Practice of Internal Auditing The Audit Committee reviews the reports submitted by the external and internal auditors relating to the effectiveness set by The Institute of Internal Auditors Inc, which has its headquarters in USA, and has incorporated them into its of the Company’s material internal controls, including financial, operational and compliance controls, risk management, audit practices. and risks of fraud and irregularities. The Committee also reviews the effectiveness of the actions taken by Management on the recommendations made by the internal and external auditors in this respect. The Committee is satisfied that Using a risk-based audit methodology, Group Internal Audit plans its internal audit assignments annually in consultation there are adequate internal controls in the Company. with, but independent of, Management. Its plan is submitted to and approved by the Audit Committee. Based on the risk assessment conducted by Group Internal Audit, activities within the Group are reviewed at appropriate intervals The system of internal controls established by the Company is designed to manage, rather than to eliminate, the risk and with greater emphasis on higher risk activities. Internal audit plans are also aligned with the Company’s risk of failure in achieving Company’s goals and objectives. There are clear policies and procedures in ensuring adequacy management programme. The aim is to ensure that an effective and efficient control environment is in place to manage of controls and effective management of risks. However, it should be recognised that such system is designed to those risks exclusive to a particular business unit in addition to those that may be relevant on an enterprise-wide basis. provide reasonable assurance, but is not an absolute guarantee, against material misstatement or loss.

40 41 Internal Control And Audit The Company has put in place a shareholder value-based internal control system in areas such as financial, operational Audit Committee and compliance controls, and risk management. The principal aim of the internal control system is the management Principle 11 : Establishment of Audit Committee with written terms of reference of business risks with a view to safeguarding shareholders’ investments and the Company’s assets. The system The Audit Committee consists of three independent members. These members bring along with them invaluable includes, inter-alia, enterprise risk management and internal auditing. The Board monitors the Company’s risks through experience and professional expertise relating to accounting, financial management and legal knowledge. the Board Risk Committee, Audit Committee and Group Internal Audit.

40 41 A comprehensive progress report is presented by Group Internal Audit to the Audit Committee at each scheduled The annual general meeting is the principal forum for dialogue with shareholders. At each annual general meeting, the meeting. All audit reports are distributed to the Audit Committee, the Chairman of the Board, the Managing Director, Board encourages shareholders to participate in the question and answer session. The Chairman and, where appropriate, the Director (Corporate Services) and other relevant senior management. the Managing Director respond to shareholders' questions. The Chairmen of the Board Committees and the external auditors are required to be present at the meeting to assist in addressing any relevant query from the shareholders. The Audit Committee ensures that the internal audit function has adequate resources and appropriate standing within the Company. On an ongoing basis, it assesses the effectiveness of the internal auditors, such as its scope of work Each item of special business included in the notice of the meeting is accompanied by an explanation for the proposed and quality of audit reports. resolution. Separate resolutions are proposed for substantially separate issues at the meeting, and the Chairman declares the number of proxy votes received for and against the resolutions.

Communication with Shareholders Principle 14 : Regular, effective and fair communication with shareholders. Security Transactions The Company has issued a policy on dealings in the securities of the Company and its listed subsidiaries to its Directors Principle 15 : Greater shareholder participation at annual general meetings and senior executives, setting out the implications of insider trading and guidance on such dealings. It has adopted In line with the continuous disclosure obligations of the Company, pursuant to the Listing Rules of the SGX-ST and the Best Practices Guide on Dealings in Securities issued by the SGX-ST. The Company prohibits its Directors and Singapore’s Companies Act, the Board's policy is that shareholders are informed of all major developments that impact employees from trading in the Company's securities for the period commencing two weeks before the announcement on the Company. The Company had in operation during the year, a continuous disclosure process to ensure compliance of quarterly results, and the period commencing one month before the announcement of year-end results. with the Company's continuing disclosure and reporting obligations.

The Company believes that it should engage in regular, effective and fair communication with shareholders. For its Interested Person Transactions efforts at good corporate disclosure, the Company has won the Gold Award for Best Annual Report in the latest Disclosure of interested person transactions is set out on page 27 in the annual report. When a potential conflict of Singapore Corporate Awards Competition. The Company was also the only property developer in the Top 20 among interest arises, the Director concerned takes no part in discussions nor exercises any influence over other members the 644 companies surveyed in the Business Times' 2005 Corporate Transparency Index which measures the quality of the Board. of disclosure by companies which have released financial results to the SGX-ST in 2005. The Company was also the runner-up for The Most Transparent Company (Properties) at the SIAS Investors' Choice Awards 2005. In addition, the Company's top management takes an active role in investor relations, meeting local and foreign fund 28 February 2006 managers regularly as well as participating in roadshows and conferences overseas. The Company has a dedicated Investor Relations and Research Department which meets key institutional investors and analysts on a regular basis, as well as answers queries from shareholders.

Pertinent information is communicated to shareholders on a timely basis. Where there is inadvertent disclosure made to a selected group, the Company will make the same disclosure publicly to all others as soon as practicable. Communication is made through SGX-ST announcements and press releases on financial results and major developments of the Company, the Company's summary financial reports and annual reports, notices of and explanatory circulars for annual general meetings and extraordinary general meetings, and other disclosures and announcements to SGX- ST and the press, as well as through the Company's website at http://www.keppelland.com.sg from which the shareholders can access information of the Company.

The website provides, inter alia, corporate announcements, press releases, annual reports, and profiles of the Group. The Company's ten-year financial profile is also provided. Where appropriate, queries over the website are also addressed.

42 43 A comprehensive progress report is presented by Group Internal Audit to the Audit Committee at each scheduled The annual general meeting is the principal forum for dialogue with shareholders. At each annual general meeting, the meeting. All audit reports are distributed to the Audit Committee, the Chairman of the Board, the Managing Director, Board encourages shareholders to participate in the question and answer session. The Chairman and, where appropriate, the Director (Corporate Services) and other relevant senior management. the Managing Director respond to shareholders' questions. The Chairmen of the Board Committees and the external auditors are required to be present at the meeting to assist in addressing any relevant query from the shareholders. The Audit Committee ensures that the internal audit function has adequate resources and appropriate standing within the Company. On an ongoing basis, it assesses the effectiveness of the internal auditors, such as its scope of work Each item of special business included in the notice of the meeting is accompanied by an explanation for the proposed and quality of audit reports. resolution. Separate resolutions are proposed for substantially separate issues at the meeting, and the Chairman declares the number of proxy votes received for and against the resolutions.

42 43 Investor Relations In the spirit of transparency, Keppel Land hosts joint For its disclosure of the FY2004 results, Keppel Land was conferences for analysts and the media at the full year the only property developer in the Top 20 of the newly- and interim results announcements. Luncheons, meetings constitutedIndex, Business Times Corporate Transparency and conference calls with fund managers often follow which covers a total of 644 publicly-listed companies the results announcements. Press releases and in Singapore. This represented an improvement in overall presentation slides are disseminated for the first and ranking when Keppel Land was rated among the top 6% third quarters’ results announcements, when press and of 570 companies for its FY2003 results. analysts’ briefings are not held. Expanding Institutional Shareholder Base Dedicated meetings with new analysts are held to get Keppel Land continued to engage a consultant to provide them up-to-speed on the Company’s activities. analysis of its institutional and corporate shareholders worldwide. Over the past year, Keppel Land’s institutional The Annual General Meeting (AGM) is an annual event shareholder base has grown, spanning 22 countries. that brings together Keppel Land’s shareholders, Board Institutions holding Keppel Land share include pension of Directors and senior management for a lively session funds, insurance funds, mutual funds and hedge funds. of open discussion and dialogue. The AGM for the financial The top 10 institutional shareholders in terms of size of year 2004 was held on 29 April 2005 at Four Seasons shareholding came from the US, Singapore and the UK. Hotel and was well attended by many shareholders and The spread of Keppel Land’s institutional shareholdings public observers. fits in with the trend over the last few years where more funds from North America, UK and Europe are flowing Besides the AGM, an Extraordinary General Meeting into Asia. (EGM) was held on 6 October 2005 when shareholders voted unanimously in favour of the Bugis Junction transactions The Group continues to build up its reach to overseas involving the Company’s divestment of its stake in the institutional shareholders through road shows. In retail mall Parco Bugis Junction and acquisition of the collaboration with international stockbroking houses, remaining stake in the office tower Bugis Junction Towers. management met up with institutional investors from Europe and the US following the release of its interim Winning Recognition for Good Corporate Governance and full-year financial results in 2005. During the year, With its emphasis on corporate transparency and management visited institutional investors in the UK, disclosure, Keppel Land continued to receive several Europe, the US and Hong Kong to provide updates on prestigious awards and recognition for its good corporate the Company’s growth strategy and business operations. governance practices. Such efforts by management to continually reinforce Pro-active Communication to Foster In addition to the briefings for the full year and half year KeppelReport Land won the Gold Award for Best Annual local and global investors’ confidence and loyalty in the Long-term Relationships results announcements, top management also met up for companies with market capitalisation of $500 Group, and to cultivate prospective investors have been With the guiding principle of achieving best practices in with analysts and fund managers after Keppel Land’s million and above at the inaugural Singapore Corporate fruitful. Keppel Land’s institutional shareholder base has corporate governance and disclosure, Keppel Land’s successful joint- bid for the Business and Financial Centre Awards. The event was organised by the Business Times grown to account for approximately 30% of total management holds frequent meetings with local and (BFC) site to explain the rationale for its acquisition and and supported by the Singapore Exchange. shareholdings in 2005, which represents a percentage foreign investment professionals such as analysts and how it fits with its property development for sale strategy. change of 14% from the previous year. In terms of fund managers through one-on-one and group meetings, Atup the award Investors’ for the Choice Most AwardTransparent presentation Company organised geographical distribution, Keppel Land’s shareholding conference calls and road shows. Despite Singapore’s time difference with the UK and the by the Securities Investors Association (Singapore) and structure is relatively well balanced, proportionately US, there were conference calls with fund managers heldAward on 12for October Good Corporate 2005, Keppel Governance. Land took the runner- spread over the UK, Europe, the US and Asia. The Company believes that constant and effective interested in the Company’s joint bid with Harrah’s under communication allows management to better Entertainment for the upcoming Integrated Resorts at the property category. The Group also received a Merit manage expectations and address the concerns of the Marina Bay and Sentosa, and the establishment of K-REIT investment community. Asia to unlock shareholder value. These developments have generated greater investors’ interest and raised The frequency of meetings with analysts and fund Keppel Land’s profile in the investment universe. managers intensified in 2005 due to the diversity of business activities that the Company entered into.

44 45 Investor Relations In the spirit of transparency, Keppel Land hosts joint For its disclosure of the FY2004 results, Keppel Land was conferences for analysts and the media at the full year the only property developer in the Top 20 of the newly- and interim results announcements. Luncheons, meetings constitutedIndex, Business Times Corporate Transparency and conference calls with fund managers often follow which covers a total of 644 publicly-listed companies the results announcements. Press releases and in Singapore. This represented an improvement in overall presentation slides are disseminated for the first and ranking when Keppel Land was rated among the top 6% third quarters’ results announcements, when press and of 570 companies for its FY2003 results. analysts’ briefings are not held. Expanding Institutional Shareholder Base Dedicated meetings with new analysts are held to get Keppel Land continued to engage a consultant to provide them up-to-speed on the Company’s activities. analysis of its institutional and corporate shareholders worldwide. Over the past year, Keppel Land’s institutional The Annual General Meeting (AGM) is an annual event shareholder base has grown, spanning 22 countries. that brings together Keppel Land’s shareholders, Board Institutions holding Keppel Land share include pension of Directors and senior management for a lively session funds, insurance funds, mutual funds and hedge funds. of open discussion and dialogue. The AGM for the financial The top 10 institutional shareholders in terms of size of year 2004 was held on 29 April 2005 at Four Seasons shareholding came from the US, Singapore and the UK. Hotel and was well attended by many shareholders and The spread of Keppel Land’s institutional shareholdings public observers. fits in with the trend over the last few years where more funds from North America, UK and Europe are flowing Besides the AGM, an Extraordinary General Meeting into Asia. (EGM) was held on 6 October 2005 when shareholders voted unanimously in favour of the Bugis Junction transactions The Group continues to build up its reach to overseas involving the Company’s divestment of its stake in the institutional shareholders through road shows. In retail mall Parco Bugis Junction and acquisition of the collaboration with international stockbroking houses, remaining stake in the office tower Bugis Junction Towers. management met up with institutional investors from Europe and the US following the release of its interim Winning Recognition for Good Corporate Governance and full-year financial results in 2005. During the year, With its emphasis on corporate transparency and management visited institutional investors in the UK, disclosure, Keppel Land continued to receive several Europe, the US and Hong Kong to provide updates on prestigious awards and recognition for its good corporate the Company’s growth strategy and business operations. governance practices. Such efforts by management to continually reinforce Pro-active Communication to Foster In addition to the briefings for the full year and half year KeppelReport Land won the Gold Award for Best Annual local and global investors’ confidence and loyalty in the Long-term Relationships results announcements, top management also met up for companies with market capitalisation of $500 Group, and to cultivate prospective investors have been With the guiding principle of achieving best practices in with analysts and fund managers after Keppel Land’s million and above at the inaugural Singapore Corporate fruitful. Keppel Land’s institutional shareholder base has corporate governance and disclosure, Keppel Land’s successful joint- bid for the Business and Financial Centre Awards. The event was organised by the Business Times grown to account for approximately 30% of total management holds frequent meetings with local and (BFC) site to explain the rationale for its acquisition and and supported by the Singapore Exchange. shareholdings in 2005, which represents a percentage foreign investment professionals such as analysts and how it fits with its property development for sale strategy. change of 14% from the previous year. In terms of fund managers through one-on-one and group meetings, Atup the award Investors’ for the Choice Most AwardTransparent presentation Company organised geographical distribution, Keppel Land’s shareholding conference calls and road shows. Despite Singapore’s time difference with the UK and the by the Securities Investors Association (Singapore) and structure is relatively well balanced, proportionately US, there were conference calls with fund managers heldAward on 12for October Good Corporate 2005, Keppel Governance. Land took the runner- spread over the UK, Europe, the US and Asia. The Company believes that constant and effective interested in the Company’s joint bid with Harrah’s under communication allows management to better Entertainment for the upcoming Integrated Resorts at the property category. The Group also received a Merit manage expectations and address the concerns of the Marina Bay and Sentosa, and the establishment of K-REIT investment community. Asia to unlock shareholder value. These developments have generated greater investors’ interest and raised The frequency of meetings with analysts and fund Keppel Land’s profile in the investment universe. managers intensified in 2005 due to the diversity of business activities that the Company entered into.

44 45 Keppel Land will continue its investor relations activities Keppel Land is well represented on many Singapore and Keppel Land continues to hold the “Best in Class” with its existing shareholders and potential investors to international stock indices. It is a key component stock status awarded by Norwegian financial institution enhance the diversity of its institutional shareholder base on various major indices such as the Morgan Stanley Storebrand for environment and social performance. and to encourage investors to continue to adopt a medium- Singapore Free Index, the Straits Times Index, the All- Only companies in the top 30 percentile of Storebrand’s to long-term investment horizon on Keppel Land’s shares. Singapore Equities Index, the All-Singapore Equities Corporate Social Responsibility performance analyses This will help to improve liquidity, ensure a fair valuation Property Index, the Singapore Equities Mainboard Index, are considered best in class, and qualify for participation of the stock and minimise share price volatility. the UOB Blue Chip Index, the FTSE EPRA/NAREIT Global in its investment universe. Real Estate Indices and the FTSE/Asean Index, a newly Feedback from meetings with investors, fund managers created benchmark index. Keppel Land is a member of Keppel Land looks forward to 2006 as another active and analysts as well as research reports by analysts are the Investor Relations Association (Asia) and the European year for investor relations as it embarks on iconic projects disseminated to senior managers providing them with Public Real Estate Association, which helps the Company like the BFC and the second phase of the Keppel Bay insights to improve and fine-tune the Group’s corporate keep abreast of best practices in corporate governance residential development, the launch of K-REIT Asia and strategy and business platforms. and investor relations. the joint bid for the integrated resorts at Marina Bay and Sentosa. As Keppel Land grows in diversity with Facilitating Market Familiarisation The corporate website www.keppelland.com.sg is a expansion into new cities, new markets and new product During the year, the investor relations department helped good communications tool, which is extensively used segments in Singapore and the region, greater efforts arrange for groups of local and foreign fund managers by the investment community and the general public in will be put into investor relations to keep up with the and analysts to visit the Company’s projects in Shanghai accessing a comprehensive array of information such as new challenges and demands from shareholders and and Beijing and to meet the local management. These annual reports, press releases, presentation slides and the investment community. visits helped to alleviate concerns of overheating in the in-house quarterly publication Across Borders. As certain China housing market, reinforcing views that market segments of investors take interest in the way the fundamentals and housing demand remain healthy. Company undertakes its corporate social responsibility, Keppel Land’s Annual Report 2005 won the Gold Award for Best Annual the Company has put its environment report online at Report which is part of the inaugural Singapore Corporate Awards, in With the recovery of the Singapore residential market, recognition of the Company’s commitment to the highest standards of its website. foreign fund managers were also eager to visit Caribbean corporate governance and disclosure standards. at Keppel Bay and Park Infinia at Wee Nam.

Visits to Keppel Land’s residential projects in Singapore share price and dividend declared for the year, was 63% and overseas were also an opportunity to showcase the for 2005 compared with 42% in the previous year, putting % Return on Equity* Market Capitalisation (as at year-end) good quality of the Group’s projects while helping analysts, Keppel Land among the highest for property developers ($) ($m) fund managers and other interested parties to have a in Singapore. better understanding of the respective markets. 10 3000 Investors’ interest in Keppel Land shares has been strong, 9 2,617 as reflected in its share price performance in 2005. Keppel 2500 Enhancing Shareholder Value Land’s share price ended the year 63% higher at $3.66, 8 9.4

Over the years, Keppel Land has consistently raised its justifying Standard & Poor’s placing it among S & P Global 8.5 8.6 7 dividend payout to shareholders. For the year ended 31 Picks 2005 in January. It outperformed the All-Singapore 2000 1,928 1,948 December 2005, Keppel Land has proposed a final one- Equities Property Index, which rose by 39% during the 6 tier dividend of 10% or 5 cents per share. This is year. The Group continued to benefit from the sustained 6.4 1,601 5 1500 effectively higher than the 4 cents per share paid for recovery in Asian economies and property markets, and 5.5

remains one of the top performers in terms of return on 1 0.6 Meanwhile, Keppel Land has continued to reward its equity “(ROE)”. The Group continues to drive its ROE 0 0 shareholders with good total shareholder return. Total higher to 9.5% (before exceptional items) for 2005, up 1998 1999 2000 2001 2002 2003 2004 2005 1998 1999 2000 2001 2002 2003 2004 2005 shareholder return, which measures the appreciation in from 8.6% for 2004. * Before exceptional items 46 47 Keppel Land will continue its investor relations activities Keppel Land is well represented on many Singapore and Keppel Land continues to hold the “Best in Class” with its existing shareholders and potential investors to international stock indices. It is a key component stock status awarded by Norwegian financial institution enhance the diversity of its institutional shareholder base on various major indices such as the Morgan Stanley Storebrand for environment and social performance. and to encourage investors to continue to adopt a medium- Singapore Free Index, the Straits Times Index, the All- Only companies in the top 30 percentile of Storebrand’s to long-term investment horizon on Keppel Land’s shares. Singapore Equities Index, the All-Singapore Equities Corporate Social Responsibility performance analyses This will help to improve liquidity, ensure a fair valuation Property Index, the Singapore Equities Mainboard Index, are considered best in class, and qualify for participation of the stock and minimise share price volatility. the UOB Blue Chip Index, the FTSE EPRA/NAREIT Global in its investment universe. Real Estate Indices and the FTSE/Asean Index, a newly Feedback from meetings with investors, fund managers created benchmark index. Keppel Land is a member of Keppel Land looks forward to 2006 as another active and analysts as well as research reports by analysts are the Investor Relations Association (Asia) and the European year for investor relations as it embarks on iconic projects disseminated to senior managers providing them with Public Real Estate Association, which helps the Company like the BFC and the second phase of the Keppel Bay insights to improve and fine-tune the Group’s corporate keep abreast of best practices in corporate governance residential development, the launch of K-REIT Asia and strategy and business platforms. and investor relations. the joint bid for the integrated resorts at Marina Bay and Sentosa. As Keppel Land grows in diversity with Facilitating Market Familiarisation The corporate website www.keppelland.com.sg is a expansion into new cities, new markets and new product During the year, the investor relations department helped good communications tool, which is extensively used segments in Singapore and the region, greater efforts arrange for groups of local and foreign fund managers by the investment community and the general public in will be put into investor relations to keep up with the and analysts to visit the Company’s projects in Shanghai accessing a comprehensive array of information such as new challenges and demands from shareholders and and Beijing and to meet the local management. These annual reports, press releases, presentation slides and the investment community. visits helped to alleviate concerns of overheating in the in-house quarterly publication Across Borders. As certain China housing market, reinforcing views that market segments of investors take interest in the way the fundamentals and housing demand remain healthy. Company undertakes its corporate social responsibility, Keppel Land’s Annual Report 2005 won the Gold Award for Best Annual the Company has put its environment report online at Report which is part of the inaugural Singapore Corporate Awards, in With the recovery of the Singapore residential market, recognition of the Company’s commitment to the highest standards of its website. foreign fund managers were also eager to visit Caribbean corporate governance and disclosure standards. at Keppel Bay and Park Infinia at Wee Nam.

1,218 2004 when the Group declared a final dividend of 5 cents strong fund flows into the region. Given its sound 4.5 1,173 4 1,121 per share less tax. Going forward, Keppel Land will be fundamentals and good growth potential, Keppel Land 4.0 1000 formalising its dividend policy. In good years, it hopes to was on the radar screen of investors. 3 reward shareholders with a higher dividend in tandem 687 2 with the Company’s good performance. Among property companies in Singapore, Keppel Land 500 remains one of the top performers in terms of return on 1 0.6 Meanwhile, Keppel Land has continued to reward its equity “(ROE)”. The Group continues to drive its ROE 0 0 shareholders with good total shareholder return. Total higher to 9.5% (before exceptional items) for 2005, up 1998 1999 2000 2001 2002 2003 2004 2005 1998 1999 2000 2001 2002 2003 2004 2005 shareholder return, which measures the appreciation in from 8.6% for 2004. * Before exceptional items 46 47 People Review skills, situational leadership and conflict management to 80 help managers respond competently to different business and employee situations. Functional skills training courses in areas such as financial reporting, information technology, and even language were conducted to broaden their technical competency and enhance their job performance. HQ Manpower at End-2005 InWorkshop October, Keppel Land’s Information Technology department conducted the inaugural Regional IT for overseas employees. Besides talks by

external consultants including Hewlett Packard, Starhub 235 and Watchguard, the two-day intensive training workshop involved training on application systems, network Executive Non-executive infrastructure and PC technical support. At the same time, it provided an opportunity for disseminating IT policies, standards and procedures to improve IT governance across all its overseas offices and joint- venture companies. Several new IT systems were also 156 launched and introduced, such as a Voice-over-IP Telephony System, a Defects Management and Handover System and regional IT websites in the web-based Kepland Knowledge Portal. HQ Manpower To promote continuous learning and education, at End-2004 Keppel Land sponsors staff on part-time post-graduate programmes such as Masters in Business Administration and Applied Finance. 224 The Group also subsidises the cost of annual membership Executive Non-executive subscriptions to various professional bodies to encourage employees keep abreast of the latest developments in their professional fields. Human Capital as its Key Asset flexible and dedicated workforce. As an organisation 20.6% 8.7% Recognising that human capital is its key asset, Keppel which believes in the development of human resource, Land remains focused in its drive to develop staff at all Keppel Land aims to be the employer of choice for young Grooming Future Leaders Recognising the need to build a ready pool of quality levels so that they can be empowered with the necessary professionals and staff. workforce to support its operations, Keppel Land adopts skills to meet the multitudes of challenges that may a two-pronged approach of developing existing talents emerge as the Group competes in regional markets and 9.2% and looking externally in expanding its talent pool to build Regional Manpower ventures into new cities and segments. Strengthening Skill Sets a long-term future for the Group and its stakeholders. Distribution To cultivate a pool of innovative and knowledge-based 0.9%

Such efforts are reinforced by continually engaging its employees, Keppel Land constantly seeks to nurture an 1.6% Young Managers Development Programme employees through communication of the roles they play atmosphere of continual self-development with strong 1.1% To grow its future generation of leaders in middle- Singapore and their contributions towards the Group’s business emphasis on training and development. China management positions, the Young Managers 18.3% 39.6% performance and value creation. Together with constant Development Programme was introduced in 2005 as a Indonesia efforts at attracting new talent locally and overseas, Several functional and people management skills succession strategy to support business growth plans. Philippines these form an integral part of Keppel Land’s plans to workshops and seminars were held throughout the year, The programme has been piloted in Regional Investments, Thailand nurture and build the next generation of leaders. aimed at equipping staff with new knowledge and skill with eight participants currently. Eventually, it will be India sets to operate effectively in unfamiliar environments. extended to other departments in the Group. Vietnam At the same time, the Group is mindful that a good work- These include programmes on effective presentation Myanmar life balance for its employees will create a more motivated, 48 49 People Review skills, situational leadership and conflict management to 80 help managers respond competently to different business and employee situations. Functional skills training courses in areas such as financial reporting, information technology, and even language were conducted to broaden their technical competency and enhance their job performance. HQ Manpower at End-2005 InWorkshop October, Keppel Land’s Information Technology department conducted the inaugural Regional IT for overseas employees. Besides talks by

Such efforts are reinforced by continually engaging its employees, Keppel Land constantly seeks to nurture an 1.6% Young Managers Development Programme employees through communication of the roles they play atmosphere of continual self-development with strong 1.1% To grow its future generation of leaders in middle- Singapore and their contributions towards the Group’s business emphasis on training and development. China management positions, the Young Managers 18.3% 39.6% performance and value creation. Together with constant Development Programme was introduced in 2005 as a Indonesia efforts at attracting new talent locally and overseas, Several functional and people management skills succession strategy to support business growth plans. Philippines these form an integral part of Keppel Land’s plans to workshops and seminars were held throughout the year, The programme has been piloted in Regional Investments, Thailand nurture and build the next generation of leaders. aimed at equipping staff with new knowledge and skill with eight participants currently. Eventually, it will be India sets to operate effectively in unfamiliar environments. extended to other departments in the Group. Vietnam At the same time, the Group is mindful that a good work- These include programmes on effective presentation Myanmar life balance for its employees will create a more motivated, 48 49 2.5% In the five-year programme, promising young individuals to meet counterparts from other cities and countries to is organised for all new executives and managers 27.7% 10.6% within the Company are identified and put through a exchange ideas and best practices as well as attend bi-annually.

0.5% rigorous process to be nurtured and groomed based on training courses. a framework designed to maximise their potential. These Currently into its third year, the programme serves as a include assessment of their strengths and developmental In their home countries, regular feedback on the useful platform to communicate the vision and business Qualification of needs based on key leadership competencies, progress managers’ progress will be conducted and serve as a strategies of each of the strategic business units within Management and feedback, coaching and mentoring, individual training key aspect of their developmental experience. They will the Keppel Group. At the same time, it facilitates Executive Staff and a development map as well as participation in projects also have individual development plans to bridge any networking across the entire Keppel Group and the and short-term overseas assignments. gaps in their management and functional skills. creation of a common Keppel identity.

Masters and/or Post Graduate The programme aims to facilitate early identification of During the welcome and orientation programme held at 58.7% Graduate Degrees outstanding performers from within the Group, build Attracting the Best Amara Hotel in March 2005, Keppel Group’s Chairman Graduate Diplomas their career paths and provide them with the necessary As part of its constant efforts at sourcing, identifying and Lim Chee Onn stressed the important role each Keppelite Diploma or GCE ‘A’ Level skills and opportunities to learn, grow and remain engaged recruiting new talents from the region, Keppel Land plays in contributing to enhancing shareholder value. Others in the Company. participated in the Singapore Ministry of Trade and New staff were also encouraged to focus on career Industry’s Asian Business Fellowship Programme. The development, bearing in mind the importance of mobility

48.7% 3.8% Succession Planning objective of the programme is to develop a pool of talent as well as that of adopting a global mindset and being Recognising the need to manage risks and develop talent, with in-depth knowledge of doing business in the Asian prepared to work and contribute wherever needed. Keppel Land strengthened the succession planning region through training fresh graduates or mid-level and exercise for key management positions. Extensive specialist skill executives in these countries. Annual Regional Conference discussions are held with the individual heads of To facilitate strategic collaboration and communication Qualification of department to identify promising staff, and map out their To-date, three individuals have been recruited for Keppel of corporate objectives across the Company’s overseas Non-Executive Staff training and developmental plans based on their Land’s overseas operations in India and China. They will offices, a regional conference is held annually in Singapore competencies and experience. In this respect, staff with spend one and a half years working on the overseas for key executives from its overseas operations. During high potential will undergo fast-track development for projects, during which time their performance will be the three-day event held in April 2005, the participants their target positions. monitoredscholarship to assessprogramme their suitability for employment. also attended a two-day workshop on Negotiation Skills and Strategic Conflict Management to help them operate 47.5% This programme serves as a means to retain key talents Keppel Land is also participating in Keppel Group’s local effectively in foreign environments. Degree/Professional Certification by providing challenging, growth-oriented, and rewarding where young talented Diploma or GCE ‘A’ Level career opportunities. individuals with excellent academic and co-curricular This annual conference will continue to be an invaluable Secondary track records are offered scholarships for their source of creative solutions and a hothouse of new Local Managers Development Programme undergraduate studies at local universities, following initiatives, serving as a lively platform for strategic As the Company expands in the region, it is imperative which they will join the Group upon graduation. collaboration and exchange of best practices and new 3.0% sessions at local universities 5.0% that it also grooms local talent from the city or country ideas, as well as cross-learning opportunities and 6.0% 7.0% that the Group has operations in. Besides serving as an At the same time, Keppel Land conducts networking networking between local and overseas staff.

24.0% effective retention tool, it helps to grow local talent and to reach out to students localise the management team. This in turn gives the graduating from the Master of Science in Project Rounding off the event was the annual dinner and dance Company the option of rotating experienced expatriates Management or Building Science and Master of Business which was held alfresco-style at Sentosa where staff, Training Expenditure to other cities or countries. Administration programmes. The aim is to attract not management and Directors were able to mingle informally. Distribution only Singaporeans but also foreign students who can Many games, a sumptuous seafood dinner buffet and a Known as the Local Managers Development Programme, eventually assume key positions in their countries of Keppel Idol contest (styled after the popular American it will be piloted in Project Management in July 2006, origin. Their familiarity with the language, culture, business Idol) made it a resounding success. followed by the Human Resource and other departments. practices, and the business networks in those countries 55.0% are key assets that will be advantageous to the Company. Outward Bound Training Programmes

Diploma/Degree The programme involves a week-long broad-based Keppel Land’s regional offices in Chengdu and Beijing (under Study Assistance Scheme) orientation and training stint in Singapore. This helps organised outward bound training programmes for its staff Conferences them gain a better understanding of the Group’s vision, Forging a Common Identity in February and July respectively. Spread over two days, Industry-related and Job-specific External Courses mission and values, organisational structure, strategic Group Orientation Programme the training comprised activities which challenged staff Skills Training business directions and presence in the region. Through To familiarise new staff with key operations within the mentally, physically and even emotionally on an individual Leadership Courses the programme, the managers will also have opportunities Keppel Group, instill them a sense of pride and belonging and team levels. In the process, it helped to foster team Language Courses 50 to the Keppel family and also imbibe them with a set of spirit and better communication among the staff. 51 strong core values, the Group Orientation Programme 2.5% In the five-year programme, promising young individuals to meet counterparts from other cities and countries to is organised for all new executives and managers 27.7% 10.6% within the Company are identified and put through a exchange ideas and best practices as well as attend bi-annually.

Diploma/Degree The programme involves a week-long broad-based Keppel Land’s regional offices in Chengdu and Beijing (under Study Assistance Scheme) orientation and training stint in Singapore. This helps organised outward bound training programmes for its staff Conferences them gain a better understanding of the Group’s vision, Forging a Common Identity in February and July respectively. Spread over two days, Industry-related and Job-specific External Courses mission and values, organisational structure, strategic Group Orientation Programme the training comprised activities which challenged staff Skills Training business directions and presence in the region. Through To familiarise new staff with key operations within the mentally, physically and even emotionally on an individual Leadership Courses the programme, the managers will also have opportunities Keppel Group, instill them a sense of pride and belonging and team levels. In the process, it helped to foster team Language Courses 50 to the Keppel family and also imbibe them with a set of spirit and better communication among the staff. 51 strong core values, the Group Orientation Programme April and Mayor Cui Jie of Changchun during his visit in November.Housing and It also Land received Bureau Chinese officials from the Chengdu Housing Bureau and Beijing’s Municipal in July and December respectively.

Engaging the Media Keppel Land also went the extra mile to familiarise foreign media with its projects. It showcased Caribbean at Keppel BaySurabaya and office developments like Prudential Towers, Ocean Building, Ocean Towers and HarbourFront Towers to journalists from the Surabaya press such as Suara and the Vietnamese reporters from agencies such as Hanoi News, Vietnam Economic Times and Vietnam Investment Review in July 2005 and March 2006 respectively. These visits not only helped to showcase the Group’s quality and diverse portfolio of property From near and far, Caribbean at Keppel Bay has attracted guests of importance to marvel at its unique architecture and waterfront amenities developments, but also provided a better understanding Having established a good reputation and strong networks in Vietnam, Keppel Land was privileged to host Vietnam’s Deputy Prime Minister, His Excellency of the markets. Mr Nguyen Tan Dung in a private reception during his visit to Singapore. Participating in the Clipper Race Over 150 members from the China and international media Keppel Land as part of the Keppel Group, is participating convened at Spring City Golf and Lake Resort in Kunming, in the Clipper Round the World Yacht Race as a race Sharing Ideas and Experiences Hosting Visits from Overseas VIPs China for the Guan Fang Cup China-International Media partner onboard the Uniquely Singapore Clipper. One Sharing Knowledge in Real Estate Development Caribbean at Keppel Bay was the showcase for premier Golf Tournament in April 2005. Spring City was one of of the world’s most celebrated and prestigious In support of the spirit of learning through knowledge- waterfront living and the quality of Keppel Land’s the co-sponsors for this media event, which was part of international yachting events, Singapore is the first Asian sharing, the Group hosted 20 post-graduate students developments to numerous overseas VIPs during the the 2005 China Kunming International Cultural Tourism city to join the international racing fleet which set sail from the Holland Foundation for Real Estate during year. They include Vietnam’s Deputy Prime Minister Festival hosted by the China National Tourism Administration from Liverpool, UK in September 2005 and will end in their study trip to Singapore in May 2005. In line with Nguyen Tan Dung during his official visit to Singapore in and The People’s Government of Yunnan Province. the same city in July 2006. The Singapore crew is pitting the group’s study theme of “Unique Projects”, Keppel DecemberMinh People’s 2005. Committee their skills against an international line-up of 10 teams. Land shared ideas and experiences in real estate Representing over 80 print, broadcast and web content development with the group, including a presentation The Group also received a delegation from the Ho Chi organisations, the participants hailed from Malaysia, Sharing the Clipper vision of a spirit of adventure and on its One Raffles Quay project. Besides being especially led by Mr Nguyen Le Dung, Singapore, Thailand, Japan, Indonesia, Hong Kong, United achievement, passion, a global outlook and outreach impressed with One Raffles Quay’s distinctive design the Trustee Authority from the Investment and States, Korea, Myanmar, Philippines, United Kingdom which is inclusive of people from all walks of life, so long and concept, the trip helped to enrich their knowledge Construction Authority for Thu Thiem Urbanised Area; and China. As with the golfing community, the golf media as they rise to the challenge, Keppel Group is sponsoring of real estate development in Singapore and around the a 60-strong delegation led by Chief Minister of Johor, and the world were completely won over by Spring City’s two of its employees as crew members onboard the 18- Asian region. YAB Datuk Haji Abdul Chani Bin Othman; and Mayor award-winning golf courses, superb service, spring member Uniquely Singapore Clipper. John Law of Rodney District Council in Auckland, New weather and breathtaking views of the Lake and Mountain In November, Keppel Land participated in the Zealand during their visits in the first half of the year. courses designed by Robert Trent Jones Jr. and Jack One of the two Keppel staff selected to be Keppel Contributions of our Alumni to the Development of Nicklaus respectively. For members of the press who ambassadors onboard Uniquely Singapore after a rigorous Singapore exhibition organised by the National University In May, Keppel Land hosted Mayor Dai Xiang Long of were non-golfers, tours to Kunming’s attractions such screening process is Assistant General Manager of Singapore’s School of Design and Environment. Held Tianjin, during his trade mission trip to Singapore. as the Minority Village and Stone Forest were arranged. Tony Leong from Keppel Land. Armed with over 25 years at Suntec Singapore, the exhibition showcased Keppel Accompanied by a 30-strong delegation comprising lead of sailing experience, he is undertaking the Australia to Land’s Caribbean at Keppel Bay waterfront condominium municipal officials, the four-day visit paved the way for In January 2006, 17 Thai journalists including reporters Qingdao leg of the race, while another Keppel ambassador and One Raffles Quay office project among the major greater collaboration between the Group and Tianjin. from The Bangkok Post on a three-day visit to Singapore from Keppel Offshore and Marine is covering the Liverpool developments in the real estate, infrastructure and Earlier in February, Keppel Land’s professional expertise were invited to the Caribbean at Keppel Bay show gallery to Salvador leg. Through their participation in the race, construction industries that had augmented and and commitment to quality at Caribbean at Keppel Bay and a private function involving the 10-strong international the Keppel ambassadors will not only spread Keppel and modernised Singapore’s landscape. were impressed upon another delegation from Tianjin - Sponsorship, Clipper fleet including the Uniquely Singapore Clipper, Singapore’s message of goodwill in their respective the Administrative Committee of Tianjin Free which had berthed at Keppel Bay. destinations and to the international community, but also One Raffles Quay also participated in the SPH Trade Zone. bring to bear the experience and resourcefulness in support of a series of articles on the accumulated while working in Keppel to their teams. real estate industry which were published in The Business To foster ties with other Chinese municipalities and 52 Times between August and October 2005. provinces, Keppel Land hosted a 10-strong delegation led 53 by Mayor Dong Da Wei of Nantong Municipality in Corporate and Social Responsibility In January 2006, the 10-strong international Clipper fleet Promoting a Healthy and Balanced Lifestyle sailed into Keppel Bay, for a 12-day stopover in Singapore. Recognising the importance of having a healthy and Together with HarbourFront, Sentosa Island and its happy workforce, Keppel Land is committed to the Health upcoming Integrated Resort and VivoCity which is touted Charter, a workplace health promotion programme aimed as the country’s largest retail and entertainment hub, atAward developing 2005 a robust workforce. For its efforts, the Keppel Bay presented the world with a view of the Company was awarded the Singapore Health Silver dramatic transformations in Singapore’s true waterfront by the Health Promotion Board. This is a precinct. It also provided an excellent opportunity to progress from the Bronze award in the previous year. promote Singapore as Asia’s must-visit destination to the international sailing community and tourist worldwide. Workplace health promotion at Keppel Land is championed by its Staff Welfare Committee, a 16-member Supporting Regional Forums team comprising employees from all levels of the Following the signing of the Singapore-India Company. Chairmanship of this Committee is rotated Comprehensive Cooperation Agreement (CECA) in June every year to ensure that fresh and new ideas are 2005, Keppel Land was among the key corporate continuously generated. sponsors for the CECA Seminar, the first in a series on the benefits of the Agreement. Aimed at attracting The team puts together numerous activities ranging from Singapore businesses to India, the seminar was attended sports and competitive games to health screenings and by about 1,000 delegates from both private and health-related talks by professional bodies. These include public sectors. badminton and yoga classes, and talks on Aids, cancer, Real Estate, Construction and Infrastructure (RCI) traditional Chinese medicine and accupressure natural Keppel Land was a key sponsor of the Ho Chi Minh City therapy. Conducted during lunch hour or after work, these activities were very well-received by the employees. symposium held in Singapore in October. In support of the conference which was aimed at attracting Singapore In March 2006, a trip to the Singapore farms was well- businesses to develop Ho Chi Minh City’s technical received by staff, with many bringing their children to infrastructure and urban residential sectors, Keppel Land experience the relatively unknown rural side of Singapore. showcased its Saigon Sports City township development as a leading example of how foreign investors in the RCI Keppel Land also participates actively and organises industry can contribute to quality living in Vietnam. some of the events in the Keppel Group Inter-Strategic Investment Forum Business Units Games, which is currently in its fourth Keppel Land also sponsored the Vietnam Day - Trade year running. These include the Biathlon, badminton, together with the rest of the Keppel soccer and golf competitions. Group in December. Organised by the Vietnam Chamber Adopting Best Practices Singapore Compact for CSR in August. Formed in January of Commerce and Industry in collaboration with the In addition, the Company also tied up with fitness centres As Keppel Land stays on course to deliver sustainable 2005, Singapore Compact serves as a national platform Singapore Business Federation, the forum served as an like Clark Hatch Fitness Centre at InterContinental growth, it constantly strives to adopt and implement for fostering dialogue and collaboration on CSR. By important platform for Singapore and Vietnamese business Singapore and California Fitness at Bugis Junction Towers best practices in its business operations. Mindful of the integrating social values within its business decision- communities to forge new economic partnerships. where Keppel Land’s offices are also located to offer impact its operations has on society, Keppel Land aims making, Keppel Land aims to achieve positive and corporate membership passes and discounts respectively Together with the Urban Redevelopment Authority of to staff. Its membership at Clark Hatch Fitness Centre to create quality living and working spaces to improve sustainable outcome for its business, environment and Singapore, One Raffles Quay participated in MIPIM 2005, was renewed for the seventh year running in 2005, due the quality of life of the community and environment in the larger community. an annual international real estate industry event held at to its popularity with staff. which it operates in. In so doing, the Group seeks to the Palais Des Festivals in Cannes, France in March ensure that the interests of its key stakeholders, from 2005. As the world’s top property event, it provided an shareholders, investors, customers and employees to Maximising Customer Satisfaction opportunity for the Group to network and discuss new the larger community in which it operates in, are well Renowned for its quality and innovation, Keppel Land is trends with top developers, investors and government looked after. a premier developer of world-class properties with an officials from 67 countries. outstanding track record that extends beyond local shores. For its efforts in being a responsible corporate citizen, In positioning itself as a developer of quality homes in Keppel Land retained its “Best in Class” status for the Asia, the Group distinguishes itself from other developers second consecutive year in 2005 by Norwegian financial through its quality design, features and furnishings, and institution Storebrand for environment and social attention to details. Premium service standards set by performance reporting. It was one of only two Singapore its Customer Focus Unit further ensures that a long-term companies to make it to the list. relationship with its customers is sustained. 54 55 Taking a step further in its commitment to corporate social responsibility (CSR) in 2005, Keppel Land joined Corporate and Social Responsibility In January 2006, the 10-strong international Clipper fleet Promoting a Healthy and Balanced Lifestyle sailed into Keppel Bay, for a 12-day stopover in Singapore. Recognising the importance of having a healthy and Together with HarbourFront, Sentosa Island and its happy workforce, Keppel Land is committed to the Health upcoming Integrated Resort and VivoCity which is touted Charter, a workplace health promotion programme aimed as the country’s largest retail and entertainment hub, atAward developing 2005 a robust workforce. For its efforts, the Keppel Bay presented the world with a view of the Company was awarded the Singapore Health Silver dramatic transformations in Singapore’s true waterfront by the Health Promotion Board. This is a precinct. It also provided an excellent opportunity to progress from the Bronze award in the previous year. promote Singapore as Asia’s must-visit destination to the international sailing community and tourist worldwide. Workplace health promotion at Keppel Land is championed by its Staff Welfare Committee, a 16-member Supporting Regional Forums team comprising employees from all levels of the Following the signing of the Singapore-India Company. Chairmanship of this Committee is rotated Comprehensive Cooperation Agreement (CECA) in June every year to ensure that fresh and new ideas are 2005, Keppel Land was among the key corporate continuously generated. sponsors for the CECA Seminar, the first in a series on the benefits of the Agreement. Aimed at attracting The team puts together numerous activities ranging from Singapore businesses to India, the seminar was attended sports and competitive games to health screenings and by about 1,000 delegates from both private and health-related talks by professional bodies. These include public sectors. badminton and yoga classes, and talks on Aids, cancer, Real Estate, Construction and Infrastructure (RCI) traditional Chinese medicine and accupressure natural Keppel Land was a key sponsor of the Ho Chi Minh City therapy. Conducted during lunch hour or after work, these activities were very well-received by the employees. symposium held in Singapore in October. In support of the conference which was aimed at attracting Singapore In March 2006, a trip to the Singapore farms was well- businesses to develop Ho Chi Minh City’s technical received by staff, with many bringing their children to infrastructure and urban residential sectors, Keppel Land experience the relatively unknown rural side of Singapore. showcased its Saigon Sports City township development as a leading example of how foreign investors in the RCI Keppel Land also participates actively and organises industry can contribute to quality living in Vietnam. some of the events in the Keppel Group Inter-Strategic Investment Forum Business Units Games, which is currently in its fourth Keppel Land also sponsored the Vietnam Day - Trade year running. These include the Biathlon, badminton, together with the rest of the Keppel soccer and golf competitions. Group in December. Organised by the Vietnam Chamber Adopting Best Practices Singapore Compact for CSR in August. Formed in January of Commerce and Industry in collaboration with the In addition, the Company also tied up with fitness centres As Keppel Land stays on course to deliver sustainable 2005, Singapore Compact serves as a national platform Singapore Business Federation, the forum served as an like Clark Hatch Fitness Centre at InterContinental growth, it constantly strives to adopt and implement for fostering dialogue and collaboration on CSR. By important platform for Singapore and Vietnamese business Singapore and California Fitness at Bugis Junction Towers best practices in its business operations. Mindful of the integrating social values within its business decision- communities to forge new economic partnerships. where Keppel Land’s offices are also located to offer impact its operations has on society, Keppel Land aims making, Keppel Land aims to achieve positive and corporate membership passes and discounts respectively Together with the Urban Redevelopment Authority of to staff. Its membership at Clark Hatch Fitness Centre to create quality living and working spaces to improve sustainable outcome for its business, environment and Singapore, One Raffles Quay participated in MIPIM 2005, was renewed for the seventh year running in 2005, due the quality of life of the community and environment in the larger community. an annual international real estate industry event held at to its popularity with staff. which it operates in. In so doing, the Group seeks to the Palais Des Festivals in Cannes, France in March ensure that the interests of its key stakeholders, from 2005. As the world’s top property event, it provided an shareholders, investors, customers and employees to Maximising Customer Satisfaction opportunity for the Group to network and discuss new the larger community in which it operates in, are well Renowned for its quality and innovation, Keppel Land is trends with top developers, investors and government looked after. a premier developer of world-class properties with an officials from 67 countries. outstanding track record that extends beyond local shores. For its efforts in being a responsible corporate citizen, In positioning itself as a developer of quality homes in Keppel Land retained its “Best in Class” status for the Asia, the Group distinguishes itself from other developers second consecutive year in 2005 by Norwegian financial through its quality design, features and furnishings, and institution Storebrand for environment and social attention to details. Premium service standards set by performance reporting. It was one of only two Singapore its Customer Focus Unit further ensures that a long-term companies to make it to the list. relationship with its customers is sustained. 54 55 Taking a step further in its commitment to corporate social responsibility (CSR) in 2005, Keppel Land joined Innovative marketing events are held to heighten interest Besides posting timely and detailed updates on the Keppel Land has since increased the frequency of safety among homebuyers. During the launch of The Belvedere Group’s quarterly financial performance on its corporate audits by an independent party engaged by its contractor, Pleasures located in the upmarket Katong area which is popular for website, analysts and the media are invited to attend from the regulatory 6 months to 4 months and its Peranakan culture and influences, a Peranakan management’s interim and full-year results presentations. subsequently to 2 months. In addition, it also commissions event complete with nonya cakes, beadwork Coupled with luncheons and conference calls with local a separate safety audit consultant to conduct safety and overseas fund managers respectively after checks every two weeks. displays and humorous bibiks and babas’ banter announcement of results, these help them better entertained homebuyers at the showflat. At Park Infinia understand the Group’s strategic directions and key atHome” Wee Nam in the Newton area, prospective homebuyers corporate developments. Ensuring a Quality Workplace for Employees were treated to an evening of fine living at the show With intellectual capital being the backbone of an gallery, where creative works to the theme of “In My Working with different international broking houses, organisation, Keppel Land takes efforts to ensure the by five of Singapore’s local photographers were Keppel Land participated in three roadshows in Europe, well-being of its employees. showcased. Guests even took home an autographed the United States and Hong Kong in 2005 to cultivate and framed print of their favourable pick as a memento. existing and attract new investors. Embracing Pro-family Policies To promote a healthy and balanced lifestyle, Keppel Land The Group’s portfolio of internationally acclaimed Strengthening Corporate Governance started the five-day work week in July 2005. developments is testimony to its commitment to delivering For its efforts at corporate disclosure and transparency, the best. Keppel Land won several awards, including the prestigious Besides continuing with the practices of flexible extended Gold Award for Best Annual Report in the category maternity, paternity, child-care and marriage leave, it has Award Its condominium projects in Singapore, The Tresor and for companies with market capitalisation of $500 million also set up a room to cater to nursing mothers who are Caribbean at Keppel Bay received the Green Mark Gold or more, at the inaugural Singapore Corporate Awards still lactating, to enable them to express breastmilk while for environmentally-friendly practices at all stages Merit Award held in March 2006. The award recognises the most at work. of construction and the Construction Excellence 2006 outstanding annual report based on criterion such as for its high standard of management, transparency, adequacy of disclosure and presentation As a token of appreciation, staff are given shopping technical expertise and workmanship, respectively, from of information. vouchers on their birthday. Financial assistance schemes the Building and Construction Authority. Times Corporate Transparency Index 2005. are also extended to staff. Keppel Land was the only property developer who made In Chengdu, China, The Botanica residential township it to the Top 20 out of 644 companies in the Business In addition, the Company also continued its corporate received the High Quality Building Award from the membership to the Singapore Zoo, Jurong Bird Park and Construction Bank of China in May 2005, while The Science Center, to enable staff to visit these places of Waterfront condominium development was conferred the For the Securities Investors Association of Singapore leisure with their family and friends. Model Residential Development for the International (SIAS) Investors’ Choice Awards 2005, Keppel Land was CommunityInvestment Valueand Recommended Project with Good runner-upcorporate forgovernance. Most Transparent Company under the Nurturing a Healthy Workforce awards by Chengdu’s Housing Bureau. Properties category. It also won a Merit Award for ItsSilver continuing Award efforts 2005 in the workplace health programme has earned Keppel Land the Singapore H.E.A.L.T.H. Saigon Centre in Ho Chi Minh City, Vietnam was bestowed by the Health Promotion Board, after the Vietnam 2005 Quality Award – Gold Medal by the having won the Bronze award the previous year. The Ministry of Science, Technology and Environment in Insisting on Safety First annual award accords national recognition to organisations Through myriad human resource initiatives and people management recognition of the high quality of the development and Keppel Land emphasises a safe worksite environment with commendable workplace health promotion programmes, Keppel Land is committed to ensuring the well-being of its employees. high standard of management and services provided. for all its projects. It has gone beyond the minimum programmes that look into the wellness of their employees. requirements spelt out by the authorities and commissioned safety audits and surveillance monitoring Spearheaded by the Staff Welfare Committee, which Board was invited to give a talk on Aids called Bridges Communicating With Investors conducted by an independent party every month for its comprises representatives from all departments of the of Hope to staff to raise awareness of it. Reaching Out through Briefings, Meetings projects. This identifies the risk areas at various stages Company, numerous activities were organised to and Roadshows of construction and serves to promote greater safety encourage staff to achieve a balance in the three main Talks on personal financial planning such as savings and Good corporate governance and investor relations form awareness among its contractors. areas of mind, body and emotions. investment as well as will-planning, and beauty workshops an integral part of Keppel Land’s corporate culture. As the by Shiseido and Helena Rubinstein were also well- Lifestyle Group’s growing regional presence draws greater investor In July 2005, two of Keppel Land’s residential projects Embracing the theme Towards a Healthy & Balanced received by staff. interest, it has spurred efforts at enhancing effective in Singapore – Butterworth 8 and Caribbean at Keppel in 2005, talks and workshops on topics like communication and building good relations with BayMerit – receivedCertificate the Safety Performance Award 2005 silent killer illnesses, piles and colon cancer, traditional Friendly competitive games were held with other strategic shareholders, investors, stock analysts and fund managers. from the Ministry of Manpower, for good Chinese medicine and acupressure natural therapy were business units within the Keppel Group. These include safety performance and basic safety management systems. held. Health screenings by the National Kidney Foundation organising the 7-a-side soccer tournament and Taking a pro-active approach, management holds regular and SATA were conducted in September and November participating in the Keppel Badminton Championship and briefings with investment professionals including analysts Safety measures have been reinforced at One Raffles respectively. In February 2006, the Health Promotion Keppel Biathon. Besides raising their fitness levels, these 56 and fund managers from Singapore and overseas Quay following two accidents at the site. The unfortunate events also promote camaraderie among staff. 57 through one-on-one sessions, group meetings and incidents have strengthened the Company’s resolve to conference calls. prevent any repeat of such occurrences in its projects. Innovative marketing events are held to heighten interest Besides posting timely and detailed updates on the Keppel Land has since increased the frequency of safety among homebuyers. During the launch of The Belvedere Group’s quarterly financial performance on its corporate audits by an independent party engaged by its contractor, Pleasures located in the upmarket Katong area which is popular for website, analysts and the media are invited to attend from the regulatory 6 months to 4 months and its Peranakan culture and influences, a Peranakan management’s interim and full-year results presentations. subsequently to 2 months. In addition, it also commissions event complete with nonya cakes, beadwork Coupled with luncheons and conference calls with local a separate safety audit consultant to conduct safety and overseas fund managers respectively after checks every two weeks. displays and humorous bibiks and babas’ banter announcement of results, these help them better entertained homebuyers at the showflat. At Park Infinia understand the Group’s strategic directions and key atHome” Wee Nam in the Newton area, prospective homebuyers corporate developments. Ensuring a Quality Workplace for Employees were treated to an evening of fine living at the show With intellectual capital being the backbone of an gallery, where creative works to the theme of “In My Working with different international broking houses, organisation, Keppel Land takes efforts to ensure the by five of Singapore’s local photographers were Keppel Land participated in three roadshows in Europe, well-being of its employees. showcased. Guests even took home an autographed the United States and Hong Kong in 2005 to cultivate and framed print of their favourable pick as a memento. existing and attract new investors. Embracing Pro-family Policies To promote a healthy and balanced lifestyle, Keppel Land The Group’s portfolio of internationally acclaimed Strengthening Corporate Governance started the five-day work week in July 2005. developments is testimony to its commitment to delivering For its efforts at corporate disclosure and transparency, the best. Keppel Land won several awards, including the prestigious Besides continuing with the practices of flexible extended Gold Award for Best Annual Report in the category maternity, paternity, child-care and marriage leave, it has Award Its condominium projects in Singapore, The Tresor and for companies with market capitalisation of $500 million also set up a room to cater to nursing mothers who are Caribbean at Keppel Bay received the Green Mark Gold or more, at the inaugural Singapore Corporate Awards still lactating, to enable them to express breastmilk while for environmentally-friendly practices at all stages Merit Award held in March 2006. The award recognises the most at work. of construction and the Construction Excellence 2006 outstanding annual report based on criterion such as for its high standard of management, transparency, adequacy of disclosure and presentation As a token of appreciation, staff are given shopping technical expertise and workmanship, respectively, from of information. vouchers on their birthday. Financial assistance schemes the Building and Construction Authority. Times Corporate Transparency Index 2005. are also extended to staff. Keppel Land was the only property developer who made In Chengdu, China, The Botanica residential township it to the Top 20 out of 644 companies in the Business In addition, the Company also continued its corporate received the High Quality Building Award from the membership to the Singapore Zoo, Jurong Bird Park and Construction Bank of China in May 2005, while The Science Center, to enable staff to visit these places of Waterfront condominium development was conferred the For the Securities Investors Association of Singapore leisure with their family and friends. Model Residential Development for the International (SIAS) Investors’ Choice Awards 2005, Keppel Land was CommunityInvestment Valueand Recommended Project with Good runner-upcorporate forgovernance. Most Transparent Company under the Nurturing a Healthy Workforce awards by Chengdu’s Housing Bureau. Properties category. It also won a Merit Award for ItsSilver continuing Award efforts 2005 in the workplace health programme has earned Keppel Land the Singapore H.E.A.L.T.H. Saigon Centre in Ho Chi Minh City, Vietnam was bestowed by the Health Promotion Board, after the Vietnam 2005 Quality Award – Gold Medal by the having won the Bronze award the previous year. The Ministry of Science, Technology and Environment in Insisting on Safety First annual award accords national recognition to organisations Through myriad human resource initiatives and people management recognition of the high quality of the development and Keppel Land emphasises a safe worksite environment with commendable workplace health promotion programmes, Keppel Land is committed to ensuring the well-being of its employees. high standard of management and services provided. for all its projects. It has gone beyond the minimum programmes that look into the wellness of their employees. requirements spelt out by the authorities and commissioned safety audits and surveillance monitoring Spearheaded by the Staff Welfare Committee, which Board was invited to give a talk on Aids called Bridges Communicating With Investors conducted by an independent party every month for its comprises representatives from all departments of the of Hope to staff to raise awareness of it. Reaching Out through Briefings, Meetings projects. This identifies the risk areas at various stages Company, numerous activities were organised to and Roadshows of construction and serves to promote greater safety encourage staff to achieve a balance in the three main Talks on personal financial planning such as savings and Good corporate governance and investor relations form awareness among its contractors. areas of mind, body and emotions. investment as well as will-planning, and beauty workshops an integral part of Keppel Land’s corporate culture. As the by Shiseido and Helena Rubinstein were also well- Lifestyle Group’s growing regional presence draws greater investor In July 2005, two of Keppel Land’s residential projects Embracing the theme Towards a Healthy & Balanced received by staff. interest, it has spurred efforts at enhancing effective in Singapore – Butterworth 8 and Caribbean at Keppel in 2005, talks and workshops on topics like communication and building good relations with BayMerit – receivedCertificate the Safety Performance Award 2005 silent killer illnesses, piles and colon cancer, traditional Friendly competitive games were held with other strategic shareholders, investors, stock analysts and fund managers. from the Ministry of Manpower, for good Chinese medicine and acupressure natural therapy were business units within the Keppel Group. These include safety performance and basic safety management systems. held. Health screenings by the National Kidney Foundation organising the 7-a-side soccer tournament and Taking a pro-active approach, management holds regular and SATA were conducted in September and November participating in the Keppel Badminton Championship and briefings with investment professionals including analysts Safety measures have been reinforced at One Raffles respectively. In February 2006, the Health Promotion Keppel Biathon. Besides raising their fitness levels, these 56 and fund managers from Singapore and overseas Quay following two accidents at the site. The unfortunate events also promote camaraderie among staff. 57 through one-on-one sessions, group meetings and incidents have strengthened the Company’s resolve to conference calls. prevent any repeat of such occurrences in its projects. Creating Green Sanctuaries KeppelIndustry Land’s Association luxury waterfront (Singapore) condominium, Awards Caribbeanof atExcellence Keppel Bay, 2006. which is home to some 2,200 shrubs and 800 trees, was bestowed two awards in the Landscape

These include the Gold Award in the Implementation/ Residential category for the quality of plant materials used, installation techniques and craftsmanship and Silver Award in the Maintenance category for the condition of the plants and cleanliness of the site.

