Keppel Land Limited
Value Talent Readiness Enterprise Execution SafetyAccountabilityIntegrity Can Do Value Readiness Collective Strength Innovation People-Centredness Preparedness Execution Talent Agility Collective Agility Integrity Strength Collective Strength EnterpriseFocus People-Centredness Accountability Safety Can Do Execution Preparedness Value Customer Focus Agility Enterprise Safety Enterprise Value Can DoReadiness Execution Harnessing Strengths Preparedness ValueQualityCollective Strength Accountability Can Do Can Do Talent People-Centredness Agility Accountability Can DoValue Innovation Enterprise Talent Customer Focus Collective Strength Enterprise Talent Innovation Readiness Report to Shareholders 2015 CollectiveSustainabili Strength Customer Focus Readiness Enterprisety Readiness InnovationExecution Preparedness Talent People-Centredness Enterprise Collective Can DoValueInnovation Strength Preparedness AccountabilityExecution Innovation Collective Strength People-Centredness Talent Value Readiness Talent Accountability Preparedness
Can Safety Do Agility ValueDiscipline Talent Integrity Collective Strength Enterprise Innovation Execution Can Do Readiness AgilityValue Customer Focus Harnessing Strengths
Keppel Land Limited Report to Shareholders 2015 (Incorporated in the Republic of Singapore) 230 Victoria Street #15-05 Bugis Junction Towers Singapore 188024
Tel: (65) 6338 8111 Fax: (65) 6337 7168 www.keppelland.com
Co Reg No: 189000001G Vision Operating Principles A leading real estate 1 Best value propositions company, shaping the to customers. best for future generations. 2 Tapping and developing best talents from our global workforce. Mission 3 Cultivating a spirit of Guided by our operating innovation and enterprise. principles and core values, 4 Executing our projects well. we will create value for all 5 Being financially disciplined to stakeholders through innovative earn best risk-adjusted returns. Harnessing real estate solutions. 6 Clarity of focus and operating within our core competence. Strengths 7 Being prepared for the future.
The Keppel Group Overview 01 Key Figures for 2015 harnesses and synergises 02 Group Financial Highlights the distinctive strengths 03 Corporate Profile 04 Chairman’s Statement of its multi businesses to 10 Interview with the CEO 15 Board of Directors capture opportunities arising 20 Senior Management from the global demand 22 Key Personnel 26 Awards and Accolades for energy, sustainable 28 Corporate Milestones urbanisation and connectivity. 29 Corporate Governance 35 Risk Management Our strong culture and 38 Harnessing Strengths enduring values drive our 40 Special Feature people to strive for execution Operations and Market Review 42 Overview excellence and operational 44 Singapore efficiency. With financial 48 Property Fund Management 52 Retail Management discipline and sharp focus 54 Hospitality Management on optimising returns, 56 China 64 Vietnam we will seize opportunities 68 Indonesia 70 The Philippines, Myanmar as well as innovate solutions 71 United States, United Kingdom and services to build a 72 India, Sri Lanka 73 Malaysia, Thailand long-term and competitive 74 International Network position and capture 77 Property Portfolio sustainable returns for our stakeholders.
FSC insert by printer Overview / Operations and Market Review 01 Key Figures for 2015
Key Figures for 2015
Revenue Return on Equity $1.6b 18.9% Revenue rose by 6.8% year-on-year Return on equity is one of the highest amongst to $1.6 billion. Asia’s leading property developers at 18.9% per annum over 10 years, from 2006 to 2015.
Total Assets New Commercial Space Under Development $14.9b 630,000sm Total assets grew from $14.6 billion New commercial properties under to $14.9 billion year-on-year. development overseas.
Volunteerism Safety Training 5,095hrs 34,000 A total of 5,095 volunteer hours were clocked by 34,000 workers trained to-date at Keppel Land’s staff for corporate social responsibility activities Safety Awareness Centres in Vietnam and Malaysia. in Singapore and overseas. 02 Keppel Land Limited Report to Shareholders 2015
Group Financial Highlights
2015 2014 2013 2012 2011
For the year ($’000) Sales 1,598,260 1,497,177 1,461,048 938,856 948,974 Pre-tax profit Before fair value gain on investment properties/impairment 473,240 733,111 669,712 613,813 885,703 After fair value gain on investment properties/impairment 728,855 953,325 1,000,773 987,308 1,476,993 Net profit 564,076 752,486 885,892 838,368 1,374,682 Funds from/(used in) operations 495,565 200,443 (1,308,680) (612,268) (892,199) Capital expenditure on investment properties and fixed assets (379,399) (81,003) (87,692) (37,239) (132,933)
At year-end ($’000) Fixed assets and investment properties 2,811,783 1,577,281 1,894,051 1,590,744 837,784 Investments 3,494,114 3,028,776 3,040,799 2,709,394 2,263,559 Non-current assets 311,487 256,851 761,409 775,886 646,487 Net current assets (Note 1) 6,062,058 7,767,480 6,183,482 4,784,231 4,693,077 Deferred taxation (229,623) (216,261) (182,018) (150,544) (32,500) Other non-current liabilities (22,236) – – – – Assets employed 12,427,583 12,414,127 11,697,723 9,709,711 8,408,407
Shareholders' equity 8,143,153 7,655,537 6,989,419 6,169,141 5,575,314 Non-controlling interests 489,443 489,401 496,168 477,314 295,680 Long-term borrowings 3,646,982 3,147,338 3,869,749 2,348,613 2,336,200 Short-term borrowings 83,775 1,055,670 283,275 714,643 201,213 Loan from non-controlling shareholders 64,230 66,181 59,112 – – Total funds invested 12,427,583 12,414,127 11,697,723 9,709,711 8,408,407
Financial ratios Return on equity (%) After taxation but before fair value gain on investment properties/impairment 4.4 7.9 9.3 8.4 18.4 After taxation and fair value gain on investment properties/impairment 7.1 10.7 14.1 14.8 32.1 Interest cover (times) (Note 2) 5.2 8.4 8.9 12.3 16.7 Net debt-equity ratio (times) (Note 3