The Group’s penchant for creating homes close to nature ranges from specially-design resort-style garden bathrooms at Villa Arcadia at Srinakarin in Bangkok, Protecting the earth’s resources for all our tomorrows, Keppel Land works closely with local authorities to minimise harm to the eco-environment. Thailand to meticulous landscaping with a mix of all- season evergreens and deciduous trees and flora to In addition, fitness activities like badminton and yoga Singapore Environment Reporting Awards organised allow residents to enjoy nature all-year round at The lessons were held to promote healthy living. by the Association of Chartered Certified Accountants Seasons in Beijing, China. For its efforts, the latter was Anticipated Award Singapore in March 2005. awarded the Best Landscaping Award by Xin Jing Bao At the same time, Keppel Land tied up with California as well as Special Project Award and 2005 Most Fitness, its tenant at Bugis Junction Towers to offer Reducing Ecological Impact by Beijing’s An Jia magazine. corporate membership rates to staff. With water being a vital source of sustainability, special care is taken to prevent pollution to water bodies close At the same time, commercial properties such as One It also renewed its corporate membership to the Clark to the Group’s properties. Sedona Suites Hanoi in Vietnam Raffles Quay incorporates lush landscaping within the Hatch Fitness Center at InterContinental Singapore for treats sewage water before discharging it to the adjacent bustling Central Business District, while water features the seventh year running due to its popularity with staff. West Lake, while a sewerage treatment plant was and roof gardens characterise Prudential Tower and With both fitness centres conveniently located within constructed at BG Junction in Surabaya, Indonesia, to Keppel Bay Tower. the Bugis Junction development where Keppel Land’s eliminate any environmental pollution from the discharge headquarters is also situated, staff can use the facilities of waste water. Conserving Energy and Water before or after work, during lunch breaks or on weekends. In striking a balance between economic objectives and Similarly, retention basins were created at strategic environmental viability, Keppel Land practises value locations and selected vegetation planted to absorb engineering in the construction of its buildings and uses Harmonising with the Environment nutrients and chemicals present in the overspill of surface energy-saving devices in its properties. The Group’s guiding philosophy is that properties should water to prevent pollution to the Yang Zong Hai Lake be developed to harmonise and improve the environment adjacent to Spring City Golf and Lake Resort. Waste At Spring City Golf and Lake Resort, the use of hollow as well as enhance the quality of life of the people who water is diverted into a sewerage pipe located along the concrete blocks instead of clay bricks in the construction use them. This principle drives the design and edge of the lake from which it is drained to the main of the luxury villas not only reduces the loading development of all the Group’s projects. Besides making waste treatment plant. Samples of water taken from the requirements of the columns and beams but also acts conscious efforts to ensure minimal negative impact on lake for tests each year further ensures that a high level as an insulation air space in winter. This reduces heating the environment, Keppel Land’s properties enhance the of cleanliness is maintained. requirements. In the design of its staff dormitory, the environment locally and overseas with its thoughtfully use of solar heat reduces energy costs. planned-out green initiatives and comprehensive energy Working closely with the local authorities on environmental Structural System and water conservation and recycling programmes. issues, the resort also provided land for Kunming’s Similarly, One Raffles Quay uses the Innovative Hybrid Environmental Bureau to build a building near the lake to minimise the building’s weight Keppel Land obtained the Building and Construction to house the equipment for measuring water quality and and movements. Energy efficient features include the Authority’s Green Mark Gold Award for The Tresor air purity. use of an energy wheel as heat exchangers to pre-cool condominium project. Aimed at raising environmental air before supplying to the Air Handling Units (AHUs), awareness among developers and contractors from project In another move to minimise contamination to nearby variable air-volume system for optimum control of air- conceptualisation to design to construction stages, the lakes, golf courses like Spring City and Ria Bintan in conditioning and variable speed drive in AHUs to cut programme involves assessment in the areas of energy Indonesia use only slow-release fertilisers and bio- down fan speed and reduce energy consumption for Striking a balance between economic objectives and environmental and water efficiency, project development and management, degradable chemicals on the turf. Its application is also air-conditioning viability, Keppel Land’s properties incorporate thoughtfully planned green initiatives such as energy and water conservation and indoor environmental quality and environmental innovations. delayed in times of rain to prevent the chemicals from recycling programmes. flowing into the lake through drainage of rainwater. 58 For its commitment to caring for the environment, 59 Keppel Land emerged as one of six finalists for the Creating Green Sanctuaries KeppelIndustry Land’s Association luxury waterfront (Singapore) condominium, Awards Caribbeanof atExcellence Keppel Bay, 2006. which is home to some 2,200 shrubs and 800 trees, was bestowed two awards in the Landscape

The Group’s penchant for creating homes close to nature ranges from specially-design resort-style garden bathrooms at Villa Arcadia at Srinakarin in Bangkok, Protecting the earth’s resources for all our tomorrows, Keppel Land works closely with local authorities to minimise harm to the eco-environment. Thailand to meticulous landscaping with a mix of all- season evergreens and deciduous trees and flora to In addition, fitness activities like badminton and yoga Singapore Environment Reporting Awards organised allow residents to enjoy nature all-year round at The lessons were held to promote healthy living. by the Association of Chartered Certified Accountants Seasons in Beijing, China. For its efforts, the latter was Anticipated Award Singapore in March 2005. awarded the Best Landscaping Award by Xin Jing Bao At the same time, Keppel Land tied up with California as well as Special Project Award and 2005 Most Fitness, its tenant at Bugis Junction Towers to offer Reducing Ecological Impact by Beijing’s An Jia magazine. corporate membership rates to staff. With water being a vital source of sustainability, special care is taken to prevent pollution to water bodies close At the same time, commercial properties such as One It also renewed its corporate membership to the Clark to the Group’s properties. Sedona Suites Hanoi in Vietnam Raffles Quay incorporates lush landscaping within the Hatch Fitness Center at InterContinental Singapore for treats sewage water before discharging it to the adjacent bustling Central Business District, while water features the seventh year running due to its popularity with staff. West Lake, while a sewerage treatment plant was and roof gardens characterise Prudential Tower and With both fitness centres conveniently located within constructed at BG Junction in Surabaya, Indonesia, to Keppel Bay Tower. the Bugis Junction development where Keppel Land’s eliminate any environmental pollution from the discharge headquarters is also situated, staff can use the facilities of waste water. Conserving Energy and Water before or after work, during lunch breaks or on weekends. In striking a balance between economic objectives and Similarly, retention basins were created at strategic environmental viability, Keppel Land practises value locations and selected vegetation planted to absorb engineering in the construction of its buildings and uses Harmonising with the Environment nutrients and chemicals present in the overspill of surface energy-saving devices in its properties. The Group’s guiding philosophy is that properties should water to prevent pollution to the Yang Zong Hai Lake be developed to harmonise and improve the environment adjacent to Spring City Golf and Lake Resort. Waste At Spring City Golf and Lake Resort, the use of hollow as well as enhance the quality of life of the people who water is diverted into a sewerage pipe located along the concrete blocks instead of clay bricks in the construction use them. This principle drives the design and edge of the lake from which it is drained to the main of the luxury villas not only reduces the loading development of all the Group’s projects. Besides making waste treatment plant. Samples of water taken from the requirements of the columns and beams but also acts conscious efforts to ensure minimal negative impact on lake for tests each year further ensures that a high level as an insulation air space in winter. This reduces heating the environment, Keppel Land’s properties enhance the of cleanliness is maintained. requirements. In the design of its staff dormitory, the environment locally and overseas with its thoughtfully use of solar heat reduces energy costs. planned-out green initiatives and comprehensive energy Working closely with the local authorities on environmental Structural System and water conservation and recycling programmes. issues, the resort also provided land for Kunming’s Similarly, One Raffles Quay uses the Innovative Hybrid Environmental Bureau to build a building near the lake to minimise the building’s weight Keppel Land obtained the Building and Construction to house the equipment for measuring water quality and and movements. Energy efficient features include the Authority’s Green Mark Gold Award for The Tresor air purity. use of an energy wheel as heat exchangers to pre-cool condominium project. Aimed at raising environmental air before supplying to the Air Handling Units (AHUs), awareness among developers and contractors from project In another move to minimise contamination to nearby variable air-volume system for optimum control of air- conceptualisation to design to construction stages, the lakes, golf courses like Spring City and Ria Bintan in conditioning and variable speed drive in AHUs to cut programme involves assessment in the areas of energy Indonesia use only slow-release fertilisers and bio- down fan speed and reduce energy consumption for Striking a balance between economic objectives and environmental and water efficiency, project development and management, degradable chemicals on the turf. Its application is also air-conditioning viability, Keppel Land’s properties incorporate thoughtfully planned green initiatives such as energy and water conservation and indoor environmental quality and environmental innovations. delayed in times of rain to prevent the chemicals from recycling programmes. flowing into the lake through drainage of rainwater. 58 For its commitment to caring for the environment, 59 Keppel Land emerged as one of six finalists for the in its residential developments to encourage residents serve to position Singapore as a creative city, a global to adopt the good habit. meeting place for ideas, creativity and innovation, making it one of the best business and lifestyle environments in Asia. Caring for the Community Keppel Volunteers Programme As its contribution to the Public Sculpture masterplan As part of the Keppel Group’s Volunteers programme to for the new business hub at Downtown Marina, One encourage good corporate citizenship, Keppel Land Raffles Quay will commission the design and installation continued to support the schools under its adopted of an art sculpture at Finlayson Green. charity, the Association of Persons with Special Needs (APSN). They include the Jervois, Katong, Chao Yang, Extending Good Corporate Citizenship Overseas and Tanglin special schools and APSN Delta Senior School Overseas, Keppel Land has always taken a proactive as well as APSN Centre for Adults. Staff are given two approach in donations, volunteerism and community days off from work a year to participate in the programme, involvement in the various cities that it operates in. which is now into its sixth year. Aiding Hurricane and Tsunami Victims

Both locally and overseas, Keppel Land is committed to contributing to the communities in which it operates. Based on the theme of “Move Your Body, Do-It Yourself In support of Harrah’s Entertainment Artists Rally Together and Activity”, Keppel Volunteers organised new sports, or H.E.A.R.T charity concert held in Las Vegas in February outdoor as well as arts and cultural activities for the 2006, Keppel Land donated US$30,000 towards helping whenever the system is running at part load. The Reducing Paper Usage students of APSN. These include the Walk-A-Jog, which hurricane-affected employees of Harrah’s Entertainment, development’s insulated glazing façade helps to reduce Online systems are used to reduce paper usage. These raised more than $30,000 for the Harvard Singapore its partner in the Singapore Integrated Resorts bids, in solar heat transmission into the interior of the building. includePortal. having workflow applications such as eLeave, Foundation. This joint effort of close to 100 Keppel New Orleans and the Gulf Coast region of the US. In addition, computerised lighting control system, ductless ePay, e-facilities booking on the KepLand Knowledge Volunteers and students from APSN was a heartening ventilation system for carparks, energy-efficient light Condominium portals at Caribbean at Keppel Bay, display of teamwork and friendship for a worthy cause. Earlier in 2005, Sedona Suites Hanoi in Vietnam raised fitting with electronic ballasts, and motion sensors in the Freesia Woods, Amaranda Gardens and Butterworth 8 funds and donated over 30 boxes of necessities in toilets and escalators were also installed. allow residents to book facilities and view announcements ChampionKids, of Charity Causes response to the Tsunami relief efforts by the Sri Lankan online. Old laser printers in its office were also replaced In March, Keppel Land sponsored Kids Walk for Cancer Embassy. Melia Purosani Hotel donated about $3,500, To avoid sick building syndrome, One Raffles Quay uses with new ones that allow double-sided printing. a charity event to raise funds for the Children while Ria Bintan organized and raised about $25,000 an air-flushing system that discharges foul air from Cancer Fund to help cancer-stricken children cover their from a Charity Golf event in February for victims enclosed workspace to the external. Noise from cooling Keppel Land’s annual reports are also available on its in-patient medical treatments, home-care services and from Banda Aceh. Ria Bintan was also the venue for towers located next to the offices is reduced with acoustic website for investors and the public. This saves a lot of home-tuition educational expenses. In support of this Keppel Group’s Killer Tidal Wave Charity Golf event treatment utilising steel plate dampers. At the same paper which would have to be used in printing many event, the Group made a corporate donation and offered in March, which raised $100,000 for the Singapore time, condensate water from air-conditioning is recycled copies of the annual report at more than $30 per copy. Ocean Towers, Ocean Building and Bugis Junction as International Foundation. for irrigation. As part of the development of One Raffles venues for registration booths to generate public Quay, Keppel Land is hosting a District Cooling Plant at In 2005, a Project Progress Payment System, which awareness. Staff also participated by collecting pledges, Similarly, Keppel Land’s regional office in Beijing sponsored Marina Boulevard. This provides centralised and more was developed in-house, made authorisation of payments planning the event and volunteering on the day itself. the CBRE Charity Golf Tournament 2005 in support of efficient air-conditioning for adjoining sites. to its contractors online. Currently used for projects in Operation Blessing, a charity organisation in China. China, Thailand and India, the system also speeded up One Raffles Quay once again sponsored the Bull Run Energy-saving measures such as the use of low-energy processes from weeks to days. 2005 in October, a charity fun race now into its second Enhancing Living Environments consumption light bulbs and timers as well as year. Besides pledging $20,000, more than 60 participants To raise living standards in the rural areas, Spring City implementation of employee awareness programmes The Defects Management System was also comprising One Raffles Quay’s shareholders, architects Golf and Lake Resort helped to raise funds to renovate have reaped significant cost savings. Melia Purosani implemented in 2005 to track online, defects in properties and business associates participated in the run. A total and furnish two primary schools in Ciao Dian and Lee Hotel in Yogyakarta, Indonesia saved about US$60,000 and the status of rectification works, in order to generate of $2.3 million raised from the event went towards Hwa villages in Kunming. in electricity consumption and US$11,000 in diesel fuel better quality end products for its customers. helping needy children and youths from the Autism usage in 2005 vis-à-vis 2004. It was the first hotel outside Association, the Straits Times School Pocket Money Spring City is also working closely with international Bali that was awarded the prestigious Green Globe 21 Recycling and Reusing Fund and other programmes by the Community Chest. missionary doctors to educate the local residents on Certificate, which recognises commitment to operating Hotels and resorts under Keppel Land’s hotel arm, Sedona basic hygiene and health care. at the world’s highest environmental standards. Hotels International, recycles old napkins and towels in Supporter of the Arts the housekeeping and stewarding departments and In support of the Arts, One Raffles Quay sponsored the In addition, the resort donated generously to the upgrading At the same time, the use of water-flow control devices encourages its suppliers to supply food and drink items Singapore Season held in London in March 2005. of roads in Tangchi village. Free landscaping was provided like thimbles and recycling condensate water from air- in reusable crates and bottles. Organised by the National Arts Council and supported for the local police station and along the roads from Ciao conditioning for irrigation led to lower water consumption. by the Singapore Tourism Board and IESingapore, the Dian Toll Gate to the bridge before Ciao Dian village. Ocean Building and Ocean Towers saw a 5% reduction Staff are educated and actively participate in recycling, event showcased Singapore´s contemporary artistic and in water usage, while Bugis Junction Towers was reusing and reducing wastage through the disposal of cultural achievements to international audiences. These 60 acknowledged as a Water Efficient Building by the scrap paper, old newspaper, and magazines at recycling 61 Public Utilities Board in May 2005. bins placed in the office. Recycling bins are also placed In November, staff from Sedona Hotel Yangon in Myanmar one of only four malls to be given the award. Among visited and provided food relief to victims of a major fire others, the malls were judged on the provision of Caring for the Community - 2005 that razed the slum quarters of Hlaing in Yangon, which accessible ramps with handrails and signage, dedicated left more than 1,500 households homeless. reserve parking and toilets for the disabled and ample Month Event In Support of provision of signages directing disabled to such disabled Singapore Generating Livelihood friendly facilities. Year-round Keppel Volunteers Programme The Association of Persons with Special Needs Besides providing employment to the locals in its regional January Singapore Arts Festival 2005* National Arts Council offices, the Group also trains local youths for future Children-First Approach January REDAS Spring Festival Real Estate Developers Association of Singapore employment. At Sedona Hotel Mandalay in Myanmar, two As part of its on-going efforts to support local orphanages February Ria Bintan Charity Golf Tsunami victims from Banda Aceh February National Day Parade 2005 National Day Parade groups of youths, aged 16 to 22, were sponsored on a and School for the Blind, Sedona Hotel Yangon in February SJI Endowment Fund St Joseph’s Institution one-year Hospitality Training Course at the hotel in February Myanmar organises a luncheon for these children every March Kids Walk for Cancer Kids Children’s Cancer Fund and June 2005. Upon completion of the course, outstanding month. It has a regular donor programme where food, March Donation to NUH Endowment Fund – Cancer Fund NUH Endowment Fund – Cancer Fund trainees will be employed by the hotel. toys, books and old clothing are given to disadvantaged March SAF Day Combined Re-dedication Ceremony 2005 Singapore Armed Forces children. Similarly, Sedona Hotel Mandalay hosted a lunch May Donation to National Cancer Centre* National Cancer Centre Enriching Lives party for 120 youngsters from the Boys' Training School July Gala Launch of “Birds Seen at the Istana” Singapore Environment Council July Leng Kee Fund-raising Golf Challenge 2005 Leng Kee Community Centre Keppel Land’s regional office in Beijing is adopting the at the hotel in April. September REDAS Mid-Autumn Festival Real Estate Developers Association of Singapore Zhi Guan Special Education School for the intellectually October Bull Run Fund Raising 2005 Needy children and youths under the Autism disabled. During the year, it donated more than $10,000 Special events are always celebrated with the children. Association, Straits Times School Pocket Money and also raised more funds through fund-raising efforts Melia Purosani Hotel hosted the Wreksa Putra Orphanage Fund and other programmes by the Community Chest for the school. Staff from the Beijing office also spent during Easter, while staff of Sedona Suites Ho Chi Minh October SIAS 6th Investors’ Choice Awards 2005 Securities Investors Association (Singapore) the mid-autumn festival with the students, with gifts of City in Vietnam celebrated Christmas with St. Joseph's October SDE Centennial Celebrations National University of Singapore – School of Design and Environment mooncakes, school-bags and stationery. Charity School. December Wishing Christmas trees at Keppel Land’s Office Buildings Chao Yang, Jervois and Katong Special Schools December Donation to Mouth and Foot Painting Artists Mouth and Foot Painting Artists InAwards the Philippines, for the TheDisabled Podium Friendly retail mall Establishment at SM-KL Towers of In May, a Charity Spring Fair organised by residents of February 2006 Harrah’s Entertainment HEART Charity Concert Harrah’s Entertainment Employee Relief Fund for inthe Ortigas Year. was awarded the 2005 Apolinario Mabini Sedona Suites Hanoi to raise funds for the School for victims of Huricanes Katrina and Rita Blind Children. February 2006 National Day Parade 2006 National Day Parade Launched by the Philippines Foundation for Overseas the Rehabilitation of the Disabled, the annual award is To share the experience of golf with the next generation Year-round Spring City Junior Golf Children from neighbouring schools in Kunming given to places which have been most responsive to the and identify future promising players, Spring City Golf Monthly Lunch with Sedona Hotel Yangon Orphanage and School for the Blind in Yangon needs of the disabled by providing the facilities and and Lake Resort provides free lessons for children from February Sedona Hotel Mandalay Hospitality Training Course (1st Intake) Youths from Mandalay city services which make their access to the establishment nearby schools for a year, complete with the necessary February Rescue efforts for Flood Victims and Families Ratmakan Village in Yogyakarta safer, more pleasant and convenient. The Podium was attire and equipment. February Ria Bintan Charity Golf Tournament Tsunami Relief Efforts for victims and their families in Banda Acheh March Keppel’s Asia Killer Tidal Wave Charity Golf* Singapore International Foundation March Easter with Hotel Melia Purosani Wreksa Putra Orphanage in Yogyakarta April CBRE Charity Golf Tournament 2005 Operation Blessing charity organisation Commitment to Stakeholders April Lunch with Sedona Hotel Mandalay Orphans from the Boys’ Training School in Mandalay May Sedona Suites Hanoi’s Charity Spring Fair School for Blind Children in Hanoi May Renovations and Furnishing of Schools Primary schools in Ciao Dian Village and Lee Hwa Our Customers Village in Kunming To develop quality homes and products with premier investment value and build on brand equity to enhance our competitive edge May Landscaping Works Ciao Dian Village in Kunming Our Investors May Village Upgrading Tangchi Village in Kunming To build on strong fundamentals to deliver continued earnings growth and maximise shareholder returns May Donation of Old Clothes by Hotel Melia Purosani Panti Sosial Bina Karya Welfare Home and Panti Wreda Hanna Old Folks’ Home in Yogyakarta Our Staff June Sedona Hotel Mandalay Hospitality Training Course (2nd Intake) Youths from Mandalay city To realise their full potential and cultivate knowledge-based employees with good work-life balance for a motivated and June Dinner with Hotel Melia Purosani Panti Asuhan Yatim Putri Aisyiah Orphanage and dedicated workforce Panti Asuhan Yatim Putri Islam Orphanage June Donation of Books and Bookshelves Library for Poor Children living at riverbank of Code Our Business Partners River in Yogyakarta To integrate the strengths of our partners, strong regional network and knowledge as well as brand equity to capitalise on opportunities July Donation and Fund-raising Efforts in Beijing Zhi Guan Special Education School for Intellectually Disabled Our Contractors and Suppliers July Cooking with Hotel Melia Purosani Nurul Yasmin Girls’ Orphanage and To team up with quality contractors and suppliers who share the Group’s commitment to high quality, environmental, health and Wreksa Putra Orphanage safety standards August Singapore National Day Charity Bazaar Singapore Club in Beijing August China-Singapore Relationship Building 15th Anniversary China-Singapore Relationship Building Fund Our Environment Charity Dinner To create an optimal living environment which epitomises quality, innovation and integrity September Mid-Autumn Festival in Beijing Zhi Guan Special Education School for Our Community Intellectually Disabled October Donation to Singapore Student Union in Beijing Singapore Student Union To be a committed and responsible corporate citizen, improving the welfare of the needy and contributing to the communities that November Rescue Efforts for Fire Victims and Families Homeless families in Hlaing, Yangon 62 we operate in December Christmas with Sedona Suites HCMC St Joseph’s Charity School in HCMC 63

* As part of Keppel Group’s contributions In November, staff from Sedona Hotel Yangon in Myanmar one of only four malls to be given the award. Among visited and provided food relief to victims of a major fire others, the malls were judged on the provision of Caring for the Community - 2005 that razed the slum quarters of Hlaing in Yangon, which accessible ramps with handrails and signage, dedicated left more than 1,500 households homeless. reserve parking and toilets for the disabled and ample Month Event In Support of provision of signages directing disabled to such disabled Singapore Generating Livelihood friendly facilities. Year-round Keppel Volunteers Programme The Association of Persons with Special Needs Besides providing employment to the locals in its regional January Singapore Arts Festival 2005* National Arts Council offices, the Group also trains local youths for future Children-First Approach January REDAS Spring Festival Real Estate Developers Association of Singapore employment. At Sedona Hotel Mandalay in Myanmar, two As part of its on-going efforts to support local orphanages February Ria Bintan Charity Golf Tsunami victims from Banda Aceh February National Day Parade 2005 National Day Parade groups of youths, aged 16 to 22, were sponsored on a and School for the Blind, Sedona Hotel Yangon in February SJI Endowment Fund St Joseph’s Institution one-year Hospitality Training Course at the hotel in February Myanmar organises a luncheon for these children every March Kids Walk for Cancer Kids Children’s Cancer Fund and June 2005. Upon completion of the course, outstanding month. It has a regular donor programme where food, March Donation to NUH Endowment Fund – Cancer Fund NUH Endowment Fund – Cancer Fund trainees will be employed by the hotel. toys, books and old clothing are given to disadvantaged March SAF Day Combined Re-dedication Ceremony 2005 Singapore Armed Forces children. Similarly, Sedona Hotel Mandalay hosted a lunch May Donation to National Cancer Centre* National Cancer Centre Enriching Lives party for 120 youngsters from the Boys' Training School July Gala Launch of “Birds Seen at the Istana” Singapore Environment Council July Leng Kee Fund-raising Golf Challenge 2005 Leng Kee Community Centre Keppel Land’s regional office in Beijing is adopting the at the hotel in April. September REDAS Mid-Autumn Festival Real Estate Developers Association of Singapore Zhi Guan Special Education School for the intellectually October Bull Run Fund Raising 2005 Needy children and youths under the Autism disabled. During the year, it donated more than $10,000 Special events are always celebrated with the children. Association, Straits Times School Pocket Money and also raised more funds through fund-raising efforts Melia Purosani Hotel hosted the Wreksa Putra Orphanage Fund and other programmes by the Community Chest for the school. Staff from the Beijing office also spent during Easter, while staff of Sedona Suites Ho Chi Minh October SIAS 6th Investors’ Choice Awards 2005 Securities Investors Association (Singapore) the mid-autumn festival with the students, with gifts of City in Vietnam celebrated Christmas with St. Joseph's October SDE Centennial Celebrations National University of Singapore – School of Design and Environment mooncakes, school-bags and stationery. Charity School. December Wishing Christmas trees at Keppel Land’s Office Buildings Chao Yang, Jervois and Katong Special Schools December Donation to Mouth and Foot Painting Artists Mouth and Foot Painting Artists InAwards the Philippines, for the TheDisabled Podium Friendly retail mall Establishment at SM-KL Towers of In May, a Charity Spring Fair organised by residents of February 2006 Harrah’s Entertainment HEART Charity Concert Harrah’s Entertainment Employee Relief Fund for inthe Ortigas Year. was awarded the 2005 Apolinario Mabini Sedona Suites Hanoi to raise funds for the School for victims of Huricanes Katrina and Rita Blind Children. February 2006 National Day Parade 2006 National Day Parade Launched by the Philippines Foundation for Overseas the Rehabilitation of the Disabled, the annual award is To share the experience of golf with the next generation Year-round Spring City Junior Golf Children from neighbouring schools in Kunming given to places which have been most responsive to the and identify future promising players, Spring City Golf Monthly Lunch with Sedona Hotel Yangon Orphanage and School for the Blind in Yangon needs of the disabled by providing the facilities and and Lake Resort provides free lessons for children from February Sedona Hotel Mandalay Hospitality Training Course (1st Intake) Youths from Mandalay city services which make their access to the establishment nearby schools for a year, complete with the necessary February Rescue efforts for Flood Victims and Families Ratmakan Village in Yogyakarta safer, more pleasant and convenient. The Podium was attire and equipment. February Ria Bintan Charity Golf Tournament Tsunami Relief Efforts for victims and their families in Banda Acheh March Keppel’s Asia Killer Tidal Wave Charity Golf* Singapore International Foundation March Easter with Hotel Melia Purosani Wreksa Putra Orphanage in Yogyakarta April CBRE Charity Golf Tournament 2005 Operation Blessing charity organisation Commitment to Stakeholders April Lunch with Sedona Hotel Mandalay Orphans from the Boys’ Training School in Mandalay May Sedona Suites Hanoi’s Charity Spring Fair School for Blind Children in Hanoi May Renovations and Furnishing of Schools Primary schools in Ciao Dian Village and Lee Hwa Our Customers Village in Kunming To develop quality homes and products with premier investment value and build on brand equity to enhance our competitive edge May Landscaping Works Ciao Dian Village in Kunming Our Investors May Village Upgrading Tangchi Village in Kunming To build on strong fundamentals to deliver continued earnings growth and maximise shareholder returns May Donation of Old Clothes by Hotel Melia Purosani Panti Sosial Bina Karya Welfare Home and Panti Wreda Hanna Old Folks’ Home in Yogyakarta Our Staff June Sedona Hotel Mandalay Hospitality Training Course (2nd Intake) Youths from Mandalay city To realise their full potential and cultivate knowledge-based employees with good work-life balance for a motivated and June Dinner with Hotel Melia Purosani Panti Asuhan Yatim Putri Aisyiah Orphanage and dedicated workforce Panti Asuhan Yatim Putri Islam Orphanage June Donation of Books and Bookshelves Library for Poor Children living at riverbank of Code Our Business Partners River in Yogyakarta To integrate the strengths of our partners, strong regional network and knowledge as well as brand equity to capitalise on opportunities July Donation and Fund-raising Efforts in Beijing Zhi Guan Special Education School for Intellectually Disabled Our Contractors and Suppliers July Cooking with Hotel Melia Purosani Nurul Yasmin Girls’ Orphanage and To team up with quality contractors and suppliers who share the Group’s commitment to high quality, environmental, health and Wreksa Putra Orphanage safety standards August Singapore National Day Charity Bazaar Singapore Club in Beijing August China-Singapore Relationship Building 15th Anniversary China-Singapore Relationship Building Fund Our Environment Charity Dinner To create an optimal living environment which epitomises quality, innovation and integrity September Mid-Autumn Festival in Beijing Zhi Guan Special Education School for Our Community Intellectually Disabled October Donation to Singapore Student Union in Beijing Singapore Student Union To be a committed and responsible corporate citizen, improving the welfare of the needy and contributing to the communities that November Rescue Efforts for Fire Victims and Families Homeless families in Hlaing, Yangon 62 we operate in December Christmas with Sedona Suites HCMC St Joseph’s Charity School in HCMC 63

* As part of Keppel Group’s contributions Special feature

Robust economic growth over the years has boosted Shortage of Good Townships the expansion of Asia’s middle-income population. Apart from demand-side factors, there are also supply- Coupled with rapid urbanisation and rising affluence, side elements that will support the development of these have created a huge market potential for townships townships in Asia. Generally, there is a shortage of good that embrace a pleasant living environment with quality townships that are strategically located within convenience and security. the radius of 10 to 20 km from the city centre. This vacuum offers tremendous opportunities for developers with the right track record and expertise. Strong Aspirations for Home Ownership Asia has a huge young urban population, with more than One competitive advantage which Keppel Land has is two-thirds below 40 years old. The trend towards smaller its ability to introduce innovative ideas, designs, concepts household and increasing aspirations for homeownership and technical know-how to create quality townships that from young couples and dual-income professionals will will cater to homebuyers’ lifestyles. In Chengdu, CityOne translate into demand for well-planned townships with Township Development is introducing the idea of a “fully- Township Developments easy access to amenities to support their lifestyles. Most fitted” apartment in its township The Botanica where buyers are end-users: businessmen, first-time homeowners homes are sold pre-dominantly “bare-finished”. This is in Asia and upgraders from existing older townships. done gradually by introducing a limited number of homes on a fully-fitted basis and educating homebuyers the One of Keppel Land’s future growth which in turn are growing wealthier by the year. Townships attract fewer speculators, which explains why convenience of not having to undertake one’s own platforms will be in the development Consumers’ purchasing power has increased and demand will be more stable and less likely to be affected renovation but to entrust the developer to provide their aspirations for better quality housing have by sharp price hikes which will attract government amenities such as built-in cabinets and sanitary fittings. of residential townships. increased. In many parts of Asia, there is an intervention. In countries such as India and Vietnam, inadequate supply of good quality housing while non-resident Indians and Viet Kieus or overseas To accommodate increasing housing needs, local Asia is prospering swiftly. Despite concerns over demand is growing by leaps and bounds. Vietnamese are also purchasing residential properties governments have also relaxed market regulations and the spread of bird flu, fluctuating oil prices and for investment in their countries of ethnic origin to take offered incentives to attract foreign capital to invest in terrorist threats, growth is expected to continue. advantage of positive government policies which allow the residential property market, including large-scale Of significance is the emerging markets of Asia, Economic and Demographic Factors them to purchase properties. Overseas remittances by housing projects like townships, which will also help notably China and India which are fast building up Drive Demand Viet Kieus grew by about 19% to reach a high of to ease the overcrowding in city centres. their wealth. Keppel Land sees great potential in the development US$3.8 billion in 2005. of integrated or self-contained townships in Asia. Along with economic prosperity, these emerging While varying in location, scale and diversity, such Asian countries are seeing dramatic changes in large-scale residential estates generally encompass their demographics and living environment. Asia’s quality housing, retail, commercial and leisure population is fast expanding. The pace of facilities such as shopping centres as well as urbanisation has quickened with a greater proportion recreational and entertainment amenities. of the population now living in the urban cities,

66 67 Special feature

Lifestyle in Integrated Townships Growing Prosperity in Asia’s Emerging Markets Given today’s fast-paced lifestyle and increasing emphasis on convenience, housing preferences for the middle-

GDP Per Capita (US$) income population are increasingly veering away from 2500 the traditional residential developments and towards integrated and professionally-managed townships.

2000 There are many reasons why homebuyers are attracted to such integrated townships. Modern and reasonably priced homes, a good road and public transportation 1500 system, the convenience of various amenities within easy reach, security and a conducive living environment are the main attractions of well-planned townships. 1000

Scarcity of Homes in City Centre 500 In view of the growing scarcity of land in the city centre, which in turn pushes up the home prices beyond the affordability of the middle-income group, many locals 0 are looking for more affordable housing options that are 1995 2000 2001 2002 2003 2004 2005 2006f 2007f 2008f located in close proximity to the city and within commuting

Indonesia India Vietnam distance to their place of work. Compared to housing in Source: Asia Development Bank and Economist Intelligence Unit the city centre or in prime residential enclaves, homes within townships generally offer more living space and are more affordable. Townships with unique thematic attractions, innovative designs and lifestyle concepts will

Asia’s YoungChina Urban Population appeal better to buyers.

% of Total Urban Population The availability of different modes of transportation for 45 easy accessibility is also a strong selling point. With improved connectivity and accessibility to the city centre, 40 Central Business Districts and other parts of the city via 41 35 40 39 the provision of new infrastructure such as highways, 38 38 37 toll roads and mass rapid transit network, middle-income 30 34 families are increasingly inclined to live in well-designed

25 28 townships that are located in the suburbs or outskirts of major cities. 23 20

18 18 17 15

10 10 8 7 6 5

0 China India Indonesia Vietnam The convenience of various amenities within easy reach in a secured living environment is one of the main attractions of Keppel Land’s integrated and professionally-planned townships. < 20 years old 20 - 39 years old 40 - 59 years old 60 years old and above Source: United Nations

68 69 Special feature

Lifestyle in Integrated Townships Growing Prosperity in Asia’s Emerging Markets Given today’s fast-paced lifestyle and increasing emphasis on convenience, housing preferences for the middle-

GDP Per Capita (US$) income population are increasingly veering away from 2500 the traditional residential developments and towards integrated and professionally-managed townships.

Asia’s YoungChina Urban Population appeal better to buyers.

25 28 townships that are located in the suburbs or outskirts of major cities. 23 20

18 18 17 15

10 10 8 7 6 5

68 69 Special feature

A 42-ha well-planned residential township in Chengdu, China, The Botanica will yield some 8,000 homes catering to the burgeoning middle-income group.

Of importance is the availability of amenities such as Vast Opportunities in China... 10 km from the Outer Ring Road within five years to development projects reduced to 50,000 sm. As IT and supermarkets, hypermarkets, retail malls, schools, Although China has seen immense growth in its residential relocate some 600,000 people out of the inner city. business process outsourcing (BPO) services set up healthcare facilities, childcare centres, recreational and property market over the past decade or so, the modern operations in the outskirts of big cities, there is greater leisure facilities such as parks and sports clubs that cater large-scale township is still a fairly new housing concept. demand for homes within commuting distance. In to residents’ basic needs. An environment with better With increasing rural-urban migration, municipal ...and in India Bangalore, the “Silicon Valley of India”, the projected air quality, a reliable supply of clean water and electricity, governments of over-populated cities are faced with the In India, where real estate activities are currently demand for housing is estimated at 24,000 units per good sanitation and lush green landscaping are also urgent need to decant some of their population to the dominated by local developers, foreign developers may annum and is projected to grow at 20% to 25% per important attributes for those considering setting up suburbs. Such a move will help to resolve housing be drawn into the market especially after the removal of annum in the next few years. This tremendous appetite home within residential townships. In addition, townships shortage and ease overcrowding and related problems ceiling on foreign direct investment in real estate. Foreign for homes can only be substantially met by large-scale that offer excellent security system or residences within such as pollution and traffic congestion in the downtown direct investment in townships, housing and construction residential townships. With an estimated 535,000 new a secured neighbourhood such as gated communities areas. For instance, the government of the Tianjin development projects up to 100% equity is now allowed, jobs in the IT and BPO sector to be created by 2010, the will be well received by buyers. province, with more than nine million of urban inhabitants, with the minimum built-up area of construction has proposed to create 10 new satellite towns within demand for township homes will be strongly supported.

70 71 Special feature

A 42-ha well-planned residential township in Chengdu, China, The Botanica will yield some 8,000 homes catering to the burgeoning middle-income group.

70 71 Special feature

Keppel Land are making inroads into township reasonably affordable prices but of quality comparable Landed Communities Bogor, Tangerang, Bekasi and Depok. While local property development. In early 2006, the Vietnamese government to Singapore standards. The township market in Indonesia is more established. companies currently dominate the market, real estate further refined the Land Law to allow greater flexibility Townships comprising landed homes are the preferred players from around the region are gradually raising for township development by allowing developers to Unlike the local developers, which have home ground choice among the locals. There are a variety of townships their profile. assign or lease land use rights upon completion of advantage, foreign developers may fall behind in terms targeted at different segments of the market from mass infrastructure work and to seek partners for investment of knowledge of the local taste, cultures and legislative housing for the lower income to luxury residences for in projects. regime. Keppel Land recognises the importance of the higher income. Market prospects remain good in the Potential in Vietnam establishing local presence to feel the pulse of the near to middle term. With many new toll roads and other In Vietnam, the township concept is still in its infancy. markets in promising cities to better understand the local transportation network being planned for the suburbs of Some local developers, notably the state-owned Gaining Local Knowledge preferences and to respond quickly to market changes. Jakarta, Surabaya, Medan, Semarang, Balikpapan, Bandar enterprises, have been assigned large tracts of land for While attractive opportunities for township development Since its diversification into the region in the late 1980s, Lampung, Makassar and Palembang, more new township development. However, most of them make are abound in the robust economies of Asia, foreign Keppel Land has since set up local operations in China, townships are expected to be built along the transportation little headway as they lack sound financing capabilities developers like Keppel Land will face challenges India, Vietnam, Indonesia, Thailand, Malaysia and the nodes. Other locations with potential for township and relevant development expertise. It is thus not penetrating these markets. One such challenge would Philippines, where it has accumulated substantial development include the Greater Jakarta areas such as surprising that several overseas developers including be to offer the right housing products and amenities at market knowledge.

Urbanisation Trend in Asia Vietnam China Indonesia India Million Million Million Million 120 1600 300 1600

1400 1400 100 250

1200 1200 80 200 41% 29% 36% 41% 45% 54% 1000 61% 1000 35% 26% 43% 30% 36% 62% 68% 48% 53% 29% 29% 36% 42% 28% 60 27% 31% 800 150 800 27% 24% 21% 26% 20%

600 600 40 71% 74% 64% 100 59% 55% 65% 59% 46% 71% 70% 39% 72% 69% 64% 58% 73% 64% 400 52% 47% 400 74% 73% 71% 57% 38% 79% 76% 32% 80% 20 50 200 200

0 0 0 0 1990 1995 2000 2005 2010f 2015f 2020f 1990 1995 2000 2005 2010f 2015f 2020f 1990 1995 2000 2005 2010f 2015f 2020f 1990 1995 2000 2005 2010f 2015f 2020f

Rural population Urban population Rural population Urban population Rural population Urban population Rural population Urban population

Source: Asia Development Bank and United Nations

72 73 Special feature

Urbanisation Trend in Asia Vietnam China Indonesia India Million Million Million Million 120 1600 300 1600

1400 1400 100 250

1200 1200 80 200 41% 29% 36% 41% 45% 54% 1000 61% 1000 35% 26% 43% 30% 36% 62% 68% 48% 53% 29% 29% 36% 42% 28% 60 27% 31% 800 150 800 27% 24% 21% 26% 20%

600 600 40 71% 74% 64% 100 59% 55% 65% 59% 46% 71% 70% 39% 72% 69% 64% 58% 73% 64% 400 52% 47% 400 74% 73% 71% 57% 38% 79% 76% 32% 80% 20 50 200 200

0 0 0 0 1990 1995 2000 2005 2010f 2015f 2020f 1990 1995 2000 2005 2010f 2015f 2020f 1990 1995 2000 2005 2010f 2015f 2020f 1990 1995 2000 2005 2010f 2015f 2020f

Rural population Urban population Rural population Urban population Rural population Urban population Rural population Urban population

Source: Asia Development Bank and United Nations

72 73 Special feature

Backed by strong networks and local knowledge of the markets where it operates, Keppel Land has earned the confidence of many homebuyers With the expanding demand for quality and well-planned housing in India, in Asia. the Company recognises township development as a platform for substainable growth.

Bureaucratic, red tape and regulatory restrictions are up a sound track record and an excellent product and Wuxi in China, Ho Chi Minh City in Vietnam and issues to contend with. For instance, obtaining land with showcase of quality housing developments in Asia that Keppel Land also led a Singapore consortium in the joint Jakarta in Indonesia. clean titles and proximity to the city centre in India is a have earned the confidence and trust of many development of the China-Singapore Suzhou Industrial major challenge and seeking government approvals can homebuyers and repeat buyers. Park (SIP) with the Singapore and Chinese governments Keppel Land’s first township project in China, The be time-consuming. As such, Keppel Land seeks to in 1994. Apart from being an internationally competitive Botanica in Chengdu, which is a joint development with build a strong and amicable relationship with the local high-tech industrial park, SIP is also a modern, self- Surbana Corporation Pte Ltd, has been well received authorities, establish a good business network and focus Keppel Land’s Township Initiatives sufficient township complete with residential estates, since its launch in the second quarter of 2005. The first on its core competencies of delivering premium housing One of Keppel Land’s first ventures into township commercial facilities and educational amenities. Covering phase of 970 apartment units has been fully sold and products, quality designs and concepts as well as provide development is the joint development of Taman Sutera an area of up to 70 sq km, the township has attracted the second phase will be released for sale soon. Phase excellent services to homebuyers. in Johor Baru, Malaysia in 1990. Guided by the vision a wide spectrum of investors and has built up a population One of the Cakung township development in Jakarta is to make Taman Sutera a premier township in the well in excess of 200,000 people. also scheduled to be launched in late 2006 while phases southern region of Johor Baru, the township has received of Saigon Sports City in Ho Chi Minh City and the Wuxi Building a Strong Brand good response from buyers, including professionals, township are expected to be launched progressively Another challenge for Keppel Land is to build up a strong businessmen, first-time homeowners and upgraders. Extending a Platform for Growth from 2007. brand identity to match the excellent quality for which Some 90% of the 2,303 units of terrace houses, semi- Moving forward, Keppel Land recognises township the Company is well known and to build valuable detached houses, apartments and shop offices launched development as a platform for sustainable growth. Capitalising on the favourable demographics, the fast consumer loyalty. Over the years, Keppel Land has built have been sold as of March 2006. Keppel Land will accelerate the execution of its township expanding middle-income population and urbanisation initiatives to tap on rising demand for such developments trend, the Group will continue to seek out viable township in the growing markets of Asia. At present, Keppel Land development projects in promising Asian cities to 74 75 has four other township developments with a pipeline ensure a sustainable stream of earnings and growth for of over 20,000 residential units spread over Chengdu the future. Special feature

Nominating Committee Board of Directors

Remuneration Committee Audit Committee

Board Risk Committee Chairman

Managing Director

Group Company Secretary Senior Manager, Director, Corporate Services Group Internal Audit

Finance and Tax Treasury and Administration Human Resources Corporate Secretariat Investor Relations

Nominating Committee Board of Directors

Remuneration Committee Audit Committee

Board Risk Committee Chairman

Managing Director

Group Company Secretary Senior Manager, Director, Corporate Services Group Internal Audit

Finance and Tax Treasury and Administration Human Resources Corporate Secretariat Investor Relations

Keppel Land’s two-prong strategy of focusing on property and Thailand. Keppel Land will keep up its expansion Property Investment Property Services Hospitality Property Fund & Development Management development for sale and property fund management drive into Asia’s growth cities to increase its overseas Singapore Investments Development Management Hotel, Club, Resort Property Fund Management has begun to pay off. Group PATMI before exceptional earnings and market span to tap on the rising residential Regional Investments Property Marketing and Serviced Apartment Asset Management items has grown from $94.3 million in FY2002 to demand from the growing middle and upper-middle Management Corporate Planning Property Management $154.5 million in FY2005. This works out to a compounded income population in the region. To cater to the vast and Development Retail Management annual growth rate (CAGR) of 18%, despite the numbers of aspiring homeowners who want quality Asset Planning challenging external environment brought about by housing, Keppel Land will continue to pursue the Investor Relations and Research terrorist attacks in New York and Bali, severe acute development of integrated townships around Asia. Information Technology respiratory syndrome outbreak in Asia, and uncertainties Technology Infrastructure posed by terrorist threats, fear of avian flu pandemic, fluctuating oil prices and rising interest rates. Developments in Marina Bay In Singapore, Keppel Land will concentrate on executing and delivering several large-scale projects such as One Expand in Asia’s Growth Cities Raffles Quay, the Business and Financial Centre and To strive for sustainable earnings and increase shareholder Phase Two of the Keppel Bay residential development. value, Keppel Land will continue to expand its property Keppel Land has also teamed up with Harrah’s development activities and grow its property fund Entertainment to bid for the Integrated Resort (IR) at management business. Focus will still be on Asia, Marina Bay. Should the bid succeed, it will mean particularly Singapore, China, India, Vietnam, Indonesia generating a new stream of income from a new business 78 79 With continual efforts to grow fee-based income, In Indonesia, Keppel Land will be developing an integrated Grow Fee-based Income Summary of Keppel Land’s Achievements Keppel Land is committed to continue building its fund township for about 7,000 homes in Cakung, Jakarta. As part of its strategy of unlocking shareholder value, management platform. From a single fund in 2003, the The first phase of development is targeted to be launched Keppel Land will launch its first real estate investment Achieved PATMI of $155.7 million, up 17.3% from Group’s fund management vehicle Alpha Investment in 2006. trust, K-REIT Asia, in the first half of 2006. The launch 1 2004. CAGR of 18% from $26.4 million in 2002. Partners has now three funds including its first Islamic of K-REIT Asia marks a new milestone for Keppel Land mandate from a Middle Eastern investor to asset manage Keppel Land will leverage on its good track record and as the Group redeploys capital tied up in investment Grew overseas earnings to 59% of PATMI before an existing portfolio in Asia. The formation of K-REIT Asia expertise to continue to seek township opportunities buildings into development projects for sale. K-REIT Asia 2 exceptional items, up from 43% in 2004 and exceeding provides an additional platform for Keppel Land to grow in the region as the next growth platform for the will benefit from having a pipeline of assets which may 50% target for 2005 set three years ago. its fund management business. longer term. be injected into its portfolio from the Group. The REIT markets in Asia excluding Japan are evolving at a very 3 Improved ROE to 9.5% from 8.6% in 2004 and grew Intensify Developments in Singapore fast pace and there is good potential for K-REIT Asia to net tangible assets per share to $2.35 as at end-2005 Grow Sustainable Earnings from Overseas For the Singapore market, Keppel Land is looking forward grow into a pan-Asian REIT through acquisitions of yield- from $2.26 as at end-2004. Overseas earnings accelerated to 59% of the Group’s to exciting times ahead. Keppel Land is involved in several accretive assets in the region. total earnings in 2005, exceeding the 50% target for landmark developments that are shaping the skyline and 4 Unlocked shareholder value through the establishment 2005 set three years ago. To maintain overseas earnings cityscape of Singapore. Keppel Land’s property fund management vehicle of K-REIT Asia with an initial portfolio of four prime office growth, Keppel Land will continue to pursue opportunities Alpha Investment Partners has achieved good progress. buildings valued at $630 million. The Reit aims to provide in growth cities in Asia including second-tier cities, as Keppel Land is privileged to playing a major role in the Asia No. 1 Property Fund has closed and invested 85% unitholders with stable dividend income and long-term well as progressively launch existing projects from its shaping of the New Downtown at Marina Bay, which will of the US$243 million fund raised in Hong Kong, Singapore, asset growth by investing in quality and income-producing residential pipeline of more than 27,000 units over the be transformed into a vibrant cosmopolitan hub with world- Malaysia, South Korea and Japan. Alpha Core Plus Real commercial developments. next few years. class office buildings, luxury residential towers of Estate Fund had a second and final closing in March 2006, impeccable designs, and endless entertainment and leisure raising total equity commitment of US$437 million. The 5 Secured the Business and Financial Centre site with Across Asia, there is an increasing demand for and a options for an integrated live-work-play environment. fund has made some investments in Japan and Singapore Cheung Kong (Holdings) and Hongkong Land. In the shortage of good quality housing to match the rising and will seek to invest the fund prudently. Alpha has a next few years, where new supply of prime office expectations of a more affluent population. Keppel Land One Raffles Quay, a premier Grade A office development mandate to manage an existing portfolio of Shariah space is tight, Keppel Land will be able to benefit from offers products which straddle the range from luxury jointly developed by Keppel Land and its consortium compliant properties in Asia valued at US$150 million, higher rentals. So will be the buildings under K-REIT homes to townships cater for the middle income earners. partners at the gateway to the New Downtown at Marina which it aims to double to over US$300 million by end- Asia’s portfolio. Bay, is more than 75% pre-committed as of March 2006 2007. Total assets under management (AUM) will reach During 2005, Keppel Land jointly secured a second site and is due for completion in 2006. US$2.2 billion when all three funds are fully invested. 6 Secured pre-commitment level of over 75% for for residential township in China and a second site for One Raffles Quay as of March 2006. a large-scale residential development in Bangalore, India. Located within the New Downtown, the prestigious Including K-REIT Asia’s portfolio of $630 million, In China, it has also diversified into the villa segment in Business and Financial Centre development will Keppel Land Group’s total AUM would be about 7 Tied up with Harrah’s Entertainment and other strategic Shanghai and Tianjin. strengthen Keppel Land’s foothold in the prime office US$2.6 billion. partners to put in a competitive bid for the Marina Bay market and further raise its profile in the international Integrated Resort. Strengthen Township Development Initiatives arena. The high-end residential tower of over 400 units Keppel Land will ride on the increasing interest in Asian Keppel Land intends to capitalise on its large-scale under Phase One of the development will be launched real estate and greater fund flows from global investors 8 Ventured into new segments and new cities, such as capability to provide housing in its integrated residential for sale in late 2006. to expand its REIT and fund management activities. a villa project in Tianjin and a township development in townships which come with retail and leisure amenities. Wuxi, China. To a growing middle-income population in Asia, the Group On the Marina Bay IR, this multi-faceted development Outlook has swiftly built up a pipeline of over 20,000 township will herald a new chapter for Keppel Land if Keppel Land- Although Asia faces some uncertainties such as the 9 Sold about 600 homes in Singapore and 2,700 homes homes in China, Vietnam and Indonesia. Harrah’s JV wins the bid. Apart from being a new source rising interest rates, terrorist acts and the possibility of overseas, mostly in China and India, more than double of earnings for the Group, it may provide us with a the bird flu outbreak escalating into a pandemic, the the number of homes sold in 2004. In China, it has secured a 35-ha site in Wuxi for 5,000 platform for new business opportunities overseas. regional property market is generally positive, underpinned homes through CityOne Township Development, a joint by favourable economic growth, rapid urbanisation, 10 Upped stake in Dragon Land to 67% and Keppel Land venture between Keppel Land and Surbana Corporation Keppel Land will also launch the much-awaited Phase increasing middle-income population and rising will reposition the new subsidiary to capitalise on the (formerly known as HDB Corporation). The Botanica in Two of the Keppel Bay precinct in late 2006. The move homeownership aspiration. middle-income housing market in the secondary cities Chengdu, Keppel Land’s first township development in is timely given the positive market sentiments and interest in China. China through CityOne with about 8,000 residential units, arising from the future IR at Sentosa and VivoCity, the With its risk management team and the appropriate has successfully sold out its first phase of 970 units and largest retail and entertainment destination within the measures taken, Keppel Land aims to overcome these 11 Achieved second and final closing for Asia No. 1 will roll out another 1,500 units in 2006. HarbourFront precinct. With firm recovery in the residential uncertainties to deliver sustainable growth for the future Property Fund and Alpha Core Plus Real Estate Fund. market, Keppel Land may time its project launches to years. The Group will capitalise on its core competencies In Vietnam, Keppel Land is jointly developing Saigon capitalise on the rebounding market. and skill sets to further enhance its position as a leading 12 Secured mandate to manage an existing portfolio Sports City in Ho Chi Minh City with Hong Kong-based property developer in Asia and an outstanding property of Shariah compliant properties in Asia. Chiap Hua Group. The good-class residential township fund manager. can accommodate about 3,000 units and there are plans 80 to launch the township in 2007. 81 With continual efforts to grow fee-based income, In Indonesia, Keppel Land will be developing an integrated Grow Fee-based Income Summary of Keppel Land’s Achievements Keppel Land is committed to continue building its fund township for about 7,000 homes in Cakung, Jakarta. As part of its strategy of unlocking shareholder value, management platform. From a single fund in 2003, the The first phase of development is targeted to be launched Keppel Land will launch its first real estate investment Achieved PATMI of $155.7 million, up 17.3% from Group’s fund management vehicle Alpha Investment in 2006. trust, K-REIT Asia, in the first half of 2006. The launch 1 2004. CAGR of 18% from $26.4 million in 2002. Partners has now three funds including its first Islamic of K-REIT Asia marks a new milestone for Keppel Land mandate from a Middle Eastern investor to asset manage Keppel Land will leverage on its good track record and as the Group redeploys capital tied up in investment Grew overseas earnings to 59% of PATMI before an existing portfolio in Asia. The formation of K-REIT Asia expertise to continue to seek township opportunities buildings into development projects for sale. K-REIT Asia 2 exceptional items, up from 43% in 2004 and exceeding provides an additional platform for Keppel Land to grow in the region as the next growth platform for the will benefit from having a pipeline of assets which may 50% target for 2005 set three years ago. its fund management business. longer term. be injected into its portfolio from the Group. The REIT markets in Asia excluding Japan are evolving at a very 3 Improved ROE to 9.5% from 8.6% in 2004 and grew Intensify Developments in Singapore fast pace and there is good potential for K-REIT Asia to net tangible assets per share to $2.35 as at end-2005 Grow Sustainable Earnings from Overseas For the Singapore market, Keppel Land is looking forward grow into a pan-Asian REIT through acquisitions of yield- from $2.26 as at end-2004. Overseas earnings accelerated to 59% of the Group’s to exciting times ahead. Keppel Land is involved in several accretive assets in the region. total earnings in 2005, exceeding the 50% target for landmark developments that are shaping the skyline and 4 Unlocked shareholder value through the establishment 2005 set three years ago. To maintain overseas earnings cityscape of Singapore. Keppel Land’s property fund management vehicle of K-REIT Asia with an initial portfolio of four prime office growth, Keppel Land will continue to pursue opportunities Alpha Investment Partners has achieved good progress. buildings valued at $630 million. The Reit aims to provide in growth cities in Asia including second-tier cities, as Keppel Land is privileged to playing a major role in the Asia No. 1 Property Fund has closed and invested 85% unitholders with stable dividend income and long-term well as progressively launch existing projects from its shaping of the New Downtown at Marina Bay, which will of the US$243 million fund raised in Hong Kong, Singapore, asset growth by investing in quality and income-producing residential pipeline of more than 27,000 units over the be transformed into a vibrant cosmopolitan hub with world- Malaysia, South Korea and Japan. Alpha Core Plus Real commercial developments. next few years. class office buildings, luxury residential towers of Estate Fund had a second and final closing in March 2006, impeccable designs, and endless entertainment and leisure raising total equity commitment of US$437 million. The 5 Secured the Business and Financial Centre site with Across Asia, there is an increasing demand for and a options for an integrated live-work-play environment. fund has made some investments in Japan and Singapore Cheung Kong (Holdings) and Hongkong Land. In the shortage of good quality housing to match the rising and will seek to invest the fund prudently. Alpha has a next few years, where new supply of prime office expectations of a more affluent population. Keppel Land One Raffles Quay, a premier Grade A office development mandate to manage an existing portfolio of Shariah space is tight, Keppel Land will be able to benefit from offers products which straddle the range from luxury jointly developed by Keppel Land and its consortium compliant properties in Asia valued at US$150 million, higher rentals. So will be the buildings under K-REIT homes to townships cater for the middle income earners. partners at the gateway to the New Downtown at Marina which it aims to double to over US$300 million by end- Asia’s portfolio. Bay, is more than 75% pre-committed as of March 2006 2007. Total assets under management (AUM) will reach During 2005, Keppel Land jointly secured a second site and is due for completion in 2006. US$2.2 billion when all three funds are fully invested. 6 Secured pre-commitment level of over 75% for for residential township in China and a second site for One Raffles Quay as of March 2006. a large-scale residential development in Bangalore, India. Located within the New Downtown, the prestigious Including K-REIT Asia’s portfolio of $630 million, In China, it has also diversified into the villa segment in Business and Financial Centre development will Keppel Land Group’s total AUM would be about 7 Tied up with Harrah’s Entertainment and other strategic Shanghai and Tianjin. strengthen Keppel Land’s foothold in the prime office US$2.6 billion. partners to put in a competitive bid for the Marina Bay market and further raise its profile in the international Integrated Resort. Strengthen Township Development Initiatives arena. The high-end residential tower of over 400 units Keppel Land will ride on the increasing interest in Asian Keppel Land intends to capitalise on its large-scale under Phase One of the development will be launched real estate and greater fund flows from global investors 8 Ventured into new segments and new cities, such as capability to provide housing in its integrated residential for sale in late 2006. to expand its REIT and fund management activities. a villa project in Tianjin and a township development in townships which come with retail and leisure amenities. Wuxi, China. To a growing middle-income population in Asia, the Group On the Marina Bay IR, this multi-faceted development Outlook has swiftly built up a pipeline of over 20,000 township will herald a new chapter for Keppel Land if Keppel Land- Although Asia faces some uncertainties such as the 9 Sold about 600 homes in Singapore and 2,700 homes homes in China, Vietnam and Indonesia. Harrah’s JV wins the bid. Apart from being a new source rising interest rates, terrorist acts and the possibility of overseas, mostly in China and India, more than double of earnings for the Group, it may provide us with a the bird flu outbreak escalating into a pandemic, the the number of homes sold in 2004. In China, it has secured a 35-ha site in Wuxi for 5,000 platform for new business opportunities overseas. regional property market is generally positive, underpinned homes through CityOne Township Development, a joint by favourable economic growth, rapid urbanisation, 10 Upped stake in Dragon Land to 67% and Keppel Land venture between Keppel Land and Surbana Corporation Keppel Land will also launch the much-awaited Phase increasing middle-income population and rising will reposition the new subsidiary to capitalise on the (formerly known as HDB Corporation). The Botanica in Two of the Keppel Bay precinct in late 2006. The move homeownership aspiration. middle-income housing market in the secondary cities Chengdu, Keppel Land’s first township development in is timely given the positive market sentiments and interest in China. China through CityOne with about 8,000 residential units, arising from the future IR at Sentosa and VivoCity, the With its risk management team and the appropriate has successfully sold out its first phase of 970 units and largest retail and entertainment destination within the measures taken, Keppel Land aims to overcome these 11 Achieved second and final closing for Asia No. 1 will roll out another 1,500 units in 2006. HarbourFront precinct. With firm recovery in the residential uncertainties to deliver sustainable growth for the future Property Fund and Alpha Core Plus Real Estate Fund. market, Keppel Land may time its project launches to years. The Group will capitalise on its core competencies In Vietnam, Keppel Land is jointly developing Saigon capitalise on the rebounding market. and skill sets to further enhance its position as a leading 12 Secured mandate to manage an existing portfolio Sports City in Ho Chi Minh City with Hong Kong-based property developer in Asia and an outstanding property of Shariah compliant properties in Asia. Chiap Hua Group. The good-class residential township fund manager. can accommodate about 3,000 units and there are plans 80 to launch the township in 2007. 81 Financial Review

Overview Property Investment Group Sales Revenue from property investment of $69.3 million in 2005 2004 % Increase/ ($ Million) 2005 was 3% less than $71.3 million in 2004. Although $’000 $’000 (Decrease) 800 the Singapore office market continued to show strong signs of recovery, property investment achieved less Sales 586,391 476,165 23.1 700 revenue due to lower contributions from the Group’s 678.8 Profit before tax and exceptional items 183,449 139,915 31.1 Singapore office properties for 2005 owing to a lag effect. Profit before tax and after exceptional items 184,637 139,915 32.0 600 586.4 Profit after tax and minority interests (PATMI) 155,709 132,687 17.4 Hospitality, Services and Others Shareholders’ funds 1,959,509 1,832,433 6.9 500 The Group’s hospitality and other business activities 476.2 Net borrowings 2,234,519 1,761,709 26.8 generated revenue of $52 million in 2005, which was Debt-equity ratio (%) 114 96 18.8 400 19% higher than $43.7 million in 2004. Revenue from Earnings per share (cents) 21.8 18.7 16.6 this segment came mainly from the hospitality business 300.5 299.0 Return on equity after exceptional items (%) 9.5 8.6 10.5 300 and the fund management business. Dividend per share (gross equivalent) (cents) 5.0 5.0 - Net tangible assets per share ($) 2.35 2.26 4.0 200

Earnings 100 Revenue In 2005, new revenue streams from residential projects PATMI increased by 17% to $155.7 million in 2005 from The Group’s revenue increased by 23% to $586.4 million such as 8 Park Avenue in Shanghai, The Seasons in $132.7 million in 2004. The $23 million increase was 0 in 2005 from $476.2 million in 2004. The $110.2 million Beijing and The Waterfront in Chengdu led to a substantial attributable to higher profit streams from the Group’s 2001 2002 2003 2004 2005 increase was due mainly to higher sales in the Group’s increase in revenue. However, this was partly offset by property trading and property investment businesses. A property trading business which accounted for a $103.9 lower contributions from One Park Avenue in Shanghai, gain of $9.5 million arising from the revaluation of the million rise in revenue. Property investment yielded a which was recently completed. In Indonesia, sales from Group’s interest rate hedging instruments was taken up revenue decrease of $2 million, while the Group’s the Group’s retail property development, BG Junction in in 2005 as required under the new FRS 39. For both Group Profit hospitality and other business activities achieved a Surabaya, also contributed to the growth in revenue 2005 and 2004, the Group was able to keep its interest revenue increase of $8.3 million. in 2005. costs below 3%. The Group’s associated companies ($ Million) contributed $28.2 million to the Group’s profit in 2005, 300 Property Trading In Singapore, higher revenue from the Group’s 22% less than $36.3 million in 2004. Group tax expense Revenue from property trading rose 29% to $465 million condominium developments accounted for the increased of $35.6 million in 2005 was higher relative to $2.9 million 200 in 2005 from $361.1 million in 2004. This increase was revenue in 2005 compared with that for 2004. Both Park in 2004 on account of the higher profit achieved. 183.4 155.7 due mainly to contributions from the Group’s overseas Infinia at Wee Nam in the Newton area and The Belvedere 139.9 132.7 109.3 100.4 projects in China and Indonesia as well as from residential along Meyer Road generated a significant increase in 100 61.3 developments in Singapore. sales in 2005. This was partly offset by lower contributions 26.4 from completed residential projects in Singapore, e.g. 0 Amaranda Gardens. 2001 2002 2003 2004 2005

-100

-200

-300

(368.4) -400 (371.5)

Profit before Tax but after Exceptional Items

Attributable Profit 82 83 Financial Review

-100

-200

-300

(368.4) -400 (371.5)

Profit before Tax but after Exceptional Items

Attributable Profit 82 83 Property Trading Earnings and Dividend Per Share Exceptional Items Dividend Payout Attributable profit from property trading rose 15% to Exceptional Items for 2005 amounted to around (Cents) $ Million Cents $111.9 million in 2005 from $97.2 million in 2004. The $1.2 million. A net gain of $37.8 million arising from the 40 8 40 $14.7 million rise was due mainly to contributions from sale of Parco Bugis Junction to CapitaMall Trust and 35.8 the Group’s projects in China, Australia, Indonesia 30 Bugis Junction Towers to the Group was recorded in 35 7 and Singapore. 26.7 October 2005. Owing to the continued uncertainty in 19.0 20 15.8 Myanmar, the Group made a provision of $21.7 million 30 6 28.5 In China, significant contributions to profit growth in 2005 for impairment in value against its hotels in the country. 10 7.7 4.0 5.0 5.0 came from residential developments, e.g. 8 Park Avenue 3.0 3.5 Other exceptional items were provisions amounting to 25 5 21.8 0 18.7 22.7 5.0 5.0 in Shanghai, The Waterfront in Chengdu and The Seasons 14.2 $7.6 million and $7.3 million for diminution in the value 2001 2002 2003 2004 2005 in Beijing. The sale of a residual site in Botanic Cove, the 3.7 of the Group’s investments in the associated company 20 19.3 4 -10 Group’s residential project in Sydney, Australia contributed that owns InterContinental Singapore and the Group’s 16.6 4.0 to the increase in attributable profit. Moreover, BG -20 associated company that owns the hotel in Manado. 15 3.5 3 Junction in Surabaya, Indonesia added to profit growth. There were no exceptional items in 2004. 3.0 -30 In Singapore, Park Infinia at Wee Nam helped to increase 10 2

profit for 2005. Cost provisions no longer required for -40 Butterworth 8 and Amaranda Gardens (both of which Capital Employed 5 1 obtained certificates of statutory completion) were -50 (52.0) Total capital employed at end-2005 was $4,791.7 million, released. These boosted profits in 2005. (54.3) an increase of 20% from $3,987.1 million at end-2004. 0 0 -60 2001 2002 2003 2004 2005

Total Dividend Paid/Payable ($ Million) Property Investment Earnings before Tax but after Exceptional Items Property Trading Gross Dividend Per Share (Cents) Despite the lower revenue, attributable profit from Earnings after Tax and Exceptional Items Capital employed for property trading at end-2005 was property investment increased by 22% to $39.6 million Gross Dividend $2,163.1 million, constituting 45% of Group capital in 2005 from $32.4 million in 2004. This increase in employed. This represents a 56% increase from the profit was due to higher interest income and the write- previous year’s at $1,383.6 million, which constituted back of provisions for deferred tax relating to properties 35% of Group capital employed. Sources of Finance

in Singapore. Return on Shareholders’ Equity ($ Million)

(%) Property Investment 5,000 Hospitality, Services and Others Capital employed in investment properties as at end- 4,791.7 15 206.9 Attributable profit from the hospitality and other business 2005 was $2,144.8 million, constituting 45% of Group 4,500 4,498.3 129.1 activities was lower by 3% at $3 million in 2005 from 11.6 capital employed, compared with $2,152.2 a year ago or 10 4,000 3,987.1 $3.1 million in 2004 as operating losses for the Group’s 8.7 54% of Group capital employed. 7.5 3,794.2 9.5 3,721.5 8.6 325.9 hotels and resorts were higher in 2005. 137.5 247.9 6.8 3,500 2,625.3 5 3.6 Hospitality, Services and Others 2,509.0 3,000 Capital employed as at end-2005 in the hospitality and 1,828.8 0 1,914.1 1,853.1 2001 2002 2003 2004 2005 other businesses was $483.8 million or 10% of the 2,500 1.7 Group’s total capital employed. This represents a 7% 280.6 -5 277.9 increase from the previous year’s at $451.3 million or 2,000 225.6 189.6 206.3 11% of the Group’s total. -10 1,500 1,678.9 1,582.3 1,606.8 1,480.3 1,486.9 -15 1,000

500 (19.2) -20 (20.1) 0

-25 2001 2002 2003 2004 2005

Earnings before Tax but after Exceptional Items Short-term Borrowings Long-term Borrowings

Earnings after Tax and Exceptional Items Minority Interests Shareholders’ Equity

84 85 Property Trading Earnings and Dividend Per Share Exceptional Items Dividend Payout Attributable profit from property trading rose 15% to Exceptional Items for 2005 amounted to around (Cents) $ Million Cents $111.9 million in 2005 from $97.2 million in 2004. The $1.2 million. A net gain of $37.8 million arising from the 40 8 40 $14.7 million rise was due mainly to contributions from sale of Parco Bugis Junction to CapitaMall Trust and 35.8 the Group’s projects in China, Australia, Indonesia 30 Bugis Junction Towers to the Group was recorded in 35 7 and Singapore. 26.7 October 2005. Owing to the continued uncertainty in 19.0 20 15.8 Myanmar, the Group made a provision of $21.7 million 30 6 28.5 In China, significant contributions to profit growth in 2005 for impairment in value against its hotels in the country. 10 7.7 4.0 5.0 5.0 came from residential developments, e.g. 8 Park Avenue 3.0 3.5 Other exceptional items were provisions amounting to 25 5 21.8 0 18.7 22.7 5.0 5.0 in Shanghai, The Waterfront in Chengdu and The Seasons 14.2 $7.6 million and $7.3 million for diminution in the value 2001 2002 2003 2004 2005 in Beijing. The sale of a residual site in Botanic Cove, the 3.7 of the Group’s investments in the associated company 20 19.3 4 -10 Group’s residential project in Sydney, Australia contributed that owns InterContinental Singapore and the Group’s 16.6 4.0 to the increase in attributable profit. Moreover, BG -20 associated company that owns the hotel in Manado. 15 3.5 3 Junction in Surabaya, Indonesia added to profit growth. There were no exceptional items in 2004. 3.0 -30 In Singapore, Park Infinia at Wee Nam helped to increase 10 2 profit for 2005. Cost provisions no longer required for -40 Butterworth 8 and Amaranda Gardens (both of which Capital Employed 5 1 obtained certificates of statutory completion) were -50 (52.0) Total capital employed at end-2005 was $4,791.7 million, released. These boosted profits in 2005. (54.3) an increase of 20% from $3,987.1 million at end-2004. 0 0 -60 2001 2002 2003 2004 2005

500 (19.2) -20 (20.1) 0

-25 2001 2002 2003 2004 2005

Earnings before Tax but after Exceptional Items Short-term Borrowings Long-term Borrowings

Earnings after Tax and Exceptional Items Minority Interests Shareholders’ Equity

84 85 Sensitivity Analysis Returns to Shareholders Assets Employed

Earnings per share after tax and exceptional items ($ Million) improved to 21.8 cents in 2005 from 18.7 cents in 2004. 5000 Overseas earnings, which were mostly from China, grew 1432.64,791.7

4,498.3 to 59% of the total profit before exceptional items, up 4500 Investment Properties Change in Rental Income from 43% in 2004. This exceeded the Group’s expectation 1,432.6 The Group’s main investment properties are Ocean Resulting from: 4000 898.7 3,987.1 of growing overseas earnings to 50% of total earnings 3,794.2 3,712.5 Building, Ocean Towers, Keppel Towers, GE Tower, 168.1 by end-2005. Similarly, return on equity also grew by 3500 213.8 1,136.6 Prudential Tower, Bugis Junction Towers, Equity Plaza $ Million 967.3 11% to 9.5% in 2005 from 8.6% in 2004. A final dividend 808.9 890.8 and Dragon Land Building in Singapore, Saigon Centre 1% change in occupancies (a) 0.6 of 10% or 5 cents per share amounting to about $35.8 3000 1,236.7 169.8 195.2 186.4 and International Centre in Vietnam, and Wisma BCA in 10% change in average rental rates (b) 7.0 million for 2005 has been recommended by the Directors. 2500 784.6 Indonesia. The rental income from these properties is 897.0 908.1 The dividend for 2004 was $28.5 million or 5 cents per sensitive to changes in their occupancies and the rental (a) Assuming current average rentals are maintained. share less tax. 2000 2,622.6 rates for lease renewals. (b) Based on committed leases and leases for renewal 1,908.6 1500 in 2006. 1,876.3 1,756.0 1,734.7 Assuming that average rental rate is maintained, a full Financial Condition 1000 year’s impact on rental income for every 1% change in In 2005, 3.2 million shares were issued for cash upon the occupancies of the Group’s investment properties 500 Incremental Impact of Additional Sales and the exercise of options by certain full-time employees. is approximately $0.6 million. Completion of Trading Properties on Group Share capital and reserves as at end-2005 amounted to 0 Pre-Tax Profit $1.7 billion, up from $1.6 billion a year ago. 2001 2002 2003 2004 2005 In respect of committed leases and lease renewals, a Resulting from:

Net Current Assets Development Properties full year’s impact on rental income for every 10% change Gross borrowings increased by 31% to $2.8 billion at Investments Fixed Assets and Investment Properties in average rental rates from new rates negotiated is $ Million end-2005 from $2.2 billion a year ago. At end-2005, short- about $7 million. For every 5% of physical completion (c) 8.9 term borrowings constituted 7% of total borrowings, For every 1% of additional sales (d) 5.8 versus 15% at end-2004. Minority interests increased by 24% to $281 million at end-2005 compared with $226 Net Tangible Asset Per Share Trading Properties (c) Based on actual sales contracts 31 December 2005. million a year ago. ($) The Group’s profit from property trading is sensitive to (d) Based on physical completion projected and sales actual sales achieved and the percentage of physical projected for the year, and completed properties Assets employed increased to $4.8 billion at end-2005 3 completion recognized during the year. available for sale at end-2005. from $4 billion at end-2004. Based on actual sales contracts signed as at 31 December 2005, the incremental impact on Group pre-tax profit for Five-year Financial Record every 5% of physical completion is about $8.9 million. Earnings per share, return on equity, dividend per share 2.35 2.23 2.26 and net tangible asset per share grew consistently for 2.09 2.09 For every additional 1% of sales achieved for projects most of the last five years. From a loss of 54.3 cents in which have been launched, the additional contribution 2 2001, earnings per share before tax but after exceptional to Group pre-tax profit is an estimated $5.8 million. This items grew to 26.7 cents in 2005. Likewise, return on is based on physical completion and sales projected for equity went up from a negative 20.1% in 2001 to 11.6% the year, and the properties available for sale which the in 2005. Dividend per share grew steadily from 3.0 cents Group had at end-2005. in 2001 to 5.0 cents in 2005. Dividend payout, which was $16.6 million in 2001, would be about $35.8 million in 2005. Although net tangible asset per share decreased from $2.23 at end-2001 to $2.09 in both 2002 and 2003, 1 growth was recorded for the last three years reaching 2001 2002 2003 2004 2005 $2.35 at end-2005. Net Tangible Asset Per Share

86 87 Sensitivity Analysis Returns to Shareholders Assets Employed

Earnings per share after tax and exceptional items ($ Million) improved to 21.8 cents in 2005 from 18.7 cents in 2004. 5000 Overseas earnings, which were mostly from China, grew 1432.64,791.7

86 87 Property Portfolio Analysis

4.4% 0.3% 47.0% 2.0% The Group’s diversified property portfolio, comprising (d) Analysis by Estimated Building Floor Area 47.8% 34.5% office buildings, residential properties, hotels and resorts, The total building floor area of the Group’s property serviced apartments, shophouses and retail outlets, and portfolio was 655,000 sm. Office buildings and residential industrial buildings are owned through subsidiaries and properties formed 47% and 46.3% respectively of the associated companies. Details of the Group’s property total building area. The balance comprised 2% for hotel, Analysis by portfolio are given on pages 223 to 236. The following Analysis by Tenure 0.3% for retail and 4.4% for industrial buildings. Estimated analysis as at 31 December 2005 is for the Company’s Building Area effective interests only. Overseas Properties 75.3% of the Group’s completed properties was in 46.3% Singapore Properties Singapore while 24.7% was located overseas. Taking 17.7% Sm’000 (a) Analysis by Tenure $ Million into account projects under development, Singapore and Office 308 Freehold properties constituted 34.5% of the Group’s Freehold 1,161 overseas properties constituted 73.7% and 26.3% Residential 303 999-year Lease 596 Hotel 13 properties, with 999-year leases and 99-year leased 99-year Lease and Others 1,612 respectively of the Group’s portfolio. The Group’s property Retail 2 properties making up 17.7% and 47.8% respectively. 3,369 portfolio amounted to $4.6 billion. Industrial 29 655

24.7% 75.3% (b) Analysis by Development Stage 3.5% 49.2% 49.2% of the Group’s portfolio was made up of completed properties while 47.3% was under development. Properties under development included Urbana, The Belvedere and Park Infinia at Wee Nam. The balance 3.5% of the Group’s properties was landbank Analysis by Analysis by Location awaiting development. Development Stage - Completed Projects

(c) Analysis by Sector 57.2% of the Group’s office property portfolio included 47.3% Ocean Building, Ocean Towers, Equity Plaza, Prudential Tower, Keppel Towers, GE Tower, Bugis Junction Towers $ Million $ Million Local 1,659 and Keppel Bay Towers. Residential properties made up Completed 1,658 Awaiting Development 117 Overseas 545 39.9% while the remaining portfolio comprised hotel, Under Development 1,594 2,204 retail and industrial components in the proportions of 3,369

1.1%, 0.4% and 1.4% respectively. 1.4% 0.4% 1.1% 57.2% 26.3% 73.7%

Analysis by Location Analysis by Sector - All Projects

39.9%

$ Million $ Million Office 1,928 Local 3,369 Residential 1,343 Overseas 1,203 Hotel 37 4,572 88 Retail 13 89 Industrial 48 3,369 Property Portfolio Analysis

1.1%, 0.4% and 1.4% respectively. 1.4% 0.4% 1.1% 57.2% 26.3% 73.7%

Analysis by Location Analysis by Sector - All Projects

39.9%

$ Million $ Million Office 1,928 Local 3,369 Residential 1,343 Overseas 1,203 Hotel 37 4,572 88 Retail 13 89 Industrial 48 3,369 Value Added Statement

By Segment Value Added Statement

Hospitality, 2001 2002 2003 2004 2005 Property Property Services and $ Million $ Million $ Million $ Million Trading Investment Others Group $ Million $ Million $ Million $ Million $ Million Our sales of goods and services to non-Group customers totalled 300.5 299.0 678.8 476.2 586.4 Total value added 2005 152.8 97.8 28.6 279.2 Whereas 2004 112.4 68.6 40.5 221.5 our purchase of raw materials, supplies and services from non-Group sources Distributed as follows: amounted to (608.3) (197.1) (525.0) (307.6) (369.4) Employees in salaries and staff benefits so that 2005 5.7 6.2 39.9 51.8 the value added from operations was (307.8) 101.9 153.8 168.6 217.0 2004 4.5 5.4 34.3 44.2 In addition: Government in taxes 2005 27.5 6.3 1.8 35.6 our share of profits earned by 2004 5.1 6.2 (8.4) 2.9 associated companies was 8.4 15.2 22.4 36.4 28.2 income from our investments was 28.7 21.3 15.0 16.5 34.0 Providers of capital in dividends and interest (270.7) 138.4 191.2 221.5 279.2 2005 5.4 31.3 30.0 66.7 2004 5.3 31.1 24.6 61.0 Excluding investment income, total value added for the Group was distributed as follows: Retained for reinvestment and asset replacements 2005 114.2 54.0 (43.1) 125.1 to employees in wages, salaries, and benefits 33.7 33.5 38.2 44.2 51.8 2004 97.5 25.9 (10.0) 113.4 to governments in taxation 14.2 32.8 11.4 2.9 35.6 to providers of capital in: Total distribution 2005 152.8 97.8 28.6 279.2 interest paid on borrowings 48.8 26.5 30.1 24.0 25.4 2004 112.4 68.6 40.5 221.5 dividends in minority shareholders in subsidiary companies 44.8 6.0 6.6 14.3 12.8 Value Added by Segment dividends to shareholders of the Company 16.0 16.6 19.3 22.7 28.5 ($ Million) 109.6 49.1 56.0 61.0 66.7 300 279.2 The balance was reinvested in or ploughed back from business in: 250 51.8 depreciation 18.5 15.4 13.6 13.4 17.3 221.5 35.6 minorities’ share of subsidiary previous years’ 200 44.2 profits ploughed back by subsidiaries (58.4) (8.4) (9.1) (10.0) (19.4) 66.7 2.9 profit for the year retained or previous years’ 152.8 61.0 150 5.7 profits ploughed back by the Company (417.0) (5.3) 66.1 93.5 93.2 27.5 5.4 112.4 4.5 97.8 (456.9) 1.7 70.6 96.9 91.1 100 125.1 5.1 5.3 6.2 6.3 113.4 71.7 (299.4) 117.1 176.2 205.0 245.2 114.2 31.3 68.6 5.4 58.9 97.5 6.2 And non-operating investment income was 28.7 21.3 15.0 16.5 34.0 50 39.9 31.1 54.0 34.3 1.8 (270.7) 138.4 191.2 221.5 279.2 25.9 30.0 24.6 (10.0) 0 (8.4) (43.1)

(18.4) -50 (43.1) 2005 2004 2005 2004 2005 2004 2005 2004 Group Property Trading Property Investment Hospitality, Services 90 and Others 91

Employees Governments Providers of Capital Retained / Reinvested in Group’s Business Value Added Statement

By Segment Value Added Statement

(18.4) -50 (43.1) 2005 2004 2005 2004 2005 2004 2005 2004 Group Property Trading Property Investment Hospitality, Services 90 and Others 91

Employees Governments Providers of Capital Retained / Reinvested in Group’s Business Productivity Analysis

In 2005, the total value added by the Group including Value Added (Excluding Investment Income) Productivity Data

investment income was $279.2 million. In terms of ($ Million) segmental contribution, this figure can be analysed (Excluding Associated Companies) 300 as follows: 245.2 2001 2002 2003 2004 2005 $ Million 200 205.0 51.8 176.2 44.2 35.6 157.6 38.0 2.9 Sales per employee: Property trading 152.8 66.7 33.7 117.1 11.4 61.0 100 14.2 56.1 excluding associated companies ($’000) 163.3 163.3 369.9 241.1 281.5 Property investment 97.8 33.5 109.7 32.8 96.9 91.1 70.8 Hospitality, services and others 28.6 49.1 Value added per employee: 0 1.7 279.2 2001 2002 2003 2004 2005 gross value added basis ($'000) (167.3) 55.7 83.8 85.4 104.2 net value added basis ($'000) (177.3) 47.2 76.4 78.6 95.9 -100 (457.0) Income from the Group’s investments was $34 million. Value added per dollar employment cost: Excluding this investment income, the Group’s value added -200 gross value added basis ($) (9.13) 3.04 4.05 3.82 4.19 from operations of $245.2 million was absorbed by net value added basis ($) (9.68) 2.58 3.69 3.51 3.86 employees in salaries and staff benefits of $51.8 million, -300 governments in taxation of $35.6 million, and providers Value added per dollar investment in fixed assets of capital in interest and dividends totaling $66.7 million. -400 and investment properties (before depreciation): The balance of $91.1 million was reinvested in or ploughed gross value added basis ($) (0.12) 0.05 0.08 0.10 0.11 (457.0) back from business. -500 net value added basis ($) (0.12) 0.05 0.08 0.09 0.10

Wages, Salaries and Benefits Taxation The total value added by the Group for the previous year Interest Expense and DividendsDepreciation and Retained Profit was $221.5 million.

The Group’s value added from operations for the previous Value Added Per Employee Value Added Per Dollar Employment Cost year was $205 million. Salaries and staff benefits of employees absorbed $44.2 million, tax to governments ($’000) ($)

$2.9 million, and interest and dividends to capital providers 150 6 $61 million, leaving the balance of $96.9 million reinvested 4.05 4.19 104.2 4 3.82 in business. 95.9 100 3.86 83.8 85.4 3.04 3.69 3.51 76.4 78.6 2.58

55.7 2 47.2 50 0

0 -2

-50 -4

-6

-100 (9.68)

(167.3) (177.3) -8 (9.13) -150 -10

-200 -12 2001 2002 2003 2004 2005 2001 2002 2003 2004 2005

Gross Value Added Basis Net Value Added Basis Gross Value Added Basis Net Value Basis 92 93 Productivity Analysis

In 2005, the total value added by the Group including Value Added (Excluding Investment Income) Productivity Data investment income was $279.2 million. In terms of ($ Million) segmental contribution, this figure can be analysed (Excluding Associated Companies) 300 as follows: 245.2 2001 2002 2003 2004 2005 $ Million 200 205.0 51.8 176.2 44.2 35.6 157.6 38.0 2.9 Sales per employee: Property trading 152.8 66.7 33.7 117.1 11.4 61.0 100 14.2 56.1 excluding associated companies ($’000) 163.3 163.3 369.9 241.1 281.5 Property investment 97.8 33.5 109.7 32.8 96.9 91.1 70.8 Hospitality, services and others 28.6 49.1 Value added per employee: 0 1.7 279.2 2001 2002 2003 2004 2005 gross value added basis ($'000) (167.3) 55.7 83.8 85.4 104.2 net value added basis ($'000) (177.3) 47.2 76.4 78.6 95.9 -100 (457.0) Income from the Group’s investments was $34 million. Value added per dollar employment cost: Excluding this investment income, the Group’s value added -200 gross value added basis ($) (9.13) 3.04 4.05 3.82 4.19 from operations of $245.2 million was absorbed by net value added basis ($) (9.68) 2.58 3.69 3.51 3.86 employees in salaries and staff benefits of $51.8 million, -300 governments in taxation of $35.6 million, and providers Value added per dollar investment in fixed assets of capital in interest and dividends totaling $66.7 million. -400 and investment properties (before depreciation): The balance of $91.1 million was reinvested in or ploughed gross value added basis ($) (0.12) 0.05 0.08 0.10 0.11 (457.0) back from business. -500 net value added basis ($) (0.12) 0.05 0.08 0.09 0.10

Wages, Salaries and Benefits Taxation The total value added by the Group for the previous year Interest Expense and DividendsDepreciation and Retained Profit was $221.5 million.

55.7 2 47.2 50 0

0 -2

-50 -4

-6

-100 (9.68)

(167.3) (177.3) -8 (9.13) -150 -10

-200 -12 2001 2002 2003 2004 2005 2001 2002 2003 2004 2005

Gross Value Added Basis Net Value Added Basis Gross Value Added Basis Net Value Basis 92 93 Economic Value Added Corporate Liquidity and Capital Resources

Corporate Liquidity and Capital Resources Credit Facilities The Group’s cash position increased to $597.7 million ($ Billion) from $392.9 million on account of the higher profit and 3.5 net gain from the exceptional items achieved for 2005. 3.0 As at end-2005, the Group had total funding facilities of 2.8 $3 billion, out of which 94% was utilised. Owing to 2.5 increased funding for its investments, net debt went up 2.1 2.0 by 27% to $2.2 billion. As a result, net debt-equity ratio 2.0 increased to 1.14 times in 2005 from 0.96 times in 2004. 1.5

The Group’s credit facilities were substantially unsecured 1.0 except for $142.8 million (5%) loans obtained by certain 0.5 subsidiary companies which pledged their assets to the 0.3 0.3 0.1 lending financial institutions. The net book value of the 0 Available Available Available Available properties and other assets pledged/mortgaged amounted 2005 2005 2004 2004

to $305.8 million. In 2004, loans of $247.8 million were Floating Rate Borrowings Fixed Rate Borrowings secured by assets valued at $538.1 million. Interest Cover The maturity profile of the loans is as follows: $ Million 200 4.1 Due in 2006 $201 million 180 175.4 4.0 Due in 2007 to 2008 $835 million No. of Times 160 3.9 Due in 2009 to 2010 $830 million 147.7 3.9 Due in 2011 to 2012 $ 19 million 140 3.8 Due in 2013 to 2014 $115 million 120 3.7 Due in 2019 $ 10 million 100 3.6 Rolling $822 million 80 52.0 3.5 3.4 60 3.4 Economic Value Added (EVA) measures the creation of For the year 2005, Group EVA continued to improve by On an unhedged basis, the fixed/floating proportion of the 40 38.2 3.3 wealth for shareholders and is derived by subtracting $10.2 million to a negative $76.4 million as compared Group’s debt as at year-end was 4% and 96% respectively. 20 3.2 To hedge against interest rate increases, interest rate caps the cost of capital employed from the net operating profit with negative EVA of $86.6 million in 2004 and negative 0 3.1 after tax. Measurement of EVA is carried out quarterly $135.8 million in 2003. The improvement was due to of $1 billion and interest rate swaps of $150 million were 2005 2004 Net Interest Profit Cover and is constantly reviewed and refined throughout increased profitability and lower weighted average cost secured for the Group’s borrowings. Taking into account ($ Million) ($ Million) (No. of Times) the year. of capital from 7% in 2004 to 6% in 2005. these interest rate hedging instruments, the fixed/floating proportion was 43% and 57% respectively. Debt-Equity Ratio

higher than the cost of capital employed in the long term. and to engage in initiatives that will create and enhance 1500 1.14 1.15 shareholder value. During the year, $8 million of net interest income was As office market conditions continue to improve in 2005, earned as part of pre-tax profit, and $58.6 million in 1000 1.05 the management has embarked on an exercise to spin interest was capitalised under development properties. 0.96 off four of the Group’s prime office buildings into K-REIT 500 0.95 Asia, which will be listed on the Singapore Exchange by Net cost of funds was 2.6% for 2005, compared with way of an introduction in the first half of 2006. Such a 2.3% in 2004 as interest rates moved up during the year. 0 0.85 2005 2004 move to unlock value in assets and redeploy the Interest cover was 3.4 times in 2005 and 3.9 times Debt Equity Debt-Equity Ratio 94 capital into property development is expected to yield in 2004. ($ Million) ($ Million) (No. of Times) 95 higher returns. Economic Value Added Corporate Liquidity and Capital Resources

In creating shareholder wealth, new investments are Looking forward, Group EVA is expected to improve $ Million No. of Times The Group’s borrowings are denominated in S$, US$, benchmarked against various measures of financial further with Keppel Land’s increasing shift in focus to 2500 1.35 Baht, HK$, Rupiah and Rupee. In order to achieve a returns including the internal rate of returns and EVA for EVA-accretive activities of property development for sale 2,235 natural hedge, the Group will, as far as practicable, 2000 1,960 1.25 the purpose of evaluation and justification of investments. and property fund management. Keppel Land will continue 1,832 arrange to fund its overseas assets in the same currencies 1,762 Returns from these investments are expected to be to fine tune the methodology for measuring Group EVA in which the assets are denominated. higher than the cost of capital employed in the long term. and to engage in initiatives that will create and enhance 1500 1.14 1.15 shareholder value. During the year, $8 million of net interest income was As office market conditions continue to improve in 2005, earned as part of pre-tax profit, and $58.6 million in 1000 1.05 the management has embarked on an exercise to spin interest was capitalised under development properties. 0.96 off four of the Group’s prime office buildings into K-REIT 500 0.95 Asia, which will be listed on the Singapore Exchange by Net cost of funds was 2.6% for 2005, compared with way of an introduction in the first half of 2006. Such a 2.3% in 2004 as interest rates moved up during the year. 0 0.85 2005 2004 move to unlock value in assets and redeploy the Interest cover was 3.4 times in 2005 and 3.9 times Debt Equity Debt-Equity Ratio 94 capital into property development is expected to yield in 2004. ($ Million) ($ Million) (No. of Times) 95 higher returns. Risk Management Gearing Structure

Fixed Rate Floating Rate Borrowings Borrowings Total $’000 % $’000 % $’000 %

Facilities available for drawdown 125,000 100 3,020,569 100 3,145,569 100

Amount utilised 125,000 100 2,832,196 94 2,957,196 94 Balance unutilised - - 188,373 6 188,373 6

Cash in hand and on deposit 597,677 786,050

2005 2004 Interest cover Profit before interest and tax 175,419 147,674 Net interest cost expensed and capitalised ($’000) 52,000 38,189 Interest cover 3.4 3.9

Effective cost of borrowings Net interest cost expensed and capitalised ($’000) 52,000 38,189 Average net borrowings ($’000) 1,998,114 1,680,864 Effective cost of borrowings (%) 2.6 2.3

Secured borrowings ratio Total secured borrowings ($’000) 142,834 247,841 Percentage of total borrowings (%) 5.0 11.5

Debt-equity ratio Active Management of Risks investment allocation guide to the management. In Total borrowings: As Keppel Land expands into new markets, Keppel Land’s addition, the risk of key trading project is assessed every Gross ($’000) 2,832,196 2,154,633 risk management activities have also grown in scope. six months. This risk assessment includes country and Net of cash ($’000) 2,234,519 1,761,709 Significant projects are being monitored closely on a project specific risk factors. The Group will continue to quarterly basis to ensure that key areas of concern are explore other appropriate risk quantification methods to properly managed. ensure the best approach for Keppel Land. Total equity (excluding minority interests) ($’000) 1,678,932 1,606,806

Debt-equity ratio (excluding minority interests) : In July 2005, the Group implemented a new methodology With threats of terrorism and bird flu outbreak in various Gross (%) 169 134 to quantify its exposure to the various countries and parts of the world, continuity of business operations is Net of cash (%) 133 110 projects in operations and to measure their impact on a major concern. The Group is developing an enhanced the Group’s earnings, cash flows and financial position. technology plan to ensure the continuity of critical The investment concentration in each country is being business functions in the event of a crisis. Total equity (including minority interests) ($’000) 1,959,509 1,832,433 monitored on quarterly basis. This is to provide an

Net debt-equity ratio (including minority interests) (%) 114 96

96 97 Risk Management Gearing Structure

Fixed Rate Floating Rate Borrowings Borrowings Total $’000 % $’000 % $’000 %

Facilities available for drawdown 125,000 100 3,020,569 100 3,145,569 100

Amount utilised 125,000 100 2,832,196 94 2,957,196 94 Balance unutilised - - 188,373 6 188,373 6

Cash in hand and on deposit 597,677 786,050

2005 2004 Interest cover Profit before interest and tax 175,419 147,674 Net interest cost expensed and capitalised ($’000) 52,000 38,189 Interest cover 3.4 3.9

Effective cost of borrowings Net interest cost expensed and capitalised ($’000) 52,000 38,189 Average net borrowings ($’000) 1,998,114 1,680,864 Effective cost of borrowings (%) 2.6 2.3

Secured borrowings ratio Total secured borrowings ($’000) 142,834 247,841 Percentage of total borrowings (%) 5.0 11.5

Net debt-equity ratio (including minority interests) (%) 114 96

96 97 Identifying and managing risks :

1. Capital allocation risks - Keppel Land will put in place a Capital Allocation Policy are available concentration risk. - For capital to be optimally deployed, Keppel Land will ensure timely and accurate market information are available.

2. Regulatory and political risks - For management of such risks, Keppel Land may engage external consultants and in-house legal counsel at the early stage of development of a project. - The Group has also established close network with business associates and government officials to anticipate possible changes in government policies. - Staff also attend relevant seminars to update and keep informed of new regulations.

3. Partnering risks - Keppel Land will pursue and select the right partners of good integrity and with like-minded visions for collaboration to achieve strategic goals and objectives. - Keppel Land will seek to establish and maintain good relationships with its partners.

4. Product development and customer want risks - Keppel Land will monitor new project launches and market response in order to better understand the market needs and wants. Positive feedback will be incorporated into developing our future projects. - Feedback from customer focus unit and property management division is obtained for review and improvement of projects.

5. Investment evaluation risks - To mitigate the risks, the Group has established a network of local contacts so as to incorporate up-to-date Keppel Land is working on a business continuity plan such as the possibility of creating a “virtual” office to be activated in the event of a crisis to mitigate market intelligence into the investment evaluation process. risks of interruption to its operations. 6. Project management risks - Keppel Land will ensure a good quality control system is in place such as engaging quality assurance consultants to check the contractor’s design and retaining control of procurement of critical sub-contractors to ensure good Formation of Board Risk Committee Planned Initiatives product quality. The most significant step in the Group’s risk management For 2006, the Group will establish a capital allocation structure was taken in the later part of 2005 with the policy to minimise concentration risk. Other new initiatives 7. Human resources risks formation of a risk committee at the Board of Directors planned include the development of a Strategic Risk - The Group is working on developing and implementing succession planning, key position and level in line with the increasing emphasis on risk Management Model, which is a risk management tool competencies identification. management. The Board Risk Committee is made up of used during the strategy planning stage. As part of the - Efforts are also taken to identify and nurture potential talents across the Company at all levels who are highly versatile, well prepared and ready for overseas deployment. five independent directors. It reviews and guides the Group’s Business Continuity Plan, Keppel Land is exploring management in the formulation of risk policies and the possibility of creating a “virtual” office, which will 8. IT risks processes to effectively identify, evaluate and manage be activated in the event that a crisis occurs such as an - Keppel Land has developed a knowledge-based portal that collates data from different sources within the Group top risks, and develops risk management strategies with outbreak of bird flu and staff are unable to report to work. into a centralised, user-friendly web-based resource. the management. A risk management team and a - The Group is also working on developing a management information system to facilitate easy retrieval of management committee consisting of all the heads of management information consolidated from various units and to generate reports for senior management. departments support the board committee. 9. Financial risks - Keppel Land uses financial instruments such as hedges and swaps to minimise its interest costs and foreign exchange risks.

10. Shareholder relationship risks - The Group will continue to practise good corporate governance to maintain shareholders’ interest and confidence.

11. Business interruption and catastrophic loss risks - The Group is working on a business continuity plan such as a virtual office to mitigate the risks of interruption to its operations.

98 99 Identifying and managing risks :

10. Shareholder relationship risks - The Group will continue to practise good corporate governance to maintain shareholders’ interest and confidence.

11. Business interruption and catastrophic loss risks - The Group is working on a business continuity plan such as a virtual office to mitigate the risks of interruption to its operations.

98 99 Business Dynamics and Risk Factors Critical Accounting Policies

The Group’s strategy for enhancing shareholder value • favourable lending laws and interest rates for property As required by the Companies Act, the Group’s and Leasehold Properties focuses on developing properties for sale and managing developers and end-purchaser financing; Company’s financial statements have been prepared in The applicable accounting standard requires all leases property funds. Besides the Singapore property market, • favourable tax laws and double taxation treaties with accordance with Singapore Financial Reporting Standards. to be depreciated over their lives. However, the Group the Group is expanding into the growing property markets Singapore as well as ease of repatriating funds The following are the critical accounting policies: does not depreciate leasehold properties with unexpired of China, Thailand, Vietnam, Indonesia and India where to Singapore; tenures of over 20 years. These leasehold properties are there is still insufficient good quality housing to satisfy • proper management of interest and currency instead valued by professional valuers or in-house valuers Revenue and Profit Recognition at each balance sheet date, and are assessed as to the needs of their growing middle class populations. rate exposures. Revenue and profit on partly completed projects which whether there is impairment in their carrying values. The are held for sale are recognized on the percentage of impairment in value, if any, is taken to the profit and loss With the 5.7% expansion in gross domestic product The Group also faces the challenge arising from completion basis. For Singapore trading properties, profit account in the absence of or to the extent that it exceeds estimated for 2005, the recovery of the Singapore political uncertainties. recognition upon signing of sales contracts is 20% of any surplus held in reserves relating to previous economy remains positive, and demand in the residential the total estimated profit attributable to the actual revaluations. This accounting policy is considered more and office sectors shows signs of optimism. Both sectors The Group’s property fund management business will contracts signed. Subsequent profit recognition is based appropriate in reflecting their values and any decline in are in an early phase of recovery. be further developed for recurring fee-based income. on the stage of physical completion. For overseas trading the accounts. Efforts are being made to identify and invest in projects properties, profit recognition during development is the Regionally, the success of the Group’s efforts will depend that will give the expected rates of return required direct proportion of total expected project profit attributable on the following factors: by investors. to the actual sales contracts signed, but only to the Financial Instruments: Recognition and Measurement extent that is related to the stage of completion. The effect of recognition, derecognition and measurement • availability of well-located and competitively-priced The Company will continue to monitor all major risks of financial instruments, for periods prior to 1 January sites for residential developments and township affecting the Group under its Enterprise Risk Management The more conservative percentage of completion basis 2005, is not restated. As a result, the comparative figures developments in populous cities so that economies (ERM) Committee and take the necessary actions to for overseas trading properties is appropriate as the for 2004 have not been restated, and a transitional markets there are less matured and risks are greater. In adjustment was made on 1 January 2005 instead. of scale are achievable in providing high quality and mitigate or eliminate them. The ERM Committee reports respect of large trading projects both in Singapore and affordable urban housing; to the newly set-up Board Risk Committee. overseas, the percentage of completion method is applied In accordance with the transitional rules, there is no • effective partnerships with contractors, suppliers and on a phase by phase basis (i.e. one phase for every part restatement for the profit and loss accounts of the Group joint venture partners so that high quality projects of a project with one temporary occupation permit). and the Company in 2004. can be delivered on time;

Business Combinations Under the relevant reporting standard, assets and liabilities of subsidiaries which the Group acquired during the year were stated at their fair values at the dates of acquisition.

100 101 Business Dynamics and Risk Factors Critical Accounting Policies

100 101

Operations and Market Review

Singapore

Residential recreational and entertainment amenities when Caribbean at Keppel Bay Sales of the development has improved since the New Launches completed. A cable-stayed bridge linking to Keppel Island, Caribbean at Keppel Bay is a unique development announcement of the Sentosa IR, and the relaxation of Keppel Bay Precinct which will house the marina club, is poised to be an icon that offers homeowners an exciting waterfront government policies for residential purchases. Interest The Keppel Bay precinct is a world-class waterfront for the entire precinct. living experience. has come from both local and foreign buyers. Some 690 development located at the former Keppel Shipyard site. or 86% of the 801 units launched have been sold as of The 32-ha precinct boasts of unparalleled sea views, Caribbean at Keppel Bay marks the first residential Comprising 969 units of apartments and penthouses, March 2006. Of the 168 units kept for corporate flanked by Sentosa Island and the future Integrated development within the premier precinct to offer of which 168 units have been set aside for corporate residences, about 70% of the 120 units available have Resort (IR), Mount Faber, Keppel Club golf course and homeowners a truly waterfront lifestyle. The development residences, the development offers full condominium been leased out at good rental rates. The HarbourFront Office Park. The precinct also enjoys has since been completed and has achieved substantial facilities including a 50-metre swimming pool with premium location given its close proximity to the take-up. The second phase of the Keppel Bay aquatic play equipment and bubble pool, two 25-metre Phase Two of Keppel Bay Residential Development Central Business District (CBD), and VivoCity, the development comprising about 1,000 units is scheduled lap pools, children’s pools, open air jacuzzis and a Riding on the success of Caribbean at Keppel Bay, Phase largest retail and entertainment hub located within the for launch in late 2006. Another three land plots with clubhouse with steam rooms, a gymnasium and a games Two of the Keppel Bay development has been planned HarbourFront precinct. development potential of over 600 residential units are room. The units are also equipped with state-of-the-art for launch in late 2006. Designed by world-renowned architect Daniel Libeskind, this 1,000-unit condominium slated to be rolled out in phases over the next five to six network infrastructure, home automation systems and development will feature an iconic façade, truly distinctive Development of the Keppel Bay precinct will be carried years depending on market conditions. Each development a web-based condominium portal. from any other developments in Singapore. Covering out in phases and will comprise about 2,600 units of will have its own frontage to the waters and one, in 104 105 waterfront lifestyle homes, a marina club, leisure, particular, will be built on Keppel Island itself. Operations and Market Review

Singapore

a land area of about 900,000 sf and gross floor area of This freehold development offers a range of choice units The development will comprise 157 units with sizes 2 million sf, the development will be the tallest from 1-bedroom to 4-bedroom units and exclusive ranging from 630 sf for studio units to 3,730 sf for condominium in the area, offering a commanding view penthouses with unit sizes ranging from 520 sf to penthouses. Facilities will include a free-form swimming of the future IR at Sentosa. 3,300 sf. Since its official launch in October 2005, 223 pool and lap pool, gymnasium, clubhouse, children’s play units or 92% of the 243 units launched have been sold area and barbecue pits. Homeowners of the development will enjoy a 10-year as of March 2006. complimentary membership to Marina @ Keppel Bay on Avenue Park Project Keppel Island when it is completed in the fourth quarter The Belvedere In March 2006, Keppel Land entered into a joint venture of 2007. Residents can access the marina via a cable- The Belvedere is the new hallmark of sophisticated with Singapore Land Ltd to acquire and redevelop the stayed bridge, which is expected to be completed in the living in the East. Located at Meyer Road, one of the freehold site at Sixth Avenue. Keppel Land will hold a second quarter of 2007. Marina @ Keppel Bay can berth most sought-after residential districts in Singapore, 52% stake. The 48% stake held by Singapore Land was mega yachts of up to 200 ft long and its lifestyle amenities the development offers 167 exclusive units of 2- to formerly held by ComfortDelGro Corporation Ltd. include a members-only lounge, fine dining restaurants 3-bedroom condominium units and penthouses with and spa facilities. sizes ranging from 1,000 sf to 2,800 sf. Apart from Located at one of Singapore’s most prestigious prime facilities such as a swimming pool, tennis court and districts, the proposed 5-storey condominium development is in close proximity to premier schools such as Phase One of Park Infinia at Wee Nam, one of the largest condominium Park Infinia at Wee Nam clubhouse, the development is also equipped with private developments in the Newton area, was met with strong demand with Park Infinia at Wee Nam is one of the largest condominium lift lobbies, and quality finishes. Hwa Chong Institution, Nanyang Primary School, Chinese more than 90% of launched units sold. developments in the Newton area with a total of High School, Nanyang Girls’ School and National Junior 486 units. Its residents can enjoy full recreational facilities Offering panoramic views of the sea and city skyline and College and enjoys easy access to the city and a wide like an Olympic-length swimming pool, spa, tennis courts lush surroundings, The Belvedere is easily accessible via range of amenities. and one of the first aqua-gymnasiums in Singapore. major expressways. The popular East Coast beach is only Located at the junction of Wee Nam Road and Keng Lee a short walk away and shopping and eating amenities are The 193-unit development has a resort-theme with Road, it is within close proximity to the Newton MRT within easy reach. The development is also within close full condominium facilities including a swimming pool, station and shopping amenities are just a stone’s throw proximity to the future Old Airport Road MRT station and a clubhouse, a tennis court, children’s play area and lush away at the bustling Orchard Road. Reputable schools popular schools such as Dunman High, Tanjong Katong landscape. The development is scheduled for launch in its vicinity include Anglo-Chinese School (Primary), Girls’ and Chung Cheng High. Of the 130 units launched, in 2006. Anglo-Chinese School (Junior) and St Michael’s School. 120 units or 92% have been taken up as of March 2006.

106 107 Upcoming Launches Capitalising on positive interest in prime residential developments, Keppel Land has plans to launch for sale four projects in 2006. These are two luxurious developments situated along Devonshire Road and Sixth Avenue, and two iconic waterfront developments designed by internationally renowned architects, namely Phase Two of Keppel Bay development and a residential development in the Business and Financial Centre. Some 600 units are expected to be made available from these projects in 2006. Including remaining units in existing projects, Keppel Land intends to release about 1,000 units in 2006.

Ritz Residences The 32-storey twin tower condominium development with modern architecture design is conveniently located within close proximity to the Somerset MRT station and the Orchard Road shopping belt. Slated for launch in Left: Icon by the Bay - Phase Two of Keppel Bay will be designed by world-renowned architect Daniel Libeskind. Right: Located on Keppel Island, Marina @ Keppel Bay is designed to berth up to 200 yachts and will offer residents an exceptional waterfront living experience. 2006, the development at Devonshire Road will epitomise the true meaning of luxury living. a land area of about 900,000 sf and gross floor area of This freehold development offers a range of choice units The development will comprise 157 units with sizes 2 million sf, the development will be the tallest from 1-bedroom to 4-bedroom units and exclusive ranging from 630 sf for studio units to 3,730 sf for condominium in the area, offering a commanding view penthouses with unit sizes ranging from 520 sf to penthouses. Facilities will include a free-form swimming of the future IR at Sentosa. 3,300 sf. Since its official launch in October 2005, 223 pool and lap pool, gymnasium, clubhouse, children’s play units or 92% of the 243 units launched have been sold area and barbecue pits. Homeowners of the development will enjoy a 10-year as of March 2006. complimentary membership to Marina @ Keppel Bay on Avenue Park Project Keppel Island when it is completed in the fourth quarter The Belvedere In March 2006, Keppel Land entered into a joint venture of 2007. Residents can access the marina via a cable- The Belvedere is the new hallmark of sophisticated with Singapore Land Ltd to acquire and redevelop the stayed bridge, which is expected to be completed in the living in the East. Located at Meyer Road, one of the freehold site at Sixth Avenue. Keppel Land will hold a second quarter of 2007. Marina @ Keppel Bay can berth most sought-after residential districts in Singapore, 52% stake. The 48% stake held by Singapore Land was mega yachts of up to 200 ft long and its lifestyle amenities the development offers 167 exclusive units of 2- to formerly held by ComfortDelGro Corporation Ltd. include a members-only lounge, fine dining restaurants 3-bedroom condominium units and penthouses with and spa facilities. sizes ranging from 1,000 sf to 2,800 sf. Apart from Located at one of Singapore’s most prestigious prime facilities such as a swimming pool, tennis court and districts, the proposed 5-storey condominium development is in close proximity to premier schools such as Phase One of Park Infinia at Wee Nam, one of the largest condominium Park Infinia at Wee Nam clubhouse, the development is also equipped with private developments in the Newton area, was met with strong demand with Park Infinia at Wee Nam is one of the largest condominium lift lobbies, and quality finishes. Hwa Chong Institution, Nanyang Primary School, Chinese more than 90% of launched units sold. developments in the Newton area with a total of High School, Nanyang Girls’ School and National Junior 486 units. Its residents can enjoy full recreational facilities Offering panoramic views of the sea and city skyline and College and enjoys easy access to the city and a wide like an Olympic-length swimming pool, spa, tennis courts lush surroundings, The Belvedere is easily accessible via range of amenities. and one of the first aqua-gymnasiums in Singapore. major expressways. The popular East Coast beach is only Located at the junction of Wee Nam Road and Keng Lee a short walk away and shopping and eating amenities are The 193-unit development has a resort-theme with Road, it is within close proximity to the Newton MRT within easy reach. The development is also within close full condominium facilities including a swimming pool, station and shopping amenities are just a stone’s throw proximity to the future Old Airport Road MRT station and a clubhouse, a tennis court, children’s play area and lush away at the bustling Orchard Road. Reputable schools popular schools such as Dunman High, Tanjong Katong landscape. The development is scheduled for launch in its vicinity include Anglo-Chinese School (Primary), Girls’ and Chung Cheng High. Of the 130 units launched, in 2006. Anglo-Chinese School (Junior) and St Michael’s School. 120 units or 92% have been taken up as of March 2006.

106 107 Existing Residential Properties Market Review Urbana At 36 storeys high, Urbana will be one of the tallest Residential strong especially for these projects. According to CB Richard Ellis (CBRE), foreign buyers accounted for almost condominiums along River Valley Road. Commanding a Market Treading on Steady Recovery After a strong rebound of 8.8% in GDP growth in 2004, 13% of total home purchases in 2005, which is a majestic view of the city and Orchard Road shopping the Singapore economy continued to see a robust growth significant increase from 6% in 2004. belt, the solitary tower is close to the Somerset MRT of 6.4% in 2005 driven by strong expansion in the station and the CBD. manufacturing sector. The residential sector, in general, The investment sales market, which is seen as a also experienced continued growth as the Urban barometer of confidence in the real estate market, hit Offering 2- to 4-bedroom apartments and penthouses Redevelopment Authority price index registered a stronger an all-time high of $13.5 billion in 2005 and has even with unit sizes ranging from 1,000 sf to 3,200 sf, the uptrend of 3.9% in 2005 compared with a 0.9% increase surpassed the previous peak of $12.7 billion achieved in in 2004. The take-up of new units also rose in tandem 1996 at the height of the property boom. This signals development comes with full facilities including a with price increases. In 2005, a total of 8,955 new units developers’ and large investors’ medium to long-term landscaped-theme garden, an infinity-edge swimming were sold by developers against 5,785 new units in 2004. confidence in the real estate market. The residential pool and gymnasium. sector accounted for $5 billion or 37% of total investment In July 2005, changes in government measures such as sales for the year. Of this, $2 billion were from en bloc Due for completion in 2007, Urbana has since sold the reduction of cash downpayment for property sales, the highest in five years and almost triple the 91 units or 72% of the total 126 units as of March 2006. purchasers from 10% to 5%, the relaxation of the cap amount collected for 2004. The collective sales market on housing loans from 80% to 90% and the easing of is expected to remain active and robust in 2006. regulation to allow foreigners to include private residential The Linc properties as part of the investment instruments when Looking ahead, recovery in the residential market will The Linc is a distinctive freehold development comprising applying for Permanent Resident status generated a gradually filter into the mass market with greater positive 51 apartment units of 1-, 2- and 3-bedroom types with positive effect on the property market. There was renewed news flows on economic growth and better job market. floor areas ranging from 650 sf to 1,850 sf. Located at buying interest from both local and foreign buyers. This will be boosted by more exciting new project launches Lincoln Road within the quiet and exclusive Newton and buying activities in 2006. CBRE has estimated new residential enclave, it is a short distance to the Newton Projects that saw strong take up during the year were homes sales to maintain at 8,000 to 9,000 units, with an those that were either located in prime districts or have overall price increase of 5%, with the luxury market MRT station and a few minutes away from the Orchard a lifestyle or iconic theme. Foreigners’ interest remained taking the lead with about 20% rise in prices for 2006. Road shopping belt and the CBD. It is surrounded by many good schools such as Raffles Girls’ Secondary, Residential 2005 2004 % Change Anglo-Chinese (Barker Road) and St. Michael’s School. Demand (No. of New Units Sold) 8,955 5,785 54.8 Featuring a swimming pool, gymnasium and children’s Towering at 36 storeys, Urbana offers a commanding view of the Supply (No. of New Units Available) 8,201 5,881 39.4 playground, The Linc has obtained its TOP in January surrounding cityscape and Orchard Road shopping belt. Average Condominium Price ($ psf) 2006. Some 33 units or 65% have been sold as of - Islandwide 99-year Leasehold 470 430 9.3 March 2006. - Islandwide Freehold 535 535 0.0 - Prime 780 750 4.0 Freesia Woods modern living. Facilities include a clubhouse, tennis court, - Luxury 1,550 1,345 15.2 Flanked by flowing waters and lush tropical sanctuary, swimming pools, exercise stations, reflexology path and Freesia Woods forms the perfect backdrop for luxurious jogging track. Source : Urban Redevelopment Authority, CB Richard Ellis living. Located at the quiet and tranquil Sunset Way, Freesia Woods is a private oasis near Holland Village and Of the 129 units, 92 units (71% of the development) prestigious schools and institutions, which include Henry have been sold as of March 2006. Marketing efforts will Park Primary School, Pei Hwa Presbyterian Primary be intensified to sell the remaining units. School, Methodist Girls’ Primary and Secondary Schools, Singapore Polytechnic, Ngee Ann Polytechnic and National Nassim Woods University of Singapore. Nestled within the luxurious Nassim Hill, Nassim Woods is an exclusive development surrounded by a prestigious The freehold development offers 1- to 4-bedroom units neighbourhood of foreign embassies, country clubs and with sizes ranging from 1,023 sf to 2,680 sf that Singapore Botanic Garden. Well-liked by expatriates from incorporate efficient layouts, private lift lobbies, floor to Europe and the US, the 35 units available for lease at ceiling windows and smart home features to cater to Nassim Woods are about 94% occupied as of March 2006.

108 109 Existing Residential Properties Market Review Urbana At 36 storeys high, Urbana will be one of the tallest Residential strong especially for these projects. According to CB Richard Ellis (CBRE), foreign buyers accounted for almost condominiums along River Valley Road. Commanding a Market Treading on Steady Recovery After a strong rebound of 8.8% in GDP growth in 2004, 13% of total home purchases in 2005, which is a majestic view of the city and Orchard Road shopping the Singapore economy continued to see a robust growth significant increase from 6% in 2004. belt, the solitary tower is close to the Somerset MRT of 6.4% in 2005 driven by strong expansion in the station and the CBD. manufacturing sector. The residential sector, in general, The investment sales market, which is seen as a also experienced continued growth as the Urban barometer of confidence in the real estate market, hit Offering 2- to 4-bedroom apartments and penthouses Redevelopment Authority price index registered a stronger an all-time high of $13.5 billion in 2005 and has even with unit sizes ranging from 1,000 sf to 3,200 sf, the uptrend of 3.9% in 2005 compared with a 0.9% increase surpassed the previous peak of $12.7 billion achieved in in 2004. The take-up of new units also rose in tandem 1996 at the height of the property boom. This signals development comes with full facilities including a with price increases. In 2005, a total of 8,955 new units developers’ and large investors’ medium to long-term landscaped-theme garden, an infinity-edge swimming were sold by developers against 5,785 new units in 2004. confidence in the real estate market. The residential pool and gymnasium. sector accounted for $5 billion or 37% of total investment In July 2005, changes in government measures such as sales for the year. Of this, $2 billion were from en bloc Due for completion in 2007, Urbana has since sold the reduction of cash downpayment for property sales, the highest in five years and almost triple the 91 units or 72% of the total 126 units as of March 2006. purchasers from 10% to 5%, the relaxation of the cap amount collected for 2004. The collective sales market on housing loans from 80% to 90% and the easing of is expected to remain active and robust in 2006. regulation to allow foreigners to include private residential The Linc properties as part of the investment instruments when Looking ahead, recovery in the residential market will The Linc is a distinctive freehold development comprising applying for Permanent Resident status generated a gradually filter into the mass market with greater positive 51 apartment units of 1-, 2- and 3-bedroom types with positive effect on the property market. There was renewed news flows on economic growth and better job market. floor areas ranging from 650 sf to 1,850 sf. Located at buying interest from both local and foreign buyers. This will be boosted by more exciting new project launches Lincoln Road within the quiet and exclusive Newton and buying activities in 2006. CBRE has estimated new residential enclave, it is a short distance to the Newton Projects that saw strong take up during the year were homes sales to maintain at 8,000 to 9,000 units, with an those that were either located in prime districts or have overall price increase of 5%, with the luxury market MRT station and a few minutes away from the Orchard a lifestyle or iconic theme. Foreigners’ interest remained taking the lead with about 20% rise in prices for 2006. Road shopping belt and the CBD. It is surrounded by many good schools such as Raffles Girls’ Secondary, Residential 2005 2004 % Change Anglo-Chinese (Barker Road) and St. Michael’s School. Demand (No. of New Units Sold) 8,955 5,785 54.8 Featuring a swimming pool, gymnasium and children’s Towering at 36 storeys, Urbana offers a commanding view of the Supply (No. of New Units Available) 8,201 5,881 39.4 playground, The Linc has obtained its TOP in January surrounding cityscape and Orchard Road shopping belt. Average Condominium Price ($ psf) 2006. Some 33 units or 65% have been sold as of - Islandwide 99-year Leasehold 470 430 9.3 March 2006. - Islandwide Freehold 535 535 0.0 - Prime 780 750 4.0 Freesia Woods modern living. Facilities include a clubhouse, tennis court, - Luxury 1,550 1,345 15.2 Flanked by flowing waters and lush tropical sanctuary, swimming pools, exercise stations, reflexology path and Freesia Woods forms the perfect backdrop for luxurious jogging track. Source : Urban Redevelopment Authority, CB Richard Ellis living. Located at the quiet and tranquil Sunset Way, Freesia Woods is a private oasis near Holland Village and Of the 129 units, 92 units (71% of the development) prestigious schools and institutions, which include Henry have been sold as of March 2006. Marketing efforts will Park Primary School, Pei Hwa Presbyterian Primary be intensified to sell the remaining units. School, Methodist Girls’ Primary and Secondary Schools, Singapore Polytechnic, Ngee Ann Polytechnic and National Nassim Woods University of Singapore. Nestled within the luxurious Nassim Hill, Nassim Woods is an exclusive development surrounded by a prestigious The freehold development offers 1- to 4-bedroom units neighbourhood of foreign embassies, country clubs and with sizes ranging from 1,023 sf to 2,680 sf that Singapore Botanic Garden. Well-liked by expatriates from incorporate efficient layouts, private lift lobbies, floor to Europe and the US, the 35 units available for lease at ceiling windows and smart home features to cater to Nassim Woods are about 94% occupied as of March 2006.

108 109 Keppel Land is actively participating in the making of the New Downtown with projects such as One Raffles Quay, the Business and Financial Centre, and its bid in the Marina Bay Integrated Resort.

New Downtown at Marina Bay drawing strong interest from reputable institutions which Business and Financial Centre Totalling over 400 units, the residential tower is slated The New Downtown at Marina Bay is earmarked to be are keen to anchor an early foothold in the Marina Bay The Business and Financial Centre (BFC) site at the New for launch in late 2006. Residents of the development Singapore’s international business and financial hub with area. With no major new supply of prime office space Downtown was awarded by the Urban Redevelopment will enjoy scenic views of Marina Bay, including the a seamless extension to the existing CBD. It will consist over the next few years, the prime Grade A office Authority to the consortium comprising Keppel Land, future Integrated Resort (IR) located within the precinct. of premier office spaces, high quality residential houses, development was more than 75% pre-committed as Cheung Kong (Holdings) and Hongkong Land on 14 July The office and residential developments under Phase convention facilities, shops and food and beverage outlets, of March 2006, with blue-chip anchor tenants like 2005. Yielding a total gross floor area of 438,000 sm, One are expected to be ready by 2010. In addition, the lifestyle amenities as well as arts, cultural and entertainment ABN AMRO, Deutsche Bank, UBS, Ernst & Young, of which at least 60% is for office use, the premier consortium has purchased the option to buy the remaining venues to transform Marina Bay into a thriving cosmopolitan Societe Generale Private Banking and Barclays Capital. waterfront development will further strengthen Keppel site with a balance gross floor area of 194,000 sm within hub with an integrated environment in which to live, work Land’s position in the prime office market. BFC will be the next eight years for development. and play. Comprising two office towers linked by a podium, the an iconic development with outstanding architectural North Tower is a 50-storey building with 767,000 sf of design to mark Singapore’s next generation business When completed, BFC will be linked via its own Keppel Land is excited about playing a pivotal role in the lettable space and has a typical column-free floor plate and financial hub. underground pedestrian network to the Landmark MRT making of the New Downtown at Marina Bay. It is of about 18,000 sf. Linked by a landscaped, spacious station of the Downtown Extension of the Circle Line as embarking on several high-profile developments within double-volume plaza is the South Tower, a 29-storey Phase One of BFC well as the Raffles Place MRT interchange, which serves the area, including One Raffles Quay and the Business building offering 565,000 sf of column-free space with Phase One of the BFC comprises 244,000 sm of gross the North-South and East-West lines. With seamless and Financial Centre. Together with its joint venture partner large regular floor plates of about 30,000 sf, which is floor area, of which about 74% or 180,000 sm are prime access to the rail network, the development is only a Harrah’s Entertainment, it is focusing on putting together popular among financial institutions. office space, 55,000 sm for residential use and the rest short distance away from the modern urban lifestyle the a strong bid for the Integrated Resort at Marina Bay. These for ancillary retail space. Two prime Grade A office blocks, city has to offer at the Bras Basah and Bugis areas, developments, which have caught the attention of the Ready In 2006 towering 33-storey and 47-storey high, and a 61-storey Marina Centre, Orchard Road and the Singapore River. world, will raise Keppel Land’s status and visibility as a The landmark development will also have an underground residential tower designed by internationally renowned reputable real estate developer. air-conditioned retail link leading to Raffles Place MRT architect Kohn Penderson Fox Associates, will be station and a hub car park. The South Tower will be developed on the site. One Raffles Quay completed in the first half of 2006 and the North Tower Strategically located at the gateway to the New will be ready in the second half of this year. 110 Downtown at Marina Bay, One Raffles Quay has been 111 Keppel Land is actively participating in the making of the New Downtown with projects such as One Raffles Quay, the Business and Financial Centre, and its bid in the Marina Bay Integrated Resort.

New Downtown at Marina Bay drawing strong interest from reputable institutions which Business and Financial Centre Totalling over 400 units, the residential tower is slated The New Downtown at Marina Bay is earmarked to be are keen to anchor an early foothold in the Marina Bay The Business and Financial Centre (BFC) site at the New for launch in late 2006. Residents of the development Singapore’s international business and financial hub with area. With no major new supply of prime office space Downtown was awarded by the Urban Redevelopment will enjoy scenic views of Marina Bay, including the a seamless extension to the existing CBD. It will consist over the next few years, the prime Grade A office Authority to the consortium comprising Keppel Land, future Integrated Resort (IR) located within the precinct. of premier office spaces, high quality residential houses, development was more than 75% pre-committed as Cheung Kong (Holdings) and Hongkong Land on 14 July The office and residential developments under Phase convention facilities, shops and food and beverage outlets, of March 2006, with blue-chip anchor tenants like 2005. Yielding a total gross floor area of 438,000 sm, One are expected to be ready by 2010. In addition, the lifestyle amenities as well as arts, cultural and entertainment ABN AMRO, Deutsche Bank, UBS, Ernst & Young, of which at least 60% is for office use, the premier consortium has purchased the option to buy the remaining venues to transform Marina Bay into a thriving cosmopolitan Societe Generale Private Banking and Barclays Capital. waterfront development will further strengthen Keppel site with a balance gross floor area of 194,000 sm within hub with an integrated environment in which to live, work Land’s position in the prime office market. BFC will be the next eight years for development. and play. Comprising two office towers linked by a podium, the an iconic development with outstanding architectural North Tower is a 50-storey building with 767,000 sf of design to mark Singapore’s next generation business When completed, BFC will be linked via its own Keppel Land is excited about playing a pivotal role in the lettable space and has a typical column-free floor plate and financial hub. underground pedestrian network to the Landmark MRT making of the New Downtown at Marina Bay. It is of about 18,000 sf. Linked by a landscaped, spacious station of the Downtown Extension of the Circle Line as embarking on several high-profile developments within double-volume plaza is the South Tower, a 29-storey Phase One of BFC well as the Raffles Place MRT interchange, which serves the area, including One Raffles Quay and the Business building offering 565,000 sf of column-free space with Phase One of the BFC comprises 244,000 sm of gross the North-South and East-West lines. With seamless and Financial Centre. Together with its joint venture partner large regular floor plates of about 30,000 sf, which is floor area, of which about 74% or 180,000 sm are prime access to the rail network, the development is only a Harrah’s Entertainment, it is focusing on putting together popular among financial institutions. office space, 55,000 sm for residential use and the rest short distance away from the modern urban lifestyle the a strong bid for the Integrated Resort at Marina Bay. These for ancillary retail space. Two prime Grade A office blocks, city has to offer at the Bras Basah and Bugis areas, developments, which have caught the attention of the Ready In 2006 towering 33-storey and 47-storey high, and a 61-storey Marina Centre, Orchard Road and the Singapore River. world, will raise Keppel Land’s status and visibility as a The landmark development will also have an underground residential tower designed by internationally renowned reputable real estate developer. air-conditioned retail link leading to Raffles Place MRT architect Kohn Penderson Fox Associates, will be station and a hub car park. The South Tower will be developed on the site. One Raffles Quay completed in the first half of 2006 and the North Tower Strategically located at the gateway to the New will be ready in the second half of this year. 110 Downtown at Marina Bay, One Raffles Quay has been 111 In terms of landscape, the plan is to create a multi- coloured, multi-sensory environment for Marina Bay that will further enhance its image as a distinctive waterfront garden city and will complement three new gardens at Marina South, Marina East and Marina Centre. Visitors will be given a visual treat with different colour planting schemes throughout Marina Bay.

In the Running for the Marina Bay Integrated Resort The proposed Integrated Resort (IR) at Marina Bay is envisaged to be world-class iconic lifestyle development with a compelling mix of facilities for the meetings, incentives, conventions and exhibitions (MICE) industry, theme attractions, entertainment and performance venues, gaming, recreational facilities, hotels and retail space. The IR will seek to boost business and leisure tourism and to position Singapore as a must-visit destination in Asia and an exciting city to live, work and play.

Tie-up with Harrah’s Keppel Land is partnering Harrah’s Entertainment to bid for the IR at Marina Bay. Las Vegas-based Harrah’s is the world’s largest gaming company listed in New York. The BFC, Singapore’s next generation business and financial hub, will offer an integrated environment in which to live, work and play. Harrah’s is also a recognised leader in responsible gaming With the best of the best partners onboard, Keppel Land and Harrah’s and corporate governance. It focuses on building loyalty Entertainment’s bid for the Marina Bay IR is set to boost business and and value with its customers through a unique leisure tourism in Singapore and promote the city as a must-visit destination in Asia. The strategic location of BFC opens up to prime views Marina Bay will be a multi-purpose destination and a combination of great service, excellent products, of Marina Bay and the proposed Central Open Space, a major gathering point for events and activities such as unsurpassed distribution, operational excellence and major new civic space and focal point for the area. The staging of the National Day celebrations, water-based technology leadership. upcoming IR in the vicinity will further complement this events and performances, and international water-sports waterfront development and enhance its attraction as competitions. Recreational activities such as pleasure The Request for Proposal (RFP) for the Marina Bay IR was envisaged to create a unique and dynamic architectural the choice location for local and international financial boating, canoeing, kayaking, sailing, water skiing and issued on 15 November 2005 and due for submission on element with offerings that would transcend the region’s institutions as well as multinational corporations. wind surfing, can also take place. 29 March 2006. The winning bid will likely be announced traditional cultural boundaries and cater to both business It will also add to the critical mass of three existing towards the middle of 2006. The evaluation criteria and and leisure tourists. The JV has since announced strategic New Downtown projects including One Raffles Quay, Around the bay, an array of quality buildings, gardens, their weightage used to select the winning bid are alliances with the finest industry players in the world a 1.3-million sf premier office development by the same open spaces and attractions will offer a wide range of Tourism Appeal and Contribution (40%), Architectural and such as convention specialists SMG and CEMS, and consortium partners. amenities. They will soon be accompanied by the Urban Design (30%), Level of Development Investment Suntec Singapore to help position Singapore as a leading Singapore Flyer, which will be one of the world’s highest (20%) and Strength of Consortium and Partners’ destination for MICE; live entertainment specialists AEG Marina Bay Precinct observation wheels at about 178m high. A landmark Track Record (10%). Live, Teamwork and Unusual Entertainments to provide The Marina Bay precinct, which is within Singapore’s bridge linking the Bayfront area to Marina Centre will world-class entertainment; Taubman Asia and Gordon city centre, is planned as a ‘City-in-a-Garden’, offering also be ready around 2009. Incorporating a unique double- Served by a comprehensive road and rail network, Group to develop the retail component; and Centre a distinctive location for business, living, working and helix design, the 280m-long bridge will enable visitors including a MRT station on site, the Marina Bay IR will Pompidou to create a centre for the arts with an leisure activities around-the-clock. Providing a total to walk to the major attractions in the vicinity such as be easily accessible. The 20.6-ha site is capable of yielding international dimension. integrated live-work-play environment, the area will be the Esplanade, the future IR and the Singapore Flyer. a gross floor area of between 270,000 sm and 570,000 a flourishing community, anchored around an international sm and the land price has been fixed at $1.2 billion. Designed by renowned architect Daniel Libeskind, the business and financial hub that expands seamlessly from Marina Bay IR is envisaged to be one of the gems in the the existing CBD. The Keppel Land-Harrah’s joint venture (JV) will submit “necklace of attractions” in Marina Bay alongside the a competitive bid for the Marina Bay IR. The JV has BFC and the Esplanade.

112 113 In terms of landscape, the plan is to create a multi- coloured, multi-sensory environment for Marina Bay that will further enhance its image as a distinctive waterfront garden city and will complement three new gardens at Marina South, Marina East and Marina Centre. Visitors will be given a visual treat with different colour planting schemes throughout Marina Bay.

112 113 both of which are currently under construction. A short distance away from the central business district Strategically located in the heart of the Raffles Place is The HarbourFront Office Park. Located within the financial district, Ocean Building, Ocean Towers and HarbourFront precinct with the HarbourFront MRT station Equity Plaza are easily accessible by the Raffles Place at its doorsteps, the office park comprising Keppel Bay MRT station and are within close proximity to the Tower, HarbourFront Tower One and HarbourFront Tower New Downtown. Two will benefit from the transformation of the precinct into a vibrant commercial and recreational hub when VivoCity is completed in 2006.

Market Review Office This robust leasing momentum is expected to continue Strong Take-up Underpins Rental Recovery for the next few years given that supply of new office and Growth space is limited to an average of less than 1 million sf per The Singapore office market has strengthened further annum for the next four years. Office occupancy and since December 2004 with a take-up of 1.96 million sf, rentals, especially for prime office space, are expected to up from 1.07 million sf for 2004. The surge in demand rise further in 2006, underpinned by continued economic has pushed up Grade A office rent by 23.3% to $5.70 psf growth and limited new supply in the CBD. The increasing per month. Island-wide occupancy has also improved from conversion of older office buildings within the CBD into 84% to 87.2% as at end-2005. residential development will further push up office occupancy and rentals. Keppel Land’s premier office towers, One Raffles Quay (left) and Keppel Bay Tower, enjoy high occupancy rates from blue-chip companies. The strong demand came mainly from new or expansion needs of private wealth management, global off-shoring The most immediate new supply coming on stream in activities, finance services, professional consultancy 2006 is One Raffles Quay (ORQ), a 1.3 million sf services, as well as IT firms. This is the result of Singapore’s Grade A office development jointly developed by Celebrated luxury-retail designer Peter Marino has been Meanwhile, the RFP for the IR at Sentosa will be released continual efforts to grow as an international financial centre Keppel Land, Cheung Kong (Holdings) and Hongkong appointed to design the retail component of the IR on 28 April 2006. Submission of bids is expected to be in Land. The only major office site sold in 2005 under the comprising a collection of flagship luxury fashion stores the fourth quarter of 2006 and the winning bid will likely and further development of knowledge-based economies and restaurants. Marino has designed flagship stores for be announced towards the end of the year. The site area such as biomedical sciences, technology innovations and government land sales scheme is the 3.55-ha Business brands including Louis Vuitton, Chanel, Christian Dior, for the Sentosa IR will be significantly larger at 49 ha but higher-learning education. and Financial Centre in the New Downtown at Marina Fendi and Giorgio Armani in Tokyo, New York, Paris and the maximum gross floor area allowed will be lower. Bay. It was awarded to the same consortium that developed Hong Kong. ORQ in July 2005. Both the Marina Bay and Sentosa IRs are expected to Award-winning Hollywood director James Cameron of be operational by 2010. hit movies Titanic and The Terminator has also been Office 2005 2004 % Change roped in to lead the development of a 16-storey high interactive video attraction called iPort at the IR. The one Office Demand (Mln sf) 1.96 1.07 83.2 million sf entertainment extravaganza will be one of a In a move to unlock asset value, Keppel Land has put Supply (Mln sf) -0.30 -0.33 nm kind in the world and will offer visitors a total four of its high quality office buildings into a newly- Average Occupancy Rate (%) 87.2 84.0 3.8 immersion experience. created real estate investment trust. K-REIT Asia will Average Prime Rental Rate ($ psf/mth) 5.20 4.40 18.2 acquire the four buildings namely Prudential Tower Average Capital Value ($ psf) 1,000 980 2.0 Star TV Roped In (approximately 44% of the strata area of the building),

An alliance has also been struck with Asian television Bugis Junction Towers, Keppel Towers and GE Tower, Source : Urban Redevelopment Authority, CB Richard Ellis broadcaster Star TV to create a wide range of all of which are currently wholly owned by Keppel Land, entertainment attractions for the IR. Star TV owns for $630.7 million. 59 channels, including ESPN, CNBC, National Geographic and Phoenix Chinese, reaching 300 million people in Prime Office Portfolio 53 countries. A ‘state-of-the-art’ broadcast studio will be Upon completion of the sale and purchase of the four built within iPort where visitors will be able to watch buildings, Keppel Land’s premier office portfolio will show recordings, join in shows and visit TV shows’ sets. comprise mainly of Ocean Building, Ocean Towers, Equity In the pipeline is a themed attraction and a dance club Plaza as well as One Raffles Quay and the Business and named after Star TV’s pop channel, Channel V. Financial Centre at the New Downtown at Marina Bay,

114 115 both of which are currently under construction. A short distance away from the central business district Strategically located in the heart of the Raffles Place is The HarbourFront Office Park. Located within the financial district, Ocean Building, Ocean Towers and HarbourFront precinct with the HarbourFront MRT station Equity Plaza are easily accessible by the Raffles Place at its doorsteps, the office park comprising Keppel Bay MRT station and are within close proximity to the Tower, HarbourFront Tower One and HarbourFront Tower New Downtown. Two will benefit from the transformation of the precinct into a vibrant commercial and recreational hub when VivoCity is completed in 2006.

114 115 With an initial portfolio of four high quality office buildings valued at $630.7 million, all of which are currently owned by Keppel Land, K-REIT Asia is scheduled to be listed on the Singapore Exchange at end-April 2006.

Property Fund Management all of which are currently owned by Keppel Land. They unitholders. The stake in K-REIT Asia reinforces objective of providing stable returns and long-term growth K-REIT Asia are Prudential Tower (approximately 44% of the strata Keppel Land’s confidence in the future growth of in asset value for unitholders. A New Milestone with Launch of K-REIT Asia area of the building), Keppel Towers and GE Tower, and K-REIT Asia and allows the Group to participate in the Keppel Land announced on 28 November 2005 that it is Bugis Junction Towers with total lettable area of future appreciation of its asset value. Both Keppel Land Benefits of Higher Shareholders’ Returns sponsoring the establishment of a new real estate approximately 73,322 sm. These four office buildings and Keppel Corporation have also undertaken not to divest The establishment of K-REIT Asia is in line with investment trust known as K-REIT Asia. The launch of are strategically located in the CBD and have a good their stakes of approximately 40% and 32% respectively Keppel Land’s strategic objective of unlocking value K-REIT Asia marks a new milestone for Keppel Land as quality and diverse tenant base such as International for a year following the listing of K-REIT Asia. for its shareholders. The move will allow the Group to it continually seeks to achieve sustained growth and Enterprise Singapore, Prudential Assurance, accelerate the growth of its twin business pillars of enhance shareholder value. K-REIT Asia is scheduled to InterContinental Hotels Group, GE Pacific, Novartis, The With support from Keppel Land as the sponsor, property development for sale and property fund be listed on the Main Board of the Singapore Exchange McGraw-Hill Companies, KBC Bank and California Fitness. K-REIT Asia will benefit from Keppel Land’s sound management to achieve higher returns. Keppel Land will by way of an introduction at end-April 2006. K-REIT Asia will finance the acquisition of the four buildings development and investment expertise, extensive re-deploy capital resources to undertake to develop quality from Keppel Land partly by cash of approximately $190.6 network of offices in the region and a strong pipeline townships across Asia and premier commercial and K-REIT Asia is established with the objective of generating million and partly by the issue of 240.5 million units in of property assets which could be potentially injected residential developments for sale in Singapore and in stable returns to its unitholders and achieving long-term K-REIT Asia. into its portfolio from the Group. Asia’s growth cities. K-REIT Asia will also serve as another asset growth by owning and investing in a portfolio of platform to generate new streams of fee-based income quality income-producing commercial real estate and Strong Support and Commitment from Sponsor Riding on Positive Market Cycles in Singapore for the Group, in addition to the funds which have real estate-related assets. To achieve this objective, Keppel Land will distribute units in K-REIT Asia to and Asia been established under its property fund management K-REIT Asia plans to further expand its portfolio through shareholders by way of a distribution in specie so as to K-REIT Asia’s initial portfolio of four buildings enjoys good vehicle Alpha Investment Partners. selective acquisitions of yield-accretive assets that meet utilise the remaining balance of about $53.2 million in occupancy and healthy rental rates. Riding on an improved its investment criteria, raise occupancy and/or rental Section 44A tax credits. Keppel Land will distribute office market where demand for and rentals of prime With K-REIT Asia, shareholders will enjoy higher dividend rates of the properties through active asset management approximately $264 million to shareholders in the form office space are rising amid tight supply, occupancy and payout as K-REIT Asia’s distribution policy is to distribute to increase property yield and employ appropriate debt of up to approximately 144.4 million K-REIT Asia units rental rates of these buildings are expected to increase at least 90% of its taxable income in any given year. and equity financing strategies for its portfolio to enhance (or approximately 60% of the total issued units in K-REIT further in 2006. K-REIT Asia will distribute 100% of its taxable income for FY2006 and at least 95% of its taxable income returns to unitholders. Asia) on the basis of one unit for every five shares held. for FY2007. Going forward, K-REIT Asia will seek to expand its scale K-REIT Asia will initially invest in and own a portfolio of Keppel Land will retain a 40% stake in K-REIT Asia to of the portfolio through acquisitions of assets in Singapore four high quality office buildings valued at $630.7 million, demonstrate its commitment and align its interest with and in Asia that are yield-accretive and meet its investment 116 117 Market Review Real Estate Funds and Real Estate The Malaysian REIT market was also active with the Investment Trusts listing of Starhill REIT, Axis REIT, and UOA REIT. With recovery of the Asian property markets gaining momentum, 2005 saw a surge in property funds, both In Singapore, two new REITs were listed during the year, local and foreign, looking to invest in the region’s key bringing the total number of S-REITs to seven. Total cities. Besides a favourable market cycle, the increased market capitalisation for S-REITs has grown beyond interest in Asian properties among foreign investors also $11 billion and is set to increase further in 2006 as several reflects the trend of pension funds all over the world new listings are poised to make their debut. To enhance going global and diversifying into alternative asset classes Singapore’s position as the regional hub for REITs, the such as real estate. Most Asian countries have opened guidelines governing S-REITs were further relaxed during up their property sector and with the development of the year. The most significant change is the further lifting securitisation products like REITs, foreign investors now of the gearing cap from 35% to 60%, putting Singapore have access to an increasingly broad range of property on par with the US and surpassing Australia’s 40%. The investment opportunities in Asia. The Asian property new guidelines also facilitate overseas acquisitions and sector has become more globalised over the past partial ownership of properties by S-REITs, which will few years. help Singapore garner a bigger share of cross-border and regional REIT opportunities in Asia. The Asian REIT market also experienced a flurry of activities in 2005. Japan, which was the first Asian The future of the S-REIT market remains healthy country to establish REITs in 2001, has 13 new J-REITs given increasing interest in Asian real estate from listed in 2005. This brought the total number of J-REITs global investors. Market growth in terms of breadth to 28 with total market capitalisation of about $40 billion and depth is envisaged as more REIT offerings are (US$24 billion). anticipated and new REIT products are evolving such as The Vanguard is one of Alpha’s acquisitions in Tokyo, Japan. cross-border REITs. The debut of Link REIT set the momentum for rapid growth in the Hong Kong REIT market. Together with With the Singapore and other Asian property markets In October 2005, Alpha landed its first Islamic mandate services such as portfolio management, investors Prosperity REIT and GZI REIT, the first China asset REIT, generally on the uptrend, we can expect the REIT market to manage an existing portfolio of Shariah compliant reporting, research, financial and risk management, and these REITs have a combined market capitalisation of to continue to grow in Asia. properties in Asia. The portfolio comprises of eight assets fund administration. about $8 billion (US$5 billion). in Hong Kong, Malaysia, Singapore and Indonesia with a total value of about US$150 million ($250 million). New products will be developed based on the investment Alpha will also seek new investments to grow the portfolio needs of investors, and only after careful deliberation so to a target size of over US$300 million ($500 million) by as to avoid potential conflicts with existing funds. During Alpha Investment Partners fund has also harvested an investment in Hong Kong, end-2007, with an ultimate portfolio size of about its transition from a manager of a single fund to multiple On Track for Continued Growth realising a return much higher than expected. The fund US$1 billion ($1.6 billion). The investments will be funds in 2005, Alpha has adopted a comprehensive conflicts 2005 was a busy and fruitful year for Alpha Investment has a higher risk tolerance and can invest in less mature conducted according to Islamic principles. management protocol. The quality and speed of its future Partners (Alpha), Keppel Land’s property fund markets and assume development risks. In line with the growth is dependent on how well conflicts are managed. management platform. Assets under management (AUM) fund’s opportunistic strategy, Alpha will continue to seek Alpha has clearly established itself as one of leading Alpha’s value of always looking out for investors’ interests assuming the funds are fully invested grew from just opportunities to realise return from investments. Asian property fund managers. Going forward, a key first and being totally transparent in its investment process under US$180 million ($300 million) as at end-2004 to measure of its success is the continued good performance should put it in good stead as it grows its business. As about US$1 billion ($1.7 billion) by end-2005. Performance Alpha Core Plus Real Estate Fund, which had its first of its funds. To this end, Keppel Land is committed to mentioned earlier, the key focus for Alpha in 2006 is to of funds under Alpha’s management has to date exceeded closing in November 2004 after securing two institutional continue building the Alpha platform to better serve its invest and manage its funds well. AUM will grow to in returns expected by investors. Even as more funds are cornerstone investors from Europe and Australia, has so investors and grow value to shareholders. Today, Alpha excess of US$2 billion ($3.3 billion) once all the funds being raised and AUM is being grown, Alpha will focus far made four investments in Japan and Singapore. has already established local investment and asset committed by investors are fully invested. on its investment performance as the key measure This fund seeks to achieve stable long-term returns by management platforms in Tokyo and Seoul. Alpha is of success. investing in the more mature markets in Asia such as planning to increase its presence there in line with With Asia becoming an increasingly attractive place for Japan, Singapore, Hong Kong and South Korea. In the expected growth in funds designated for investments investors, and Alpha’s good track record in terms of Asia No.1 Property Fund, the first fund managed by Alpha first quarter of 2006, the fund has a second and final in these markets. investment velocity and investment performance, it has together with Henderson Global Investors, had a second closing. Response from investors in Australia, Europe received numerous approaches to start new funds or and final closing during the year. The fund was about and Asia has been good, bringing the total equity Other markets like Australia, China and India have been investment mandates. In selecting funds or mandates 85% invested in office, retail and residential properties committed to US$437 million ($720 million), far exceeding identified as markets that hold vast potential not only for to manage, the objective is not to just grow AUM but in Japan, South Korea, Hong Kong, Singapore and the original target of US$250 million ($412 million). The investing but also as a source of funds. Depending on also to ensure that the products are sound and would Malaysia as at end-2005. With a diverse base of investors key focus in 2006 is to invest this fund prudently with the development of these markets and the investment meet or exceed investors’ expectations. from Australia, UK, Europe, Asia and North America, the the aim of surpassing investors’ expectations. demands, Alpha plans to establish platforms in them. fund is expected to be fully invested by mid-2006. This Besides covering the South-East Asian markets, the Singapore headquarters will continue to provide critical 118 119 Market Review Real Estate Funds and Real Estate The Malaysian REIT market was also active with the Investment Trusts listing of Starhill REIT, Axis REIT, and UOA REIT. With recovery of the Asian property markets gaining momentum, 2005 saw a surge in property funds, both In Singapore, two new REITs were listed during the year, local and foreign, looking to invest in the region’s key bringing the total number of S-REITs to seven. Total cities. Besides a favourable market cycle, the increased market capitalisation for S-REITs has grown beyond interest in Asian properties among foreign investors also $11 billion and is set to increase further in 2006 as several reflects the trend of pension funds all over the world new listings are poised to make their debut. To enhance going global and diversifying into alternative asset classes Singapore’s position as the regional hub for REITs, the such as real estate. Most Asian countries have opened guidelines governing S-REITs were further relaxed during up their property sector and with the development of the year. The most significant change is the further lifting securitisation products like REITs, foreign investors now of the gearing cap from 35% to 60%, putting Singapore have access to an increasingly broad range of property on par with the US and surpassing Australia’s 40%. The investment opportunities in Asia. The Asian property new guidelines also facilitate overseas acquisitions and sector has become more globalised over the past partial ownership of properties by S-REITs, which will few years. help Singapore garner a bigger share of cross-border and regional REIT opportunities in Asia. The Asian REIT market also experienced a flurry of activities in 2005. Japan, which was the first Asian The future of the S-REIT market remains healthy country to establish REITs in 2001, has 13 new J-REITs given increasing interest in Asian real estate from listed in 2005. This brought the total number of J-REITs global investors. Market growth in terms of breadth to 28 with total market capitalisation of about $40 billion and depth is envisaged as more REIT offerings are (US$24 billion). anticipated and new REIT products are evolving such as The Vanguard is one of Alpha’s acquisitions in Tokyo, Japan. cross-border REITs. The debut of Link REIT set the momentum for rapid growth in the Hong Kong REIT market. Together with With the Singapore and other Asian property markets In October 2005, Alpha landed its first Islamic mandate services such as portfolio management, investors Prosperity REIT and GZI REIT, the first China asset REIT, generally on the uptrend, we can expect the REIT market to manage an existing portfolio of Shariah compliant reporting, research, financial and risk management, and these REITs have a combined market capitalisation of to continue to grow in Asia. properties in Asia. The portfolio comprises of eight assets fund administration. about $8 billion (US$5 billion). in Hong Kong, Malaysia, Singapore and Indonesia with a total value of about US$150 million ($250 million). New products will be developed based on the investment Alpha will also seek new investments to grow the portfolio needs of investors, and only after careful deliberation so to a target size of over US$300 million ($500 million) by as to avoid potential conflicts with existing funds. During Alpha Investment Partners fund has also harvested an investment in Hong Kong, end-2007, with an ultimate portfolio size of about its transition from a manager of a single fund to multiple On Track for Continued Growth realising a return much higher than expected. The fund US$1 billion ($1.6 billion). The investments will be funds in 2005, Alpha has adopted a comprehensive conflicts 2005 was a busy and fruitful year for Alpha Investment has a higher risk tolerance and can invest in less mature conducted according to Islamic principles. management protocol. The quality and speed of its future Partners (Alpha), Keppel Land’s property fund markets and assume development risks. In line with the growth is dependent on how well conflicts are managed. management platform. Assets under management (AUM) fund’s opportunistic strategy, Alpha will continue to seek Alpha has clearly established itself as one of leading Alpha’s value of always looking out for investors’ interests assuming the funds are fully invested grew from just opportunities to realise return from investments. Asian property fund managers. Going forward, a key first and being totally transparent in its investment process under US$180 million ($300 million) as at end-2004 to measure of its success is the continued good performance should put it in good stead as it grows its business. As about US$1 billion ($1.7 billion) by end-2005. Performance Alpha Core Plus Real Estate Fund, which had its first of its funds. To this end, Keppel Land is committed to mentioned earlier, the key focus for Alpha in 2006 is to of funds under Alpha’s management has to date exceeded closing in November 2004 after securing two institutional continue building the Alpha platform to better serve its invest and manage its funds well. AUM will grow to in returns expected by investors. Even as more funds are cornerstone investors from Europe and Australia, has so investors and grow value to shareholders. Today, Alpha excess of US$2 billion ($3.3 billion) once all the funds being raised and AUM is being grown, Alpha will focus far made four investments in Japan and Singapore. has already established local investment and asset committed by investors are fully invested. on its investment performance as the key measure This fund seeks to achieve stable long-term returns by management platforms in Tokyo and Seoul. Alpha is of success. investing in the more mature markets in Asia such as planning to increase its presence there in line with With Asia becoming an increasingly attractive place for Japan, Singapore, Hong Kong and South Korea. In the expected growth in funds designated for investments investors, and Alpha’s good track record in terms of Asia No.1 Property Fund, the first fund managed by Alpha first quarter of 2006, the fund has a second and final in these markets. investment velocity and investment performance, it has together with Henderson Global Investors, had a second closing. Response from investors in Australia, Europe received numerous approaches to start new funds or and final closing during the year. The fund was about and Asia has been good, bringing the total equity Other markets like Australia, China and India have been investment mandates. In selecting funds or mandates 85% invested in office, retail and residential properties committed to US$437 million ($720 million), far exceeding identified as markets that hold vast potential not only for to manage, the objective is not to just grow AUM but in Japan, South Korea, Hong Kong, Singapore and the original target of US$250 million ($412 million). The investing but also as a source of funds. Depending on also to ensure that the products are sound and would Malaysia as at end-2005. With a diverse base of investors key focus in 2006 is to invest this fund prudently with the development of these markets and the investment meet or exceed investors’ expectations. from Australia, UK, Europe, Asia and North America, the the aim of surpassing investors’ expectations. demands, Alpha plans to establish platforms in them. fund is expected to be fully invested by mid-2006. This Besides covering the South-East Asian markets, the Singapore headquarters will continue to provide critical 118 119 Keplandehub existing customers for their expansion requirements in Hospitality Management Data Centres 2006. Having accumulated an impressive customer Sedona Hotel International Keppel Digihub, a wholly-owned subsidiary of profile, which includes Ernst & Young Global (Asia Pacific), Sedona Hotels International, the hospitality arm of Keppel Keppel Land’s e-business unit KeplandeHub, operates Strategem Technologies and Saki Corporation, and an Land, delivers the finest level of comfort and service to a 23,000 sf data centre and disaster recovery facility at established track record of zero downtime over five years the guests. Currently the Group has Sedona Suites in Serangoon North. of operations, Keppel Digihub is well-positioned to secure Hanoi and Ho Chi Minh City in Vietnam, Sedona Hotels more co-location contracts from enterprises looking to in Yangon and Mandalay in Myanmar, and 168 units for The data centre provides a fail-safe environment for the outsource their data centre requirements. To meet corporate residences in Singapore. housing of computing infrastructure for businesses and anticipated demand, it is planning to convert more office caters to the co-location needs of enterprises. The space into data centre facilities. The newly revamped website, www.sedonahotels.com.sg, disaster recovery facility comes complete with provides comprehensive information on each property workstations, office appliances, communication devices To further ensure that its infrastructure will continue to managed by the Group. Sedona will maintain a best rate and Internet access. meet the requirements of its customers, Keppel Digihub guarantee on its corporate website, and widen its online has upgraded its air-conditioning system. In addition distribution channel through partnerships with various In 2005, Keppel Digihub secured several co-location to being more energy-efficient, these new chillers popular consumer travel sites with mass market appeal. contracts, bringing the occupancy of its data centre to will provide the cooling capacity needed to meet 85%, with much of the remaining space reserved by future needs. The Group maintains its alliance with airlines, travel agencies and credit card companies to develop packages and promotions targeting at the leisure market segment. More efforts have been placed to strengthen its brand in the region. On-going public relations also played a pivotal role Market Review in creating and promoting top-of-mind awareness. Data Centres The Infocom Development Authority of Singapore Focusing largely on below-the-line advertising, print With the consolidation of players in the data centre continues to position Singapore to compete in high-level advertisements were featured in local newspapers as industry, competitive pressures to cut co-location rates business process outsourcing, including business well as in-flight, consumer travel and travel trade have abated. With the expansion in the financial sector, continuity/disaster recovery (BC/DR), leveraging on magazines. The Group participated in major trade shows, some financial institutions have begun taking up new Singapore’s status as a telecom hub and a relatively safe such as Asean Tourism Forum in Langkawi and and larger office spaces. Outsourcing of data centre haven free from natural disasters. With uncertainties International Tourism Bureau in Berlin to increase brand facilities is expected to be one of their main strategies brought about by threats of terrorism and the avian flu, preference and to raise awareness of its properties. to maintain business flexibility and focus. the outlook for the BC/DR sector is positive and augurs well for data centre operators. Strong Tourism Revival International tourism remained strong, with 808 million Top: Keppel Land’s hospitality arm, Sedona Hotel International is the distinctive choice of accommodation amongst the business and people visiting a foreign country in 2005, up 5.5% from leisure travellers. 2004. Asia Pacific was one of the best performing regions Bottom: Delivering a high standard of services and facilities, Sedona in tourism, despite threats such as natural disasters, Suites Hanoi has bagged the Best Luxury Serviced Apartment Award terrorism, and the bird flu. The influx of budget carriers for the fourth consecutive year in 2005. boosted the availability of low fares for short-haul travel, creating a new market of leisure and business travellers.

There are concerns however that the oil price hike may impact economic growth leading to a decline in disposable income which will affect travel expenditures.

120 121 Keplandehub existing customers for their expansion requirements in Hospitality Management Data Centres 2006. Having accumulated an impressive customer Sedona Hotel International Keppel Digihub, a wholly-owned subsidiary of profile, which includes Ernst & Young Global (Asia Pacific), Sedona Hotels International, the hospitality arm of Keppel Keppel Land’s e-business unit KeplandeHub, operates Strategem Technologies and Saki Corporation, and an Land, delivers the finest level of comfort and service to a 23,000 sf data centre and disaster recovery facility at established track record of zero downtime over five years the guests. Currently the Group has Sedona Suites in Serangoon North. of operations, Keppel Digihub is well-positioned to secure Hanoi and Ho Chi Minh City in Vietnam, Sedona Hotels more co-location contracts from enterprises looking to in Yangon and Mandalay in Myanmar, and 168 units for The data centre provides a fail-safe environment for the outsource their data centre requirements. To meet corporate residences in Singapore. housing of computing infrastructure for businesses and anticipated demand, it is planning to convert more office caters to the co-location needs of enterprises. The space into data centre facilities. The newly revamped website, www.sedonahotels.com.sg, disaster recovery facility comes complete with provides comprehensive information on each property workstations, office appliances, communication devices To further ensure that its infrastructure will continue to managed by the Group. Sedona will maintain a best rate and Internet access. meet the requirements of its customers, Keppel Digihub guarantee on its corporate website, and widen its online has upgraded its air-conditioning system. In addition distribution channel through partnerships with various In 2005, Keppel Digihub secured several co-location to being more energy-efficient, these new chillers popular consumer travel sites with mass market appeal. contracts, bringing the occupancy of its data centre to will provide the cooling capacity needed to meet 85%, with much of the remaining space reserved by future needs. The Group maintains its alliance with airlines, travel agencies and credit card companies to develop packages and promotions targeting at the leisure market segment. More efforts have been placed to strengthen its brand in the region. On-going public relations also played a pivotal role Market Review in creating and promoting top-of-mind awareness. Data Centres The Infocom Development Authority of Singapore Focusing largely on below-the-line advertising, print With the consolidation of players in the data centre continues to position Singapore to compete in high-level advertisements were featured in local newspapers as industry, competitive pressures to cut co-location rates business process outsourcing, including business well as in-flight, consumer travel and travel trade have abated. With the expansion in the financial sector, continuity/disaster recovery (BC/DR), leveraging on magazines. The Group participated in major trade shows, some financial institutions have begun taking up new Singapore’s status as a telecom hub and a relatively safe such as Asean Tourism Forum in Langkawi and and larger office spaces. Outsourcing of data centre haven free from natural disasters. With uncertainties International Tourism Bureau in Berlin to increase brand facilities is expected to be one of their main strategies brought about by threats of terrorism and the avian flu, preference and to raise awareness of its properties. to maintain business flexibility and focus. the outlook for the BC/DR sector is positive and augurs well for data centre operators. Strong Tourism Revival International tourism remained strong, with 808 million Top: Keppel Land’s hospitality arm, Sedona Hotel International is the distinctive choice of accommodation amongst the business and people visiting a foreign country in 2005, up 5.5% from leisure travellers. 2004. Asia Pacific was one of the best performing regions Bottom: Delivering a high standard of services and facilities, Sedona in tourism, despite threats such as natural disasters, Suites Hanoi has bagged the Best Luxury Serviced Apartment Award terrorism, and the bird flu. The influx of budget carriers for the fourth consecutive year in 2005. boosted the availability of low fares for short-haul travel, creating a new market of leisure and business travellers.

There are concerns however that the oil price hike may impact economic growth leading to a decline in disposable income which will affect travel expenditures.

120 121 Vietnam Myanmar Vietnam’s tourism market recovered quickly from the About 666,000 tourists visited Myanmar in 2005, slightly fallout following the Severe Acute Respiratory Syndrome higher than the 657,000 visitors recorded in 2004, despite and the bird flu outbreaks, welcoming more than 3 million the economic sanctions and political instability. With the foreign tourists in 2005, up 17% from 2004. Tourism increase in the number of international and domestic revenue grew 15.4% as a result of growing air traffic airlines and the introduction of e-Visa by the government, links and visa exemption agreements with a number of travelling to Myanmar has become more convenient. countries. As Vietnam further improves its infrastructure The unique culture and traditions of this country will and facilities, and implements its tourism and marketing continue to attract travellers. programs, tourism growth is expected to be sustainable in 2006. Sedona Hotel Yangon achieved an occupancy rate of 77% while Sedona Hotel Mandalay produced higher than Sedona Suites in Hanoi and Ho Chi Minh City both full occupancy, for the 175 rooms and 56 rooms in recorded strong occupancy rate at 95% and 93% operation at each property respectively. respectively. Both serviced apartments triumphed once again at the annual Guide Awards, conferred by Vietnam Singapore EconomicApartment, Times Hanoi, magazine. For the fourth straight year, During 2005, about 8.9 million tourist arrivals were Sedona Suites Hanoi was honored Best Luxury Serviced recorded in Singapore, with Indonesia, China, Malaysia, while Sedona Suites Ho Chi Minh Japan and India being the top five visitor-generating Ho Chi Minh City CityQuality was bestowedAward 2005 Best Business Serviced Apartment, markets. The tourism industry will be enhanced by the for the third year running. Meanwhile, development of the integrated resorts at Marina Bay and

Sedona Suites Hanoi was also awarded the Vietnam Sentosa. The number of business travellers is also by the Ministry of Science, expected to grow as Singapore positions itself as the

Technology and Environment of Vietnam. choice business and MICE destination in the region. Comprising three condominium projects, Park Avenue is developed in phases and will deliver more than 2,000 homes, when completed. Of the 168 units in Caribbean at Keppel Bay reserved for corporate residences, about 70% of the 120 units available were occupied at good rental rates. China

Shanghai 8 Park Avenue Country Name Location No. of Rooms Park Avenue 8 Park Avenue comprises 10 high-rise blocks with a total Park Avenue precinct covers a site area of 95,906 sm in of 946 apartments. It will have a sprawling landscape Indonesia Hotel Sedona Manado* Manado 247 Jingan District, with three condominium projects, One and a full-facility clubhouse located underground with Myanmar Sedona Hotel Yangon Yangon 366 Park Avenue, 8 Park Avenue and Park Avenue Central, natural skylight. Designed by well-known architects Sedona Hotel Mandalay Mandalay 247 with a total of more than 2,000 units. Palmer & Turner Architects with landscape designed by Singapore Caribbean Residences Singapore 168# Belt Collins International, the project is another hallmark Vietnam Sedona Suites Ho Chi Minh City Ho Chi Minh City 89 It is strategically located in the heart of downtown development by Keppel Land in Shanghai’s city centre. Sedona Suites Hanoi Hanoi 175 Shanghai and within walking distance to the Jingan Si Shanghai International Marketing Award for International-grade Residential Property *Expected to open in late 2006 Metro Line Station and the future M7 Metro Line. With 8 ResidentialPark Avenue Property received Award2005 Shanghai Top 10 # Includes two units used as offices Nanjing West Road commercial belt a short distance and 2005 away, Park Avenue enjoys close proximity to premier offices, shopping centres and major hotels. The upcoming by People’s Daily. About new developments such as Plaza 66 Phase II, Shangri- 98% of total 456 units in the first five blocks has been La Hotel Puxi, and Wheelock Plaza will also add appeal. sold as of March 2006. The next five blocks comprising 490 units will be launched progressively in 2006. One Park Avenue Construction of the project started in April 2003, and is One Park Avenue is Keppel Land’s premier residential expected to complete in 2008. project in Shanghai, comprising 1,118 apartment units with a full-facility clubhouse and a central garden. Fully Park Avenue Central sold in late 2003, the project was handed-over to the As the third and final part in the Park Avenue precinct, 122 buyers in 2005. Park Avenue Central is currently under planning. Keppel 123 Land may revise the master plan and product mix for Park Avenue Central to include some retail space given the development of a Metro Line Station nearby. Vietnam Myanmar Vietnam’s tourism market recovered quickly from the About 666,000 tourists visited Myanmar in 2005, slightly fallout following the Severe Acute Respiratory Syndrome higher than the 657,000 visitors recorded in 2004, despite and the bird flu outbreaks, welcoming more than 3 million the economic sanctions and political instability. With the foreign tourists in 2005, up 17% from 2004. Tourism increase in the number of international and domestic revenue grew 15.4% as a result of growing air traffic airlines and the introduction of e-Visa by the government, links and visa exemption agreements with a number of travelling to Myanmar has become more convenient. countries. As Vietnam further improves its infrastructure The unique culture and traditions of this country will and facilities, and implements its tourism and marketing continue to attract travellers. programs, tourism growth is expected to be sustainable in 2006. Sedona Hotel Yangon achieved an occupancy rate of 77% while Sedona Hotel Mandalay produced higher than Sedona Suites in Hanoi and Ho Chi Minh City both full occupancy, for the 175 rooms and 56 rooms in recorded strong occupancy rate at 95% and 93% operation at each property respectively. respectively. Both serviced apartments triumphed once again at the annual Guide Awards, conferred by Vietnam Singapore EconomicApartment, Times Hanoi, magazine. For the fourth straight year, During 2005, about 8.9 million tourist arrivals were Sedona Suites Hanoi was honored Best Luxury Serviced recorded in Singapore, with Indonesia, China, Malaysia, while Sedona Suites Ho Chi Minh Japan and India being the top five visitor-generating Ho Chi Minh City CityQuality was bestowedAward 2005 Best Business Serviced Apartment, markets. The tourism industry will be enhanced by the for the third year running. Meanwhile, development of the integrated resorts at Marina Bay and

Sedona Suites Hanoi was also awarded the Vietnam Sentosa. The number of business travellers is also by the Ministry of Science, expected to grow as Singapore positions itself as the

124

The Seasons Ocean Towers With a planned population of 300,000, Wang Jing Estate on a 71,984 sm site in Beijing’s Wang Jing Estate. The Seasons is a high-rise residential project developed Beijing enjoyed full occupancy since its completion in 2001. a net floor area of about 34,000 sm, Ocean Towers has access to the tunnel linking Huangpu and Pudong. With the prime commercial district of Huangpu, with easy building, is strategically located at Yan An East Road in Ocean Towers, Keppel Land’s 25-storey Grade A office in December 2005 and it is targeted for pre-sale 2006. Construction of Phase One the project commenced upcoming American International School. Soong Qing Ling Primary School campus, as well the project are the French-German International School and courts and function rooms. In close proximity to the comprising heated swimming pool, a gymnasium, tennis The development will have a full-facility clubhouse with a sizable expatriate population. Expressway. Xujing Town is an established villa zone the city centre via A5 Highway and Yan An Shanghai. It is a 30 minutes’ drive to People’s Square in 9 km west of the Hongqiao Airport in outskirts located in Xujing Town, Qingpu District and approximately for a villa development comprising 168 units. The site is Keppel Land bought a 15.4-ha site in December 2004 Villa Riviera in the market. Having successfully built several large-scale residential developments in China, Keppel Land has established a strong brandname

Special Project Award awards, such as progressively in 2006. The project has received many as of March 2006. The remaining portion will be launched about 97% of the 1,250 units launched has been sold The Seasons is currently in the development stage and and a 35,000 sm landscaped garden. pool, tennis courts, a childcare centre, retail establishment clubhouse facilities, an Olympic-length heated swimming and the middle-income market in Beijing. It will have homes delivered with full finishes targeting at expatriates The Seasons will have 1,859 units of quality residential Central Business District. Metro Line will shorten the travelling time to within walking distance, while the upcoming No. 10 Wang Jing West Station along the No. 13 Metro Line is via the Northern 4th Ring Road and Airport Expressway. development is well connected to various parts of the city Located at the western section of Wang Jing Estate, the to the estate and increase appeal development. environment for this area. These will bring more interest also improve the transportation and overall living in the pipeline and upcoming 24-ha forest park will LG, Wal-Mart and Carrefour. Meanwhile, nine new roads Sony Ericsson, Ikea, Siemens, Motorola, Nortel, National, (MNCs) are relocating operations to this estate, including An increasing number of large multinational companies Olympic Games. has been designated a residential precinct for the 2008 2005 Most Anticipated Project by An Jia magazine. as a quality developer

and

The Botanica Annual Star Chengdu Property The Waterfront Residential Project in Chengdu “Gold” Award at the junction of 3rd Ring Road and Cheng Long development is in the southeastern sector of Chengdu, Corporation (formerly known as HDB Corporation). The a 50:50 joint venture between Keppel Land and Surbana in Chengdu by CityOne Township Development (CityOne), The Botanica is a 42-ha residential township developed Development with Foreigners presented by Chengdu Bureau of Statistics, awards, such as the In 2005, The Waterfront continued to receive numerous will be launched in 2006. have been sold as of March 2006. The remaining units well as foreigners. Some 87% of the 1,023 units launched at Chengdu’s growing middle to upper-middle class as tennis courts, a mini-mart and childcare centre, targeting units with full facilities such as a heated swimming pool, The project comprises a total of 1,143 condominium Shangri-La Hotel are within the vicinity. public transportation, shopping centres, and the new wide frontage of the Funan River. Amenities like schools, the “Wang Jiang Lou” Garden, commands a 150-metre The project, which is near the Sichuan University and Chengdu, less than 10 minutes’ drive from the city centre. The Waterfront is located at the southeastern part of As Keppel Land’s maiden residential project in Chengdu, Chengdu 1st position by Western China City Daily. In Chengdu, The Botanica was bestowed the 2005 Top Ten Developments - Property Exposition 2005. Times, as well the

Most Investment-Worthy Most Popular Residential in the 2nd China City

by Chengdu Business

Reasonably Priced Project Spring City Golf and Lake Resort Daily. It also received the Developments-1st Position Association. It was also awarded the income class. villas and apartments targeting at the upper-middle phase to be developed will comprise about 350 units of have been substantially sold. Going forward, the next three phases of resort homes, comprising 236 units, class golf resort developed by Keppel Land. The first from Kunming City, is an internationally renowned top- shore of Lake Yang Zong Hai and only 30 minutes’ drive Spring City Golf and Lake Resort, located at the east Kunming units, will be launched progressively in 2006. 2006 and 2007. Phase Two, comprising about 1,500 sold and is slated to be handed over the buyers in of The Botanica, comprising 970 residential units, is fully by Construction Bank of China in May 2005. Phase One The Botanica was bestowed the recreational facilities, parks, a market and car park facilities. school, kindergartens, a main clubhouse and supporting buildings and supporting amenities including a primary of low- and high-rise apartment blocks, commercial middle-income group. The township will comprise a mix 8,000 residential units catering to Chengdu’s burgeoning phases according to market demand, will yield about The entire township, which is to be developed over five administrative centre of Chengdu. Road, just next to the proposed new eastern suburban High Quality Building Award

by Chengdu Real Estate

by Western China City

2005 Chengdu Most 2005 Top Ten 125

124

and

Most Investment-Worthy Most Popular Residential in the 2nd China City

by Chengdu Business

by Chengdu Real Estate

by Western China City

2005 Chengdu Most 2005 Top Ten 125 Spring City won eleven awards and accolades in 2005. Market Review ItHong was bestowedKong 2005 Best Golf Course in China and by US Golf Digest. Asian Golf Monthly Economy expect an average 9.8% GDP growth per annum to ranked Spring City as the Best Golf Course in China Resilient Economic Growth Despite 2008, and the improving infrastructure and living and the Best Golf Resort in Asia - First Runner-Up. It Anti-speculation Measures environment will continue to support the city’s economy was also awarded Leading Golf Resort in China by China’s economy remained resilient with GDP growth after the games. World Travel Awards (London). of 9.9% in 2005, slightly lower than the 10.1% growth in 2004, indicating the anti-speculation measures Chengdu to Benefit from “Go West” Policy As a growing provincial city, Kunming is seeing increasing housing demand from the rising middle-income class. have curbed the overheating real estate and Chengdu continued robust economic growth of 13.5% Keppel Land is currently exploring township development commodities sectors. in 2005, underpinned by rapid FDI growth and rising opportunities to tap on the promising housing market investments in infrastructure, technology development in Kunming. The economy was driven by fixed assets investments, and real estate. booming exports, and robust domestic consumption. With increased equity stake in Dragon Land, Keppel Land will make further inroads into China, capitalising on the country’s booming Exports soared 28.4% and consumption rose 12.9%. The living standard of the residents in Chengdu also Tianjin second-tier cities. Per capita disposable income of urban and rural improved in 2005. Chengdu registered a 14.2% growth Villa Project in Jinnan District In June 2005, Keppel Land acquired a 133,400 sm middle income groups. The Singapore-styled township households increased 9.6% and 6.2% respectively. in consumption while urban per capita disposable income residential site in Jinnan District, Tianjin for villa will comprise a mix of residential apartments, commercial increased 9.3%. As the Central Government’s “Go West” development. The site is 4.5 km from Meijiang Area, a and office buildings, and supporting amenities nestled China’s economy will continue to stabilise in 2006, policy expands further, Chengdu will attract more prestigious residential suburb in Tianjin. It is also about within sprawling landscape. underpinned by continued FDI, robust exports and rising investment and achieve more economic development 12 km from the city centre and 15 km from the airport. private consumption. in 2006. The first phase is expected to be launched in the first Keppel Land will develop a premier residential enclave half of 2007. Tianjin to See Sustainable Growth in 2006 comprising about 160 units of exclusive villas catering Continued Growth in Shanghai Tianjin is the “Gateway City” to Beijing, with close to the local upper class and expatriate communities. Shanghai maintained strong GDP growth of 11.1% in Each villa will have an average plot size of 450 sm and Dragon Land 2005, its 14th consecutive year of double-digit growth, proximity and strong economic connection to the capital gross floor area ranging from 300 sm to 450 sm. The Keppel Land increased its stake in Dragon Land from while achieving a soft landing from the stunning 13.6% city. In December 2005, Tianjin was ranked fifth in the Top 100 Cities by the National Bureau of Statistics, in development will have a private clubhouse, while 24.9% to 66.7% in January 2006. As a Singapore-listed growth a year ago, by reining in real estate investment. residents will also have access to other facilities like company focusing on China property development terms of sustainable economic growth, social indoor swimming pool, gymnasium, and tennis courts. market, Dragon Land will continue to capitalise on the development, infrastructure and environmental protection. Shanghai’s economic growth was mainly contributed by booming second-tier cities in China. In 2005, Tianjin registered a robust 14.5% GDP growth, infrastructure expenditure, such as Phase One of the Upcoming amenities in the vicinity include a 180-ha mainly from the rapid development of the Binhai New world-class golf course, shopping malls, a five-star hotel In 2005, Dragon Land acquired 2.6-ha of land in Pudong Railway, No. 4 Metro Line, and Dong Hai Bridge. District, which contributed about 45% of the city’s full and other supporting facilities. A mix of local and Changzhou, to add to its existing residential landbank. City infrastructure investment surged 31.7% and year GDP. The economic drivers in Binhai New District It also disposed of Qingdao Huashan International Country international schools, including the American International accounted for one fourth of the total fixed asset are technology, petrochemicals, automobile and logistic School, the upcoming Japanese School, and the Club Co. Ltd. The golf course developments in Tianjin investments. Consumption rose 12.7%, and disposable industries. FDI in Tianjin rose 34.6% in 2005, and exports proposed English Language Primary School are within and Jiangyin are expected to be operational by 2006. income of urban and rural households increased 11.8% increased 31.4%, with the highest trade surplus of close proximity. Meanwhile, the first phase of the villa development around the golf course in Tianjin will commence construction and 10.7% respectively. The city is expected to maintain US$1.44 billion since 1995. Per capita disposable income Project construction is expected to commence in the and is slated for launch in the first half of 2006. stable economic growth, with continued infrastructure reached RMB12,639, up 10.2% from 2004. first half of 2006 and about 40 units are expected to be expenditure and strong domestic consumption ahead of launched in the second half of 2006. the World Expo 2010. The central government plans to develop a Greater Beijing Fuzhou Economic Rim, comprising Beijing, Tianjin and six other Great Town Harbour cities in the Bohai area, to boost the regional economy. Olympics to Boost Beijing Economy Wuxi Keppel Land holds an effective stake of 15% in Great Tianjin is set to achieve robust economic performance Beijing registered an impressive 11.1% GDP growth in Wuxi Township Town Harbour, through joint venture company Famous in the coming years, supported by the development of 2005. FDI rose 14.4% to US$3.5 billion. Exports surged Following the success of The Botanica in Chengdu, CityOne Town Real Estate (Fujian) Co. Ltd. This is a residential the Greater Beijing Economic Rim and further expansion 50%, fuelled by hi-tech, electronics and mechanical acquired in October 2005 its second China township site development with ancillary commercial elements in of the Bin Hai New District. in Wuxi, Jiangsu province. The 35-ha site is located in the Fuzhou, the capital city of Fujian province. products. Consumption increased 10.5%, and per capita southern part of Wuxi and is within the Taihu New City, disposable income of urban and rural residents rose Foreign Trade to Expand Further in Wuxi which is a development area envisioned by the municipal Great Town Harbour is a mixed development including 12.9% and 9.6% respectively. Wuxi, also known as “The Pearl of Taihu” and “Little government as the secondary city centre and will house apartments, villas and townhouses targeting at middle Shanghai”, is a tourism and industrial centre in Jiangsu the new municipal administrative office, commercial and to high-income group, shop lots, and a hotel. Phase One, The economic growth in the capital city will continue to province. It has great tourism resources such as the residential developments, a university town and a High- comprising 681 units of villas, townhouses and shop Technology IT Park. Taihu New City has now become a lots, was launched in the third quarter of 2005. It received be fuelled by the hosting of the 2008 Olympic Games, Taihu Lake and the Yangtze River. The city also possesses desirable residential address for many Wuxi residents, positive market response and won many awards, such with an estimated direct investment of US$16.7 billion a wide manufacturing base in precision machinery, due to the development plans in this area. as the Outstanding Residential Planning Award 2005 and 1.8 million jobs expected to be created. Beijing can electronics, textiles and garments, and other industries. 126 conferred by the China Real Estate Chamber of 127 for 2004 The entire township will comprise approximately 5,000 Commence and the China Renowned Development residential units targeting at Wuxi’s middle to upper- by the China Architectural Culture Centre. Spring City won eleven awards and accolades in 2005. Market Review ItHong was bestowedKong 2005 Best Golf Course in China and by US Golf Digest. Asian Golf Monthly Economy expect an average 9.8% GDP growth per annum to ranked Spring City as the Best Golf Course in China Resilient Economic Growth Despite 2008, and the improving infrastructure and living and the Best Golf Resort in Asia - First Runner-Up. It Anti-speculation Measures environment will continue to support the city’s economy was also awarded Leading Golf Resort in China by China’s economy remained resilient with GDP growth after the games. World Travel Awards (London). of 9.9% in 2005, slightly lower than the 10.1% growth in 2004, indicating the anti-speculation measures Chengdu to Benefit from “Go West” Policy As a growing provincial city, Kunming is seeing increasing housing demand from the rising middle-income class. have curbed the overheating real estate and Chengdu continued robust economic growth of 13.5% Keppel Land is currently exploring township development commodities sectors. in 2005, underpinned by rapid FDI growth and rising opportunities to tap on the promising housing market investments in infrastructure, technology development in Kunming. The economy was driven by fixed assets investments, and real estate. booming exports, and robust domestic consumption. With increased equity stake in Dragon Land, Keppel Land will make further inroads into China, capitalising on the country’s booming Exports soared 28.4% and consumption rose 12.9%. The living standard of the residents in Chengdu also Tianjin second-tier cities. Per capita disposable income of urban and rural improved in 2005. Chengdu registered a 14.2% growth Villa Project in Jinnan District In June 2005, Keppel Land acquired a 133,400 sm middle income groups. The Singapore-styled township households increased 9.6% and 6.2% respectively. in consumption while urban per capita disposable income residential site in Jinnan District, Tianjin for villa will comprise a mix of residential apartments, commercial increased 9.3%. As the Central Government’s “Go West” development. The site is 4.5 km from Meijiang Area, a and office buildings, and supporting amenities nestled China’s economy will continue to stabilise in 2006, policy expands further, Chengdu will attract more prestigious residential suburb in Tianjin. It is also about within sprawling landscape. underpinned by continued FDI, robust exports and rising investment and achieve more economic development 12 km from the city centre and 15 km from the airport. private consumption. in 2006. The first phase is expected to be launched in the first Keppel Land will develop a premier residential enclave half of 2007. Tianjin to See Sustainable Growth in 2006 comprising about 160 units of exclusive villas catering Continued Growth in Shanghai Tianjin is the “Gateway City” to Beijing, with close to the local upper class and expatriate communities. Shanghai maintained strong GDP growth of 11.1% in Each villa will have an average plot size of 450 sm and Dragon Land 2005, its 14th consecutive year of double-digit growth, proximity and strong economic connection to the capital gross floor area ranging from 300 sm to 450 sm. The Keppel Land increased its stake in Dragon Land from while achieving a soft landing from the stunning 13.6% city. In December 2005, Tianjin was ranked fifth in the Top 100 Cities by the National Bureau of Statistics, in development will have a private clubhouse, while 24.9% to 66.7% in January 2006. As a Singapore-listed growth a year ago, by reining in real estate investment. residents will also have access to other facilities like company focusing on China property development terms of sustainable economic growth, social indoor swimming pool, gymnasium, and tennis courts. market, Dragon Land will continue to capitalise on the development, infrastructure and environmental protection. Shanghai’s economic growth was mainly contributed by booming second-tier cities in China. In 2005, Tianjin registered a robust 14.5% GDP growth, infrastructure expenditure, such as Phase One of the Upcoming amenities in the vicinity include a 180-ha mainly from the rapid development of the Binhai New world-class golf course, shopping malls, a five-star hotel In 2005, Dragon Land acquired 2.6-ha of land in Pudong Railway, No. 4 Metro Line, and Dong Hai Bridge. District, which contributed about 45% of the city’s full and other supporting facilities. A mix of local and Changzhou, to add to its existing residential landbank. City infrastructure investment surged 31.7% and year GDP. The economic drivers in Binhai New District It also disposed of Qingdao Huashan International Country international schools, including the American International accounted for one fourth of the total fixed asset are technology, petrochemicals, automobile and logistic School, the upcoming Japanese School, and the Club Co. Ltd. The golf course developments in Tianjin investments. Consumption rose 12.7%, and disposable industries. FDI in Tianjin rose 34.6% in 2005, and exports proposed English Language Primary School are within and Jiangyin are expected to be operational by 2006. income of urban and rural households increased 11.8% increased 31.4%, with the highest trade surplus of close proximity. Meanwhile, the first phase of the villa development around the golf course in Tianjin will commence construction and 10.7% respectively. The city is expected to maintain US$1.44 billion since 1995. Per capita disposable income Project construction is expected to commence in the and is slated for launch in the first half of 2006. stable economic growth, with continued infrastructure reached RMB12,639, up 10.2% from 2004. first half of 2006 and about 40 units are expected to be expenditure and strong domestic consumption ahead of launched in the second half of 2006. the World Expo 2010. The central government plans to develop a Greater Beijing Fuzhou Economic Rim, comprising Beijing, Tianjin and six other Great Town Harbour cities in the Bohai area, to boost the regional economy. Olympics to Boost Beijing Economy Wuxi Keppel Land holds an effective stake of 15% in Great Tianjin is set to achieve robust economic performance Beijing registered an impressive 11.1% GDP growth in Wuxi Township Town Harbour, through joint venture company Famous in the coming years, supported by the development of 2005. FDI rose 14.4% to US$3.5 billion. Exports surged Following the success of The Botanica in Chengdu, CityOne Town Real Estate (Fujian) Co. Ltd. This is a residential the Greater Beijing Economic Rim and further expansion 50%, fuelled by hi-tech, electronics and mechanical acquired in October 2005 its second China township site development with ancillary commercial elements in of the Bin Hai New District. in Wuxi, Jiangsu province. The 35-ha site is located in the Fuzhou, the capital city of Fujian province. products. Consumption increased 10.5%, and per capita southern part of Wuxi and is within the Taihu New City, disposable income of urban and rural residents rose Foreign Trade to Expand Further in Wuxi which is a development area envisioned by the municipal Great Town Harbour is a mixed development including 12.9% and 9.6% respectively. Wuxi, also known as “The Pearl of Taihu” and “Little government as the secondary city centre and will house apartments, villas and townhouses targeting at middle Shanghai”, is a tourism and industrial centre in Jiangsu the new municipal administrative office, commercial and to high-income group, shop lots, and a hotel. Phase One, The economic growth in the capital city will continue to province. It has great tourism resources such as the residential developments, a university town and a High- comprising 681 units of villas, townhouses and shop Technology IT Park. Taihu New City has now become a lots, was launched in the third quarter of 2005. It received be fuelled by the hosting of the 2008 Olympic Games, Taihu Lake and the Yangtze River. The city also possesses desirable residential address for many Wuxi residents, positive market response and won many awards, such with an estimated direct investment of US$16.7 billion a wide manufacturing base in precision machinery, due to the development plans in this area. as the Outstanding Residential Planning Award 2005 and 1.8 million jobs expected to be created. Beijing can electronics, textiles and garments, and other industries. 126 conferred by the China Real Estate Chamber of 127 for 2004 The entire township will comprise approximately 5,000 Commence and the China Renowned Development residential units targeting at Wuxi’s middle to upper- by the China Architectural Culture Centre. Market Review (Cont’d) Wuxi has been rated by US Forbes magazine in August signs of gradual recovery while sales volume picked up 2005 as one of the top 10 Chinese cities for doing in the city centre during the second half of 2005. business, due to its balanced development of private and foreign investments. Shanghai’s is residential market is expected to be stable in 2006, supported by sustainable economic growth, In 2005, Wuxi registered a sterling GDP growth of 15.1%, rising household income, and strong end-user and its per capital GDP rose 13.8%. Exports surged 41% housing demand. while FDI rose 20%. Disposable income of urban residents reached RMB16,005 in 2005, up 17.8% from 2004. Stable Residential Market in Beijing Wuxi’s economy is expected to continue its fast growth, In 2005, Beijing’s residential market remained stable when foreign trade and investments expand further. despite the cooling down measures. The municipal government improved the land auction and registration system to curb overheating investment. As a result, Property Market Beijing’s real estate sector grew steadily in 2005, which Sustainable Growth After Cooling-down Measures contributed about 7.2% of the municipality’s full year The anti-speculation measures, including levy of taxes GDP. According to the Beijing Bureau of Statistics, housing on property sales and capital gains, restrictions in resale sales increased 12.3% to 25.7 million sm, while the of uncompleted properties, as well as controls in credit National Development and Reform Commission reported and land supply, have effectively curbed speculative that primary housing prices registered a moderate 7.4% investment in the real estate industry. According to the increase. National Bureau of Statistics, housing prices stabilised in 2005, with a moderate increase of 7.6% in 70 large The municipal government has announced plans to invest and medium-size cities. RMB7.7 billion to develop residential communities in the Expected to continue being Asia’s best performing economy in the years to come, city outskirts, which will boost housing demand. Beijing Keppel Land will target promising cities in China and expand throughout the country according to market demand. China’s residential market is expected to achieve moderate residential market is expected to be resilient in the coming growth over the next few years, underpinned by sustainable years, underpinned by healthy economic growth, increase economic fundamentals, increasing household income, in the number of residents, and the improving Market Review (Cont’d) growing homeownership aspirations, regulated market infrastructure facilities and living environment brought Tianjin is experiencing rapid infrastructure development, Steady Growth Ahead for Wuxi Market system, and improving market sentiments. about by the 2008 Olympics. including the high-speed railways and highways between The residential market in Wuxi remained stable in 2005. Beijing and Tianjin, the expansion of the international According to the Wuxi Municipal Housing Bureau, primary Strong Housing Market in Chengdu airport, and the upcoming No. 1 Metro Line. The fast housing prices in Wuxi increased by 10.4% in 2005. Office Chengdu’s residential market remained robust, despite growing city infrastructure will enhance its status as a Rising Rentals in Shanghai Office Market the anti-speculation measures. According to the Chengdu cosmopolitan city. Tianjin’s residential market is expected As one of the fastest-growing second-tier cities, Wuxi Shanghai Grade A office market in 2005 was characterised Bureau of Statistics, take-up of new residential properties to remain active in 2006, fuelled by sound economic will see a population inflow into the city and an increase by strong absorption and rapid rental growth. Grade A increased 26.4% to 7.9 million sm, while the municipal fundamentals, infrastructure development, a growing of job opportunities. Rising household income will spur office take-up remained strong. According to DTZ government reported that the average housing price middle class group, and increasing demand for the aspirations for home-ownership. Meanwhile, the city Debenham Tie Leung, the average asking rental for Grade increased 19%. quality housing. government will develop more secondary city centres A office space rose 15.3% to RMB216 psm per month, to alleviate overcrowding in the current city centre. supported by rising demand of high standard office space Chengdu’s residential market will continue to expand Sustained by the robust housing demand, the residential in prime commercial locations. steadily, supported by its strong economic fundamentals property market in Wuxi will continue to expand at a and rapid infrastructure development. As the economic steady pace in 2006. The office building boom in Shanghai will continue in hub of western China, Chengdu will create more working 2006, underpinned by rising demand from MNCs. opportunities and attract more residents, which increase housing demand. The construction of Phase One of the China 2004 2005E 2006F 2007F No. 1 Metro Line, which is scheduled for completion and Real GDP growth (%) 10.1 9.9 8.6 8.2 Residential pilot trial in 2010, coupled with six other subway lines Commercial banks' prime rate (%) 5.6 5.6 5.9 5.8 Stabilised Shanghai Market in the Coming Year in the pipeline, will boost the housing market. In 2005, more measures to cut speculation were Inward FDI (US$Bn) 54.9 53.0 51.0 52.3 introduced to the market by the municipal government, Rapid Expansion in Tianjin Residential Market Exchange rate (RMB/USD, av) 8.3 8.2 7.9 7.6 such as repayment of the mortgage before resale of Tianjin’s residential market continued its rapid growth in Personal disposable income (US$Bn) 886 992 1,122 1,275 properties held under a year. Shanghai property market 2005, with a year-on-year increase of 34.1% in residential CPI change (av, %) 3.9 1.8 1.2 2.2 has stabilised, with a moderate 6.1% increase in real investment. Housing price rose 28% from 2004, supported 128 estate investment. Primary condominium prices showed by an increasing demand for good quality housing. Source : Economist Intelligence Unit 129 Market Review (Cont’d) Wuxi has been rated by US Forbes magazine in August signs of gradual recovery while sales volume picked up 2005 as one of the top 10 Chinese cities for doing in the city centre during the second half of 2005. business, due to its balanced development of private and foreign investments. Shanghai’s is residential market is expected to be stable in 2006, supported by sustainable economic growth, In 2005, Wuxi registered a sterling GDP growth of 15.1%, rising household income, and strong end-user and its per capital GDP rose 13.8%. Exports surged 41% housing demand. while FDI rose 20%. Disposable income of urban residents reached RMB16,005 in 2005, up 17.8% from 2004. Stable Residential Market in Beijing Wuxi’s economy is expected to continue its fast growth, In 2005, Beijing’s residential market remained stable when foreign trade and investments expand further. despite the cooling down measures. The municipal government improved the land auction and registration system to curb overheating investment. As a result, Property Market Beijing’s real estate sector grew steadily in 2005, which Sustainable Growth After Cooling-down Measures contributed about 7.2% of the municipality’s full year The anti-speculation measures, including levy of taxes GDP. According to the Beijing Bureau of Statistics, housing on property sales and capital gains, restrictions in resale sales increased 12.3% to 25.7 million sm, while the of uncompleted properties, as well as controls in credit National Development and Reform Commission reported and land supply, have effectively curbed speculative that primary housing prices registered a moderate 7.4% investment in the real estate industry. According to the increase. National Bureau of Statistics, housing prices stabilised in 2005, with a moderate increase of 7.6% in 70 large The municipal government has announced plans to invest and medium-size cities. RMB7.7 billion to develop residential communities in the Expected to continue being Asia’s best performing economy in the years to come, city outskirts, which will boost housing demand. Beijing Keppel Land will target promising cities in China and expand throughout the country according to market demand. China’s residential market is expected to achieve moderate residential market is expected to be resilient in the coming growth over the next few years, underpinned by sustainable years, underpinned by healthy economic growth, increase economic fundamentals, increasing household income, in the number of residents, and the improving Market Review (Cont’d) growing homeownership aspirations, regulated market infrastructure facilities and living environment brought Tianjin is experiencing rapid infrastructure development, Steady Growth Ahead for Wuxi Market system, and improving market sentiments. about by the 2008 Olympics. including the high-speed railways and highways between The residential market in Wuxi remained stable in 2005. Beijing and Tianjin, the expansion of the international According to the Wuxi Municipal Housing Bureau, primary Strong Housing Market in Chengdu airport, and the upcoming No. 1 Metro Line. The fast housing prices in Wuxi increased by 10.4% in 2005. Office Chengdu’s residential market remained robust, despite growing city infrastructure will enhance its status as a Rising Rentals in Shanghai Office Market the anti-speculation measures. According to the Chengdu cosmopolitan city. Tianjin’s residential market is expected As one of the fastest-growing second-tier cities, Wuxi Shanghai Grade A office market in 2005 was characterised Bureau of Statistics, take-up of new residential properties to remain active in 2006, fuelled by sound economic will see a population inflow into the city and an increase by strong absorption and rapid rental growth. Grade A increased 26.4% to 7.9 million sm, while the municipal fundamentals, infrastructure development, a growing of job opportunities. Rising household income will spur office take-up remained strong. According to DTZ government reported that the average housing price middle class group, and increasing demand for the aspirations for home-ownership. Meanwhile, the city Debenham Tie Leung, the average asking rental for Grade increased 19%. quality housing. government will develop more secondary city centres A office space rose 15.3% to RMB216 psm per month, to alleviate overcrowding in the current city centre. supported by rising demand of high standard office space Chengdu’s residential market will continue to expand Sustained by the robust housing demand, the residential in prime commercial locations. steadily, supported by its strong economic fundamentals property market in Wuxi will continue to expand at a and rapid infrastructure development. As the economic steady pace in 2006. The office building boom in Shanghai will continue in hub of western China, Chengdu will create more working 2006, underpinned by rising demand from MNCs. opportunities and attract more residents, which increase housing demand. The construction of Phase One of the China 2004 2005E 2006F 2007F No. 1 Metro Line, which is scheduled for completion and Real GDP growth (%) 10.1 9.9 8.6 8.2 Residential pilot trial in 2010, coupled with six other subway lines Commercial banks' prime rate (%) 5.6 5.6 5.9 5.8 Stabilised Shanghai Market in the Coming Year in the pipeline, will boost the housing market. In 2005, more measures to cut speculation were Inward FDI (US$Bn) 54.9 53.0 51.0 52.3 introduced to the market by the municipal government, Rapid Expansion in Tianjin Residential Market Exchange rate (RMB/USD, av) 8.3 8.2 7.9 7.6 such as repayment of the mortgage before resale of Tianjin’s residential market continued its rapid growth in Personal disposable income (US$Bn) 886 992 1,122 1,275 properties held under a year. Shanghai property market 2005, with a year-on-year increase of 34.1% in residential CPI change (av, %) 3.9 1.8 1.2 2.2 has stabilised, with a moderate 6.1% increase in real investment. Housing price rose 28% from 2004, supported 128 estate investment. Primary condominium prices showed by an increasing demand for good quality housing. Source : Economist Intelligence Unit 129 Hong Kong

Kowloon The Waterfront The Waterfront is strategically located above the Kowloon MTR Station along the MTR Airport line, comprising 1,288 residential units spread over six towers. As at end-2005, 96% has been sold, with 14 unsold units on short-term leases.

Keppel Land and Keppel Corporation have 7% and 3% stake respectively in this development. Other members in the Wing Tai-led consortium include Temasek Holdings, Singapore Land, Lai Sun Development, Worldwide Investment and USI Holdings.

Combining architectural excellence, prime location and breathtaking views of the Central Harbour, The Waterfront is almost fully sold.

Market Review Keppel Land’s maiden condominium project in India, the 1,573-unit Elita Promenade, has met with strong demand and will be launched progressively in 2006. Economy Residential Economic Outlook Remains Positive Interest Rates Hikes Reined in Demand Benefiting from the Closer Economic Partnership Due to the rapid interest rate hikes, the mortgage rate Arrangement and Individual Travel Scheme, Hong Kong’s jumped from 2.5-3.0% at end-2004 to 5.25-5.50% at economy grew by a stronger-than-expected 7.3% in end-2005. Consumer sentiment turned more cautious India 2005, driven mainly by strong growth in both exports towards the close of the year. Though total residential and private consumption. transactions reached 103,362 units in 2005, up 2.71% Bangalore at the middle-income homebuyers, Phase One was from a year ago, private primary residential transactions Elita Promenade launched for sale in July 2005. As of March 2006, 92% Despite the soaring oil prices and slower growth ended at a 10-year low of 14,100 units, partly because Keppel Puravankara Development Pvt Ltd (KPDPL), a of the 410 units launched has been sold. The remaining in exports, the outlook of Hong Kong’s economy of the cautious launches of new units by developers. joint venture between Keppel Land and India’s units will be launched progressively in 2006. remains positive, supported by continued expansion Based on property agency Centaline’s secondary price Puravankara Projects Ltd, is developing Elita Promenade, of the tourism and logistics sectors and increasing index, property prices increased 5.5% in 2005 compared a high-rise condominium development in JP Nagar, an Residential Development off Kanakapura Road infrastructure investment. with the 34% jump in 2004. established residential hub in the south of Bangalore. In July 2005, KPDPL acquired another 7.9-ha site off Kanakapura Road in Bangalore. Located approximately The 9.7-ha site is located about 30 minutes’ drive from 7 km from Elita Promenade, the development will Hong Kong 2004 2005E 2006F 2007F the city centre, and in close proximity to the Electronic comprise 1,146 units of 2- and 3- bedroom apartments City, a 130-ha IT and electronics industrial park; and the with unit sizes ranging from 1,300 sf to 1,750 sf. Real GDP growth (%) 8.2 7.3 4.2 4.3 Outer Ring Road where most IT campuses such as Commercial banks’ prime rate (av, %) 5.0 6.2 7.0 6.8 Infosys, Wipro, Intel and IBM are located. It also has a The site is close to international schools including Jain Inward FDI (US$Bn) 34.0 41.3 37.3 27.0 frontage of about 250 metres to the Puttenahali Lake. International School and Deccan International School, as Exchange rate (HKD/USD, av) 7.8 7.8 7.8 7.8 Keppel Land has a 51% stake in the project. well as retail establishments like Metro, a Germany- Personal disposable income (US$Bn) 129.3 136.1 141.7 149.3 based hypermarket, which is located just 3 km away. CPI change (av, %) -0.4 1.1 1.4 1.8 To be developed in two phases, Elita Promenade comprises 1,573 units of 2- and 3- bedroom apartments Design development for the project is in progress and Source : Economist Intelligence Unit with unit sizes ranging from 1,365 sf to 1,790 sf. Targeted the sales launch is expected in late 2006.

130 131 Hong Kong

Combining architectural excellence, prime location and breathtaking views of the Central Harbour, The Waterfront is almost fully sold.

130 131 Market Review Economy emerged as the most preferred destinations for real Indonesia India, A Compelling Long-term Growth Story estate investment in India in 2005. Capital values of With real GDP growth of about 8% in the fiscal year properties as well as land prices have risen significantly Jakarta ended March 2006, India is seeking to accelerate during the year, fuelled by strong demand from both end- Wisma BCA Located right in the heart of Jakarta’s CBD and within economic reforms to attract more foreign investment users and long-term investors. easy access to five-star hotels and embassies, Wisma and keep economic growth at 7% or more per annum BCA continued to be fully tenanted in 2005. Rental rates for the next 10 years. So far, progressive measures such Dubbed as the IT capital of India, Bangalore is home at Wisma BCA remained stable during the year. as Open Skies, the Patents Act, and the opening of the to over six million people and more than 250 high-tech real estate and retail sectors have fuelled interest from companies. More multinational companies are increasingly Pasadenia Garden investors searching for opportunities to be a part of attracted to the city with its steady pool of software Located within the upper-middle class Pulomas residential estate, Pasadenia Garden is a low-density condominium India’s growth. India has emerged as the second most intelligence, a huge English-educated skilled workforce development spreading over an 8-ha site. Of the initial and a sizable consumer base. This, together with rapid favoured destination for foreign direct investment in Asia, phase of 197 units, 105 units or 71% of the 147 units after China. urbanisation, growing affluence and expansion of the available for sale have been sold as of end February middle class, the availability of housing finance and 2006. Some 20 out of the remaining 42 unsold units are The emerging real estate sector, a key target for foreign attractive tax advantages, will bolster demand for quality currently being leased out. Of the 50 apartments for investment, will benefit from continued influx of foreign housing in Bangalore. lease, 29 units or 58% have been rented out. funds. To date, about 30 foreign funds have applied to Cakung Township Project start operations in India since the Securities and Exchange According to the Confederation of Real Estate Developers’ The Cakung Township development is located within a Board of India allowed venture capital funds to invest in Association of India, an organisation representing more 5-km radius of the successful prime and matured Indian real estate in April 2004. Interest was further than 3,500 developer members, the real estate sector residential townships of Kelapa Gading, Metropolitan fuelled after the government permitted 100% foreign is currently growing at 30% per annum and is projected Menteng and Harapan Indah. The 270-ha site is one of direct investment in real estate projects in the country to increase to US$50 billion by 2008. The residential the few large plots of land available for township in February 2005 and reduced the minimum required market currently accounts for about 80% of the entire development in Jakarta City and accessibility to the CBD and other parts of the city will be enhanced when part land area for FDI from 100 acres (40 ha) to 25 acres real estate market in India. With the gap between supply Located in the prestigious banking and financial centre of Jakarta, of the Outer Ring Road is opened in the first half of 2006. Indonesia, Wisma BCA continues to enjoy full tenancy. (10 ha). and demand at about 41 billion sf, demand for housing is expected to be strong in the next few years. In Targeting the middle to upper-middle income families In the year 2004-2005, foreign investments into the real Bangalore, Jones Lang LaSalle estimates a 25% shortage who are looking for a quality home within the Jakarta estate sector is estimated at US$1.2 billion. The figure in supply in meeting the demand for apartments. City, the township will comprise approximately 7,000 is expected to increase by 40-45% in 2005-2006. landed homes and apartments with retail, entertainment, This phenomenal growth has led to interest from both offices, shophouses, international schools and other public facilities. domestic as well as foreign funds to invest in the Bintan emerging real estate sector of India. It is expected that Bangalore To be developed over 10 to 15 years, the township is Ria Bintan Strong Economic Growth and about US$3 billion will be invested in the real estate expected to launch its initial phase of 300 units in the The integrated 447-ha premier resort, comprising the Rapid Urbanisation Fuels Residential Demand sector over the next 15 months. second half of 2006. world-renown Club Med holiday village, hotels, resort Bangalore, together with Mumbai and New Delhi, have homes and a golf course is being developed in phases.

Yogyakarta Featuring a 36-hole championship golf course designed Melia Purosani Hotel by Gary Player, the first 27 holes comprising the 18-hole India 2004 2005E 2006F 2007F Melia Purosani Hotel is a 296-room hotel located in the Ocean Course and the first nine holes of the 18-hole Forest Course have been completed and opened for play Real GDP growth (%) 7.1 8.0 7.4 6.5 city centre of Yogyakarta. With increasing domestic travellers participating in meetings and conventions, in October 1998 and December 2000 respectively. Lending rate (av, %) 10.9 11.3 11.5 11.5 the hotel continued to achieve steady performance during Inward FDI (US$Bn) 5.5 6.7 8.3 10.0 2005. Average occupancy for the year was 62.2%, Club Med Ria Bintan, the beachfront resort with 302 Exchange rate (INR/USD, av) 45.3 44.1 43.0 42.5 marginally down from 62.8% for 2004. However, the rooms, continues to attract Singapore and international Personal disposable income (US$Bn) 463.6 529.8 607.3 675.3 average room rate for the year was US$33.22, a significant tourists. However, the second Bali bombing and the bird CPI change (av, %) 3.8 4.2 4.6 3.5 improvement from the US$31.82 recorded for 2004. The flu outbreak in Indonesia have somewhat affected foreign second bomb blast in Bali in October 2005 has not tourist flow to the resort. Its average occupancy rate of Source : Economist Intelligence Unit affected the hotel’s operations. This reflects improved 45.3% for 2005 was lower than the 46.6% achieved in confidence among travellers given the Indonesian 2004. Despite the lower occupancy, average room rate government’s commitment to fight terrorism to ensure was higher in 2005 at US$77.70, up from US$71.50 a more stable political and social environment. achieved in 2004. 132 133 Market Review Economy emerged as the most preferred destinations for real Indonesia India, A Compelling Long-term Growth Story estate investment in India in 2005. Capital values of With real GDP growth of about 8% in the fiscal year properties as well as land prices have risen significantly Jakarta ended March 2006, India is seeking to accelerate during the year, fuelled by strong demand from both end- Wisma BCA Located right in the heart of Jakarta’s CBD and within economic reforms to attract more foreign investment users and long-term investors. easy access to five-star hotels and embassies, Wisma and keep economic growth at 7% or more per annum BCA continued to be fully tenanted in 2005. Rental rates for the next 10 years. So far, progressive measures such Dubbed as the IT capital of India, Bangalore is home at Wisma BCA remained stable during the year. as Open Skies, the Patents Act, and the opening of the to over six million people and more than 250 high-tech real estate and retail sectors have fuelled interest from companies. More multinational companies are increasingly Pasadenia Garden investors searching for opportunities to be a part of attracted to the city with its steady pool of software Located within the upper-middle class Pulomas residential estate, Pasadenia Garden is a low-density condominium India’s growth. India has emerged as the second most intelligence, a huge English-educated skilled workforce development spreading over an 8-ha site. Of the initial and a sizable consumer base. This, together with rapid favoured destination for foreign direct investment in Asia, phase of 197 units, 105 units or 71% of the 147 units after China. urbanisation, growing affluence and expansion of the available for sale have been sold as of end February middle class, the availability of housing finance and 2006. Some 20 out of the remaining 42 unsold units are The emerging real estate sector, a key target for foreign attractive tax advantages, will bolster demand for quality currently being leased out. Of the 50 apartments for investment, will benefit from continued influx of foreign housing in Bangalore. lease, 29 units or 58% have been rented out. funds. To date, about 30 foreign funds have applied to Cakung Township Project start operations in India since the Securities and Exchange According to the Confederation of Real Estate Developers’ The Cakung Township development is located within a Board of India allowed venture capital funds to invest in Association of India, an organisation representing more 5-km radius of the successful prime and matured Indian real estate in April 2004. Interest was further than 3,500 developer members, the real estate sector residential townships of Kelapa Gading, Metropolitan fuelled after the government permitted 100% foreign is currently growing at 30% per annum and is projected Menteng and Harapan Indah. The 270-ha site is one of direct investment in real estate projects in the country to increase to US$50 billion by 2008. The residential the few large plots of land available for township in February 2005 and reduced the minimum required market currently accounts for about 80% of the entire development in Jakarta City and accessibility to the CBD and other parts of the city will be enhanced when part land area for FDI from 100 acres (40 ha) to 25 acres real estate market in India. With the gap between supply Located in the prestigious banking and financial centre of Jakarta, of the Outer Ring Road is opened in the first half of 2006. Indonesia, Wisma BCA continues to enjoy full tenancy. (10 ha). and demand at about 41 billion sf, demand for housing is expected to be strong in the next few years. In Targeting the middle to upper-middle income families In the year 2004-2005, foreign investments into the real Bangalore, Jones Lang LaSalle estimates a 25% shortage who are looking for a quality home within the Jakarta estate sector is estimated at US$1.2 billion. The figure in supply in meeting the demand for apartments. City, the township will comprise approximately 7,000 is expected to increase by 40-45% in 2005-2006. landed homes and apartments with retail, entertainment, This phenomenal growth has led to interest from both offices, shophouses, international schools and other public facilities. domestic as well as foreign funds to invest in the Bintan emerging real estate sector of India. It is expected that Bangalore To be developed over 10 to 15 years, the township is Ria Bintan Strong Economic Growth and about US$3 billion will be invested in the real estate expected to launch its initial phase of 300 units in the The integrated 447-ha premier resort, comprising the Rapid Urbanisation Fuels Residential Demand sector over the next 15 months. second half of 2006. world-renown Club Med holiday village, hotels, resort Bangalore, together with Mumbai and New Delhi, have homes and a golf course is being developed in phases.

Structural works for the building has been completed. Expected to be completed by mid-2006, BG Junction is set to revitalise Jakarta For 2006, the general outlook for the Jakarta condominium the retail scene in Surabaya, Indonesia, by offering a brand new Architectural and interior finishes are expected to be shopping experience. Office Demand to Remain Firm market is expected to be subdued in the short term due completed by mid-2006. Meanwhile, the hypermarket in Short to Medium Term to rising interest rates. Nevertheless, condominium prices space has been handed over to Carrefour, the main suites as well as recreational facilities like a private Total cumulative office supply in Jakarta was 5.15 million are expected to remain firm at Rp14.3 million psm within anchor tenant, as scheduled in December 2005 for swimming lagoon, swimming pool, tennis court, fitness sm as at end-December 2005. Some 682,000 sm of the CBD and Rp9.5 million psm for prime residential fitting out. club and other sea sports facilities. It will also offer easy future office supply within the CBD area is scheduled areas outside the CBD. access to the nearby diving sites. for completion over 2006 and 2007. Future office supply Marketing of BG Junction is currently in progress. Apart outside the CBD is projected to reach 372,000 sm by Sustained Demand for Residential Townships from securing Carrefour as an anchor tenant, the Construction of the hotel has been substantially completed end-2007. The total planned area for residential estates in Greater development is also seeking to secure more mini anchor with the exception of the west wing. There are plans to Jakarta (which includes Jakarta City, Bogor, Tangerang tenants. Some 353 units totalling 4,000 sm have been open the hotel in late 2006. Average occupancy rate for offices within Jakarta’s CBD and Bekasi) was 38,210 ha as at end-2005. Approximately sold as of March 2006. was 82.8% as at end-December 2005, up from 79.4% as 13,320 ha or 34.9% of the total planned area have been at end-2004. Average gross rental rate increased by 6.5% developed to date. The total number of housing stock Bali to Rp119,200 per month as compared to end-2004. Asking of 276,940 units in Greater Jakarta in 2005 represented Manado Tanah Lot Beach Resort price for CBD strata-titled office space has also showed an increase of 16.5% from 237,670 units in 2004. The Hotel Sedona Manado The proposed development of an exclusive gated signs of strengthening, averaging Rp9 million psm, an average sales rate was 77.3% for 2005 compared to Located at Tateli, approximately 13 km from Manado, beachfront resort villa estate with a luxurious resort hotel increase of 6% from 2004. 75% for 2004. Unsold stock at end-December 2005 is the capital of North Sulawesi, Hotel Sedona Manado is has been put on hold until investment sentiments in 62,900 units. an international-class resort hotel with 247 rooms and Bali recover. With the Indonesian government’s pro-active stance in attracting foreign investments, demand for Jakarta’s A sharp rise in fuel prices and an increase in housing office space is likely to remain positive in the short to mortgage rate has weakened the buying power of the Market Review medium-term. Gross rentals are projected to increase in market in general and has impacted sales activity of Economy Indonesian President Susilo Bambang Yudhoyono 2006 following the increase in fuel prices, which lead to residential estates at the end of 2005. In the longer run, New Economic Team to Revive Economy replaced key members of his economic team when he higher inflation. demand for well-planned residential townships is The Indonesian economy grew at 5.6% in 2005. Economic reshuffled his Cabinet on 5th December 2005. Former sustainable with rising affluence and homeownership growth slowed in the fourth quarter of the year as Finance Minister Boediono has been appointed as the Interest Rate Hikes May Affect Demand aspiration among the growing middle-income. consumer spending, exports and investments slowed. new Co-ordinating Minister for the Economy. Reflecting As of December 2005, total cumulative supply of rental Since August 2005, the Indonesian government has confidence in the new economic team, the Rupiah and apartments stood at 17,073 units, an increase of embarked on several rounds of interest rate hikes so the Jakarta Stock Exchange have strengthened since 1,397 units from 15,676 units as at December 2004, Surabaya as to stem inflation and support the Rupiah. the announcement of the Cabinet reshuffle. resulting in a slight decline in overall occupancy to 68%, New Supply of Retail Space down from 69.4% achieved at end-2004. Average monthly Total cumulative supply of retail space in Surabaya rose In October 2005, the Indonesian government raised Continued economic growth is expected for 2006 though rental rates for the purpose-built rental apartments in by about 11% to 457,200 sm in 2005. Despite an increase domestic fuel prices by an average 126.6%. While the the pace of growth is unlikely to match 2005 as inflationary prime residential area stood at Rp148,400 psm, up by in supply, the overall occupancy increased marginally to move was inflationary, it relieved the country from the pressures and rising interest rates curb consumer 8% from Rp137,400 achieved at end-2004. 90.6%, up from 90.3% achieved for 2004. In Rupiah prospect of sinking further into debt with the soaring spending and investments. terms, the average gross rental rate for prime ground oil prices. On condominium sales, take-up for 2005 was 5,702 units, floor space increased to Rp259,100 psm or 7.1% from significantly lower than the 7,875 units sold in 2004. the average rate recorded in 2004.

134 135 Surabaya Market Review (Cont’d) Galleria Tunjungan Development plans for the upmarket retail-cum- Indonesia 2004 2005E 2006F 2007F commercial complex on a prime 23,768-sm site in the Real GDP growth (%) 5.1 5.6 5.5 6.2 heart of Surabaya’s CBD has been put on hold until market conditions in the high-end property segment Lending interest rate (av, %) 14.1 13.9 15.0 11.0 are favourable. Inward FDI (US$Bn) 1.0 2.9 4.9 5.0 Exchange rate (av, Rupiah/USD) 8,939 9,705 9,961 10,272 BG Junction Personal disposable income (US$Bn) 142.6 148.4 167.6 172.4 Located in an established commercial area within CPI change (av, %) 6.1 10.5 15.5 6.0 Surabaya’s CBD, BG Junction is a strata-titled retail complex comprising shop lots and anchor space. It Source : Economist Intelligence Unit consists of six levels of retail space, an adjoining multi- storey car park building and supporting facilities.

134 135 Market Review Economy With commodity prices expected to remain high and the Cautious Optimism electronics sector to remain bullish, the outlook for 2006 The Malaysian economy grew a moderate 5.3% in 2005 will be better with a moderate growth of 5.5-6.0%. on the back of a robust private sector, a rebound in the Continuing high oil prices, rising inflation and reduced global electronics sector and greater resilience of the consumer spending from any further interest rate hikes global economy. Growth was generally broad-based, could however affect growth in 2006. propelled by manufacturing, agriculture, oil and gas, and services sector.

Malaysia 2004 2005E 2006F 2007F

Real GDP growth (%) 7.1 5.3 5.2 4.9 Prime lending rate (av, %) 6.0 6.0 6.6 6.8 Inward FDI (US$Bn) 4.6 4.2 3.8 4.1 Exchange rate (av, Ringgit/USD) 3.8 3.8 3.7 3.7 Personal disposable income (US$Bn) 65.3 70.3 76.0 81.5 CPI change (av, %) 1.5 3.1 3.0 3.3

Source : Economist Intelligence Unit

Residential positive factors such as strong economic growth, easy Challenging Times and competitive financing, property as a hedge for inflation 2005 has seen a general slowdown in the property market and inter-state migration. Locations such as Tebrau, caused by high fuel prices and rising inflation, which Skudai, Kempas and Plentong remain popular with buyers affected consumer sentiments. The total number of new and prices are held stable. houses launched in the Klang Valley declined 23% in 2005 to 20,954 units from 27,038 units in the previous Johor Baru is expected to benefit from the spillover year. The total take-up also declined 24% to 20,971 units effect from the proposed Integrated Resort projects and Comprising a total of 513 landed residential units located in Bukit Mertajam, Penang, Taman Jernih is fully sold. from 27,414 units a year ago. By holding back new strong economic growth in Singapore. Traditionally, a launches, the reduction in potential new launches reflected strong growth in Singapore would translate into better developers’ concern of an oversupply situation. demand for housing in Johor Baru.

For 2006, the housing market is expected to face a Penang Malaysia challenging year amid factors such as the likelihood of Stable Housing Market further interest rate hikes, rising inflation and the possibility The housing market in Penang remained stable in 2005 Johor will enhance the value of the development with spin-off of weaker consumer sentiment. However, demand for with price appreciation of 2-8% for landed properties. Taman Sutera benefits of generating business for its commercial centre housing in the longer run will continue to be supported The first half of the year was quiet for the property market Located close to the city centre of Johor Baru, Taman and demand for its properties. by continued economic growth and expectation of a on Penang Island with only a few new launches. The stronger ringgit. second half of the year was more active, with numerous Sutera is a 487-ha township with over 12,000 units of new and innovative projects launched. A new residential and commercial properties. As of March 2006, Penang Johor Baru development trend of gated residential community has a total of 2,074 or 90% of the 2,303 launched units of Taman Jernih Spillover Benefits from Singapore emerged in the higher bracket of landed property terrace houses, semi-detached houses, apartments and Taman Jernih is a 14.4-ha residential development in Developers faced more competition in 2005, particularly development. Lifestyle-inspired boutique designs in shop offices have been sold. Bukit Mertajam. The first three phases of 449 units have in the affordable sector with the entry of many small and residential housing have spurred sales in Penang recently. been fully sold and completed. The fourth and final phase medium sized developers. Buyers are turning more During the year, Taman Sutera successfully secured of the development has obtained its Certificate of Fitness cautious with anxiety over interest rate hikes and the Major property development in Penang Island has slowly Sekolah Seri Omega, a premier private primary and for Occupation on 29 September 2005. All 64 units of lacklustre stock market. shifted towards South-West District such as Relau, secondary school in Johor, to relocate their campus to terrace houses in the final phase were fully sold by Sungai Ara, Batu Maung, Teluk Kumbar and Balik Pulau. the development. The new campus in Taman Sutera will November 2005 and handing over of units to buyers is For 2006, the overall outlook for the residential property This is mainly due to a lack of development land and high be able to accommodate more than 1,500 students and in progress. market in Johor Baru is expected to remain favourable. land cost in the traditionally popular North-East District. Buying interest will remain resilient, underpinned by 136 137 Market Review Economy With commodity prices expected to remain high and the Cautious Optimism electronics sector to remain bullish, the outlook for 2006 The Malaysian economy grew a moderate 5.3% in 2005 will be better with a moderate growth of 5.5-6.0%. on the back of a robust private sector, a rebound in the Continuing high oil prices, rising inflation and reduced global electronics sector and greater resilience of the consumer spending from any further interest rate hikes global economy. Growth was generally broad-based, could however affect growth in 2006. propelled by manufacturing, agriculture, oil and gas, and services sector.

Malaysia 2004 2005E 2006F 2007F

Source : Economist Intelligence Unit

Yangon Keppel Philippines Properties (KPP), 51%-owned by Keppel Sedona Hotel Yangon Land, has maintained its focus on the resilient residential Situated along Yangon’s famous Kabe Ayer Pagoda Road, and retail sectors and will continue to do so. Going forward, KPP will also consider opportunities in the office sector Sedona Hotel Yangon overlooks the scenic Inya Lake which is showing potential. The Company will seek potential and is within close proximity to the city centre, airport sites for development in areas within and around Metro Manila. and cultural attractions such as the Shwedagon Pagoda. Palmdale Heights Despite the political uncertainties and ongoing trade Palmdale Heights is KPP’s maiden residential project in sanctions, the hotel maintained its average occupancy the Philippines through its subsidiary Buena Homes (Sandoval) Inc. It is located in Pasig City, Metro Manila, of about 80% for the 175 rooms in operation. Food and with easy access to the two major commercial districts beverage sales also performed well as a result of effective of Makati and Ortigas. sales and marketing strategies, promotions and joint programs with airlines and travel trade partners. Palmdale Heights is a 7.6-ha middle-income residential development and will comprise 29 residential blocks with about 4,000 units when completed over eight A five-star hotel, Sedona Hotel Yangon is known to be one of the best Mandalay phases. Recreational facilities include a two-storey hotels in Myanmar, popular with corporate and leisure travellers due clubhouse with multi-purpose hall, basketball and Sedona Hotel Mandalay to its close proximity to the airport, city centre and many cultural attractions. badminton courts, swimming pools, gazebos, parks Sedona Hotel Mandalay offers breathtaking views of the and playground, parking facilities and two magnificent Mandalay Hill and the majestic Royal Palace. commercial buildings. The only five-star hotel conveniently located in Mandalay local hotels and growing interest in other cities such as City, Myanmar’s major trade and communication Bagan, Inle and Ngapali, which are popular for their The first and second phase, each comprising three blocks centre, the hotel is favoured by many corporate and archaeological sights, mountains and beaches respectively. of 10-storey with 414 condominium units, parking facilities and amenities, were completed and handed over to the leisure travellers. homebuyers ahead of schedule. As of March 2006, about In the light of stiffer competition, Sedona hotels in both 94% of the first two phases have been sold. The hotel achieved more than full occupancy for the Yangon and Mandalay will continue to implement new 56 rooms in operation despite competition from new marketing strategies to sharpen their competitive advantage. The next two phases are currently being reviewed and will be launched according to market conditions.

Top: Palmdale Heights' close proximity to the Makati and Ortigas CBDs SM-KL Towers is ideal for professionals looking for accessible homes, and has seen Located on a 2-ha site in the heart of the Ortigas Central good demand with its first two phases almost fully sold. Business District (CBD), Manila, SM-KL Towers will be Market Review Bottom: The retail component of SM-KL Towers in the CBD of Manila, an integrated development comprising retail, office and Economy markets and to promote tourism as a key economic pillar, The Podium, continues to enjoy high occupancy rates. residential elements when fully completed. It is being Center in Mandaluyong City. In a move which surprised the international community, the Myanmar Tourism Promotion Board strengthened developed in phases together with the SM Group in Myanmar shifted its capital out of Yangon to the town its participation in major travel trade shows worldwide, the Philippines. Shopper’s Choice Annual Awards as the No. 1 Shopping of Pyinmana in November 2005. However, this is unlikely where its presence helped to raise visibility and awareness to have significant impact on tourism in the city as Yangon of the country. With the increase in the number of Phase One of the retail component, known as The Podium, was completed in December 2001 and officially is rich in cultural and natural attractions. international and domestic airlines and the introduction Construction of the first office tower in the planned opened in August 2002. A portion of the first basement development will commence in 2006. Apart from housing of e-Visa, travelling to Myanmar has now become carpark was converted in 2003 into additional retail The Podium, Benguet Centre is an existing six-storey Europe, particularly Germany, France and Spain, is more convenient. space to cater to the strong demand for retail space at office building within the development site. It continues Myanmar's biggest long-haul market, representing at The Podium. to enjoy full occupancy with favourable rental rates. least 35% of its total arrivals. To reach out to these Housed within the mall’s unique and classy design and Metro North Township its spacious ambience are over 150 specialty stores and Keppel Land has an option agreement for the two state-of-the-art cinemas. The Podium is a favourite development of a 600-ha township site located in place for young professionals and residents, as well as San Jose Del Monte City, Bulacan, north of Quezon City. a popular venue for holding gala events. The wide The development, which will include residential, selection of restaurants in the mall has also become the commercial and institutional components, has a close- preferred dining place of businessmen and professionals. to-nature urban living concept. 138 139 The Podium achieved 96% occupancy rate as of March Subject to favourable market conditions, Keppel Land 2006 and has been recognised by the 2005 National may develop a pilot project to kick-off the development. Myanmar Philippines

The Philippines is expected to achieve a better economic In 2006, both rental rates and capital values are expected outlook in 2006, fuelled by continued growth in the to continue the upward trend, as demand from OFWs information technology and finance sectors, and strong continues to grow. Particularly, developments targeting inflows of remittances from OFWs. The government’s at middle class and high-end retirement or leisure housing financial position is improving, with a target of reducing market segments will gain more momentum. its fiscal deficit to 2.1% of GDP in 2006. This will in turn boost the country’s economy by attracting more foreign investments and increasing government expenditures.

Philippines 2004 2005E 2006F 2007F

Real GDP growth (%) 6.0 5.1 4.5 4.8 Keppel Thai Properties seeks to further extend its presence in Thailand with focus Lending rate (av, %) 10.1 10.1 10.1 10.5 on developing landed homes and condominiums for the middle to high-end markets in Greater Bangkok and other growth cities. Inward FDI (US$Bn) 0.5 1.2 1.5 1.5 Exchange rate (Peso/USD, av) 56.0 55.0 53.7 52.8 Personal disposable income (US$Bn) 48.1 57.6 66.6 74.6 CPI change (av, %) 6.0 7.6 7.3 5.6 Thailand

Source : Economist Intelligence Unit Keppel Thai Properties Public Company Limited (KTP), Villa Arcadia at Watcharapol a company listed on the Stock Exchange of Thailand, KTP is in the process of developing its second landed is 45.45% owned by Keppel Land. KTP is developing housing project under the Villa Arcadia brand at Watcharapol Office Retail two landed home projects in Bangkok under the area, about 4 km from the Don Muang International Airport. Office Segment Driven by Outsourcing Industry Improving Occupancy in Retail Segment “Villa Arcadia” brand. Watcharapol is an established middle to upper-middle Call centers, IT-related and other outsource services Retail market saw improved occupancy while rental rates income housing suburb with good access to major companies continued to propel the office sector and remained weak in 2006. Vacancy rate declined to 13% in Villa Arcadia at Srinakarin amenities and highways. The 12.5-ha development, pushed rental rates and occupancies to new highs. Grade 2005 from a year ago, in spite of new supply in peripheral Villa Arcadia at Srinakarin is a 16-ha residential project comprising 270 two-storey homes, is slated for launch in A office rentals in Makati CBD surged 24% to 633 pesos areas. However, effective rentals in Makati and Ortigas psm per month in 2005, while rentals in Ortigas CBD CBDs dropped 2.3% to 1,075 and 855 pesos psm per located at Srinakarin, about 17 km southeast of Central the second half of 2006. About 100 units are expected to rose 12% to 365 pesos psm per month. Vacancy rates month respectively, due to the weak consumption resulting Bangkok. It is a high quality landed development including be launched in 2006. in these two areas continued to decline to 7.7% and from rising prices driven by surging oil price. 367 two-storey detached homes to be developed over 11% respectively. As Grade A office space inventory a few phases. Aimed at the growing middle to upper- KTP will continue to concentrate on developing properties remained limited, developers started to convert retail Retail rental rates are expected to rise gradually and middle market segments, the modern-tropic development for sale, particularly detached houses, townhouses and space in shopping malls to office space and upgrade vacancy rate will define further to 12% in 2006, fuelled includes comprehensive facilities such as swimming condominiums targeted at the middle and high-end Grade B office space to fulfil the increasing demand. by a recovery of private consumption due to surging pools, a fitness centre, a sauna, a Jacuzzi, a games room, markets. The Company seeks to further extend its remittances from OFWs. a playground and 24-hour security. presence in Thailand through acquisition of more land Rental rates and capital values will maintain a steady within the Greater Bangkok area and other cities with upward trend in 2006, driven by the bullish outsourcing All of 50 units launched have been sold. KTP is expected good growth potential. industry and a continued lack of Grade A office space. to launch another 100 units in 2006. In Makati and Ortigas CBDs, rentals and capital values are expected to increase by more than 5% in 2006. 140 141 Market Review Economy Residential Economy to Rebound in 2006 OFWs Demand to Fuel Residential Market The Philippine economy posted a modest GDP growth Remittances from OFWs have become the major driving of 5.1% in 2005, amidst political uncertainties, increase force of the residential market in Metro Manila. To in oil prices and drought. Meanwhile, GNP surged 5.7% capitalise on the buying power of OFWs, developers on the back of higher remittances from Overseas Filipino have focused on launching projects and have seen good Workers (OFWs), which grew 23% to US$10.9 billion in sales take-up. Meanwhile, rental rates of luxury residential 2005. Net inflows from FDI also surged on renewed units in 2005 rose by 16.7% to 391 pesos psm per month investors’ confidence in the country through the and capital values reached 73,750 pesos psm, up 8.7% implementation of the New Value Added Tax Law. from the previous year.

Philippines 2004 2005E 2006F 2007F

Source : Economist Intelligence Unit Keppel Thai Properties Public Company Limited (KTP), Villa Arcadia at Watcharapol a company listed on the Stock Exchange of Thailand, KTP is in the process of developing its second landed is 45.45% owned by Keppel Land. KTP is developing housing project under the Villa Arcadia brand at Watcharapol Office Retail two landed home projects in Bangkok under the area, about 4 km from the Don Muang International Airport. Office Segment Driven by Outsourcing Industry Improving Occupancy in Retail Segment “Villa Arcadia” brand. Watcharapol is an established middle to upper-middle Call centers, IT-related and other outsource services Retail market saw improved occupancy while rental rates income housing suburb with good access to major companies continued to propel the office sector and remained weak in 2006. Vacancy rate declined to 13% in Villa Arcadia at Srinakarin amenities and highways. The 12.5-ha development, pushed rental rates and occupancies to new highs. Grade 2005 from a year ago, in spite of new supply in peripheral Villa Arcadia at Srinakarin is a 16-ha residential project comprising 270 two-storey homes, is slated for launch in A office rentals in Makati CBD surged 24% to 633 pesos areas. However, effective rentals in Makati and Ortigas psm per month in 2005, while rentals in Ortigas CBD CBDs dropped 2.3% to 1,075 and 855 pesos psm per located at Srinakarin, about 17 km southeast of Central the second half of 2006. About 100 units are expected to rose 12% to 365 pesos psm per month. Vacancy rates month respectively, due to the weak consumption resulting Bangkok. It is a high quality landed development including be launched in 2006. in these two areas continued to decline to 7.7% and from rising prices driven by surging oil price. 367 two-storey detached homes to be developed over 11% respectively. As Grade A office space inventory a few phases. Aimed at the growing middle to upper- KTP will continue to concentrate on developing properties remained limited, developers started to convert retail Retail rental rates are expected to rise gradually and middle market segments, the modern-tropic development for sale, particularly detached houses, townhouses and space in shopping malls to office space and upgrade vacancy rate will define further to 12% in 2006, fuelled includes comprehensive facilities such as swimming condominiums targeted at the middle and high-end Grade B office space to fulfil the increasing demand. by a recovery of private consumption due to surging pools, a fitness centre, a sauna, a Jacuzzi, a games room, markets. The Company seeks to further extend its remittances from OFWs. a playground and 24-hour security. presence in Thailand through acquisition of more land Rental rates and capital values will maintain a steady within the Greater Bangkok area and other cities with upward trend in 2006, driven by the bullish outsourcing All of 50 units launched have been sold. KTP is expected good growth potential. industry and a continued lack of Grade A office space. to launch another 100 units in 2006. In Makati and Ortigas CBDs, rentals and capital values are expected to increase by more than 5% in 2006. 140 141 Market Review Economy 8.4% in 2005, down from 15.2% in 2004. New residential Resilient Economic Growth in 2005 supply to the Bangkok and vicinity areas registered 64,716 In 2005, the Thai economy grew by 4.7%, down from units, up 3% from 2004. 6.2% in 2004. Nonetheless, the economy displayed resilience and fundamental strength amidst surging oil The residential market is expected to improve in 2006. prices, rising interest rates, higher inflation, a new wave Supply growth should continue as the market continues of the bird flu outbreak, and continued unrest in the to adjust to greater equilibrium between supply and southern provinces. demand. Demand in 2006 will be in line with the overall economic performance. Sustained high levels of Moving into 2006, the economy is expected to grow on employment and job security, rising wages, and a net the back of increasing private investment, public spending growth in new nuclear families, are expected to support on mega-infrastructure projects, a continued expansion housing demand. of exports, and a recovery in tourism. Supply should continue a moderate growth with more Residential focus on the middle and lower market segments. Robust Market to Improve in 2006 growth is expected in the condominium sector as more The residential market experienced a consolidation in lower priced projects emerge in suburban centres with 2005, due to rising interest rates and weaker consumer convenient connections to mass transit system routes. To be developed in phases, Saigon Sports City will be a fully integrated development confidence. Investments in the real estate sector rose comprising high-rise condominiums, landed housing, retail centres, recreational facilities, and a 15-ha area designated for public sports facilities.

Thailand 2004 2005E 2006F 2007F Vietnam Real GDP growth (%) 6.2 4.7 4.9 5.1 Commercial banks’ prime rate (av, %) 5.5 5.8 6.5 6.4 Ho Chi Minh City Keppel Land holds a 90% stake in the joint venture Inward FDI (US$Bn) 1.4 3.4 4.2 3.7 Saigon Sports City company, while Chiap Hua Group holds the remaining Exchange rate (Baht/USD, av) 40.2 40.2 39.4 38.6 Keppel Land and Hong Kong’s Chiap Hua Group is 10%. The joint venture is among the first 100% foreign- Personal disposable income (US$Bn) 87.5 98.2 110.6 123.2 developing Saigon Sports City, a fully integrated residential, owned enterprises allowed to develop and sell residential CPI change (av, %) 2.8 4.5 4.2 4.1 commercial and recreational sporting hub on a 74-ha site properties in Vietnam. in Ho Chi Minh City (HCMC). Source : Economist Intelligence Unit About 200 units under Phase One of the development Catering to the upper income market, Saigon Sports City is expected to be launched in 2007. is poised to meet the growing demand for well-planned residential estates in the city. With proximity to many Villa Riviera sports and recreational facilities, the development will Poised as the most luxurious waterfront development be the first of its kind to embark on a “healthy lifestyle” in HCMC to-date, Villa Riviera is located in the well- development concept in Vietnam. established residential area of An Phu Ward in District 2. It enjoys a picturesque frontage of the Saigon River The site is easily accessible via the Hanoi Highway and and with its tree-lined boulevards, lush landscaping, and is flanked by two scenic rivers. Located just 25 minutes a full range of recreational facilities, the development from the city centre, in the popular An Phu Ward in depicts quality lifestyle living in a tropical resort ambiance. District 2, the development will comprise mainly quality This 6-ha site is well served by major arterial roads and apartment housing with complementary commercial is about 15 minutes’ drive away from the Central Business complexes, and a 14-ha area designated for public District (CBD). sport facilities. It is close to international schools and foreign-developed Within close proximity to the International School, serviced apartments, and is popular with the high-income British International School, foreign-developed serviced locals and expatriates. apartments and Metro Hypermart, the area is popular 142 with the upper income locals and expatriate communities. 143 Market Review Economy 8.4% in 2005, down from 15.2% in 2004. New residential Resilient Economic Growth in 2005 supply to the Bangkok and vicinity areas registered 64,716 In 2005, the Thai economy grew by 4.7%, down from units, up 3% from 2004. 6.2% in 2004. Nonetheless, the economy displayed resilience and fundamental strength amidst surging oil The residential market is expected to improve in 2006. prices, rising interest rates, higher inflation, a new wave Supply growth should continue as the market continues of the bird flu outbreak, and continued unrest in the to adjust to greater equilibrium between supply and southern provinces. demand. Demand in 2006 will be in line with the overall economic performance. Sustained high levels of Moving into 2006, the economy is expected to grow on employment and job security, rising wages, and a net the back of increasing private investment, public spending growth in new nuclear families, are expected to support on mega-infrastructure projects, a continued expansion housing demand. of exports, and a recovery in tourism. Supply should continue a moderate growth with more Residential focus on the middle and lower market segments. Robust Market to Improve in 2006 growth is expected in the condominium sector as more The residential market experienced a consolidation in lower priced projects emerge in suburban centres with 2005, due to rising interest rates and weaker consumer convenient connections to mass transit system routes. To be developed in phases, Saigon Sports City will be a fully integrated development confidence. Investments in the real estate sector rose comprising high-rise condominiums, landed housing, retail centres, recreational facilities, and a 15-ha area designated for public sports facilities.

Comprising a total of 101 quality villas, Villa Riviera will This prime 2-ha site fronting Le Loi Boulevard, the city’s internationally acclaimed Malcolm Baldridge Quality Hanoi’s Central Business and Financial District at feature 4- and 5-bedroom villas in eight different layouts, main thoroughfare, will be developed in phases. When Award, gives recognition to the high quality of the Ngo Quyen Street, the 8-storey Grade-A office building with plot sizes ranging between 300 and 550 sm. Each fully completed, it will comprise international standard development and high standard of management and offers 7,585 sm of prime office space. home will have a spacious driveway and a private car office buildings, serviced apartments and a hotel inter- services provided. porch that can accommodate two cars. The project will linked by a retail podium. With its strategic location and quality services, International also feature quality facilities such as 24-hour security, a For the third consecutive year, Sedona Suites, HCMC Centre in which Keppel Land holds a 43% stake, enjoys clubhouse and gymnasium, a 30-metre infinity edge pool, Phase One, a 25-storey mixed commercial building was wasAward conferred the Best Business Serviced Apartment full occupancy with renowned tenant profile comprising a tennis court and an interactive children’s playground. completed in 1996. It comprises a three-storey retail by the Vietnam Economic Times magazine. MNCs, financial institutions, legal firms, international podium, 11 levels of office space, a business center and airlines and blue-chip consultancy firms. Keppel Land holds 90% interest in this project, and the town club, 89 units of serviced apartments and three Tamarind Park joint venture partner Hiep Hoa Phat Company holds the levels of basement carpark. Both the office and retail Tamarind Park is a proposed 20-storey apartment Royal Park Sedona Suites Hanoi remaining 10%. space are 100% occupied, while the Sedona Suites tower located at Thai Van Lung Street in HCMC’s prime Situated on the north-eastern bank of the serene serviced apartments, managed by Sedona Hotels District 1. It is conveniently located in a tranquil and Ho Tay Lake, Royal Park Sedona Suites Hanoi comprises To be launched in the first half of 2006, about 64% of International, enjoys high occupancy of above 90%. exclusive neighbourhood and yet within walking distance 175 serviced apartments and villas, and a grand clubhouse the 25 units released prior to the launch have been sold from the city centre and the commercial and shopping complete with a full range of recreational facilities as of March 2006. The project is currently under The preferred address of the diplomatic corporations, belt of the city. and amenities. development and is expected to complete in 2007. multinational companies (MNCs), banking and financial institutions, Saigon Centre has maintained its position This development, in which Keppel Land holds a 60% Located only 15-minutes’ drive from the city center, it is Saigon Centre as the market leader in terms of occupancy and rental stake, will feature a total of 173 residential units, complete a popular choice among the diplomatic corps, businessmen Multi-award winner Saigon Centre, in which Keppel Land rates in HCMC. with recreational facilities. and the expatriate community. Managed by Sedona Suites owns 68% stake, is a landmark mixed-use development Hotels International, Sedona Suites Hanoi enjoys high - Gold Medal strategically located in the Central Business District Saigon Centre won the Vietnam 2005 Quality Award Hanoi occupancy rate of above 95% and has maintained its of HCMC. conferred by Ministry of Science, International Centre position as a market leader in service quality. Technology and Environment, the sole winner under the Completed in 1995, International Centre is the first real estate category. The award is based on the modern office building in Hanoi. Conveniently located in

144 145 Setting new benchmarks of quality in Vietnam – flanked by the banks of the Saigon River, Keppel Land’s Villa Riviera is poised to be the most luxurious Multi-award winner Saigon Centre was conferred the Vietnam 2005 Quality Award waterfront development in Ho Chi Minh City. – Gold Medal for the high quality of the development and it exceptional management and service standards.

144 145 Award

Sedona Suites Hanoi won the Vietnam 2005 Quality Office 2005, from the Ministry of Science, Technology and Grade-A Offices Enjoy Rising Rents Coupled with a shortage of Grade-A apartments in the Environment. It also received the Golden Dragon Award and High Occupancy city and limited good quality apartments for rent, rental a prestigious award given to a foreign invested The office market in HCMC continued to enjoy rising rates for Grade-A serviced apartments in CBD location company for its contribution to Vietnam’s economic growth. The panel of judges included the Vietnam Ministry rents and occupancies. Grade-A office buildings are near is expected to rise in the near term. of Planning & Investment, Ministry of Trade, Ministry of full occupancy and the trend is likely to continue in the Culture and Information, Vietnam Union of Scientific and near future. Rental rates average between US$25 and Similarly, the Grade-A serviced apartment market in Economic Associations and Vietnam Economic Times. US$30 psm per month. Hanoi continues to improve steadily with active leasing arrangements. Professionally-managed serviced To cap off a stellar year, Sedona Suites Hanoi was Going forward, the city’s high GDP growth, surging FDI, apartments achieved occupancy rate above 95% with conferred the Best Luxury Serviced Apartment in Hanoi expansion of existing companies to better-quality offices an average room rate of between US$19 and US$23 by the Vietnam Economic Times magazine for the fourth consecutive year. and new set-ups, coupled with limited Grade A office psm per month. stock and lack of new supply will continue to boost

Keppel Land holds a 59% stake in this landmark Sedona Suites Hanoi was named the Best Luxury Serviced Apartments demand and rentals of Grade A offices. Steady Rise in Demand for Local Housing development. The joint venture company was bestowed in Hanoi for the fourth year in a row by the Vietnam Economic Times. Strong economic growth has boosted the expansion of the Medal of Labour Award by H.E. President of Vietnam In Hanoi, occupancy and rental rates for Grade A offices the middle-class. With growing affluence among the for its social and economic contribution to the city. in prime locations remain healthy. Occupancy for Grade- locals and many aspiring for a better lifestyle, and A offices in CBD exceeded 95% and rental rates average homeownership in well-planned and managed residential Vung Tau between US$20 and US$25 psm per month. Positive areas, the housing market is expected to grow steadily Petro Vietnam Towers Completed in mid-1997, this 10-storey Grade-A office economic outlook and growing private-sector demand in the near to mid-term. Petro Vietnam Towers, which is 12.9% owned by Keppel building offers 12,465 sm of prime office space and has will continue to push up the demand and rental rates for Land, is the only international standard office building in a blue chip tenant profile comprising petrochemical, oil office space in the near term. With limited options for investment and a stock market and gas companies and financial institutions. the prime commercial district of Vung Tau. still in its nascent stage, real estate has become the preferred avenue of investment. The New Housing Law, Residential to come into effect in 1 July 2006, will further Dynamic Leasing Market for Serviced Apartments liberalise the restrictions on home ownership by Market Review The Grade-A serviced apartment sector in HCMC overseas Vietnamese. Economy Vietnam’s export revenues rose 21.6% over the previous continues to enjoy high occupancy rate above 95% with Vietnam Continues to Record Robust Growth year to US$32 billion in 2005. It targets export value of rental rates between US$26 and US$32 psm per month. Progressive reforms adopted by the government and With GDP growth at a record rate of 8.4% in 2005, US$37 billion in 2006. With booming trade and consumer Propelled by rising number of expatriates following the eventual opening up of the residential market to Vietnam’s economy expanded at the fastest pace in spending, retail sales reached US$30.5 billion in 2005, expansions by multinational companies and set-up of foreign investors will enhance the demand for good almost a decade, backed by surging foreign direct an increase of 20% year-on-year. new companies, as well as return of business travellers quality housing in prime locations. investments, strong exports and robust consumer seeking opportunities, rental rates continue to rise. spending driven by the government’s expansionary fiscal Remittances by overseas Vietnamese or Viet-Kieus in policies. It aims to maintain high GDP growth of around 2005 amounted to US$3.8 billion, up 18.7% over 2004. 7 – 8% in 2006. Of these, remittances to HCMC are estimated at Vietnam 2004 2005E 2006F 2007F US$2.2 billion, 16.3% higher than the year before. Real GDP growth (%) 7.7 8.4 7.0 6.9 Vietnam’s bilateral trade agreement with the US in 2001 Commercial banks' prime rate (av, %) 9.7 11.2 13.2 13.5 has led to escalating exports to US from US$1.8 billion Vietnam aims to join the World Trade Organisation in Inward FDI (US$Bn) 1.6 2.4 2.5 2.4 in 2001 to US$6 billion in 2005. 2006. Together with its pledge of full realisation of Asean Exchange rate (Dong/USD, av) 15,740 15,857 16,140 16,520 Free Trade Area in 2006, these will boost Vietnam’s Personal disposable income (US$Bn) 25.2 27.2 29.4 31.8 It attracted US$5.8 billion of FDI in 2005, an increase of competitiveness and export growth and further spur its CPI change (av, %) 7.8 8.2 7.3 5.6 45% year-on-year and 29.7% above the government’s economic growth. Vietnam will also enact the Unified

target of US$4.5 billion. It is targeting new FDI of Enterprise Law in 2006, creating a platform for healthy Source : Economist Intelligence Unit US$6 billion for 2006 and plans to continue to improve business competition and a level playing field for all. its legal framework and transparency, offer tax incentives, embrace market economics and further liberalise The tourism industry continued to flourish, with the market access. number of foreign tourists visiting Vietnam reaching 3.5 million in 2005. It aims to attract 3.8 million foreign visitors in 2006 and 6 million by 2010. 146 147 Award

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January May August - The Group jointly acquired the second site for - First closing of Alpha Core Plus Real Estate Fund - Keppel Land, with Keppel Corporation, became a race - Keppel Land launched Phase One of Ocean Business township development in Wuxi, China with the saw investors’ strong response through subscription partner by sponsoring the Uniquely Singapore Clipper Suites in Ocean Building, which offers 15,000 sf of acquisition of a 35-ha site,. of $275 million. in the Clipper Round the World Yacht Race 2005-06. (1) prime office space and fully furnished workspaces. - Keppel Land increased its equity stake in - Keppel Land reported higher profit after tax and It has seen a positive take-up rate of 70% of the 52 Dragon Land Limited from 24.9% to 66.7% to minority interests (PATMI) before exceptional items offices available. capitalise on the middle-income housing market in of $133.3 million for 2004, up from $126.4 million in June secondary cities in China. the previous year. - Plein Essor Property Services was jointly incorporated by Keppel Land, HDB Corporation and E M Services September to address China’s growing demand for estate - Keppel Land and Harrah’s Entertainment entered into November February management services. a strategic alliance with SMG, the world’s largest - Keppel Land announced the setting up of K-REIT Asia - In the inaugural Singapore International 100 Ranking, - Keppel Land acquired a 133,400 sm site in Jinnan marketer and operator of Meetings, Incentives, with an initial portfolio valued at $630.7 million Keppel Land ranked 40th out of 100 top Singapore District in Tianjin, China for villa development. Conventions and Exhibitions, to elevate Singapore’s comprising four high quality office buildings from its companies in terms of overseas revenue. position as a top destination for conventions and meetings. stable of prime commercial developments, namely - Keppel Land partnered Harrah’s Entertainment to - Park Infinia at Wee Nam, one of the largest Keppel Towers, GE Tower, Bugis Junction Towers jointly submit concepts to the Singapore Tourism July condominium developments in the Newton district, and Prudential Tower (approximately 44% of the Board on the development of world-class Integrated - Keppel Land, together with Cheung Kong (Holdings) was soft-launched on 22 September 2005. (3) strata area of the building). Resorts at Marina Bay and Sentosa. Limited and Hongkong Land Limited tendered for and won the Business and Financial Centre site at Marina Bay. (2) October December March - The Group made its second acquisition of a 6.88-ha - Keppel Land divested retail mall Parco Bugis Junction - Keppel Land and Harrah’s Entertainment team up - Mr Heng Chiang Meng was appointed as independent site in Bangalore, India with the same joint venture and consolidated its office portfolio with the acquisition with high-end retail and shopping mall developers Director of the Company. partner Puravankara Projects Limited. of the remaining stake of Bugis Junction Towers. Taubman Asia and Gordon Group Holdings as - BG Junction, Keppel Land’s strata-title retail mall in - Keppel Land and Harrah’s Entertainment roped in well as leading convention venue Suntec Singapore Surabaya, Indonesia, was officially launched. Centre Pompidou, one of the world’s leading modern International Convention. April - Keppel Land’s maiden condominium project in India, art museum operator as well as Singapore-based - BG Junction in Surabaya handed premises over to - Asia No. 1 Property Fund closed with equity Elita Promenade, premiered in Bangalore on Conference & Exhibition Management Services to anchor tenant, Carrefour. commitment of US$243 million. 23 July 2005. strengthen their bid to win the Marina Bay Integrated Resort. - Keppel Land signed an initial Memorandum of Understanding with Tianjin Binhai Mass Transit to explore township development opportunities along 150 the Tianjin-Binhai mass rail transit line. 151 Significant Events

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Corporate Awards that look into the wellness of their employees. The Silver Recognition for Excellence in Product Quality Singapore Marine Industry and the National Trades Storebrand’s “Best In Class” Status for 2nd award was an improvement from the Bronze award that in Singapore Union Congress. consecutive year it won last year. Green Mark Gold Award for The Tresor in 2006 For its efforts in helping to improve the environment and The Tresor condominium project received the Building Merit Award for Construction Excellence 2006 for society, Keppel Land was bestowed “Best in Class” and Construction Authority’s Green Mark Gold Award, Caribbean at Keppel Bay status for the second year running by the Norwegian Corporate Transparency Awards which is aimed at raising environmental awareness Organised by the Building and Construction Authority, financial institution Storebrand. It was one of only two Gold Award for Best Annual Report among developers and contractors. the award accords recognition to construction projects Singapore companies to be conferred the title. Keppel Land won the prestigious Gold Award for the which have demonstrated performance excellence in Best Annual Report in the category for companies with Caribbean at Keppel Bay bags Gold Award Singapore in terms of attention to high standards of Ranked among Top 100 Singapore Companies market capitalisation of $500 million or more, at the (Implementation/Residential) and Silver Award management, technical expertise and workmanship. Keppel Land was ranked 40th in Singapore International inaugural Singapore Corporate Awards (SCA) organised (Maintenance) at Landscape Industry Association 100, which recognises the top 100 companies ranked by by The Business Times and supported by the Singapore (Singapore) Awards of Excellence 2006 the highest overseas revenue. It is organised by Exchange in March 2006. Keppel Land’s luxury condominium received the Gold Recognition for Excellence in Product International Enterprise Singapore and DP Information in Award in the Implementation/Residential category for Quality Overseas collaboration with the Singapore Business Federation and Ranked within Top 20 of 644 Companies in the the quality of plant materials used, installation techniques China Business Times. Business Times Corporate Transparency Index and craftsmanship and Silver Award in the maintenance 8 Park Avenue bags 2005 Shanghai Top 10 The Group is the only property developer in the Top 20 category for the condition of the plants and cleanliness International-grade Residential Property and 2005 Finalist in ACCA Singapore Environmental among 644 companies in the 2005 Business Times – of the site, from the Landscape Industry Association Shanghai International Marketing Award (3) Reporting Award (1) Corporate Transparency Index, which ranks companies (Singapore). The condominium project in the Jingan district received Keppel Land was one of six finalists in the ACCA for transparency in disclosures in their FY2004 the Shanghai Top 10 International-grade Residential Singapore Environmental Reporting Award competition financial results. Safety Performance Award 2005 Merit Certificate Property and 2005 Shanghai International Marketing held in 2005. Organised by the Association of Chartered for Caribbean at Keppel Bay and Butterworth 8 Award for Residential Property by People’s Daily Certified Accountants, the award recognises companies Runner-up under Property category for Most Two of Keppel Land’s projects received the award from that display an exceptional effort in reporting their non- Transparent Company Award at SIAS Investors’ the Ministry of Manpower for good safety performance Shanghai Merryfield Land ranks among Top 10 financial disclosures to their stakeholders. It aims to Choice Awards (2) and basic safety management systems. Projects are Foreign Developers in Shanghai promote good corporate citizenship and encourage This is the sixth year running that Keppel Land has won thoroughly assessed and judged on areas including safety Shanghai Merryfield Land, Keppel Land’s subsidiary in companies to be more accountable for the social, the award. Organised by the Securities Investors training, safety promotional activities, safety innovation Shanghai, was bestowed Top 10 Foreign Developers in environmental and economic impact of their activities. Association (Singapore) to encourage and promote teams and committees, self-regulation for safety, the city by the Shanghai Real Estate Trade Association. corporate transparency in Singapore, companies are incident/accident investigation and analysis, control of Singapore H.E.A.L.T.H. Silver Award 2005 assessed based on criteria such as timeliness, frequency, contractors, emergency preparedness and occupational Organised by the Health Promotion Board, the annual clarity, and substantiality of their announcements. Keppel health programme. The panel of judges comprised award accords national recognition to organizations with Land also received a Merit Award for Corporate representatives from the Ministry, Singapore National 152 commendable workplace health promotion programmes Governance at the same event. Employers Federation, Singapore Contractors Association, 153 Singapore Confederation of Industries, Association of Awards and Accolades

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154

Awards for The Waterfront, Chengdu Most Investment-Worthy Residential Project in - Chengdu Property Annual Star Award by Chengdu - Recommended Project with Good Investment Value - Model Residential Development for International - China’s Reputed Real Estate Developments with - 2005 Top 20 Sales (Residential) in Chengdu by - 2006 Top 30 Most Valued Property Developers in - the following accolades:- The Group’s residential development in Chengdu garnered Finalist in New York Festival Awards 2005 for - Best Landscaping Award by Xin Jing Bao - Fastest Growing Developer Award for Keppel Land - 2005 Most Anticipated Project Award, Special Project - following awards:- The condominium development in Beijing received the Awards for The Seasons, Beijing 1

Statistics and Chengdu Housing Bureau. Chengdu "GOLD" Award by Chengdu Bureau of Business Times and Housing Weekly by Chengdu Housing Bureau Centre in September 2005 Community by Chengdu Real Estate Brand Promotion The 2nd China City Property Exposition 2005 Popular Residential Development with Foreigners by Highest Habitability Value in the category of Most Developer Association Chengdu Housing Bureau and Property Statistics Bureau Chengdu by Tianfu Morning Post and Chengdu Advertising category. “Best Special Effects” in the TV, Cinema & Radio by Beijing Youth Daily for Keppel Land by An Jia magazine Award and Across Borders Quality Developer Award

Vietnam Spring City Golf and Lake Resort, Kunming ranked Awards for The Botanica, Chengdu Best Golf Course Vietnam 2005 Quality Award - Gold Medal for Saigon Centre Best Golf Course in Asia and Resort - Best Golf Course in China and Hong Kong by US - Leading Golf Resort in China 2005 by World Travel - internationally acclaimed Malcolm Baldridge Quality award under the real estate category. Based on the Environment, Saigon Centre is the sole winner of Conferred by Ministry of Science, Technology and - 2005 Most Trusted 2005 and Reasonable Pricing Developer - 2005 Most Reasonably Priced Project in Chengdu - Top 10 Developments in 2005 - 1st Position by - Project with Good Investment Value 2005 by Chengdu - High Quality Building Award by Construction Bank of - following awards:- The residential township in Chengdu received the 2005 issue). 1st Runner-Up by Asian Golf Monthly (March/April Digest (May 2005 issue) Awards (London) Property and Real Estate Association. in Chengdu for Keppel Land by Residential Association by Chengdu Residential Property and Real Estate Exposition (Chengdu) Organising Committee Western China City Daily and Housing Industry Real Estate Brand Promotion Centre China in May 2005 2 (2)

(1)

Indonesia Awards for Sedona Suites Hanoi Sedona Suites, HCMC bags Best Business Serviced Melia Purosani Hotel awarded Apartment Award Green Globe 21 Certification 3 in Yogyakarta, Indonesia was awarded the prestigious For its energy-saving efforts, Hotel Melia Purosani Quang Ba Royal Park JV Co., the joint venture - Conferred the Best Luxury Serviced Apartment in - It also received the Golden Dragon Award 2005, a - Sedona Suites Hanoi won the Vietnam 2005 Quality - Economic Times magazine. Minh City was conferred the award by Vietnam For the third consecutive year, Sedona Suites, Ho Chi services provided. development and high standard of management Award, it gives recognition to the high quality of

to Hanoi. Vietnam for its social and economic contribution the Medal of Labour Award by H.E. President of company for Royal Park development, was bestowed the fourth consecutive year. Hanoi by the Vietnam Economic Times magazine for Economic Times. and Economic Associations Vietnam of Culture and Information, Vietnam Union of Scientific of Planning & Investment, Ministry Trade, Ministry The panel of judges included the Vietnam Ministry for its contribution to Vietnam’s economic growth. prestigious award given to a foreign invested company and Environment. Award from the Ministry of Science, Technology

No. 1 Shopping Centre in Mandaluyong City for Philippines Ria Bintan Golf Club as Best Course The Podium 2005 Apolinario Mabini Awards for the Disabled its novel approach to retail. the 2005 National Shoppers’ Choice Annual Awards for The Podium in the Philippines received award under more pleasant and convenient. which make their access to the establishment safer, of the disabled by providing facilities and services to places which have been most responsive the needs Rehabilitation of the Disabled, annual award is given Launched by the Philippines Foundation for Friendly Establishment of the Year for The Podium It also won the following awards from Asian - Ria Bintan in Indonesia was ranked the Most Popular - first hotel outside Bali to receive the award. at the world’s highest environmental standards. It is the Assessment), which recognises commitment to operating Green Globe 21 Certificate (Environment & Ecological 2005 Best Club House in Asia – 2nd Runner Up. - Best Golf Course in Asia – 2nd Runner Up - 2005 Best Golf Course in Indonesia – Winner - Golf Monthly:- international golf magazine (Singapore edition). Golf Course in Asia 2004 by Vacations, an (3) 155

154

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JAPAN

Beijing 50 Seoul Tokyo SOUTH KOREA Tianjin 54

Regional Network CHINA

Chengdu 51 52 Wuxi 55 48 Shanghai 49 47 Kunming 12. Cluny Hill Redevelopment Singapore Mixed Development MYANMAR 76 13. Avenue Park 28. Business and Financial Centre INDIA 53 Mandalay 73 Fuzhou Office 14. Park Infinia at Wee Nam 29. Heritage Court 1. Ocean Building 15. Freesia Woods 30. Joo Chiat Shophouses 56 16. The Linc 31. 449A & 451A Geylang Road Hong Kong 2. Ocean Towers Bangalore 17. The Belvedere Hanoi 74 3. Equity Plaza 57 58 4. Keppel Towers 18. Amaranda Gardens Industrial 40 19. The Tresor 32. Quartz Industrial Building 61 5. GE Tower PHILIPPINES 6. Prudential Tower 20. Urbana 33. Orion Industrial Building 59 21. Naga Court 60 7. One Raffles Quay Yangon 72 THAILAND 22. Keppel Bay Precinct* 8. Bugis Junction Towers Data Centre VIETNAM 62 23. 283C and 283G Pasir Panjang Road 68 9. The HarbourFront Office Park 34. Keppel Digihub Bangkok 63 24. The Callista 65 67 64 Residential 25. The Elysia 66 26. The Crest @ Cairnhill 75 43 44 10. Pebble Bay 27. Ritz Residences 41 42 Ho Chi Minh City 11. Nassim Woods MALAYSIA 70 Manado

46 Property 45 SINGAPORE 78 Hotels/Serviced Apartments Batam 77 Bintan 69 Office Resorts

Residential 39 37 Mixed Development Jakarta 38 36 Surabaya 35 Industrial INDONESIA 71 79

Data Centre Yogyakarta Bali

Mass Rapid Transit Lines Expressway

Overseas 53. Mixed Development, Fuzhou Hotels/Serviced Apartments 54. Villa Development in Jinnan District, Indonesia Tianjin 69. Club Med Ria Bintan Property 55. Township Development, Wuxi 34 Indonesia 70. Hotel Sedona Manado 35. Galleria Tunjungan, Surabaya 71. Melia Purosani Hotel, Yogyakarta 18 Hong Kong 36. BG Junction, Surabaya 56. The Waterfront at Kowloon Station, 37. Cakung Residential Township, Jakarta Hong Kong Myanmar 32 38. Pasadenia Garden, Jakarta 72. Sedona Hotel Yangon 15 33 13 19 24 39. Wisma BCA, Jakarta 73. Sedona Hotel Mandalay 21 25 India 12 16 14 57. Elita Promenade, Bangalore 31 30 Vietnam Vietnam 26 8 58. Residential Development at Kanakapura, 11 17 27 10 40. International Centre, Hanoi Bangalore 74. Sedona Suites, Hanoi 20 41. Saigon Centre, Ho Chi Minh City 75. Sedona Suites, Ho Chi Minh City 3 2 1 23 29 6 7 28 42. Tamarind Park, Ho Chi Minh City Philippines 4 5 43. Villa Riviera, Ho Chi Minh City 59. SM-KL Towers, Metro Manila 22 9 44. Saigon Sports City, Ho Chi Minh City 60. Palmdale Heights, Metro Manila Resorts 61. Metro North Township, Quezon City China Malaysia 62. Landbank in Cebu 76. Spring City Golf & Lake Resort, Kunming 45. Taman Sutera, Johor Baru 63. Sampaguita Ville, Cebu 46. Taman Jernih, Penang Indonesia Thailand 77. Ria Bintan China 64. Jewellery Centre, Bangkok 78. Nongsa Point Marina, Batam 47. Ocean Towers, Shanghai 65. Sukhaphiban 3 Mansion, Bangkok 79. Tanah Lot Resort, Bali 48. Park Avenue Precinct, Shanghai 66. Residential Landbank at 49. Villa Riviera, Shanghai Highway 332 in Sattahip 50. The Seasons, Beijing 67. Villa Arcadia at Srinakarin, Bangkok 51. The Waterfront, Chengdu 68. Villa Arcadia at Watcharapol, Bangkok 156 * Includes Caribbean at Keppel Bay and Keppel Bay Plots 1,3,4,5 & 6 52. The Botanica, Chengdu 157 JAPAN

Beijing 50 Seoul Tokyo SOUTH KOREA Tianjin 54

Regional Network CHINA

46 Property 45 SINGAPORE 78 Hotels/Serviced Apartments Batam 77 Bintan 69 Office Resorts

Residential 39 37 Mixed Development Jakarta 38 36 Surabaya 35 Industrial INDONESIA 71 79

Data Centre Yogyakarta Bali

Mass Rapid Transit Lines Expressway

KLL StateAcc 2005 fa.pm6.5 161 4/4/06, 6:32 PM Directors’ Report

For the Year ended 31 December 2005

The Directors submit their report together with the audited consolidated financial statements of the Group for the year ended 31 December 2005 and balance sheet of the Company as at 31 December 2005.

1. Directors

The Directors of the Company in office at the date of this report are:

Lim Chee Onn, Chairman Kevin Wong Kingcheung, Managing Director Khor Poh Hwa Lim Ho Kee Tsui Kai Chong Lee Ai Ming Tan Yam Pin Niam Chiang Meng Heng Chiang Meng (Appointed on 1 March 2005) Choo Chiau Beng Teo Soon Hoe

Thai Chee Ken, who is also the Chairman of the Audit Committee, resigned on 16 March 2006.

The Directors holding office at the end of the financial year and their interests in the share capital of the Company and related companies as recorded in the register of Directors’ shareholdings were as follows:

At 1.1.05 or Date of Appointment At 31.12.05 At 21.1.06 Interest in shares in the Company: Kevin Wong Kingcheung 256,400 256,400 889,400 Lim Ho Kee 150,000 150,000 150,000

Interest in share options in the Company: Kevin Wong Kingcheung 1,083,000 1,283,000 650,000

Interest in shares in Keppel Corporation Limited (“KCL”): Lim Chee Onn 817,083 977,083 1,167,083 Tan Yam Pin (Deemed interest) 65,000 65,000 65,000 Choo Chiau Beng 544,583 505,833 1,015,833 Teo Soon Hoe 934,166 1,074,166 1,214,166

Interest in share options in KCL: Lim Chee Onn 1,470,000 1,620,000 1,430,000 Choo Chiau Beng 1,110,000 1,200,000 690,000 Teo Soon Hoe 1,110,000 1,200,000 1,060,000

Interest in shares in Keppel Telecommunications & Transportation Limited: Lim Chee Onn 23,000 23,000 23,000 Choo Chiau Beng 26,000 - - 162 Teo Soon Hoe 28,000 28,000 28,000

KLL StateAcc 2005 fa.pm6.5 162 4/4/06, 6:32 PM At 1.1.05 or Date of Appointment At 31.12.05 At 21.1.06

Interest in Keppel Philippines Holdings Inc (“B” shares of 1 Peso each): Lim Chee Onn 2,000 2,000 2,000 Choo Chiau Beng 2,000 2,000 2,000 Teo Soon Hoe 2,000 2,000 2,000

Interest in Keppel Philippines Marine Inc (Shares of 1 Peso each): Lim Chee Onn 246,457 246,457 246,457 Choo Chiau Beng 283,611 283,611 283,611 Teo Soon Hoe 302,830 302,830 302,830

Interest in Keppel Philippines Properties Inc (Shares of 1 Peso each): Teo Soon Hoe 2,916 2,916 2,916

Interest in share options in Dragon Land Limited: Kevin Wong Kingcheung N.A. 840,000 840,000

Since the end of the previous financial year, no Director has received or become entitled to receive benefits under contracts required to be disclosed by Section 201(8) of the Companies Act, Cap. 50.

Neither at the end of the financial year, nor at any time during the year, did there subsist any arrangements, to which the Company or any of its subsidiary companies is a party, whereby the Directors might acquire benefits by means of acquisition of shares in or debentures of the Company or any other body corporate other than the Keppel Land Share Option Scheme approved by shareholders at an Extraordinary General Meeting.

In accordance with the Company’s Articles of Association, the following Directors retire at the forthcoming Annual General Meeting, and being eligible, offer themselves for re-election:

Lee Ai Ming Choo Chiau Beng Teo Soon Hoe

2. Share Options of the Company

The particulars of share options of the Company are as follows:

(a) The Keppel Land Share Option Scheme (“the Scheme”) which has been approved by the shareholders of the Company is administered by the Remuneration Committee whose members are:

Tan Yam Pin, Chairman Lim Ho Kee Tsui Kai Chong 163

KLL StateAcc 2005 fa.pm6.5 163 4/4/06, 6:32 PM Directors’ Report (cont’d)

2. Share Options of the Company (cont’d)

(b) Under the Scheme, an option may, except in certain special circumstances, be exercised at any time after two years but no later than the expiry date. The shares under option may be exercised in full or in respect of 100 shares or a multiple thereof, on the payment of the subscription price.

(c) The subscription price is based on the average last business done price for the shares of the Company on the Singapore Exchange Securities Trading Limited for the three market days preceding the date of offer. The Remuneration Committee may at its discretion fix the subscription price at a discount not exceeding 20 per cent of the abovementioned average market price. None of the options offered in the financial year was granted at a discount.

(d) The executive employees to whom the options have been granted do not have the right to participate by virtue of the options in a share issue of any other company.

(e) Options to take up 1,340,000 shares were granted to senior employees during the financial year. Altogether 3,202,500 shares were issued by virtue of the exercise of options, and options to take up 719,500 shares were cancelled during the financial year. At the end of the financial year, there were 6,841,000 shares under option as follows:

Number of Share Options

At 1.1.05 Date or Date Cancelled/ At Expiry Subscription Value of of Grant of Grant Exercised Lapsed 31.12.05 Date Price ($) Options ($)

05.03.99 278,000 (105,000) (39,000) 134,000 04.03.09 1.71 0.7938 20.08.99 1,011,000 (400,000) (113,000) 498,000 19.08.09 2.48 1.2020 06.04.00 955,000 (524,000) (105,000) 326,000 05.04.10 1.87 0.9004 14.11.00 1,335,000 (421,000) (127,000) 787,000 13.11.10 2.47 1.2030 11.10.01 1,418,000 (491,000) (200,000) 727,000 10.10.11 1.35 0.6185 07.08.02 2,275,000 (989,000) (135,500) 1,150,500 06.08.12 1.44 0.6407 10.02.03 520,500 (132,500) - 388,000 09.12.13 1.17 0.4860 07.08.03 520,500 (140,000) - 380,500 06.08.13 1.48 0.6627 11.02.04 520,000 - - 520,000 10.02.14 1.86 0.8193 11.08.04 590,000 - - 590,000 10.08.14 1.84 0.8070 9,423,000 (3,202,500) (719,500) 5,501,000 09.12.05 670,000 - - 670,000 08.12.15 2.38 1.0830 09.12.05 670,000 - - 670,000 08.12.15 3.07 1.4397 10,763,000 (3,202,500) (719,500) 6,841,000

The value of each option granted at the date of grant is estimated using the Black-Scholes model with a 5-year maturity.

164

KLL StateAcc 2005 fa.pm6.5 164 4/4/06, 6:32 PM (f) Information on Directors of the Company participating in the Scheme is as follows:

Aggregate Options Aggregate Options Granted since Exercised since Commencement Commencement of Aggregate Options Options Granted of the Scheme to the Scheme to Outstanding as Name during the the End of the the End of the at the End of the of Director Financial Year Financial Year Financial Year Financial Year

Kevin Wong Kingcheung 200,000 2,002,360 326,400 1,283,000

(g) No employee has received 5 per cent or more of the total number of options available under the Scheme.

(h) Further information on the Keppel Land Share Option Scheme is disclosed in Note 10 of the Notes to the Financial Statements.

3. Share Options of Dragon Land Limited

At the end of the financial year, there were 2,935,000 unissued shares of Dragon Land Limited under option. They comprised 2,205,000 options under the Dragon Land Employees’ Share Option Scheme and 730,000 options under the call option to Keppel Land Limited. Mr Kevin Wong Kingcheung, being a director of the company, was granted an option, the outstanding amount of which was for 840,000 shares as at 31 December 2005*. Details and terms of the options have been disclosed in the Directors’ Report of Dragon Land Limited.

* Any benefit arising from the exercise of this option shall accrue to the Company in accordance with the Company’s remuneration policy.

4. Audit Committee

The Audit Committee comprises three independent Directors. Members of the Committee are:

Thai Chee Ken, Chairman (Resigned on 16 March 2006) Tsui Kai Chong Lee Ai Ming

The Audit Committee carried out its functions in accordance with the Companies Act, Cap. 50 which included the following:

– Reviewed the audit plans and reports of the Company’s external auditors and internal auditors, and considered the effectiveness of actions/policies taken by Management on their recommendations and observations; – Reviewed the assistance given by the Company’s officers to the auditors; – Carried out review of quarterly financial reports and year-end financial statements; – Examined the effectiveness of financial, operating and compliance controls; 165

KLL StateAcc 2005 fa.pm6.5 165 4/4/06, 6:32 PM Directors’ Report (cont’d)

– Reviewed the independence and objectivity of the external auditors; – Reviewed the nature and extent of non-audit services performed by auditors; – Met with external auditors and internal auditors, without the presence of management; – Ensured that the internal audit function is adequately resourced and has appropriate standing within the Company; – Reviewed interested person transactions; – Reviewed the effectiveness of the Group’s risk management policies, processes and strategies; and – Investigated any matters within the Audit Committee’s term of reference.

The Audit Committee has recommended to the Board of Directors the re-appointment of Ernst & Young, Certified Public Accountants as external auditors of the Company at the forthcoming Annual General Meeting.

5. Auditors

The auditors, Ernst & Young, Certified Public Accountants, have expressed their willingness to accept re-appointment as auditors.

On Behalf of the Board

LIM CHEE ONN KEVIN WONG KINGCHEUNG Chairman Managing Director

Singapore, 21 March 2006

166

KLL StateAcc 2005 fa.pm6.5 166 4/4/06, 6:32 PM Statement by Directors

For the Year ended 31 December 2005

We, LIM CHEE ONN and KEVIN WONG KINGCHEUNG, being two of the Directors of Keppel Land Limited, do hereby state that, in the opinion of the Directors:

(a) the accompanying balance sheets, consolidated profit and loss account, consolidated statement of changes in equity and consolidated cashflow statement, together with the notes thereon, set out on pages 169 to 216 are drawn up so as to exhibit a true and fair view of the state of affairs of the Company and of the Group as at 31December 2005 and of the results and changes in equity, and cash flows of the Group for the year then ended; and

(b) at the date of this statement, there are reasonable grounds to believe that the Company will be able to pay its debts as and when they fall due.

On behalf of the Board

LIM CHEE ONN KEVIN WONG KINGCHEUNG Chairman Managing Director

Singapore, 21 March 2006

167

KLL StateAcc 2005 fa.pm6.5 167 4/4/06, 6:32 PM Auditors’ Report to The Members of Keppel Land Limited

For the Year ended 31 December 2005

We have audited the accompanying financial statements of Keppel Land Limited (“The Company”) and its subsidiaries (“The Group”) set out on pages 169 to 216 for the year ended 31 December 2005. These financial statements are the responsibility of the Company’s Directors. Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audit in accordance with Singapore Standards on Auditing. Those Standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by the Directors, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

In our opinion,

(a) the consolidated financial statements of the Group and the balance sheet of the Company are properly drawn up in accordance with the provisions of the Singapore Companies Act, Cap. 50 (“the Act”) and Singapore Financial Reporting Standards so as to give a true and fair view of the state of affairs of the Group and of the Company as at 31 December 2005 and the results, changes in equity and cash flows of the Group for the year ended on that date; and

(b) the accounting and other records required by the Act to be kept by the Company and by those subsidiaries incorporated in Singapore of which we are the auditors have been properly kept in accordance with the provisions of the Act.

ERNST & YOUNG Certified Public Accountants

Singapore, 21 March 2006

168

KLL StateAcc 2005 fa.pm6.5 168 4/4/06, 6:32 PM Consolidated Profit and Loss Account

For the Year ended 31 December 2005

2005 2004 Note $’000 $’000 (As restated)

Sales 2 586,391 476,165 Cost of Sales (405,509) (347,476)

Gross Profit 180,882 128,689

Marketing expenses (3,561) (2,732) Administrative and other expenses (30,719) (14,906)

Operating Profit 3 146,602 111,051 Interest and investment income 2 & 4 34,016 16,471 Interest expense 5 (25,397) (23,964) Share of results of associated companies 17 28,228 36,357

Profit before Exceptional Items 183,449 139,915 Exceptional items 6 1,188 -

Profit before Taxation 184,637 139,915 Taxation 7 (35,562) (2,881)

Profit after Taxation 149,075 137,034

Attributable to:

Shareholders of the Company 155,709 132,687 Minority interests (6,634) 4,347 Profit after Taxation 149,075 137,034

Basic earnings per share (cents) 9 21.8 18.7

Diluted earnings per share (cents) 9 21.8 18.7

The notes shown on pages 175 to 216 form an integral part of the financial statements. 169

KLL StateAcc 2005 fa.pm6.5 169 4/4/06, 6:32 PM Balance Sheets

As at 31 December 2005

Group Company 2005 2004 2005 2004 Note $’000 $’000 $’000 $’000 (As restated)

Share Capital 10 357,576 355,975 357,576 355,975 Reserves 11 1,321,356 1,250,831 1,321,356 1,250,831 Share Capital and Reserves 1,678,932 1,606,806 1,678,932 1,606,806 Minority Interests 280,577 225,627 - - Total Equity 1,959,509 1,832,433 1,678,932 1,606,806 Long-Term Borrowings 12 2,625,273 1,828,821 1,710,612 1,177,608 4,584,782 3,661,254 3,389,544 2,784,414

Represented by: Fixed Assets 13 253,187 265,922 68 73 Investment Properties 14 1,655,370 1,490,061 - - Properties Held for Development 15 213,801 186,437 - - Investments Subsidiary companies 16 - - 3,402,836 2,585,270 Associated companies 17 1,209,749 891,466 150,351 297,799 Other investments 18 26,953 16,652 2,819 4,120 1,236,702 908,118 3,556,006 2,887,189

Current Assets Properties held for sale 19 1,379,511 1,123,939 - - Stocks 20 3,644 3,332 - - Debtors 21 140,180 181,027 2,316 19,389 Amounts owing by holding and related companies 22 20,209 24,362 279 3,420 Fixed deposits, bank balances and cash 23 597,677 392,924 1,295 7,485 2,141,221 1,725,584 3,890 30,294 Less: Current Liabilities

Creditors 24 602,492 531,549 13,782 6,567 Net tax provision 7 58,739 29,040 882 882 Short-term borrowings 25 206,923 325,812 151,160 121,240 868,154 886,401 165,824 128,689

Net Current Assets / (Liabilities) 1,273,067 839,183 (161,934) (98,395)

Deferred Taxation 7 (47,345) (28,467) (4,596) (4,453) 4,584,782 3,661,254 3,389,544 2,784,414

170 The notes shown on pages 175 to 216 form an integral part of the financial statements.

KLL StateAcc 2005 fa.pm6.5 170 4/4/06, 6:32 PM Consolidated Statement of Changes in Equity

For the Year ended 31 December 2005

Property Revaluation Foreign and Other Currency Share Share Capital Translation Revenue Minority Total Capital Premium Reserves Account Reserve Total Interests Equity $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000

Balance at 1 January 2005 As previously reported 355,975 814,751 361,444 (28,650) 103,286 1,606,806 225,627 1,832,433

Effect of adopting FRS 102 - - 781 - (781) - - -

As restated 355,975 814,751 362,225 (28,650) 102,505 1,606,806 225,627 1,832,433

Effect of adopting FRS 39 - - 4,694 - (20,684) (15,990) - (15,990) 355,975 814,751 366,919 (28,650) 81,821 1,590,816 225,627 1,816,443 Net surplus on revaluation of investment properties and other assets - - 13,490 - - 13,490 5,016 18,506 Net fair value change on available- for-sale financial assets - - (1,154) - - (1,154) 7 (1,147) Transfer from retained profit to capital redemption reserves - - 12 - (12) - - - Exchange difference adjustment arising on consolidation - - - 10,953 - 10,953 1,175 12,128 Net gains/(loss) not recognised in profit and loss account - - 12,348 10,953 (12) 23,289 6,198 29,487 Net profit/(loss) for the year - - - - 155,709 155,709 (6,634) 149,075

Total recognised gains/(loss) for the year - - 12,348 10,953 155,697 178,998 (436) 178,562

Issue of shares under the Keppel Land Share Option Scheme 1,601 4,043 - - - 5,644 - 5,644 Net revaluation surplus realised and transferred to profit and loss account - - (68,616) - - (68,616) - (68,616) Cost of share-based payments - - 633 - - 633 - 633 Dividend paid - - - - (28,543) (28,543) (12,793) (41,336) Capital contribution ------29,685 29,685 Acquisition of interest from minority shareholders ------(2,598) (2,598) Minority interests of a non-wholly owned subsidiary acquired ------41,092 41,092 Balance at 31 December 2005 357,576 818,794 311,284 (17,697) 208,975 1,678,932 280,577 1,959,509

The notes shown on pages 175 to 216 form an integral part of the financial statements. 171

KLL StateAcc 2005 fa.pm6.5 171 4/4/06, 6:32 PM Consolidated Statement of Changes in Equity (cont’d)

For the Year ended 31 December 2004

Balance at 1 January 2004 As previously reported 354,946 812,833 377,479 (50,892) (7,462) 1,486,904 206,302 1,693,206

Effect of adopting FRS 102 - - 188 - (188) - - -

As restated 354,946 812,833 377,667 (50,892) (7,650) 1,486,904 206,302 1,693,206

Net surplus on revaluation of investment properties - - 8,283 - - 8,283 2,714 10,997 Transfer from property revaluation and other capital reserves to retained profit - - (210) - 210 - - - Exchange difference adjustment arising on consolidation - - - 22,242 - 22,242 26,612 48,854 Net gains not recognised in profit and loss account - - 8,073 22,242 210 30,525 29,326 59,851 Net profit for the year - - - - 132,687 132,687 4,347 137,034

Total recognised gains for the year - - 8,073 22,242 132,897 163,212 33,673 196,885

Issue of shares under the Keppel Land Share Option Scheme 1,029 1,918 - - - 2,947 - 2,947

Cost of share-based payments - - 593 - - 593 - 593

Net revaluation surplus realised and transferred to profit and loss account - - (24,108) - - (24,108) - (24,108)

Dividend paid - - - - (22,742) (22,742) (14,348) (37,090) Balance at 31 December 2004 355,975 814,751 362,225 (28,650) 102,505 1,606,806 225,627 1,832,433

172 The notes shown on pages 175 to 216 form an integral part of the financial statements.

KLL StateAcc 2005 fa.pm6.5 172 4/4/06, 6:32 PM Consolidated Cashflow Statement

For the Year ended 31 December 2005

2005 2004 $’000 $’000

Cash Flow from Operating Activities: Operating profit before interest, taxation and exceptional items 146,602 111,051 Adjustments for: Depreciation of fixed assets 17,320 13,427 Write-back of provision for properties held for sale (17,161) (14,527) Write-back of provision for doubtful debts and bad debts (3,099) (2,174) Write-back of provision for diminution in value of investments - (5,012) Cost of share-based payments 633 593 Operating Income Before Reinvestment in Working Capital 144,295 103,358

Decrease/(increase) in debtors 12,346 (27,457) Increase in work-in-progress and stocks (82,565) (101,857) Development expenditure (656,367) (376,655) Proceeds from progress billings 552,875 238,765 Increase in creditors 5,273 9,172 Cash Used in Operations (24,143) (154,674)

Income received from investment 589 266 Interest received 33,427 16,205 Interest paid (25,397) (23,964) Income taxes paid (9,879) (4,622) Net Cash Used in Operating Activities (25,403) (166,789)

Cash Flow from Investing Activities: Purchase of fixed assets and improvement in investment properties (4,549) (1,409) Repayments by / (investment in) investee company (12,646) 26,960 Acquisition of subsidiary company (139,517) (10,214) Additional investment in associated companies (18,780) (30,440) Proceeds from sale of fixed assets 903 19 Net Cash Used in Investing Activities (174,589) (15,084)

Cash Flow from Financing Activities: Proceeds from issuance of shares by Company 5,644 2,947 Net loan drawdown 645,550 107,425 Advances from minority shareholders of certain subsidiaries 47,822 9,322 Loans (to) / from related and associated companies, less dividends (295,199) 8,150 Dividends paid to shareholders (28,543) (22,742) Contributions from, less dividends to, minority shareholders of subsidiary companies 15,149 (14,348) Net Cash from Financing Activities 390,423 90,754

Net Increase / (Decrease) in Cash and Cash Equivalents 190,431 (91,119) Cash and Cash Equivalents at Beginning of Year 392,924 500,926 Exchange adjustments 14,322 (16,883) Cash and Cash Equivalents at End of Year 597,677 392,924 173

KLL StateAcc 2005 fa.pm6.5 173 4/4/06, 6:32 PM Consolidated Cashflow Statement (cont’d)

2005 2004 $’000 $’000

Represented By: Cash and Cash Equivalents Fixed deposits, bank balances and cash 453,500 350,939 Deposits with related companies 144,177 41,985 597,677 392,924

The acquisition of shares in subsidiary companies have been shown as a separate item, and their effect on the individual assets and liabilities of the Group is not reflected in the above statement. During the year, the fair values of net assets of subsidiary companies acquired were as follows:

2005 2004 $’000 $’000 Net assets acquired: Fixed assets and investment properties 168,774 - Development property 20,561 - Investments 15,269 - Properties held for sale 52,175 11,075 Net creditors (14,121) (861) Net bank balances 23,994 22 Short and long-term loans (9,648) - Taxation (29,161) - Minority interests (41,092) - Amount previously accounted for as an associated company (23,240) - 163,511 10,236 Less: New bank balances acquired (23,994) (22) Net cash outflow on acquisition of subsidiaries 139,517 10,214

174 The notes shown on pages 175 to 216 form an integral part of the financial statements.

KLL StateAcc 2005 fa.pm6.5 174 4/4/06, 6:32 PM Summary of Significant Accounting Policies

For the Year ended 31 December 2005

Corporate Information

The Company is a limited liability company incorporated in Singapore, and is listed on the Singapore Exchange Securities Trading Limited. The address of its registered office is 230 Victoria Street #15-05, Bugis Junction Towers, Singapore 188024.

The financial statements of Keppel Land Limited for the year ended 31 December 2005 were authorised for issue on 21 March 2006 in accordance with a resolution of the Board of Directors.

The number of employees of the Group as at 31 December 2005 was 2,106 (2004 : 1,983 employees). The Company had no direct employee as at 31 December 2005 and 31 December 2004.

The immediate and ultimate holding company is Keppel Corporation Limited, incorporated in Singapore.

Summary of Significant Accounting Policies

The following summary explains the Group’s significant accounting policies which have been consistently applied, and are the same as those used in the previous financial year, except where otherwise indicated:

(a) Basis of Preparation

The financial statements are prepared in accordance with Singapore Financial Reporting Standards (“FRS”). The financial statements have been prepared under the historical cost convention, except as disclosed in the accounting policies below.

The financial statements are expressed in Singapore dollars and all values are rounded to the nearest thousand ($’000) except when otherwise indicated.

(b) Changes in Accounting Policies

In 2005, the Group and the Company adopted the new or revised FRS and Interpretations to FRS (“INT FRS”) that are applicable in the current financial year. The 2005 financial statements had been amended as required, in accordance with the relevant transitional provisions in the respective FRS and INT FRS. The following are the FRS and INT FRS that are relevant to the Group:

FRS 1 (Revised) Presentation of financial statements FRS 2 (Revised) Inventories FRS 8 (Revised) Accounting policies, changes in accounting estimates and errors FRS 10 (Revised) Events after the balance sheet date FRS 16 (Revised) Property, plant and equipment FRS 17 (Revised) Leases FRS 21 (Revised) The effects of changes in foreign exchange rates FRS 24 (Revised) Related party disclosures FRS 27 (Revised) Consolidated and separate financial statements FRS 28 (Revised) Investments in associates FRS 32 (Revised) Financial instruments: Disclosure and presentation FRS 33 (Revised) Earnings per share FRS 36 (Revised) Impairment of assets FRS 39 Financial instruments: Recognition and measurement FRS 102 Share-based payment FRS 103 Business combinations FRS 105 Non-current assets held for sale and discontinued operations 175

KLL StateAcc 2005 fa.pm6.5 175 4/4/06, 6:32 PM Summary of Significant Accounting Policies (cont’d)

(b) Changes in the Accounting Policies (Cont’d)

The adoption of the new or revised FRS and INT FRS had no material financial impact on the accounts of the Group and the Company for the year except for FRS 21, 39, 102 and 103, whose financial effects are summarised as follows:

FRS 21 The Company had extended foreign currency loans to overseas subsidiaries which were considered as part of the Company’s net investment in these subsidiaries. Up to 31 December 2004, such exchange differences were taken as direct movements to foreign currency translation account by the Company. Under FRS 21 (Revised), the exchange differences for each reporting period should be taken to the profit and loss account. As a result of the adoption of FRS 21 (Revised) with effect from 1 January 2005, the balance in foreign currency translation account as at 1 January 2004 was adjusted to revenue reserve.

Adoption of FRS 21 (Revised) had no impact on the Group accounts as the exchange differences on such foreign currency loans by the Company are allowed to be taken as direct movements to the foreign currency translation account.

FRS 39 Financial assets and liabilities, including derivative financial instruments are now classified and measured in accordance with the requirements under FRS 39. This change in accounting policy had been accounted for prospectively in accordance with the transitional provisions. The adoption of FRS 39 resulted in an increase of $4,694,000 in Group capital reserves and a decrease of $20,684,000 in Group revenue reserves as at 1 January 2005. There was no restatement from the profit and loss accounts of the Group and the Company in 2004.

FRS 102 Under FRS 102, share options to employees are now measured at fair value at the date of grant and recognised as expense over the vesting period. Prior to the adoption of FRS 102, share options to employees were not charged to the profit and loss account. This change in accounting policy had been accounted for retrospectively in accordance with the transitional provisions, and resulted in:

Group 2005 2004 $000 $000

Decrease in profit after taxation (633) (593) Increase in capital reserves 781 188 Decrease in revenue reserve (781) (188) Decrease in basic EPS before exceptional items (cents) (0.1) (0.1) Decrease in diluted EPS before exceptional items (cents) (0.1) -

FRS 103 During the year, the Company acquired Bugis Junction Towers through the purchase of shares in BCH Office Investment Pte Ltd and increased its stake in Dragon Land Limited to 55.9%. As required by FRS 103, the assets and liabilities of these subsidiaries were stated at their fair values at the dates of acquisition. 176

KLL StateAcc 2005 fa.pm6.5 176 4/4/06, 6:32 PM (c) Critical Accounting Estimates and Judgements

Assumptions concerning the future and judgements are made in the preparation of the financial statements. They affect the application of the Group’s accounting policies, reported amounts of assets, liabilities, income and expenses, and disclosure of contingent assets and liabilities. They are assessed on an on-going basis and are based on experience and relevant factors, including expectations of future events that are believed to be reasonable under the circumstances.

(i) Key Sources of Estimation Uncertainty

The key assumptions concerning the future and other key sources of estimation uncertainty at the balance sheet date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are as follows:

Impairment in Value of Fixed Assets Determining whether fixed asset value is impaired requires an estimation of the value in use of the cash-generating units. This requires the Group to estimate the future cashflows expected from the cash-generating units and an appropriate discount rate in order to calculate the present value of the future cashflows. The carrying amount of fixed assets at the balance sheet date is disclosed in Note 13.

Impairment in Value of Available-for-sale Investments Determining whether available-for-sale investments are other than temporary impaired requires an assumption regarding the duration and extent to which the fair value of an investment is less than its cost, and the financial health of and near-term business outlook for the investee, including factors such as industry and sector performance, changes in technology and operational and financing cashflows. The fair value of available-for-sale investments is disclosed in Note 18.

Revenue Recognition The Group recognises revenue from partly completed projects based on the stage of completion method. The stage of completion is measured in accordance with the accounting policy stated in (k) below. Significant assumptions are required in determining the stage of completion, the total estimated development costs and the estimated total revenue. In making the assumptions, the Group evaluates them by relying on past experience and the work of specialists. Revenue from partly completed projects is disclosed in Note 2.

Income Taxes The Group has exposure to income taxes in numerous jurisdictions. Significant assumption is required in determining the provision for income taxes. There are certain transactions and computa- tions for which the ultimate tax determination is uncertain during the ordinary course of business. The Group recognises liabilities for expected tax issues based on estimates of whether additional taxes will be due. Where the final tax outcome of these matters is different from the amounts that were initially recognised, such differences will impact the income tax and deferred tax provisions in the year in which such determination is made. The carrying amounts of taxation and deferred taxation are disclosed in the balance sheet.

(ii) Critical Judgement in Applying the Group’s Accounting Policies

In the process of applying the Group’s accounting policies, management is of the opinion that the instances of application of judgement are not expected to have a significant effect on the amounts recognised in the financial statements, apart from those involving estimations. 177

KLL StateAcc 2005 fa.pm6.5 177 4/4/06, 6:32 PM Summary of Significant Accounting Policies (cont’d)

(d) Subsidiaries and Principles of Consolidation

(i) Subsidiaries

Subsidiary companies are those in which more than 50% of the issued share capital is held or in which the Group has Board control.

Investments in subsidiary companies are stated in the accounts of the Company at the attributable share of the fair values of their combined net assets. The fair values of subsidiary companies that are actively traded in organised financial markets are determined by reference to the relevant stock exchanges’ quoted market bid prices at the close of business on the balance sheet date. For subsidiary companies where there is no active market, reference is made to their underlying net asset values. Any revaluation surplus or deficit arising is transferred directly to capital reserves. Revaluation deficits are taken to the profit and loss account in the absence of or to the extent that they exceed any surpluses held in reserves relating to previous revaluations. Any increase in revaluation directly related to a previous decrease in the carrying amount for the same investment that was recognised as an expense is credited to revenue reserve to the extent that it offsets the previously recorded decrease.

(ii) Principles of Consolidation

The consolidated financial statements comprise the financial statements of the Company and its subsidiaries as at the balance sheet date. The financial statements of the subsidiaries are prepared for the same reporting date as the parent company. Consistent accounting policies are applied for like transactions and events in similar circumstances.

All intra-group balances, transactions, income and expenses and profits and losses resulting from intra-group transactions that are recognised in assets are eliminated in full.

Subsidiaries are fully consolidated from the date of acquisition, being the date on which the Group obtains control, and continue to be consolidated until the date that such control ceases.

Acquisitions of subsidiaries are accounted for using the purchase method. The cost of an acquisition is measured as the fair value of the assets given, equity instruments issued and liabilities incurred or assumed at the date of exchange, plus costs directly attributable to the acquisition. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date, irrespective of the extent of any minority interest.

Any excess of the cost of the business combination over the Group’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities represents goodwill. The goodwill is accounted for in accordance with the accounting policy for goodwill stated in (e) below.

Any excess of the Group’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities over the cost of business combination is recognised in the profit and loss account on the date of acquisition.

Minority interests represent the portion of profit or loss and net assets in subsidiaries not held by the Group. They are presented in the consolidated balance sheet within equity, separately from the 178 parent shareholders’ equity, and are separately disclosed in the consolidated profit and loss account.

KLL StateAcc 2005 fa.pm6.5 178 4/4/06, 6:32 PM (e) Goodwill

Goodwill acquired in a business combination is initially measured at cost being the excess of the cost of the business combination over the Group’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities. Following initial recognition, goodwill is measured at cost less any accumulated impairment losses. Goodwill is reviewed for impairment, annually or more frequently if events or changes in circumstances indicate that the carrying value may be impaired.

(f) Associated Companies

Associated companies are those in which the Group has a long-term substantial equity interest and in whose commercial and financial policy decisions the Group actively participates. Investments in associated companies are accounted for in the consolidated financial statements using the equity method of accounting whereby the Group’s share of profits less losses of associated companies, as shown in their audited accounts for the year ended 31 December (except for certain associated companies), is included in the Group’s results and the Group’s share of net assets of the associated company is included in the balance sheet.

The results of certain associated companies which do not prepare audited accounts at 31 December are based on their latest audited accounts and unaudited management accounts for the ensuing months up to 31 December.

Investments in associated companies are stated in the Company’s accounts at the attributable share of the fair values of their combined net assets as shown in their accounts. Any revaluation surplus or deficit arising is taken directly to capital reserves. Revaluation deficits are taken to the profit and loss account in the absence of or to the extent that they exceed any surpluses held in reserves relating to previous revaluations. Any increase in revaluation directly related to a previous decrease in the carrying amount for the same investment that was recognised as an expense is credited to revenue reserve to the extent that it offsets the previously recorded decrease.

(g) Other Investments

Other investments represent non-derivative financial assets that are designated as available-for-sale. After initial recognition, available-for-sale financial assets are measured at fair value with gains or losses being recognised in the fair value adjustment reserve until the investment is derecognised or until the investment is determined to be impaired at which time the cumulative gain or loss previously reported in equity is included in the profit and loss account.

The fair value of investments that are actively traded in organised financial markets is determined by reference to the relevant stock exchanges’ quoted market bid prices at the close of business on the balance sheet date. For investments where there is no active market, the fair value is determined using valuation techniques. Such techniques include using recent arm’s length transactions, reference to the underlying net asset value of the investee companies and discounted cash flow analysis.

179

KLL StateAcc 2005 fa.pm6.5 179 4/4/06, 6:32 PM Summary of Significant Accounting Policies (cont’d)

(h) Fixed Assets

Fixed assets are stated at cost less accumulated depreciation and any impairment in value.

All fixed assets, except for freehold and long leasehold (i.e. with unexpired tenures of over 20 years) land, are depreciated evenly over their estimated useful lives and residual values have also been taken into account where appropriate. The estimated useful lives of the Group’s fixed assets have been taken as follows:

Buildings 30 to 50 years Short leasehold land and buildings Over period of lease (ranging from 2 to 20 years) Machinery and equipment 3 to 7 years Motor vehicles 4 to 5 years

Profits or losses on disposal of all fixed assets are included in the profit and loss account.

(i) Investment Properties

Investment properties are accounted for as long-term investment and stated at valuation made each year. Revaluation surpluses arising on annual valuations of the Group’s investment properties are credited directly to capital reserves. Revaluation deficits are taken to the profit and loss account in the absence of or to the extent that they exceed any surpluses held in reserves relating to previous revaluations.

Profits or losses on disposal of all investment properties are included in the profit and loss account. Any surpluses held in capital reserves in respect of previous revaluations of investment properties disposed of are regarded as having become realised and are transferred to the profit and loss account.

(j) Properties Held for Development

Properties held for development are stated at cost less impairment, which includes cost of land and construction, related overhead expenditure and financing charges and other net costs incurred during the period of development. They are considered completed and are transferred to investment properties or fixed assets when they are ready for their intended use.

Each property under development is accounted for as a separate project. Where a project comprises more than one component or phase with a separate temporary occupation permit, each component or phase is treated as a separate project, and interest and other net costs are apportioned accordingly.

(k) Properties Held for Sale

Development properties held for sale are stated at the lower of cost and net realisable value. Upon receipt of temporary occupation permits, they are transferred to completed properties held for sale.

Profit recognised on partly completed projects which are held for sale is based on the percentage of completion method as follows :

(i) For Singapore trading properties under development, the profit recognition upon the signing of sales contracts is 20% of the total estimated profit attributable to the actual contracts signed. Subsequent recognition of profit is based on the stage of physical completion; 180

KLL StateAcc 2005 fa.pm6.5 180 4/4/06, 6:32 PM (ii) For overseas trading properties under development, the profit recognition upon the signing of sales contracts is the direct proportion of total expected project profit attributable to the actual sales contracts signed, but only to the extent that it relates to the stage of physical completion.

Progress claims made against partly completed projects are offset against their development costs.

When losses are expected, full provision is made in the accounts after adequate allowance has been made for estimated costs to completion. Any expenditure incurred on abortive projects is written off in the profit and loss account.

Profit on partly completed projects which are held for sale less any provision to reduce cost to estimated realisable value as well as the profit or loss on sale of completed properties are included in the operating results.

Completed properties held for sale are stated at the lower of cost and net realisable value. Cost includes cost of land and construction related overhead expenditure, and financing changes and other net costs incurred during the period of development.

(l) Stocks

Stocks are valued at the lower of weighted average cost and net realisable value after adequate provision is made for damaged, obsolete or slow-moving stocks on an item by item basis.

(m) Financial Assets

Financial assets include cash and bank balances, trade, intercompany and other receivables and investments. Trade, intercompany and other receivables are stated at their fair value as reduced by appropriate allowances for estimated irrecoverable amounts.

(n) Financial Liabilities

Financial liabilities include trade, intercompany and other payables and borrowings. Trade, intercompany and other payables are stated at their fair value. Interest-bearing borrowings are initially measured at fair value and are subsequently measured at amortised cost. Any difference between the proceeds (net of transaction costs) and the redemption value is taken to the profit and loss account over the period of the borrowings using the effective interest method.

(o) Impairment of Assets

At each balance sheet date, the Group reviews the carrying amounts of its assets to determine whether there is any indication that the assets have suffered an impairment loss.

If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss. Whenever the recoverable amount of an asset is estimated to be less than its carrying amount, the impairment loss is recognised in the profit and loss account. 181

KLL StateAcc 2005 fa.pm6.5 181 4/4/06, 6:32 PM Summary of Significant Accounting Policies (cont’d)

Reversal of impairment loss recognised previously is recorded when there is an indication that the impairment loss recognised for the asset no longer exists or has decreased. The reversal is recorded in the profit and loss account. However, the increased carrying amount of an asset due to any reversal of impairment loss is recognised to the extent that it does not exceed the cost, net of depreciation of that asset at the date of such reversal.

(p) Provisions

Provisions are recognised when the Group has a present legal or constructive obligation as a result of past events, and when it is probable that an outflow of resources will be required to settle the obligation and a reliable estimate of the amount can be made.

(q) Revenue Recognition

Rental and related income from operating leases on investment properties are recognised on a straight-line basis over the lease term.

Revenue recognition from trading properties is set out in paragraph (k) above.

Revenue from the rendering of services is recognised when the service is rendered.

Dividend income is recognised in the accounts when it is declared to be payable by the investee companies.

Interest income is recognised on an accrual basis.

(r) Employee Benefits

(i) Defined Contribution Plan

The Group makes contributions to pension schemes as defined by the laws of the countries in which it has operations. In particular, the Singapore companies in the Group make contributions to the Central Provident in Singapore, a defined contribution pension scheme. Contributions to pension schemes are recognised as an expense in the period in which the related service is performed.

(ii) Employee Leave Entitlement

Employee entitlements to annual leave are recognised when they accrue to employees. A provision is made for the estimated liability for leave as a result of services rendered by employees up to the balance sheet date.

(iii) Share Option Scheme

The Company has in place Keppel Land Share Option Scheme for the granting of options to eligible employees of the Group to subscribe for shares in the Company. Details of the scheme are disclosed in the Directors’ Report. The fair value of the employee services rendered in exchange for the grant of the options is recognised as an expense in the profit and loss account with a corresponding increase in the share option reserve over the vesting period. The total amount to be recognised over the vesting period is determined by reference to the fair value of the options 182 granted on the date of the grant.

KLL StateAcc 2005 fa.pm6.5 182 4/4/06, 6:32 PM (s) Deferred Taxation

Deferred taxation is provided in full, using the liability method, on all temporary differences between the tax bases of assets and liabilities at the balance sheet date and their carrying amounts.

The principal temporary differences arise from depreciation of fixed assets, offshore income and certain provisions or charges in the accounts for which the tax relief is not immediately available.

Deferred tax assets are recognised to the extent that it is probable that future taxable profits will be available against which the temporary differences can be utilised.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the year when the asset is realised or the liability is settled, based on tax rates enacted or substantively enacted at the balance sheet date.

(t) Foreign Currencies

Transactions in foreign currencies are measured in the functional currencies of the respective countries which the Group operates in and are recorded at exchange rates approximating those ruling at the transaction dates.

Foreign currency monetary assets and liabilities are measured using the exchange rates ruling at each balance sheet date. All resultant exchange differences arising from the conversion are dealt with through the profit and loss account.

For inclusion in Group accounts, all assets and liabilities of foreign subsidiaries and associated companies are translated into Singapore dollars, the functional currency of the Company, at the exchange rates ruling at each balance sheet date. Exchange differences due to such currency translations as well as the exchange differences in respect of offsetting foreign currency loans or other hedging instruments are dealt with in reserves. The trading results of foreign subsidiaries and associated companies are translated into Singapore dollars at the average exchange rates for the year.

183

KLL StateAcc 2005 fa.pm6.5 183 4/4/06, 6:32 PM Notes to the Financial Statements

For the Year ended 31 December 2005

1. Principal Activities

The principal activity of the Company is that of a holding, management and investment company.

The principal activities of the Company and its subsidiary companies (“the Group”) consist of property investment and development, and property-related services.

2. Revenue

Group 2005 2004 $’000 $’000

Sale of trading properties 465,057 361,138 Rental income from investment properties 69,368 71,288 Revenue from hotels and serviced apartments, and property services 51,966 43,739 Sales 586,391 476,165

Dividend income (gross) 589 266 Interest income 33,427 16,205 Interest and investment income 34,016 16,471

Total revenue 620,407 492,636

Sales represent the invoiced value of goods and services supplied. Inter-company transactions and the sales of associated companies have been excluded from Group sales.

184

KLL StateAcc 2005 fa.pm6.5 184 4/4/06, 6:32 PM 3. Operating Profit

Group 2005 2004 $’000 $’000

The following amounts have been charged / (credited) in arriving at operating profit:

Depreciation of fixed assets (See Note 13): Freehold buildings 5 5 Leasehold properties 12,418 7,880 Machinery, equipment and vehicles 4,897 5,542 17,320 13,427

Auditors’ remuneration: Auditors of the Company 561 465 Other auditors 486 269

Directors’ fees 610 573

Key managers’ emoluments*: Short-term benefits (including annual base salaries and annual performance incentives) 4,390 4,595 Employer’s contribution to defined contribution plans, including the Central Provident Fund 55 66 Cost of share-based payments 377 364 4,822 5,025

Staff costs (See note below): Short-term benefits (including annual base salaries and annual performance incentives) 39,404 31,637 Employer’s contribution to defined contribution plans, including the Central Provident Fund 2,564 2,996 Cost of share-based payments 256 229 42,224 34,862

Foreign exchange (gain) / loss (2,138) 6,243

Write-back of provision for doubtful debts and bad debts (3,099) (2,174)

Write-back of provision for diminution in value of other investments - (7,092)

Write-back of provisions for property held for sale (17,161) (14,527)

* For 2004, the amount included a one-off encashment of leave which the Company implemented on a Group-wide basis.

Staff costs capitalised during the year under properties held for development and sale amounted to $4,711,000 (2004: $4,286,000). 185

KLL StateAcc 2005 fa.pm6.5 185 4/4/06, 6:32 PM Notes to the Financial Statements (cont’d)

4. Interest and Investment Income

Group 2005 2004 $’000 $’000

Gross dividends from: Quoted investments 254 266 Unquoted investments 335 - Interest from deposits and short-term loans with: Banks 13,071 4,841 Holding and related companies (See note below) 46,035 36,914 Associated companies 13,562 7,783 Other companies 3,139 1,445 76,396 51,249 Interest capitalised (42,380) (34,778) 34,016 16,471

Included in interest income from deposits and short-term loans with holding and related companies is $42,380,000 (2004: $26,986,000) of interest earned from loans to certain subsidiary companies which capitalised the interest as property development cost. Interest on deposits with related companies is earned at rates ranging between 0.17% and 5.4% (2004: 0.17% and 5.2%) per annum.

5. Interest Expense

Group 2005 2004 $’000 $’000

Fair value gain on revaluation of interest rate hedging instruments 9,464 - On Bonds due 2005 (2,237) (9,175) On fixed term loans from banks (14,234) (5,898) On other term loans and overdrafts from: Related companies (36,538) (19,979) Banks (4,934) (11,620) Other companies (1,364) (1,736) On borrowings under MTN programme (See also Note 12) (17,934) (10,334) (67,777) (58,742) Interest capitalised (See also Note 4) 42,380 34,778 (25,397) (23,964)

Interest is charged by related companies at rates ranging from 1.85% to 6.23% (2004: 1.01% to 3.4%) per annum.

186

KLL StateAcc 2005 fa.pm6.5 186 4/4/06, 6:32 PM 6. Exceptional Items

Group 2005 2004 $’000 $’000

Share of an associated company’s net gain on sale of investment property and subsidiary company 37,791 - Provision for diminution in value of investment in associated companies (14,870) - Provision for diminution in value of the Group’s hotels (See also Note 13) (21,733) - 1,188 -

7. Taxation

Group 2005 2004 $’000 $’000 Current tax: Singapore 5,408 4,502 Foreign 37,488 15,982 Deferred tax: Singapore (6,176) (2,511) Foreign 313 (262) Current year’s tax expense 37,033 17,711 Over provision in respect of prior years (1,270) (5,535) Associated companies 5,468 6,836 Group relief and others (5,669) (16,131) Tax expense 35,562 2,881

187

KLL StateAcc 2005 fa.pm6.5 187 4/4/06, 6:32 PM Notes to the Financial Statements (cont’d)

7. Taxation (cont’d)

A reconciliation between the tax expense reported and the product of accounting profit multiplied by the applicable tax rate is as follows :

Group 2005 2004 $’000 $’000

Profit before tax and exceptional items 183,449 139,915

Tax at the rates applicable 36,690 27,983 Write-back of provisions for property held for sale not subject to tax (3,432) (2,905) Deferred tax write-back (5,863) (2,773) Losses not deductible for tax purposes 16,644 7,781 Expenses not deductible for tax purposes 1,562 1,297 Utilisation of capital allowances and losses (1,864) (581) Different tax rates in other jurisdictions 12,421 6,265 Non-taxable income (13,729) (12,205) Associated companies and other items (5,396) (7,151) Current year’s tax expense 37,033 17,711

The statutory income tax rate applicable to Singapore Group companies for Year of Assessment 2006 is 20% (Year of Assessment 2005 : 20%).

Under the group tax relief system introduced by the Inland Revenue Authority of Singapore (“IRAS”), a Singapore incorporated company may, upon satisfaction of the criteria set out by IRAS, transfer its current year’s unabsorbed capital allowances, trade losses and donations to another company belonging to the same group, to be deducted against the assessable income of the latter company. The loss so utilised is recognised as a deferred tax asset in the accounts of the transferor company.

Net Tax Provision

Group Company 2005 2004 2005 2004 $’000 $’000 $’000 $’000

Provision for taxation 67,728 36,371 882 882 Income tax refund receivable (8,989) (7,331) - - 58,739 29,040 882 882

Subject to Sections 23 and 37 of the Income Tax Act, Cap 134, the Group has certain unutilised tax losses of $290,204,000 (2004: $279,874,000) and capital allowances of $5,771,000 (2004: $46,000) at 31 December 2005 for which related tax benefits totalling $59,195,000 (2004: $55,984,000) have not been included in the accounts. The tax losses are available for offset against future taxable profits of the companies in which the losses arose but for which no deferred tax asset has been recognised due to uncertainty of their recoverability. 188

KLL StateAcc 2005 fa.pm6.5 188 4/4/06, 6:32 PM Deferred Taxation

Deferred tax at the end of the year consists of the following :

Group Company 2005 2004 2005 2004 $’000 $’000 $’000 $’000

Deferred tax liabilities : Differences in depreciation 15,813 21,731 - - Offshore income not remitted 5,892 6,736 4,596 4,453 Difference in fair values and book values of assets of subsidiaries acquired 25,640 - - - 47,345 28,467 4,596 4,453

8. Dividend

Group Company 2005 2004 2005 2004 $’000 $’000 $’000 $’000

Dividend paid : 10 % (or 5 cents per share) less tax [2004: 8% (or 4 cents per share) less tax] 28,543 22,742 28,543 22,742

The Directors propose that a final one-tier dividend of 10% or 5 cents per share (2004: 10% or 5 cents per share less tax) be paid for the year ended 31 December 2005.

9. Earnings per Share

Group 2005 2004 $’000 $’000

(a) The calculation of basic earnings per share is based on the following: Profit after tax and minority interests 155,709 132,687 Weighted average number of shares (‘000) 713,456 710,144

(b) The calculation of diluted earnings per share is based on the following: The average fair value of one ordinary share ($) 3.66 1.84 Weighted average number of shares (used in the calculation of basic earnings per share) (‘000) 713,456 710,144 Number of unissued shares under option (‘000) 4,391 3,971 Number of shares that would have been issued at fair value (‘000) (2,096) (3,080) Adjusted weighted average number of shares 715,751 711,035 189

KLL StateAcc 2005 fa.pm6.5 189 4/4/06, 6:32 PM Notes to the Financial Statements (cont’d)

10. Share Capital

Group and Company Group and Company 2005 2004 2005 2004 Shares Shares ’000 ’000 $’000 $’000

Authorised: 1,000,000,000 shares with equal voting rights 1,000,000 1,000,000 500,000 500,000 Issued and fully paid: 715,153,081 (2004: 711,950,582) shares 715,153 711,950 357,576 355,975 Issued and fully paid: At 1 January 711,950 709,890 355,975 354,946 Shares issued under the Keppel Land Share Option Scheme 3,203 2,060 1,601 1,029 At 31 December 715,153 711,950 357,576 355,975

The holders of ordinary shares are entitled to receive dividends as and when declared by the Company. All ordinary shares carry one vote per share without restrictions.

During the year, the Company issued for cash 3,202,500 shares comprising 105,000 shares at $1.71 per share, 400,000 shares at $2.48 per share, 524,000 shares at $1.87 per share, 421,000 shares at $2.47 per share, 491,000 shares at $1.35 per share, 989,000 shares at $1.44 per share, 132,500 shares at $1.17 per share and 140,000 shares at $1.48 per share to certain full-time employees on exercise of options under the Keppel Land Share Option Scheme.

Keppel Land Share Option Scheme

Details of share options granted to employees under the Keppel Land Share Option Scheme are set out in section 2 of the Directors’ Report.

Movements in the number of share options and their weighted average exercise prices are as follows:

2005 2004 Weighted Weighted Average Average Number of Exercise Number of Exercise Options price Options price

Balance at 1 January 9,423,000 $1.77 10,716,500 $1.75 Granted 1,340,000 $2.73 1,110,000 $1.85 Exercised (3,202,500) $1.75 (2,060,500) $1.59 Cancelled (719,500) $1.89 (343,000) $1.89 Balance at 31 December 6,841,000 $1.93 9,423,000 $1.77

Exercisable at 31 December 4,391,000 $1.75 7,272,000 $1.89 190

KLL StateAcc 2005 fa.pm6.5 190 4/4/06, 6:32 PM The weighted average share price at the date of exercise for options exercised during the financial year was $3.06 (2004 : $1.87). The options outstanding at the end of the financial year had a weighted average exercise price of $1.75 (2004 : $1.89) and a weighted average remaining contractual life of 6.9 years (2004 : 7.1 years).

On 9 December 2005, the Company granted a total of 1,340,000 (in two tranches of 670,000 each) options under the Keppel Land Share Option Scheme. The estimated fair values of the options granted are $1.083 and $1.4397 respectively. These fair values are determined using the Black-Scholes pricing model. The significant inputs into the model are as follows:

2005 2004 Date of grant 9.12.05 9.12.05 11.2.04 11.8.04 (First (Second Tranche) Tranche)

Share price $2.38 $3.07 $1.86 $1.84 Exercise price $2.38 $3.07 $1.86 $1.84 Expected volatility 58.66% 58.77% 58.94% 58.86% Expected life 5 years 5 years 5 years 5 years Risk free rate 2.22% 2.22% 2.18% 2.12% Expected dividend yield 1.68% 1.3% 2.15% 2.17%

The expected volatility is determined by calculating the historical volatility of the Company’s share price over the previous five years. The expected life used in the model has been adjusted, based on management’s best estimate, for the effects of non-transferability, exercise restrictions and behavioural considerations.

At 31 December 2005, there were options granted to certain employees to take up 6,841,000 unissued shares in the Company as follows :

Subscription Number of Price $ Shares

1.71 134,000 2.48 498,000 1.87 326,000 2.47 787,000 1.35 727,000 1.44 1,150,500 1.17 388,000 1.48 380,500 1.86 520,000 1.84 590,000 2.38 670,000 3.07 670,000

6,841,000 191

KLL StateAcc 2005 fa.pm6.5 191 4/4/06, 6:32 PM Notes to the Financial Statements (cont’d)

10. Share Capital (cont’d)

Except under certain circumstances, an option may be exercised after two years from the date of grant but not later than the expiry date. The shares under option may be exercised in full or in respect of 100 shares or a multiple thereof on the payment of the subscription price.

The full-time employees to whom the options have been granted do not have the right to participate by virtue of the options in a share issue of any other company.

Further information on the Keppel Land Share Option Scheme is disclosed in the Directors’ Report.

11. Reserves

Group Company 2005 2004 2005 2004 $’000 $’000 $’000 $’000

Share premium 818,794 814,751 818,794 814,751

Capital reserves: Capital redemption reserves 4,005 3,993 - - Asset revaluation reserves 299,088 354,214 - - Share option reserves 1,414 781 1,414 781 Available-for-sale asset reserves 3,540 - - - Others 3,237 3,237 - - 311,284 362,225 1,414 781

Foreign currency translation account (17,697) (28,650) - -

Revenue reserves (See note below) Retained profit 208,975 102,505 501,148 435,299 1,321,356 1,250,831 1,321,356 1,250,831

Revenue reserves retained in: Company 501,148 435,299 501,148 435,299 Subsidiaries (316,167) (372,101) - - Associated companies 23,994 39,307 - - 208,975 102,505 501,148 435,299

Capital redemption reserves represent the amount by which the issued share capital of certain subsidiaries had been diminished on redemption of redeemable preference shares.

Asset revaluation reserves of the Group represent mainly the revaluation surplus from the Group’s investment buildings.

192 None of the above capital reserves is free for distribution as dividends.

KLL StateAcc 2005 fa.pm6.5 192 4/4/06, 6:32 PM The foreign currency translation account of the Group represents exchange differences arising from the translation of the financial statements of foreign subsidiaries and associated companies, and exchange differences in respect of offsetting foreign currency loans. The Group’s investments in Indonesia have been written down vide such year-end translation of foreign currencies, and the deficits have been included in this foreign currency translation account.

Revenue reserves are retention of distributable profits. Included in the distributable reserves is an amount of $222,428,000 (2004 : $251,242,000) which can be franked out of tax credits available in Singapore and Malaysia at the prevailing tax rates applicable to dividends. The Company intends to establish K-REIT Asia by way of distribution in specie which will utilise its Singapore tax credits fully (See also Note 34).

The Company’s net profit before exceptional item for the year is $66,275,000 (2004 : $75,662,000).

Movements in Group reserves are set out in the statement of changes in equity.

12. Long-term Borrowings

Group Company 2005 2004 2005 2004 $’000 $’000 $’000 $’000

Borrowings under MTN Programme 765,750 519,750 765,750 519,750

Bank borrowings: Secured 104,657 43,269 - - Unsecured 588,660 282,763 420,670 148,990 693,317 326,032 420,670 148,990

Loans from related companies, unsecured 1,166,206 983,039 524,192 508,868

Total 2,625,273 1,828,821 1,710,612 1,177,608

The Company has a US$800 million Multicurrency Medium Term Note (“MTN”) Programme under which it can issue notes in series or tranches and may be denominated in Singapore dollars, US dollars or other currency deemed appropriate at the time.

Notes which were outstanding at balance sheet date amounted to $765,750,000. The notes are unsecured and comprise (a) fixed rate notes due in 2007 and 2008 of $80,000,000, and (b) variable rate notes due in 2007, 2008, 2009, 2010, 2013 and 2014 of $685,750,000. Interest payable is based on money markets rates ranging from 1.26% to 4.39% (2004: 1.25% to 3.4%) per annum.

The Group’s secured bank borrowings bear interest at rates of 2.88% to 16.02% (2004: 1.41% to 5.75%) per annum. The securities are mortgages of properties held by subsidiary companies.

193

KLL StateAcc 2005 fa.pm6.5 193 4/4/06, 6:32 PM Notes to the Financial Statements (cont’d)

12. Long-term Borrowings (cont’d)

Interest on the Group’s unsecured bank borrowings is payable at rates ranging from 1.7% to 4.91% (2004: 1.56% to 2.25%) per annum.

The above long-term borrowings are repayable between two and eight years. Borrowings repayable within one year are shown under current liabilities.

Loans from related companies have no fixed terms of repayment and are not expected to be repaid over the next 12 months. Interest is payable at rates ranging from 1.85% to 6.23% (2004: 1.85% to 3.23%) per annum.

13. Fixed Assets

Land and Buildings Machinery, Long Equipment Freehold Lease & Vehicles Total $’000 $’000 $’000 $’000

Group Cost At 1 January 2005 156 269,551 128,483 398,190 Additions - 105 4,278 4,383 Disposals - (706) (243) (949) Costs adjustment - (1,169) - (1,169) Exchange differences arising on consolidation - 9,186 3,696 12,882 Subsidiaries acquired - 15,126 2,254 17,380 At 31 December 2005 156 292,093 138,468 430,717

Accumulated Depreciation and Impairment At 1 January 2005 83 31,578 100,607 132,268 Depreciation for the year 5 12,418 4,897 17,320 Disposals - - (232) (232) Provision for impairment in value - 8,263 13,470 21,733 Exchange differences arising on consolidation - 1,568 3,167 4,735 Subsidiaries acquired - 464 1,242 1,706 At 31 December 2005 88 54,291 123,151 177,530

Net Book Value 68 237,802 15,317 253,187

Owing to the continued uncertainty in Myanmar, the Group made an additional provision for impairment of $21,733,000 to the Group’s profit and loss account (2004 : Nil) during the year based on the Directors’ assessment of the recoverable amounts of the two hotels which were determined by discounting their future estimated cashflows from operations to present value at 7.5% (2004 : 7.5%). 194

KLL StateAcc 2005 fa.pm6.5 194 4/4/06, 6:32 PM Freehold Land and Buildings $’000

Company Cost At 1 January 2005 and at 31 December 2005 156

Depreciation At 1 January 2005 83 Depreciation for the year 5 At 31 December 2005 88

Net Book Value 68

Land and Buildings Machinery, Long Equipment Freehold Lease & Vehicles Total $’000 $’000 $’000 $’000

Group Cost

At 1 January 2004 156 239,513 125,286 364,955 Additions - 5 1,272 1,277 Disposals - - (1,939) (1,939) Exchange differences written back / arising on consolidation - 30,033 3,864 33,897 At 31 December 2004 156 269,551 128,483 398,190

Accumulated Depreciation and Impairment At 1 January 2004 78 52,704 70,145 122,927 Depreciation for the year 5 7,880 5,542 13,427 Disposals - - (1,905) (1,905) Reclassification - (25,800) 25,800 - Exchange differences arising on consolidation - (3,206) 1,025 (2,181) At 31 December 2004 83 31,578 100,607 132,268

Net Book Value 73 237,973 27,876 265,922

195

KLL StateAcc 2005 fa.pm6.5 195 4/4/06, 6:32 PM Notes to the Financial Statements (cont’d)

13. Fixed Assets (cont’d)

Freehold Land and Buildings $’000

Company Cost At 1 January 2004 and at 31 December 2004 156

Depreciation At 1 January 2004 78 Depreciation for the year 5 At 31 December 2004 83

Net Book Value 73

14. Investment Properties

Group Land and Buildings Long Freehold Lease Total $’000 $’000 $’000

Valuation At 1 January 2005 405,908 1,084,153 1,490,061 Revaluation surplus / (deficit) (11,700) 21,933 10,233 Improvements to buildings - 1,335 1,335 Disposals (902) - (902) Subsidiaries acquired 13,100 140,000 153,100 Exchange differences arising on consolidation (269) 1,812 1,543 At 31 December 2005 406,137 1,249,233 1,655,370

Comprising:

(i) Proposed transfer to K-REIT Asia (See also Note 34) 353,500 277,200 630,700

(ii) Balance after transfer 52,637 972,033 1,024,670 406,137 1,249,233 1,655,370

The Group’s investment properties (including integral plant and machinery) are stated at Directors’ valuation based on the following valuations (open market value basis) by independent firms of professional valuers as 196 at 31 December 2005:

KLL StateAcc 2005 fa.pm6.5 196 4/4/06, 6:32 PM (a) Colliers International Consultancy & Valuation (Singapore) Pte Ltd and DTZ Debenham Tie Leung (SEA) Pte Ltd for properties in Singapore;

(b) Associated Properties Consultants for properties in Vietnam;

(d) Brooke Real Estate Ltd for a property in Thailand.

Based on these valuations, the Group’s share of net revaluation surplus amounted to $6,034,000 (2004 : $11,636,000) and has been taken directly to capital reserves.

Properties amounting to $13,100,000 (2004 : $364,100,000) in value and included in the above balances were mortgaged to banks as securities for borrowings referred to in Notes 12 and 25.

15. Properties Held for Development

Group 2005 2004 $’000 $’000

Properties held for development comprise: Land costs 127,432 118,621 Development costs incurred 86,369 67,816 213,801 186,437

Properties held for development are transferred to fixed assets or investment properties when the respective developments are completed.

16. Subsidiary Companies

Company 2005 2004 $’000 $’000

At Directors’ valuation Quoted shares 105,388 51,116 (Market value $59,877,000; 2004 : $17,014,000) Unquoted shares 1,192,973 1,130,839 1,298,361 1,181,955 Advances to subsidiary companies (Non-trade) 2,135,149 1,492,303 3,433,510 2,674,258 Less: Advances from subsidiary companies (Non-trade) (30,674) (88,988) 3,402,836 2,585,270

The advances to and from subsidiary companies are unsecured and have no fixed terms of repayment. Interest-bearing advances to and from subsidiary companies are charged at rates ranging from 1.26% to 4.91% (2004: 0.45% to 2.6%) per annum. 197

KLL StateAcc 2005 fa.pm6.5 197 4/4/06, 6:32 PM Notes to the Financial Statements (cont’d)

16. Subsidiary Companies (cont’d)

The Company’s investment in its subsidiary companies is stated at the attributable share of the fair values of their combined net assets. The net revaluation surplus for the year amounted to $131,078,000 (2004 : $55,852,000), and has been taken to the revenue reserve.

The following subsidiaries were acquired by the Group during the financial year:

Effective Effective Interest Interest Name of before Interest after Net Assets Subsidiary Acquisition Acquired Acquisition Acquired Consideration $’000 $’000

Dragon Land Limited 24.9% 31% 55.9% 29,254 29,254

BCH Office Investment Pte Ltd - * 100% 100% 134,257 134,257

Profit of the acquired subsidiaries from the date of acquisition to 31 December 2005 amounted to $7,946,000. If the acquisition had occurred on 1 January 2005, Group revenue and profit before exceptional items would have been $596,174,000 and $163,751,000 respectively.

Details of fair values of net assets acquired are disclosed in the consolidated cash flow statement.

* The Group had an effective interest of 23.25% up to 31 October 2005 through its investment in Bugis City Holdings Pte Ltd, an associated company.

17. Associated Companies

Group Company 2005 2004 2005 2004 $’000 $’000 $’000 $’000

At Directors’ valuation - - 188,612 294,892 At cost 342,891 346,685 - - Share of post-acquisition retained revenue reserves (Distributable) 23,994 39,307 - - Capital and other reserves (Non-distributable) 21,304 55,395 - - Investment in associated companies (See note below) 388,189 441,387 188,612 294,892

Advances to associated companies (Non-trade) 865,606 452,523 2,907 2,907 Advances from associated companies (Non-trade) (44,046) (2,444) (41,168) - 1,209,749 891,466 150,351 297,799

Investment in associated companies is represented by: Quoted shares (Market value, 2004: $8,642,000) - 18,181 - 18,181 Unquoted shares 388,189 423,206 188,612 276,711 388,189 441,387 188,612 294,892

The advances to and from associated companies are unsecured, have no fixed terms of repayment and are not expected to be repaid during the next 12 months. Interest is charged at rates ranging from 1% to 198 7.57% (2004: 1% to 5.5%) per annum on interest-bearing advances to associated companies.

KLL StateAcc 2005 fa.pm6.5 198 4/4/06, 6:32 PM The Company’s investments in associated companies are stated at the attributable share of the fair values of their combined net assets. The revaluation deficit for the Company for the year of $88,100,000 (2004 : surplus of $8,183,000) is taken to revenue reserve.

Details of the Group’s share of profits less losses, and retained revenue reserves of associated companies are as follows:

2005 2004 $’000 $’000

Profit before taxation 28,228 36,357 Exceptional items (See Note 6) 22,921 - Taxation (5,468) (6,836) Profit after taxation 45,681 29,521

Retained revenue reserves: At 1 January 39,307 20,974 Profit for the year 45,681 29,521 Dividends (71,992) (19,236) Adjustment arising from change in Group structure 10,998 548 Waiver of loan - 7,500 At 31 December 23,994 39,307

The summarised financial information of the associated companies is as follows:

2005 2004 $’000 $’000

Total assets 6,187,315 4,591,100 Total liabilities (4,968,070) (3,082,707) Revenue for the year 591,828 525,532 Profit for the year 80,632 120,601

18. Other Investments

Group Company 2005 2004 2005 2004 $’000 $’000 $’000 $’000

Quoted shares in corporations 5,157 2,750 - - Unquoted shares in corporations 3,046 11,902 2,819 2,120 Private property fund 18,750 - - - Convertible loan stock - 2,000 - 2,000 26,953 16,652 2,819 4,120 199

KLL StateAcc 2005 fa.pm6.5 199 4/4/06, 6:32 PM Notes to the Financial Statements (cont’d)

19. Properties Held for Sale

Group 2005 2004 $’000 $’000

(a) Properties under Development: Land cost 1,680,769 1,448,512 Development cost incurred to-date 561,735 269,499 Related overhead expenditure 445,126 358,902 Development profit 159,787 89,005 Progress billings received and receivable (976,795) (476,607) Provisions (593,381) (658,332) 1,277,241 1,030,979 Analysis of provisions: At 1 January (658,332) (694,178) Transfer to properties held for sale 13,006 1,787 Provisions written back 13,171 14,527 Provisions utilised 38,774 19,532 At 31 December (593,381) (658,332)

(b) Completed Properties and Land Held for Sale 132,487 114,286 Provisions (30,217) (21,326) 102,270 92,960 Analysis of provisions: At 1 January (21,326) (19,968) Transfer from properties under development (13,006) (1,787) Provisions written back 3,990 - Provision utilised 125 429 At 31 December (30,217) (21,326)

Total 1,379,511 1,123,939

Interest capitalised during the year was $50,566,000 (2004: $30,430,000) at rates ranging from 3% to 16% (2004 : 3% to 5.75%) per annum.

Properties amounting to $314,836,000 (2004 : $183,654,000) in value and included in the above balances were mortgaged to banks as securities for borrowings referred to in Notes 12 and 25.

20. Stocks

Group 2005 2004 $’000 $’000

200 Spare parts and consumable stores 3,644 3,332

KLL StateAcc 2005 fa.pm6.5 200 4/4/06, 6:32 PM 21. Debtors

Group Company 2005 2004 2005 2004 $’000 $’000 $’000 $’000

(a) Trade Debtors: Trade debtors 24,529 52,731 - - Provision for doubtful debts (3,038) (3,579) - - 21,491 49,152 - -

Analysis of provision for doubtful debts At 1 January (3,579) (3,828) - - Reclassification - (2,000) - - Exchange alignment - 75 - - Write-back during the year 396 2,174 - - Write-off against provision 145 - - - At 31 December (3,038) (3,579) - -

(b) Other Debtors: Prepaid project costs and prepayments 16,749 38,166 1,596 18,823 Deposits paid 1,716 1,119 - - Interest receivable 6,102 7,327 - - Derivative financial assets 8,099 - - - Advances to corporations in which the Group has investment interests 37,550 33,073 - - Advances to minority shareholders of subsidiary companies 3,532 14,528 - Other debtors 12,306 11,071 - - Other recoverable amounts 43,256 29,883 720 566 129,310 135,167 2,316 19,389 Less: Provision for doubtful debts (10,621) (3,292) - - 118,689 131,875 2,316 19,389

Analysis of provision for doubtful debts: At 1 January (3,292) (3,388) - - Currency alignment (200) 96 - - Subsidiaries acquired (462) - - - Provision written back 2,703 - - - Reclassification (9,370) - - - At 31 December (10,621) (3,292) - -

Total 140,180 181,027 2,316 19,389

Advances to corporations are unsecured and have no fixed terms of repayment and interest-free. These advances represent mainly the Group’s interest in the underlying property development projects undertaken by a Singapore corporation and a Hong Kong corporation.

Advances to minority shareholders are unsecured, have no fixed terms of repayment and are interest-free. 201

KLL StateAcc 2005 fa.pm6.5 201 4/4/06, 6:32 PM Notes to the Financial Statements (cont’d)

22. Amounts Owing by Holding and Related Companies

Group Company 2005 2004 2005 2004 $’000 $’000 $’000 $’000

Current account (non-trade): Amount owing by / (to) holding company 39 (217) 7 - Amount owing to related companies (6,597) (417) (4,268) (1,198) (6,558) (634) (4,261) (1,198) Short-term advances to related companies 26,767 24,996 4,540 4,618 Net 20,209 24,362 279 3,420

Advances to holding company and related companies are interest-free, unsecured and have no fixed terms of repayment.

Related companies are subsidiary companies of Keppel Corporation Limited.

23. Fixed Deposits, Bank Balances and Cash

Group Company 2005 2004 2005 2004 $’000 $’000 $’000 $’000

Short-term deposits 303,439 193,207 - - Bank balances and cash 150,061 157,732 902 7,108 Deposits with related companies 144,177 41,985 393 377 597,677 392,924 1,295 7,485

Short-term deposits are made for varying periods of between one to six months (2004 : three days to six months) depending on the immediate cash requirements of the Group, and earn interest at the respective short-term deposit rates. The interest rates of short-term deposits range from 0.61% to 12.75% (2004 : 0.19% to 6.75%) per annum.

Included in fixed deposits, banks balances and cash are:

(a) Amounts held under Project Account Rules 1985, withdrawals from which are restricted to payments for expenditures incurred on projects 6,950 20,907 - -

(b) Amount held in escrow accounts for payment of construction costs and progress billings received 18,579 1,924 - - 202

KLL StateAcc 2005 fa.pm6.5 202 4/4/06, 6:32 PM 24. Creditors

Group Company 2005 2004 2005 2004 $’000 $’000 $’000 $’000

Trade creditors 64,348 64,013 - - Deposits received 21,729 15,047 - - Loans from minority shareholders of certain subsidiary companies 273,676 236,850 - - Interest payable 15,250 9,819 8,349 2,895 Derivative financial liabilities 602 - - - Retention monies 20,837 11,766 - - Accruals 206,050 194,054 5,433 3,672 602,492 531,549 13,782 6,567

The loans from the minority shareholders of certain subsidiary companies are unsecured and have no fixed terms of repayment. For interest-bearing loans, interest is payable at rates ranging from 4.2% to 5% (2004: 4.2% to 5%) per annum.

Included in loans from minority shareholders of certain subsidiary companies is a loan of $120,440,000 from Waterbank Properties (S) Pte Ltd for its 48% deemed interest in a property in Singapore (See also Note 34).

25. Short-term Borrowings

Group Company 2005 2004 2005 2004 $’000 $’000 $’000 $’000

Borrowings under MTN Programme: Fixed rate notes, unsecured 151,160 121,240 151,160 121,240

Bonds due 2005, secured - 180,000 - - Bank borrowings: Secured 38,177 24,572 - - Unsecured 17,586 - - - 55,763 24,572 - -

Total 206,923 325,812 151,160 121,240

The fixed rate notes bear interest at rates ranging from 2.23% to 2.34% (2004 : 0.95% to 2.25%) per annum and are repayable within one year.

Interest on the Group’s secured bonds for 2004 was fixed rate of 5% per annum. The security was a mortgage of property held by a subsidiary company. This has been repaid during the year. 203

KLL StateAcc 2005 fa.pm6.5 203 4/4/06, 6:32 PM Notes to the Financial Statements (cont’d)

25. Short-term Borrowings (cont’d)

Secured bank borrowings bear interest at rates of 4.52% to 5.5% (2004 : 1.2%) per annum. The security is a mortgage of property held by a subsidiary company.

Unsecured bank borrowings are charged interest at rates ranging from 4.39% to 7.25% (2004 : 1.78% to 6.5%) per annum.

26. Sales, Profits and Assets Employed by Segment

(a) By Industry - Segment The Group operates principally in the property sector.

(b) By Geographical Location - 2005

Singapore Other Consolidated Countries Total $’000 $’000 $’000

Sales 207,282 379,109 586,391

Results

Operating profit 36,852 109,750 146,602 Investment income and net interest income 4,067 4,552 8,619 Share of results of associated companies 20,333 7,895 28,228 Profit before tax and exceptional items 61,252 122,197 183,449

Other Information Segment assets 3,311,738 1,800,354 5,112,092 Investment in associated companies 193,884 194,305 388,189 Total 3,505,622 1,994,659 5,500,281

Segment liabilities 3,003,619 431,069 3,434,688 Net tax provision and deferred taxation 22,713 83,371 106,084 Total 3,026,332 514,440 3,540,772

Net assets 479,290 1,480,219 1,959,509

Capital expenditure 3,625 2,093 5,718 Depreciation charge 893 16,427 17,320 Provision for diminution in value of investment in associated companies 7,570 7,300 14,870 Provision for diminution in value of the Group’s hotels - 21,733 21,733 204

KLL StateAcc 2005 fa.pm6.5 204 4/4/06, 6:32 PM (c) By Geographical Location - 2004

Singapore Other Consolidated Countries Total $’000 $’000 $’000

Sales 245,776 230,389 476,165

Results Operating profit 45,808 65,243 111,051 Investment income and net interest income/(expense) (10,360) 2,867 (7,493) Share of results of associated companies 24,824 11,533 36,357 Profit before tax and exceptional items 60,272 79,643 139,915

Other Information Segment assets 2,660,085 1,474,650 4,134,735 Investment in associated companies 261,364 180,023 441,387 Total 2,921,449 1,654,673 4,576,122

Segment liabilities 2,356,316 329,866 2,686,182 Net tax provision and deferred taxation 19,669 37,838 57,507 Total 2,375,985 367,704 2,743,689

Net assets 545,464 1,286,969 1,832,433

Capital expenditure 406 1,003 1,409

Depreciation charge 614 12,813 13,427

27. Capital and Lease Commitments

Group 2005 2004 $’000 $’000

(a) Estimated development costs for properties held for sale: (i) Contracted for 927,973 605,992 (ii) Not contracted for 545,277 1,175,983 1,473,250 1,781,975 Less: Minority shareholders’ share (288,243) (156,498) 1,185,007 1,625,477

(b) Estimated capital subscription in associated companies 381,780 159,068 205

KLL StateAcc 2005 fa.pm6.5 205 4/4/06, 6:32 PM Notes to the Financial Statements (cont’d)

27. Capital and Lease Commitments (cont’d)

The future minimum rental payments receivable under significant non-cancelleable leases are as follows:

Group 2005 2004 $’000 $’000

Within one year 56,918 51,444 Between two and five years 61,370 50,889 Beyond five years 1,717 663 120,005 102,996 Non-cancellable leases in relation to four buildings which will be sold to K-REIT Asia (See Note 14) (58,207) (39,011) 61,798 63,985

The majority of the Group’s non-cancellable leases are for terms of three years.

28. Contingent Liabilities, Unsecured

Group Company 2005 2004 2005 2004 $’000 $’000 $’000 $’000

(a) Unsecured guarantees given to financial institutions in connection with:

(i) Facilities given to subsidiary companies - - 396,917 311,418 (ii) Facilities given to associated companies 65,566 199,839 58,719 193,219 (iii) Facilities given to investee company 23,000 23,000 23,000 23,000 (iv) Facilities given to certain end-purchasers of overseas residential properties 3,005 - - -

No material losses under these guarantees are expected.

(b) Business taxes on the Group’s profits from overseas projects 20,400 12,400 - -

206

KLL StateAcc 2005 fa.pm6.5 206 4/4/06, 6:32 PM 29. Significant Related Party Transactions

(a) Significant related party transactions entered into by the Group with the holding company, fellow subsidiaries and related parties are as follows:

2005 2005 2004 2004 $’000 $’000 $’000 $’000 with holding with holding company with Group’s company with Group’s and fellow associated and fellow associated subsidiaries companies subsidiaries companies

Interest income 3,655 13,562 2,137 7,783 Interest expense (36,538) - (19,979) - Management fees paid (2,971) - (2,144) - Rental income / (expense) 52 (1,589) 52 (1,935) Project and development management fees received 1,955 1,377 2,073 1,387 Property management fees received 430 54 304 54 Marketing commission received 2,961 1,702 1,737 551 Management and support services 132 1,490 132 1,371 Other products and services (2,359) (1,000) (2,066) -

The related party transactions are entered into in the normal course of business based on negotiated arm’s length prices.

(b) Transactions entered into by the Group with the Directors of the Company are as follows:

2005 2004 $’000 $’000

Consideration for the sale of units in overseas residential developments to Director of the Company and their immediate family members 779 1,226

(c) Sale of Parco Bugis Junction to CapitaMall Trust and the Company’s purchase of the office subsidiary in Bugis Junction 148,000 -

30. Financial Instruments

Financial Risk Management Objectives and Policies The Group is exposed to a variety of market risks including the effects of changes in interest rate and foreign currency exchange rates. Assessment of financial risks is carried out regularly by Management.

To manage the market risks, the Group uses derivative financial instruments where appropriate, eg interest rate swaps, interest rate cap agreements, and forward foreign exchange and non-deliverable forward contracts. The Group does not issue or hold derivative financial instruments for trading purposes. 207

KLL StateAcc 2005 fa.pm6.5 207 4/4/06, 6:32 PM Notes to the Financial Statements (cont’d)

30. Financial Instruments (Cont’d)

The risk management policies are summarised as follows:

Interest Rate Risk The Group’s exposure for changes in interest rates is in respect of deposits and debt obligations with related companies and external financial institutions.

The interest rate management policy is aimed at optimising net interest cost and reducing volatility. The Group borrows a mix of fixed and variable rate debts with varying tenors. The Group also uses interest rate swaps and caps to hedge against changes in interest rates on the underlying debt obligations.

Foreign Currency Risk The Group is exposed to foreign exchange movements on its net investment in foreign subsidiaries, which generate revenue and incur costs denominated in foreign currencies. Assets held in foreign currencies are, to a large extent, financed by borrowings in the same currencies. Where appropriate, the Group will also enter into forward foreign exchange contracts to hedge against its foreign exchange risk in anticipated purchase or sale transactions denominated in foreign currencies.

Credit Risk Credit risk arises in the event of the inability of a counterparty to meet the terms of the Group’s financial instrument contracts. It is generally limited to the amounts, if any, by which the counterparty’s obligations exceed the obligations of the Group. It is also the Group’s policy to enter into financial instrument contracts with a diversity of prime financial institutions.

31. Fair Value of Financial Assets and Liabilities

The carrying amounts of the following financial assets and liabilities of the Group and Company approximate their fair values due to their short-term nature : Bank and cash balances, debtors, creditors and amounts due from / (to) related companies.

The fair values of the short-term and long-term borrowings as at 31 December 2005 are as stated below. They are estimated using discounted cash flow analysis based on current rates for similar types of borrowing arrangements.

Group Company Carrying Fair Carrying Fair Amount Value Amount Value $’000 $’000 $’000 $’000

Short-term borrowings 206,923 206,558 151,160 150,795

Long-term borrowings 2,625,273 2,624,405 1,710,612 1,709,744

208

KLL StateAcc 2005 fa.pm6.5 208 4/4/06, 6:32 PM 32. New Accounting Standards, FRS Interpretations (“INT FRS”) and Recommended Accounting Practice (“RAP”)

Certain new accounting standards and FRS interpretations have been published that are mandatory for accounting periods beginning on or after 1 January 2006. The Group’s assessment of those standards and interpretations that are relevant to the Group is set out below:

(a) FRS 40 Investment Property

The Group will adopt FRS 40 on 1 January 2007, which is the effective date of the FRS.

Currently, investment properties are accounted for in accordance with the accounting policy as set out in item (i) of Summary of Significant Accounting Policies. Under FRS 40, changes in fair values of investment properties are required to be included in the profit and loss account. On transition to FRS 40 on 1 January 2007, the amount accumulated in the asset revaluation reserve at 31 December 2005 of $299,088,000 will be adjusted against the opening revenue reserves at 1 January 2007.

(b) INT FRS 104 Determining whether an Asset Contains a Lease

The Group will adopt INT FRS 104 on 1 January 2006, which is the effective date of its implementation. Implementation of INT FRS 104 is not expected to significantly affect the financial statements for the year ending 31 December 2006.

RAP 11 was issued by the Institute of Certified Public Accountants of Singapore in October 2005. In the RAP, it is mentioned that a property developer’s sales and purchase agreement is not a construction contract as defined in FRS 11 (Construction Contract) and the percentage of completion (“POC”) method of recognising revenue, which is allowed under FRS 11 for construction contract, may not be applicable for property developers. The relevant standard for revenue recognition by property developers is FRS 18 (Revenue), which addresses revenue recognition generally for all types of entities. However, there is no clear conclusion in FRS 18 whether the POC method or the completion of construction (“COC”) method is more appropriate for property developers. The issue is being addressed by the International Accounting Standards Board.

The Group uses the POC method for recognising revenues from partly completed residential projects which are held for sale. Had the COC method been adopted, the impact on the financial statements will be as follows:

$’000 Decrease in opening revenue reserve (75,405) Decrease in revenue recognised for the year (21,414) Increase in profit for the year 3,091 Decrease in carrying value of properties held for sale: Balance as at 1 January 2005 (114,085) Balance as at 31 December 2005 (97,134)

Decrease in minority interests: Balance as at 1 January 2005 (747) Share of profit for the year (885) 209

KLL StateAcc 2005 fa.pm6.5 209 4/4/06, 6:32 PM Notes to the Financial Statement (cont’d)

33. Significant Group Companies

Information relating to the significant subsidiary companies consolidated in these accounts and to the associated companies whose results are included in the accounts is given on pages 211 to 216.

34. Subsequent Events

(a) On 28 November 2005, the Group announced that it is establishing K-REIT Asia, a real estate investment trust. K-REIT Asia will initially invest in and own four prime office buildings which are currently owned by wholly-owned subsidiaries of the Group. Subject to the approval of shareholders, the Company will distribute approximately 60% of the issued units in K-REIT Asia to shareholders in proportion to their shareholdings by way of a distribution in specie. Upon completion of the distribution in specie, K-REIT Asia will be listed on the Singapore Exchange Securities Trading Limited (“SGX-ST”). On 14 March 2006, in-principle approval was received from the SGX-ST for the listing of K-REIT Asia units. The completion of the distribution in specie and the commencement of trading of K-REIT Asia units on the SGX-ST are expected to take place in second quarter 2006 and will not have any material impact on the earnings of the Group for the year ending 31 December 2006 but the net tangible assets of the Group will be reduced by $264,000,000 as a result of the distribution in specie (See also Note 11).

(b) On 20 January 2006, the Group acquired an additional 10.78% of the total issued and paid-up share capital of Dragon Land Limited, bringing the Group’s percentage of control to 66.69%. The impact on the earnings of the Group for the year ending 31 December 2006 is not expected to be material.

(i) The Group’s acquisition of the 48% deemed interest of Waterbank Properties (S) Pte Ltd (a wholly-owned subsidiary of ComfortDelgro Corporation Limited) in Mansfield Developments Pte Ltd, owner of Avenue Park property, and

(ii) Joint venture on the basis of 52 : 48 with Singapore Land Limited for the development of the Avenue Park property vide the sale of the property to a new joint venture company.

The abovementioned transactions have no significant impact on the Group’s earnings for the year ending 31 December 2006 and on its net tangible assets.

210

KLL StateAcc 2005 fa.pm6.5 210 4/4/06, 6:32 PM Significant Subsidiary and Associated Companies

Country of Effective Cost of Incorporation/ Equity Interest Investment Place of Principal 2005 2004 2005 2004 Business Activities % % $’000 $’000

Subsidiaries

Acresvale Investment Pte Ltd 100 100 1 1 Singapore Property development and investment Alpha Investment Partners Limited 100 100 1,000 1,000 Singapore Fund management Bayfront Development Pte Ltd* 100 - - - Singapore Investment holding (Incorporated on 10.5.05) Bintan Bay Resort Pte Ltd* 90 90 1,607 1,607 Singapore Investment holding Boulevard Development Pte Ltd* 100 100 1 1 Singapore Investment holding BCH Office Investment Pte Ltd* 100 23 44,860 - Singapore Property investment (23% interest up to 31.10.05) Bukit Timah Hill Development Pte Ltd Singapore Property development Ordinary Shares 100 100 15,381 15,381 Preference Shares - 100 - 25,000 Denton Investment Pte Ltd 100 100 - - Singapore Investment holding Devonshire Development Pte Ltd* 60 60 600 - Singapore Property development Dovesdale Development Pte Ltd 100 100 1 1 Singapore Investment holding Dragon Land Limited (25% interest 56 25 57,624 27,429 Singapore Property investment and up to 6.10.05, 39% interest development up to 24.11.05) Evansville Investment Pte Ltd 100 100 41,938 41,938 Singapore Property development Experre Pte Ltd Singapore Investment holding Ordinary Shares 100 100 104 104 Preference Shares 100 100 9,300 12,500 Fernland Investment Pte Ltd 55 55 1,651 1,651 Singapore Investment holding Flanningan Investment Pte Ltd Singapore Investment holding Ordinary Shares 100 100 10 10 Preference Shares 100 100 8,500 8,500 Floraville Estate Pte Ltd 100 100 1 1 Singapore Investment holding Glenville Estate Investment Pte Ltd 100 100 1 1 Singapore Investment holding Greenfield Development Pte Ltd Singapore Investment holding Ordinary Shares 100 100 101 101 Preference Shares 100 100 125,400 125,400 Hampshire Pte Ltd 100 100 - - Singapore Investment holding Harvestland Development Pte Ltd 100 100 1 1 Singapore Property development and investment High Point Development Pte Ltd 100 100 121 121 Singapore Investment holding Hillwest Pte Ltd 100 100 - - Singapore Property holding K-REIT Asia Management Limited 100 - 1,000 - Singapore Property fund management K-REIT Asia Property Management Pte Ltd 100 - - - Singapore Property management (Incorporated on 12.11.05) services KeplandeHub Limited Singapore Investment holding Ordinary Shares 100 100 100 100 Preference Shares 100 100 40,000 40,000 Keppel Digihub Holdings Pte Ltd* 100 100 1 1 Singapore Investment, management and holding company Keppel Digihub Limited* 100 100 1,000 1,000 Singapore Property investment Keppel Land China Holdings Pte Ltd 100 100 1 1 Singapore Investment holding Keppel Land Financial Services Pte Ltd 100 100 2 2 Singapore Financial services Keppel Land International Limited Singapore Property services Ordinary Shares 100 100 28 28 Preference Shares 100 100 30,000 30,000 211

KLL StateAcc 2005 fa.pm6.5 211 4/4/06, 6:32 PM Significant Subsidiary and Associated Companies (cont’d)

Country of Effective Cost of Incorporation/ Equity Interest Investment Place of Principal 2005 2004 2005 2004 Business Activities % % $’000 $’000

Subsidiaries

Keppel Land Properties Pte Ltd Singapore Investment holding Ordinary Shares 100 100 5,509 5,509 Preference Shares 100 100 200,000 200,000 Keppel Land Realty Pte Ltd 100 100 1,006 1,006 Singapore Property development and investment Keppel Land (Tower D) Pte Ltd* 100 100 139,000 139,000 Singapore Property development and investment Kingsley Investment Pte Ltd 100 100 - - Singapore Investment holding Mansfield Developments Pte Ltd 100 100 2,336 2,336 Singapore Property development Mansfield Realty Limited 100 100 1,198 1,198 Singapore Property investment Meadowsville Investment Pte Ltd Singapore Investment holding Ordinary Shares 100 100 1 1 Preference Shares 100 100 54,000 54,000 Merryfield Investment Pte Ltd* 100 100 1 1 Singapore Investment holding Montfort Development Pte Ltd Singapore Investment holding Ordinary Shares 100 100 101 101 Preference Shares 100 100 28,000 28,000 Ocean & Capital Properties Pte Ltd* 100 85 20,366 18,037 Singapore Property/investment (85% interest up to 24.10.05) holding Ocean Properties Pte Ltd* 76 76 406,780 406,780 Singapore Property investment OIL (Asia) Pte Ltd Singapore Investment holding Ordinary Shares 100 100 9,931 9,931 Preference Shares 100 100 80,000 80,000 Palmsville Investment Pte Ltd 84 84 85 85 Singapore Investment holding Pasir Panjang Realty Pte Ltd 100 100 9,170 9,170 Singapore Investment holding Prestige Landmark Pte Ltd 51 51 510 510 Singapore Investment holding Saigon Centre Holdings Pte Ltd Singapore Investment holding Ordinary Shares 100 100 101 101 Preference Shares 100 100 63,000 63,000 Sedona Corporate Residence Pte Ltd* 100 - - - Singapore Property services (Incorporated on 15.12.05) Sedona Hotels International Pte Ltd 100 100 101 101 Singapore Hotel and resort management Sherwood Development Pte Ltd 100 100 1,505 1,505 Singapore Property development Silkland Investment Pte Ltd Singapore Investment holding Ordinary Shares 100 100 100 100 Preference Shares 100 100 10,800 10,800 Spring City Resort Pte Ltd Singapore Investment holding Ordinary Shares 100 100 101 101 Preference Shares 100 100 39,000 39,000 Straits Properties Limited 100 100 74,492 74,492 Singapore Property development Straits Property Investments Pte Ltd 100 100 200,136 200,136 Singapore Investment holding Straits-CM Village Hotel Pte Ltd* 39 39 2 2 Singapore Property investment Straits-KMP Resort Development Pte Ltd* 46 46 1,786 1,786 Singapore Investment holding Sunlake Development Pte Ltd Singapore Investment holding Ordinary Shares 100 100 101 101 Preference Shares 100 100 13,000 13,000 Tat Chuan Development Pte Ltd 100 100 26,117 26,117 Singapore Property development Toshmatic Pte Ltd Singapore Investment holding Ordinary Shares 100 100 104 104 212 Preference Shares 100 100 10,200 17,600

KLL StateAcc 2005 fa.pm6.5 212 4/4/06, 6:32 PM Country of Effective Cost of Incorporation/ Equity Interest Investment Place of Principal 2005 2004 2005 2004 Business Activities % % $’000 $’000

Subsidiaries

Waterville Investment Pte Ltd 100 100 1 1 Singapore Investment holding Wiseland Investment Pte Ltd 100 100 101 101 Singapore Investment holding Aintree Assets Ltd (H) 100 100 2 2 British Virgin Islands / Asia Investment holding Double Peak Holdings Ltd (H) British Virgin Ordinary Shares 100 100 - - Islands Preference Shares 100 100 226,330 226,330 / Singapore Investment holding Erskine Holdings Ltd* (H) 70 70 1 1 British Virgin Islands / Hong Kong Investment holding Jencity Ltd * (H) 90 90 - - British Virgin Islands / Vietnam Investment holding Pembury Properties Ltd* (H) 100 100 1,683 1,683 British Virgin Islands / Singapore Investment holding Red Vibrant Investments Ltd (H) 100 100 - - British Virgin Islands / Vietnam Investment holding Saigon Centre Investment Ltd* (H) 100 100 17,821 17,821 British Virgin Islands / Hong Kong Investment holding Southwick Developments Ltd (H) 100 100 3 3 British Virgin Islands / China Investment holding Vanese International Ltd* (H) 70 70 40,075 40,075 British Virgin Islands / Hong Kong Investment holding Beijing Kingsley Property Development Co Ltd* (A) 100 100 35,020 35,020 China Property development Chengdu Hillwest Development Co Ltd* (A) 100 100 11,206 11,206 China Property development Shanghai Floraville Land Co Ltd* (A) 99 99 1,624 1,624 China Property development Shanghai Merryfield Land Co Ltd* (A) 99 99 54,356 54,356 China Property development Shanghai Minghong Property Co Ltd* (A) 99 99 9,865 9,865 China Property development Shanghai Pasir Panjang Land Co Ltd* (A) 99 99 36,474 36,474 China Property development Tianjin Merryfield Property 100 - 39,688 - China Property development Development Co Ltd* (I) (Incorporated on 27.6.05) Keppel Land (Saigon Centre) Ltd* (A) 100 100 6 6 Hong Kong Investment holding Straits-KMP (HK) Ltd* (A) 51 51 - - Hong Kong Investment holding Ventek International Ltd* (A) 70 70 1 1 Hong Kong Investment holding 213

KLL StateAcc 2005 fa.pm6.5 213 4/4/06, 6:32 PM Significant Subsidiary and Associated Companies (cont’d)

Country of Effective Cost of Incorporation/ Equity Interest Investment Place of Principal 2005 2004 2005 2004 Business Activities % % $’000 $’000

Subsidiaries

Keppel Puravankara Development 51 - 9,002 - India Property development Pvt Ltd* (G) PT Kepland Investama* (E) 100 100 57,884 57,884 Indonesia Property investment / development PT Kepindo Properti* (E) 100 100 37 37 Indonesia Property services PT Keppel Land* (A) 100 100 19,937 19,937 Indonesia Property services / development / investment PT Mitra Sindo Makmur* (E) 51 - 7,632 - Indonesia Property development/ (Incorporated on 12.4.05) investment PT Mitra Sindo Sukses* (E) 51 - 8,874 - Indonesia Property development/ (Incorporated on 12.4.05) investment PT Ria Bintan* (E) 46 46 55,261 55,261 Indonesia Golf course ownership and operation PT Sedona Hotels Indonesia* (A) 100 100 1,126 1,126 Indonesia Hotel and resort management PT Sentral Supel Perkasa* (A) 80 80 19,937 19,937 Indonesia Property investment / development PT Sentral Tanjungan Perkasa* (A) 80 80 52,061 52,061 Indonesia Property development PT Straits CM Village* (E) 39 39 41,513 41,513 Indonesia Hotel ownership and operations Keppel Investment (Mauritus) Pte Ltd* (A) 100 100 - - Mauritus Investment holding Rochor Investment Ltd* (G) 55 - - - Mauritus Investment holding (Incorporated on 2.5.05) Straits Greenfield Ltd* (A) 100 100 5,797 5,797 Myanmar Hotel ownership and operations Wiseland Investment Myanmar Ltd* (A) 100 100 3,292 3,292 Myanmar Hotel ownership and operations Keppel Philippines Properties Inc. (B) Philippines Investment holding Ordinary shares 51 50.5 16,010 15,976 Preference shares 100 100 24,115 24,115 Keppel Thai Properties Public Co 45 45 14,208 14,208 Thailand Property development / Limited (A) investment Top Property Co Ltd* (A) 66 66 8 8 Thailand Property development Utayan Thani Co Ltd* (A) 49 49 6 6 Thailand Investment holding Straits (USA) Inc 100 100 10,555 10,555 United States Investment holding of America International Centre* (E) 43 43 8,307 8,307 Vietnam Property investment Keppel Land Watco I Co Ltd* (A) 68 68 38,977 38,977 Vietnam Property investment / development Quang Ba Royal Park JV Co* (F) 59 59 34,902 34,902 Vietnam Property investment Saigon Riviera JV Co Ltd* (A) 90 90 27,542 27,542 Vietnam Property development 214 Saigon Sports City* (A) 90 90 - - Vietnam Property development

KLL StateAcc 2005 fa.pm6.5 214 4/4/06, 6:32 PM Country of Effective Cost of Incorporation/ Equity Interest Investment Place of Principal 2005 2004 2005 2004 Business Activities % % $’000 $’000

Associates

Asia Real Estate Fund Management Limited* 50 50 500 500 Singapore Fund management BFC Development Pte Ltd* 33 - - - Singapore Property development (Incorporated on 30.8.05) Bugis City Holdings Pte Ltd 42 31 74,482 55,304 Singapore Property investment CityOne Township Development Pte Ltd* 50 50 50 50 Singapore Investment holding China World Investments Pte Ltd* 50 50 4,895 4,895 Singapore Investment holding DL Properties Limited 35 35 31,832 31,832 Singapore Property investment EM Services Pte Ltd (C) 25 25 500 500 Singapore Property management Keppel Bay Pte Ltd (C) 30 30 1,476 1,476 Singapore Property development Keppel Point Pte Ltd (C) 30 30 52,622 52,622 Singapore Property development / investment Kingsdale Development Pte Ltd* 50 50 7 7 Singapore Investment holding One Raffles Quay Pte Ltd* 33 33 - - Singapore Property development Parksville Development Pte Ltd* 50 50 10,500 10,500 Singapore Property investment SAFE Enterprises Pte Ltd (D) 25 25 21,971 21,971 Singapore Investment holding Sedona Hotel Bintan Management Pte Ltd* (D) 49 49 25 25 Singapore Hotel management / Indonesia Sing-Mas Investment Pte Ltd* (D) 30 30 10,804 10,804 Singapore Investment holding Singapore Suzhou Industrial Holdings Pte Ltd* (D) 26 26 12,026 12,026 Singapore Investment holding Singapore Integrated Resorts Pte Ltd* (E1) 20 - - - Singapore Property development and (Incorporated on 21.2.05) investment Yihe Holdings Pte Ltd* 45 - 400 - Singapore Investment holding (Acquired on 8.6.05) Wuxi Cityone Development Co Ltd* (I) 50 - 10,134 - China Property development Asia No. 1 Property Fund Ltd (See Note 6)* (E) 10 25 18,791 24,586 Guernsey Property investment PT Pantai Indah Tateli* (A) 50 50 32,193 29,659 Indonesia Property development PT Pulomas Gemala Misori* (G) 25 25 8,024 8,024 Indonesia Property development PT Purimas Straits Resort* (G) 25 25 4,245 4,245 Indonesia Development of holiday resort PT Purosani Sri Persada* (F) 20 20 6,013 6,013 Indonesia Property investment Jernih Rezeki Sdn Bhd* (A) 49 49 1,396 1,396 Malaysia Property development Renown Property Holdings (M) Sdn Bhd (A) 40 40 4,219 4,219 Malaysia Property investment Tropical Garden NV* (G) 25 25 13 13 Netherlands Investment holding Antilles 215

KLL StateAcc 2005 fa.pm6.5 215 4/4/06, 6:32 PM Significant Subsidiary and Associated Companies (cont’d)

Notes:

1. The holding in the equity shown for each subsidiary and associated company is the proportion attributable to Keppel Land Limited. Changes in interest, if any, and subsidiary and associated companies acquired or disposed of during the year are as indicated in brackets against the companies concerned. Subsidiaries (including their subsidiaries and associated companies) and associated companies directly owned by Keppel Land Limited are included in the above list.

2. Associated companies are those in which the Group has a long-term substantial equity interest and in whose commercial and financial policy decisions the Group actively participates.

3. The cost of investment in each subsidiary/associated company is the proportion of the historical cost of its shares attributable to Keppel Land Limited. Companies indicated with an asterisk (*) are indirectly held by Keppel Land Limited.

4. All the active companies operate in their respective countries of incorporation, unless otherwise specified.

5. All the companies are audited by Ernst & Young, Singapore except for the following :

(A) Audited by member firms of Ernst & Young Global in the respective countries

(B) Audited by Sycip Gorres Velayo & Co, Philippines, an associated firm of Ernst & Young

(D) Audited by KPMG, Singapore

(E) Audited by an overseas practice of Deloitte & Touche

(E1) Audited by Deloitte & Touche, Singapore

(F) Audited by an overseas practice of KPMG

(G) Audited by other firms of auditors

(H) Not required to be audited by law in the country of incorporation.

(I) Not appointed yet as company was incorporated for less than one year.

6. Asia No. 1 Property Fund Ltd is equity accounted for in the consolidated financial statements not withstanding that the Group holds less than 20% of the voting power in this company on the ground that the Group exercises significant influence by virtue of its right to appoint two directors to its board.

7. In accordance with Rule 716 of The Singapore Exchange Securities Trading Ltd, the Audit Committee and Board of Directors of the Company confirm that they are satisfied that the appointment of different auditors for certain of its subsidiaries and associated companies will not compromise the standard and effectiveness of the audit of the Group.

216

KLL StateAcc 2005 fa.pm6.5 216 4/4/06, 6:32 PM Corporate Information

Board of Directors Audit Committee Registered Office

Lim Chee Onn Thai Chee Ken 230 Victoria Street #15-05 Chairman Chairman (Resigned on 16 March 2006) Bugis Junction Towers Singapore 188024 Kevin Wong Kingcheung Tsui Kai Chong Telephone: 63388111 Managing Director Facsimile: 63377168 Lee Ai Ming Website: Thai Chee Ken http://www.keppelland.com.sg (Resigned on 16 March 2006) Nominating Committee Khor Poh Hwa Auditors Lim Ho Kee Lim Ho Kee Chairman Ernst & Young Certified Public Accountants Tsui Kai Chong Thai Chee Ken Singapore (Resigned on 16 March 2006) Audit Partner : Lee Ai Ming Fang Ai Lian (Wef year ended Khor Poh Hwa 31 December 2002) Tan Yam Pin Niam Chiang Meng Niam Chiang Meng Registrar

Heng Chiang Meng Remuneration Committee Kon Choon Kooi Pte Ltd (Appointed on 1 March 2005) 47 Hill Street #06-02 Tan Yam Pin Chinese Chamber of Commerce Choo Chiau Beng Chairman & Industry Building Singapore 179365 Teo Soon Hoe Lim Ho Kee Telephone: 63363355 Facsimile: 63372197 Tsui Kai Chong

Share Listing Board Risk Committee The Company’s shares are listed Heng Chiang Meng on the Singapore Exchange Chairman Securities Trading Limited.

Khor Poh Hwa General Lim Ho Kee For further information about Tsui Kai Chong Keppel Land Limited, please contact the Secretariat at the Niam Chiang Meng Registered Office.

Joint Company Secretaries

Choo Chin Teck

Yeo Kah Tiang 217

KLL StateAcc 2005 fa.pm6.5 217 4/4/06, 6:32 PM Key Personnel

KEPPEL LAND LIMITED

Lim Chee Onn Dennis Tay Choon Kuan Chairman General Manager, Marketing

Kevin Wong Kingcheung Albert Foo Cheur Wee Managing Director Deputy General Manager (Residential), Marketing

Kuladeva s/o Kulathungam Property Investment, Assistant General Manager (Commercial/Indonesia), Marketing Development and Management Keppel Land International Limited Lim Tow Fok Choo Chin Teck General Manager, Property Management Director, Corporate Services and Chief Financial Officer Christopher Ho Kam Pouy Assistant General Manager, Property Management Ang Wee Gee Director, Regional Investments Steven Neo Say Hian Assistant General Manager, Property Management Tan Swee Yiow Director, Singapore Commercial Tong Kok Wing General Manager, Retail Management Augustine Tan Wee Kiong General Manager, Singapore Residential Edward Tien Tai Ming Assistant General Manager, Human Resources Stephen Choo Kooi Yoon General Manager (Projects) Serena Toh Lai Siong (Ms) Regional Investments Assistant General Manager, Investor Relations and Research Yeoh Hai Yeoh Deputy General Manager (China) Kevin Chua Kee Wee Regional Investments Senior Manager, Information Technology

Sam Moon Thong Tee Swee Teng Assistant General Manager Senior Manager, Group Internal Audit Regional Investments Joseph Low Kar Yew Goh Han Kee Senior Manager, Corporate Development Assistant General Manager (Projects), Singapore Residential

Vernon Low Ong Chye CityOne Township Development Pte Ltd Assistant General Manager (Business Development), Liew Chin Sin Singapore Residential Chief Executive Officer

Yeo Kah Tiang (Mrs) Dragon Land Limited General Manager, Group Finance and Administration Chua Yang Hong Chief Executive Officer Melissa Teh Siew Ngok (Mrs) Financial Controller Finance and Administration

218

KLL StateAcc 2005 fa.pm6.5 218 4/4/06, 6:32 PM Property Fund Management India Alpha Investment Partners Limited Thomas Chan Hung Tat Loh Chin Hua Assistant General Manager Managing Director

Indonesia Hotel, Serviced Apartment and Lim Seng Bin Resort Management General Manager Sedona Hotels International Pte Ltd Chan Kah Hoe Vincent Tan Aik Cheong General Manager (Township) Vice President

Japan Information Technology Ho Kin Leong KeplandeHub Limited Manager Kwok Yan Hoe Assistant General Manager Malaysia Keppel Digihub Limited Steven Shum Wing On Dave Ng Chun Sun Deputy General Manager, Malaysia Operations Chief Executive Officer

Keppel Services Staff Union Myanmar Quah Kim Boon Vincent Tan Aik Cheong President Vice President, Sedona Hotels International Pte Ltd

REGIONAL OFFICERS Philippines Sin Wai Meng Senior Vice President, Keppel Philippines Properties Inc China Arthur Yeo Hui Kong General Manager (Projects), Kunming Thailand Wong Yew Siong William Tan Tin Kwang Executive Director Assistant General Manager, Beijing Keppel Thai Properties Public Company Limited

William Ong Kah Kok Assistant General Manager, Shanghai Vietnam Linson Lim Soon Kooi Tan Kian Siew Assistant General Manager Senior Manager, Chengdu

Chau Shing Tung Senior Manager, Tianjin

219

KLL StateAcc 2005 fa.pm6.5 219 4/4/06, 6:32 PM Calendar of Financial Events

FY 2005 FY 2006

Announcement of results:

First quarter 25 April 2005 April 2006

Interim 27 July 2005 July 2006

Third quarter 24 October 2005 October 2006

Total year 25 January 2006 January 2007

End of financial year 31 December 2005 31 December 2006

Despatch of Summary Financial Report 28 March 2006 March 2007

Despatch of Annual Report 12 April 2006 April 2007

Annual General Meeting 28 April 2006 April 2007

Dividend Payment date 23 May 2006 May 2007

220

KLL StateAcc 2005 fa.pm6.5 220 4/4/06, 6:32 PM Corporate Structure

Singapore Projects

221

KLL StateAcc 2005 fa.pm6.5 221 4/4/06, 6:32 PM Corporate Structure (cont’d)

Overseas Projects

222

KLL StateAcc 2005 fa.pm6.5 222 4/4/06, 6:32 PM Property Portfolio

Group Properties (Singapore)

Description Held by % Owned Site Area Estimated Estimated Year of Tenure (sm) Building Floor Gross Lettable Completion Area (sm) Area (sm) Completed Properties

Ocean Building a 29-storey office building located Ocean 75.66% 6,109 50,143 39,255 1974 999-year at the Collyer Quay corner Properties leasehold of Raffles Place

Ocean Towers a 27-storey office tower located in Ocean 75.66% 2,781# 32,881 22,990 1992 999-year Raffles Place Properties leasehold

Prudential Tower^* a 30-storey office building located Keppel Land 100% 1,998 27,700 10,250 1998 99-year at the junction of Church Street (Tower D) (retained interest) leasehold and Cecil Street

Keppel Towers^* a 27-storey office development Mansfield 100% 7,760 43,629 34,909 1991 Freehold located at Hoe Chiang Road Realty

GE Tower^* a 13-storey office development Mansfield 100% 1,367 9,317 7,378 1993 Freehold located at Hoe Chiang Road Realty

Equity Plaza a 28-storey office building DL 35% 2,345 31,538 23,962 1992 99-year located in Raffles Place Properties leasehold

Bugis Junction Towers^* a 15-storey office tower located at BCH Office 100% - 27,724^ 22,990 1995 99-year Victoria Street Investment leasehold

InterContinental Singapore a 406-room hotel located at BCH Hotel 37.58% - 45,992^ - 1995 99-year Victoria Street Investment leasehold

Keppel Bay Tower an 18-storey office building HarbourFront 11.7% 17,267 41,823 36,673 2002 99-year at HarbourFront Avenue One leasehold

HarbourFront Tower One an 18-storey office building HarbourFront 11.7% 15,072* 40,278 34,861 2002 99-year at HarbourFront Place Two leasehold 223

KLL StateAcc 2005 fa.pm6.5 223 4/4/06, 6:32 PM Property Portfolio (cont’d)

Description Held by % Owned Site Area Estimated Estimated Year of Tenure (sm) Building Floor Gross Lettable Completion Area (sm) Area (sm) Completed Properties (cont’d)

HarbourFront Tower Two a 13-storey office building HarbourFront 11.7% 15,072* 19,227 14,550 2003 99-year at HarbourFront Place Two leasehold

Heritage Court conservation shophouses Glenville 100% 1,150 - 534 1996 99-year located at Peck Seah Street Estate (retained interest) leasehold Investment

Joo Chiat Shophouses conservation shophouses Keppel Land 100% 784 - 1,232 1996 Freehold located in the Joo Chiat area Realty (retained interest)

Freesia Woods a 129-unit condominium Keppel Land 100% 12,536 17,550 7,326 2003 Freehold development at Sunset Way Realty (retained interest)

Nassim Woods a 35-unit luxurious condominium Parksville 50% 5,775 9,240 8,468 1998 99-year development in the exclusive Development leasehold Nassim Road enclave

Pebble Bay a 510-unit luxurious condominium Waterfront 50% 32,300 - 2,059 1997 99-year development at Tanjong Rhu Properties (retained interest) leasehold

Geylang Road Terraces adjoining units of 2-storey Acresvale 100% 201 - 306 - Freehold intermediate terrace buildings Investment

Pasir Panjang Road Houses three storey semi-detached houses Tat Chuan 100% 474 - - - Freehold Development (retained interest)

Quartz Industrial Building a modern 8-storey industrial Harvestland 100% 5,657 - 3,569 1997 Freehold building at Upper Aljunied Link Development (retained interest)

Orion Industrial Building a modern 8-storey industrial Acresvale 100% 5,790 - 4,723 1997 Freehold building at Paya Lebar Investment (retained interest) 224

KLL StateAcc 2005 fa.pm6.5 224 4/4/06, 6:32 PM Group Properties (Singapore) (cont’d)

Description Held by % Owned Site Area Estimated Estimated Year of Tenure (sm) Building Floor Gross Lettable Completion Area (sm) Area (sm) Completed Properties (cont’d)

Keppel Digihub a modern 6-storey industrial building Keppel 100% 7,333 18,345 13,490 1997 30-year at Serangoon North Ave 5 Digihub leasehold with option for another 30 years

Caribbean at Keppel Bay a 969-unit waterfront condominium Keppel Bay 30% 97,534 132,780 38,783 2004 99-year development at Keppel Bay (retained interest) leasehold

Amaranda Gardens a 189-unit condominium development Sherwood 100% 11,182 23,482 1,159 2004 Freehold at Serangoon Avenue 3 Development (retained interest)

The Elysia a 40-unit apartment development Bukit 100% 1,589 4,448 3,234 2005 999-year at Mar Thoma Road Timah Hill (retained interest) leasehold Development

The Callista an 87-unit apartment development Evansville 100% 3,608 10,102 3,737 2005 999-year at Mar Thoma Road Investment (retained interest) leasehold

# Part of Ocean Building site area

* Includes HarbourFront Tower Two

^ Strata Floor Area

^* Properties to be included in K-REIT Asia’s initial portfolio

225

KLL StateAcc 2005 fa.pm6.5 225 4/4/06, 6:32 PM Property Portfolio (cont’d)

Group Properties (Singapore) (cont’d)

Description Held by % Owned Site Area Estimated Estimated Expected Tenure (sm) Building Floor Gross Lettable Year of Area (sm) Area (sm) Completion Properties under Development

One Raffles Quay two office towers located at the One Raffles 33.33% 11,367 147,770 123,179 2006 99-year New Downtown at Marina Bay Quay leasehold

Business and Financial Centre (Phase 1) an integrated development BFC 33.33% 20,505 189,000 207,600 2010 99-year comprising office, residential Development (Office & retail) leasehold and retail components 55,000 (Residential)

Cluny Hill Redevelopment sixteen plots of good-class Straits 100% 1,403 - - - Freehold bungalows with customised Properties (retained design and build options interest)

The Linc a 51-unit apartment development Keppel Land 100% 2,369 6,605 - 2006 Freehold at Lincoln Road Realty

Urbana a 126-unit condominium development Sherwood 100% 5,639 16,547 - 2007 Freehold at River Valley Road Development

Vision Crest a commercial / residential Dovesdale 10% 11,560 43,793 - 2007 Freehold mixed development at Penang Road Development

Park Infinia at Wee Nam a 486-unit condominium development Keppel Land 100% 21,733 61,616 - 2007 Freehold at Wee Nam / Keng Lee Road Realty

The Belvedere a 167-unit condominium development Sherwood 100% 7,552 22,495 - 2007 Freehold at Meyer Road Development

226

KLL StateAcc 2005 fa.pm6.5 226 4/4/06, 6:32 PM Group Properties (Singapore) (cont’d)

Description Held by % Owned Site Area Estimated Estimated Expected Tenure (sm) Building Floor Gross Lettable Year of Area (sm) Area (sm) Completion Properties under Development (cont’d)

Landbank

Avenue Park a 193-unit condominium Mansfield 52% 16,056 22,477 - - Freehold development at Sixth Avenue Development

Naga Court a 72-unit condominium Keppel Land 100% 4,568 10,294 - - Freehold development at Bukit Timah Road Realty

Keppel Bay Plot 1 a 1,000-unit waterfront condominium Keppel Bay 30% 83,591 193,400 - - 99-year development at Keppel Bay leasehold

Keppel Bay Plot 3 a 307-unit waterfront condominium Keppel Bay 30% 38,826 47,380 - - 99-year development at Keppel Bay leasehold

Keppel Bay Plot 5 a marina development at Keppel Bay Keppel Bay 30% 6,009 3,000 - - 99-year leasehold Keppel Bay Plot 6 a 101-unit waterfront condominium Keppel Bay 30% 43,797 21,000 - - 99-year development at Keppel Bay leasehold

HarbourFront Avenue (Plot 4) a 234-unit waterfront HarbourFront 11.7% 29,245 32,000 - - 99-year condominium development Three leasehold at HarbourFront Avenue

The Crest @ Cairnhill a 15-unit apartment development Tat Chuan 100% 1,039 2,909 - - Freehold at Cairnhill Circle Development

Ritz Residences a 157-unit condominium development Devonshire 60% 7,400 20,720 - - Freehold at Devonshire Road Development

The Tresor a 62-unit condominium development Keppel Land 100% 7,479 10,469 - - 999-year at Duchess Road Realty 227

KLL StateAcc 2005 fa.pm6.5 227 4/4/06, 6:32 PM Property Portfolio (cont’d)

Group Properties (Overseas)

Description Location Held by % Owned Site Area Estimated Estimated Year of Tenure (sm) Building Total Rentable Completion Floor Floor Area (sm) Area (sm) Completed Properties

China Ocean Towers a 25-storey office tower Shanghai, Shanghai 29% 4,807 50,219 33,921 2001 50 years on Yan An Road East China Sing Straits lease Land Co

Spring City Golf & Lake Resort an integrated resort Kunming, Spring 40% 2,839,984 2,705,571 Two 18-hole 1998 50 years comprising golf courses, China City Golf golf courses, lease resort homes and Lake a clubhouse, 1998 and resort facilities Resort Co 50 resort homes 1999 (Primrose), 83 resort homes 2001 (Magnolia), 70 years 71 resort homes 2004 lease (Azalea I), 32 resort homes 2005- (Azalea II) 2006

Hong Kong The Waterfront a condominium Kowloon, Union 7% 16,969 147,639 1,288 residential 2000 51 years development at the Hong Kong Charm units lease Kowloon Station along Development the airport MTRC line

Indonesia Club Med Ria Bintan a beachfront hotel at Ria Bintan, PT Straits - 39% 200,000 - 302-room hotel 1997 30 years Bintan Resort Indonesia CM Village lease with option for another 50 years

Ria Bintan (Phase 1) a 27-hole golf course Bintan, PT Ria 45.9% 1,467,000 - 27-hole 1998 30 years Indonesia Bintan golf course lease with with club house option for another 228 50 years

KLL StateAcc 2005 fa.pm6.5 228 4/4/06, 6:32 PM Group Properties (Overseas) (cont’d)

Description Location Held by % Owned Site Area Estimated Estimated Year of Tenure (sm) Building Total Rentable Completion Floor Floor Area (sm) Area (sm) Completed Properties (cont’d)

Melia Purosani Hotel a 5-star hotel with retail Yogyakarta, PT Purosani 20% 18,189 26,398 296-room hotel 1994 20 years outlets in Yogyakarta Indonesia Sri Persada lease with option for another 20 years

Nongsa Point Marina a waterfront resort with a Batam, PT Nongsa 17% 100,000 - 192 rooms/chalets 1995 30 years marina and hotel-style Indonesia Point Marina and 178 berths lease with chalets option for another 50 years Pasadenia Garden (Phase 1) a residential development Jakarta, PT Pulomas 25% 32,586 32,490 147 units of strata- 1996 30 years in Pulomas, a fast growing Indonesia Gemala title condominiums, lease with residential district in Jakarta Misori 50 units of rental option for apartments and a another 2-storey clubhouse 20 years

Wisma BCA a prime office Jakarta, PT Kepland 100% 10,444 48,267 38,093 1985 20 years development located Indonesia Investama lease with in Jakarta CBD option for another 20 years

Malaysia Taman Sutera, Skudai a township comprising Johor, Tanah 18% 769,965 - 2,087 residential 2003/2005 Freehold residential units, Malaysia Sutera units and 103 shop commercial space and Development offices recreational facilities

Myanmar Sedona Hotel Yangon a 5-star hotel fronting Yangon, Straits 100% 31,889 53,489 334 rooms, 1997 30 years Yangon’s famous Myanmar Greenfield 32 serviced BOT with Inya Lake apartments and option for 30 office suites another three 5-year extensions 229

KLL StateAcc 2005 fa.pm6.5 229 4/4/06, 6:32 PM Property Portfolio (cont’d)

Group Properties (Overseas) (cont’d)

Description Location Held by % Owned Site Area Estimated Estimated Year of Tenure (sm) Building Total Rentable Completion Floor Floor Area (sm) Area (sm) Completed Properties (cont’d)

Sedona Hotel Mandalay an international class hotel Mandalay, Wiseland 100% 16,467 19,835 220 rooms and 27 1998 30 years opposite the famous Myanmar Investment serviced apartments BOT ancient Mandalay Palace (Myanmar)

Philippines Sampaguita Ville 12 units of linked houses Cebu, Opon 20.2% 5,498 960 - 1996 Freehold Philippines Realty and Devt. Corp.

Thailand^^ Jewellery Centre a 34-storey strata title Bangkok, Keppel Thai 45.45% 5,866 42,834 12,146 1993 Freehold commercial building Thailand Properties (retained interest) at Nares Road

Sukhaphiban 3 Mansion a 19-storey strata title Bangkok, Gold Star 45.45% 4,440 70,000 239 1994 Freehold residential apartment Thailand Propery (retained interest) at Sukhaphiban 3 Road

Vietnam International Centre an 8-storey office Hanoi, Centre for 43% 1,450 9,064 7,585 1995 45 years development at 17 Vietnam International lease Ngo Quyen Street Transactions

Royal Park Complex a serviced apartment Hanoi, Quang Ba 59% 28,400 23,130 155 units of 1998 50 years development at Quang Ba Vietnam Royal Park serviced apartments lease JV Co and 20 villas

Saigon Centre (Phase 1) a 25-storey office, Ho Chi Keppel 68% 2,730 32,499 10,263 sm office, 1996 50 years retail cum serviced Minh City, Land 6,265 sm retail lease apartment development Vietnam Watco Co and 89 units of at Le Loi Boulevard serviced apartments 230

KLL StateAcc 2005 fa.pm6.5 230 4/4/06, 6:32 PM Group Properties (Overseas) (cont’d)

Description Location Held by % Owned Site Area Estimated Estimated Year of Tenure (sm) Building Total Rentable Completion Floor Floor Area (sm) Area (sm) Completed Properties (cont’d)

Petro Vietnam Towers a 10-storey office Vung Tau, Petro 12.9% 6,191 17,026 12,465 1997 40 years development Vietnam Tower lease

Vietcombank Towers a 22-storey office Hanoi, Vietcombank 6% 1,986 30,900 19,263 2001 40 years development Vietnam Tower lease

USA TCB Building a 12-storey office building Houston, Keppel 30% 13,015 27,323 26,858 1982 Freehold located in the prestigious Texas, Houston Galleria area of Houston USA Group Partnership

^^ Assets owned by Keppel Thai Properties Co Ltd in which the Group has a 45.45% stake. 231

KLL StateAcc 2005 fa.pm6.5 231 4/4/06, 6:32 PM Property Portfolio (cont’d)

Group Properties (Overseas) (cont’d)

Description Location Held by % Owned Site Area Estimated Estimated Expected Tenure (sm) Building Total Rentable Year of Floor Floor Completion Area (sm) Area (sm) Properties Under Development

China Spring City Golf & Lake Resort an integrated resort Kunming, Spring 40% 2,202,125 - Resort homes 2010 70 years comprising golf courses, China City Golf lease resort homes and and Lake resort facilities Resort Co

8 Park Avenue a 946-unit residential Shanghai, Shanghai 99% 33,432 133,393 946 residential 2008 70 years development complete China Pasir Panjang apartments lease with recreational facilities Land Co (Plot B)

Park Avenue Central a 708-unit residential Shanghai, Shanghai 99% 28,488 99,708 708 residential 2009 / 2010 70 years development complete China Floraville apartments lease with recreational facilities Land Co (Plot C)

Villa Riviera a 168-unit landed Shanghai, Shanghai 99% 153,726 53,796 168 units of villas 2007 / 2008 70 years development in China Ming Hong and landed homes lease Xujing Town, Property Co Qingpu District

The Seasons a 1,859-unit residential Beijing, Beijing 100% 71,984 254,310 1,859 residential 2007 70 years development complete China Kingsley apartments lease with recreational facilities Property Devt Co

The Waterfront a 1,143-unit residential Chengdu, Chengdu 100% 40,906 166,285 1,143 residential 2006 70 years development complete China Hillwest apartments lease with recreational facilities Development Co

The Botanica an 8,000-unit residential Chengdu, Chengdu 44.05% 419,775 1,049,438 970 residential 2006 / 2007 70 years township development China Century units (Phase 1) (Phase 1) lease with integrated facilities, Development 1,472 residential 2007 / 2008 (residential) to be developed Co units (Phase 2) (Phase 2) 40 years in phases lease 232 (commercial)

KLL StateAcc 2005 fa.pm6.5 232 4/4/06, 6:32 PM Group Properties (Overseas) (cont’d)

Description Location Held by % Owned Site Area Estimated Estimated Expected Tenure (sm) Building Total Rentable Year of Floor Floor Completion Area (sm) Area (sm) Properties Under Development (cont’d)

Residential Development a 160-unit villa Tianjin, Tianjin 100% 133,400 55,985 160 villas 2008 70 years development complete China Merryfield lease with facilities Property Co

Township Development a 5,000-unit residential Wuxi, CityOne 49.7% 352,534 670,970 ** ** 70 years township development China Development lease with integrated facilities, (Wuxi) Co (residential) to be developed in phases 40 years lease (commercial) 50 years lease (others)

Mixed Development a residential Fuzhou, Famous 15% About Phase 1 - Phase 1 - 2006 70 years development with China Town Real 850,000 About 177 villas, (residential lease ancillary commercial Estate 175,000 236 townhouses, units and (residential) components (Fujian) 268 shops shops) 40 years Co and 2007 lease a 250-room hotel (hotel) (commercial)

India Elita Promenade a 1,573-unit high-rise Bangalore, Keppel 51% 96,618 236,425 1,573 2009 Freehold condominium India Puravankara condominium development in Development units JP Nagar District

Residential Development a 1,146-unit mid-rise Bangalore, Keppel 51% 79,034 170,418 1,146 2009 Freehold condominium development India Puravankara condominium off Kanakapura Road Development units

Indonesia Hotel Sedona Manado a 4-star international Manado, PT Pantai 50% 243,083 - 247-room hotel 2006 30 years class hotel Indonesia Indah Tateli (Phase 1) lease with option for another 20 years 233

KLL StateAcc 2005 fa.pm6.5 233 4/4/06, 6:32 PM Property Portfolio (cont’d)

Group Properties (Overseas) (cont’d)

Ria Bintan Resort (Phase 2 onwards) an integrated resort Bintan, PT Ria- 45.9% 2,803,000 - Resort homes *** 30 years with golf courses, Indonesia Bintan (Phase 2a) lease with a Club Med Village and option for resort homes another 50 years

Pasadenia Garden (Phase 2) a residential development Jakarta, PT Pulomas 25% 47,454 - Residential *** 30 years in the Pulomas district Indonesia Gemala units lease with Misori option for another 20 years

Residential Township a 7,000-unit residential Jakarta, PT Mitra 51% 2,700,000 - 7,000 2007 / 2008 30 years township in Indonesia Sindo Sukses residential (Phase 1) lease with Cakung, Jakarta (Site A - Southern) units option for PT Mitra Sindo Makmur another (Site B - Northern) 20 years

Galleria Tunjungan a retail/commercial Surabaya, PT Sentral 80% 23,768 - *** *** 30 years complex in Surabaya Indonesia Tunjungan lease with Perkasa option for another 20 years

BG Junction a proposed Surabaya PT Sentral 80% 25,840 154,738 39,274 2006 30 years retail/commercial Indonesia Supel lease with development in Perkasa option for Surabaya another 20 years

Tanah Lot Resort an integrated resort Bali, PT Purimas 26% 910,020 - Resort *** 30 years project incorporating Indonesia Straits Resort bungalows lease with resort bungalows, (Phase 1) option for spa village and another 234 recreational facilities 20 years

KLL StateAcc 2005 fa.pm6.5 234 4/4/06, 6:32 PM Group Properties (Overseas) (cont’d)

Malaysia Taman Sutera, Skudai a residential / commercial Johor, Tanah 18% 4,097,672## - 122 residential units 2006/2007 Freehold development Malaysia Sutera and 88 shop offices Development

Philippines SM-KL Towers, Ortigas two 55-storey office Manila, SM 24.15% 20,000 13,630 9,859 1985 Freehold towers and a 70-storey Philippines Keppel Land (Benguet (Benguet (Benguet residential tower, Centre) Centre) Centre) interlinked by a 5-storey 28,767 18,518 2001 retail podium called (Phase 1- (Phase 1- (Phase 1- The Podium. To be The Podium) The Podium) The Podium) developed in phases.

Vacant land at Carajay Road Cebu, Opon 20.2% 7,803 - - - Freehold Philippines Realty and Development Corp.

Palmdale Heights a 29-block residential Pasig City, Buena 30.88% 76,156 229,416 174,653 2004 Freehold development with Philippines Homes (Residential) (Residential) (Phases 1 & 2 4,000 apartment units, (Sandoval) 5,749 3,031 comprising 6 3 parking buildings (Commercial) (Commercial) residential blocks and 2 commercial buildings 19,137 820 lots and facilities) (Parking) (Parking)

Metro North Township an option with Araneta San Jose Swansville 46.06% 6,000,000 ** ** ** Freehold Properties to jointly del Monte, Investment develop a residential Bulacan (Philippines) township on a 600-ha site. (north of To be developed in phases. Ortigas CBD), Philippines

Thailand^^ Vacant Land for residential Chonburi, Keppel Thai 45.45% 355,996 - - - Freehold development Thailand Properties at Highway 332 in Sattahip 235

KLL StateAcc 2005 fa.pm6.5 235 4/4/06, 6:32 PM Property Portfolio (cont’d)

Group Properties (Overseas) (cont’d)

Villa Arcadia at Srinakarin a 367-unit detached Bangkok, Thai-Kami 45.45% 159,706 - 367 detached 2007 Freehold housing development off Thailand houses Srinakarin Road

Villa Arcadia at Watcharapol a 270-unit detached Bangkok, TOP 66.72%*^ 124,912 - 270 detached 2007 Freehold housing development Thailand Property houses at Watcharapol Road

Vietnam Saigon Centre (Phase 2 onwards) a mixed-use commercial Ho Chi Keppel 68% ** - ** 2009 50 years development located Minh City, Land (Phase 2) lease in the Central Vietnam Watco Co Business District

Tamarind Park a 20-storey apartment Ho Chi Keppel 60% 2,808 - 173 apartment 2009 45 years tower with swimming Minh City, Land units lease pool and recreational Vietnam Agtex facilities located in prime District 1

Villa Riviera 101 villas located in Ho Chi Saigon 90% 59,334 - 101 units of 2007 50 years in well-established Minh City, Riviera quality villas lease residential area of Vietnam JV Co An Phu Ward in District 2

Saigon Sports City a 3,000-units residential Ho Chi Saigon 90% 740,000 - 782 apartment 2009 50 years township with quality Minh City, Sports units (Phase 1) (Phase 1) lease housing, commercial Vietnam City complexes and public sports facilities

## Including land to be developed in later stages ^^ Assets owned by Keppel Thai Properties Co Ltd in which the Group has a 45.45% stake ** Plans are in the process of being finalised *** Plans are under review in accordance to market conditions 236 *^ Keppel Land owns a 39% direct stake in Top Property Co Ltd as well as a 45.45% stake in KTP which also has a 61% stake in Top Property Co Ltd

KLL StateAcc 2005 fa.pm6.5 236 4/4/06, 6:32 PM Statistics of Shareholdings

As at 2 March 2006

Authorised share capital : $500,000,000 Issued and fully paid-up capital : $358,165,291 Class of shares : Ordinary shares with equal voting rights

Number of Number Size of Shareholdings Shareholders % of Shares %

1 - 999 890 9.97 275,954 0.04 1,000 - 10,000 7,117 79.72 23,588,934 3.29 10,001 - 1,000,000 906 10.15 36,530,637 5.10 1,000,001 and above 14 0.16 655,935,056 91.57 Total 8,927 100.00 716,330,581 100.00

Number of Number Location of Shareholders Shareholders % of Shares %

Singapore 8,198 91.83 711,435,028 99.32 Malaysia 545 6.11 3,413,556 0.48 Others 184 2.06 1,481,997 0.20 Total 8,927 100.00 716,330,581 100.00

Twenty Largest Shareholders

Number of Shares %

1. Keppel Corporation Limited 379,697,733 53.01 2. Raffles Nominees Pte Ltd 73,729,059 10.29 3. DBS Nominees Pte Ltd 69,460,186 9.70 4. Citibank Nominees Singapore Pte Ltd 60,002,443 8.38 5. HSBC (Singapore) Nominees Pte Ltd 34,402,918 4.80 6. United Overseas Bank Nominees Pte Ltd 21,233,486 2.96 7. Morgan Stanley Asia (Singapore) Securities Pte Ltd 4,515,940 0.63 8. OCBC Nominees Pte Ltd 3,091,456 0.43 9. DB Nominees (Singapore) Pte Ltd 2,757,625 0.38 10. Merrill Lynch (Singapore) Pte Ltd 1,710,305 0.24 11. Selat Pte Ltd 1,691,972 0.24 12. Overseas Chinese Bank Nominees Pte Ltd 1,341,545 0.19 13. UOB Kay Hian Pte Ltd 1,235,488 0.17 14. Bank of China Nominees Pte Ltd 1,065,000 0.15 15. Island Investment Company Pte Ltd 904,718 0.13 16. The Asia Life Assurance Society Ltd - PAR Fund 791,000 0.11 17. Singapore Engineers Pte Ltd 790,725 0.11 18. BNP Paribas Nominees Singapore Pte Ltd 734,000 0.10 19. Macquarie Securities (Singapore) Pte Ltd 648,000 0.09 20. Lee Foundation 593,247 0.08 Total 660,396,846 92.19

Substantial Shareholders

Number of Shares %

1. Temasek Holdings (Pte) Ltd (Deemed interest) 384,034,733 53.61 2. Keppel Corporation Limited (Including holdings by subsidiary companies) 379,697,733 53.01

Temasek Holdings (Pte) Ltd holds 32% in the share capital of Keppel Corporation Limited, and is deemed to be interested in the shares of Keppel Land Limited held by Keppel Corporation Limited.

Approximately 46% of the issued shares of Keppel Land Limited are held by the public. Accordingly, Rule 723 of the Listing Manual of the Singapore Exchange Securities Trading Limited has been complied with. 237

KLL StateAcc 2005 fa.pm6.5 237 4/4/06, 6:32 PM Notice of Annual General Meeting and Closure of Books

Keppel Land Limited Co Reg No: 189000001G (Incorporated in the Republic of Singapore)

ALL MEMBERS ARE CORDIALLY INVITED to attend the Annual General Meeting of the Company which will be held at InterContinental Singapore, Ballrooms 1 and 2 (Level 2), 80 Middle Road, Singapore 188966 on Friday, 28 April 2006 at 10.30 a.m. to transact the following business:

AS ORDINARY BUSINESS

1. To receive and, if thought fit, adopt the Directors’ Report and Accounts for the year ended 31 December 2005. (Resolution 1)

2. To declare the first and final dividend of 10% (or 5 cents per share) as recommended by the Directors for the year ended 31 December 2005 (2004: $28,543,243). (Resolution 2)

3. To re-elect the following Directors who are retiring in accordance with Article 94 of the Articles of Association of the Company and who have offered themselves for re-election:

Mrs Lee Ai Ming (See Note 2) (Resolution 3) Mr Choo Chiau Beng (See Note 3) (Resolution 4) Mr Teo Soon Hoe (See Note 3) (Resolution 5)

4. To approve Directors’ fees of $610,000 for the year ended 31 December 2005 (2004: $573,000). (Resolution 6)

5. To re-appoint Messrs Ernst & Young as Auditors, and to authorise the Directors to fix their remuneration. (Resolution 7)

AS SPECIAL BUSINESS

6. To consider and, if thought fit, approve with or without modification, the following Ordinary Resolution:

That pursuant to Section 161 of the Companies Act, Cap. 50 and Article 8(B) of the Company’s Articles of Association, authority be and is hereby given to the Directors of the Company to:

(a) (i) issue shares in the capital of the Company (“Shares”) whether by way of right, bonus or otherwise, and including any capitalisation pursuant to Article 136 of the Company’s Articles of Association of any sum for the time being standing to the credit of any of the Company’s reserve accounts or any sum standing to the credit of the profit and loss account or otherwise available for distribution; and/or

238

KLL StateAcc 2005 fa.pm6.5 238 4/4/06, 6:32 PM (ii) make or grant offers, agreements or options that might or would require Shares to be issued (including but not limited to the creation and issue of warrants, debentures or other instruments convertible into Shares) (collectively “Instruments”),

at any time and upon such terms and conditions and for such purposes and to such persons as the Directors may in their absolute discretion deem fit; and

(b) (notwithstanding that the authority so conferred by this Resolution may have ceased to be in force) issue Shares in pursuance of any Instrument made or granted by the Directors while the authority was in force, provided that:

(i) the aggregate number of Shares to be issued pursuant to this Resolution (including Shares to be issued in pursuance of Instruments made or granted pursuant thereto and any adjustments effected under any relevant Instrument), does not exceed 50% of the issued Shares in the capital of the Company (as calculated in accordance with sub-paragraph (ii) below), of which the aggregate number of Shares to be issued other than on a pro rata basis to shareholders of the Company (including Shares to be issued in pursuance of Instruments made or granted pursuant to this Resolution and any adjustments effected under any relevant Instrument) does not exceed 20% of the issued Shares in the capital of the Company (as calculated in accordance with sub-paragraph (ii) below);

(ii) for the purpose of determining the aggregate number of Shares that may be issued under sub-paragraph (i) above, the percentage of issued Shares shall be calculated based on the number of issued Shares in the capital of the Company as at the date of the passing of this Resolution after adjusting for:

(aa) new Shares arising from the conversion or exercise of convertible securities;

(bb) new Shares arising from exercising share options or vesting of share awards outstanding or subsisting as at the date of the passing of this Resolution approving the mandate, provided the options or awards were granted in compliance with the rules and regulations of the Singapore Exchange Securities Trading Limited (the “SGX-ST”); and

(cc) any subsequent consolidation or sub-division of Shares; and

(c) in exercising the power to make or grant Instruments (including the making of any adjustments under the relevant Instrument), the Company shall comply with the provisions of the Listing Manual of the SGX-ST for the time being in force (unless such compliance has been waived by the SGX-ST) and the Articles of Association for the time being of the Company; and

(d) the authority conferred by this Resolution shall, unless revoked or varied by the Company in general meeting, continue in force until the conclusion of the next Annual General Meeting or the expiration of the period within which the next Annual General Meeting of the Company is required by law to be held, whichever is the earlier (see Note 4). (Resolution 8)

239

KLL StateAcc 2005 fa.pm6.5 239 4/4/06, 6:32 PM Notice of Annual General Meeting and Closure of Books (cont’d)

7. To transact other business which can be transacted at the Annual General Meeting of the Company.

The Company had on 25 January 2006 advised that the Register of Members of the Company will be closed from 8 May 2006 to 11 May 2006 (both dates inclusive) for the preparation of dividend warrants.

Duly completed transfers received by the Company up to 5:00 p.m. on 5 May 2006 will be registered before entitlements to the proposed dividend for the year ended 31 December 2005 are determined.

Directors have recommended a first and final dividend of 10% (or 5 cents per share) amounting to about $35.8 million on the existing capital (2004: 10% less tax or 5 cents per share less tax) in respect of the financial year ended 31 December 2005 for approval by Members at the Annual General Meeting to be held on 28 April 2006. The final dividend, if approved, will be payable on 23 May 2006.

By Order of the Board

CHOO CHIN TECK YEO KAH TIANG Joint Company Secretaries

Singapore, 31 March 2006

Notes:

1. A Member is entitled to appoint one proxy or two proxies to attend and vote in his place. A proxy need not also be a Member of the Company. A Member which is a corporation is entitled to appoint its authorised representative or proxy to vote on its behalf. Members wishing to vote by proxy at the Meeting may use the Proxy Form enclosed. To be valid, the completed Proxy Form must be lodged at the Registered Office of the Company at 230 Victoria Street #15-05, Bugis Junction Towers, Singapore 188024 not less than 48 hours before the Meeting.

2. Mrs Lee Ai Ming will, upon re-election, continue to serve as a member of the Audit Committee. She is considered an Independent Director pursuant to Rule 704(8) of the Listing Manual of the SGX-ST.

3. Detailed information on the Directors can be found in the Board of Directors, and Profile of Directors and Senior Management sections of the Company’s Annual Report for the financial year ended 31 December 2005.

4. Ordinary Resolution No. 8 is to empower the Directors from the date of the Annual General Meeting until the date of the next Annual General Meeting to issue further Shares and Instruments in the Company, including a bonus or rights issue. The maximum number of Shares which the 240 Directors may issue under this Resolution shall not exceed the quantum set out in the Resolution.

KLL StateAcc 2005 fa.pm6.5 240 4/4/06, 6:32 PM Share Transaction Statistics

Comparative Price Trends

Keppel Land Straits Times Index SGX All-S Equities Prop Closing Normalised Closing Normalised Closing Normalised Month End Price (S$) Values Index Values Index Values

Jan 05 2.30 100.00 2096 100.00 536 100.00 Feb 05 2.50 108.70 2119 101.10 553 103.17 Mar 05 2.30 100.00 2141 102.15 538 100.37 Apr 05 2.52 109.57 2125 101.38 569 106.16 May 05 2.28 99.13 2162 103.15 534 99.63 Jun 05 2.50 108.70 2213 105.58 566 105.60 Jul 05 3.22 140.00 2352 112.21 647 120.71 Aug 05 3.44 149.57 2275 108.54 650 121.27 Sep 05 3.70 160.87 2305 109.97 712 132.84 Oct 05 3.82 166.09 2217 105.77 698 130.22 Nov 05 3.80 165.22 2300 109.73 698 130.22 Dec 05 3.66 159.13 2347 111.98 721 134.51 Jan 06 3.80 165.22 2412 115.08 765 142.72

Keppel Land’s share price appreciated 59% during 2005. It started at $2.30 in January and closed at $3.66 in December. The share price crossed the $3 level in July and subsequently outperformed the Straits Times Index and the SGX All-Singapore Equities Properties Index which gained 12% and 35% respectively during the same period.

Besides striving for more value creating businesses, the Group will also continue to direct efforts towards maintaining high standards of corporate governance and transparency. 241

KLL StateAcc 2005 fa.pm6.5 241 4/4/06, 6:32 PM Share Transaction Statistics (cont’d)

Investor Data

2001 2002 2003 2004 2005

Earnings per share (cents) (Note 1) (51.7) 3.7 14.2 18.7 21.8 Dividend per share (cents) (Note 2) 3 3.5 4 5 5 Share price (cents) (Note 3) Highest 274 234 192 226 428 Lowest 123 93 96 147 224 Average 198 163 139 184 300 Last done 172 97 158 225 366 Turnover (million shares) 520.8 379.9 534.5 414 560.2 Dividend yield (%) (Note 4) 1.5 2.1 2.9 2.7 1.7 Net price-earnings ratio (Note 4) n.m. 44.1 9.8 9.8 13.8 Net tangible assets per share ($) 2.28 2.09 2.09 2.26 2.35

Notes 1 Earnings are Group profits / (loss) after tax before extraordinary items. 2 These are gross dividends declared out of taxed profits. 3 Share prices reflect transactions recorded on the Singapore Exchange Securities Trading Limited. 4 In calculating dividend yields and net price-earnings ratios, the average share prices have been used. 242 5 n.m. means ”not meaningful”

KLL StateAcc 2005 fa.pm6.5 242 4/4/06, 6:32 PM Proxy Form

IMPORTANT: Keppel Land Limited 1. This Report is also forwarded to investors who have used their CPF monies to buy shares in the Company at the request of their CPF Co Reg No: 189000001G Approved Nominees, and is sent solely for their information only. (Incorporated in the Republic of Singapore) 2. The Proxy Form is, therefore, not valid for use by CPF Investors and shall be ineffective for all intents and purposes if used or purported to be used by them. ANNUAL GENERAL MEETING

I / We (name)

of (address) being (a) Member(s) of Keppel Land Limited (the “Company”), hereby appoint:

NRIC/ Proportion of Name Address Passport Number Shareholdings No. of Shares %

and/or (delete as appropriate) NRIC/ Proportion of Name Address Passport Number Shareholdings No. of Shares %

as my / our proxy / proxies to vote on my / our behalf at the Annual General Meeting of the Company to be held on 28th day of

April 2006 at 10.30 a.m. I / We direct my / our proxy / proxies to vote (see Note 4) for or against the Resolutions to be proposed at the Fold and glue along dotted line Meeting as hereunder indicated.

To be Used on To be Used in the a Show of Hands Event of a Poll No. Resolutions Number Number For* Against* of Votes of Votes for** against**

Fold and glue along dotted line 1. To receive and adopt the Directors’ Report and Accounts for the year ended 31 December 2005

2. To declare the first and final dividend of 10% (or 5 cents per share) as recommended by Directors for the year ended 31 December 2005 (2004: $28,543,243)

3. To re-elect Mrs Lee Ai Ming as Director

4. To re-elect Mr Choo Chiau Beng as Director

5. To re-elect Mr Teo Soon Hoe as Director

6. To approve Directors’ fees of $610,000 for 2005 (2004: $573,000)

7. To re-appoint Messrs Ernst & Young as Auditors, and to authorise the Directors to fix their remuneration

8. To approve the Ordinary Resolution pursuant to Section 161 of the Companies Act, Cap. 50

* Please indicate your vote “For” or “Against” with an “X” within the box provided. ** If you wish to exercise all your votes “For” or “Against”, please indicate with an “X” within the box provided. Alternatively, please indicate the number of votes as appropriate.

Dated this ______day of ______2006 Total Number of Shares Held

______Signature(s) or Common Seal of Member(s) 243 IMPORTANT: Please read the notes overleaf before completing this Proxy Form

Fold and glue along dotted line

KLL StateAcc 2005 fa.pm6.5 243 4/4/06, 6:32 PM Notes:

1. Every Member of the Company is entitled to appoint one proxy or two proxies (or an authorised representative in the case of a corporation) to attend the Meeting and vote on his behalf. Where a Member appoints two proxies, the appointments shall be invalid unless he specifies the proportion of his shareholding (expressed as percentage of the whole) to be represented by each proxy. A proxy need not be a Member of the Company.

2. A Member should insert the total number of shares held. If the Member has shares entered against his name in the Depository Register (as defined in Section 130A of the Companies Act, Cap. 50), he should insert that number of shares. If the Member has shares registered in his name in the Register of Members of the Company, he should insert that number of shares. If the Member has shares entered against his name in the Depository Register and registered in his name in the Register of Members, he should insert the aggregate number of shares. If no number is inserted, this Proxy Form will be deemed to relate to all the shares held by the Member.

3. The Proxy Form must be signed by the appointer or his attorney duly authorised in writing or, if the Member is a corporation, must be executed under its common seal or the hand of its attorney duly authorised in writing. The power of attorney or a duly certified copy thereof must be deposited at the Company’s Registered Office within the period stated below. In the case of joint Members, all joint Members must sign the Proxy Form.

Fold along this line (1)

Affix Postage Stamp

The Company Secretary Keppel Land Limited 230 Victoria Street #15-05 Bugis Junction Towers Singapore 188024

Fold along this line (2)

4. Please indicate with an “X” in the appropriate box against each Resolution how you wish your proxy / proxies to vote. If this Proxy Form is returned without any indication as to how the proxy / proxies shall vote, the proxy / proxies will vote or abstain as he thinks fit.

5. To be effective, the Proxy Form must be completed and deposited at the Registered Office of the Company, 230 Victoria Street #15-05, Bugis Junction Towers, Singapore 188024, not less than 48 hours before the Meeting or adjourned meeting.

6. The Company shall be entitled to reject a Proxy Form which is incomplete, improperly completed, illegible or where the true intentions of the appointer are not ascertainable from the instructions of the appointer specified on the Proxy Form. In addition, in the case of shares entered in the Depository Register, the Company may reject a Proxy Form if the Member, being the appointer, is not shown to have shares entered against his name in the Depository Register as at 48 hours before the time appointed for holding the Meeting, as certified by The Central Depository (Pte) Limited to the Company.

KLL StateAcc 2005 fa.pm6.5 244 4/4/06, 6:32 PM Contents

Carving Competitive Edge Operations and Market Review 104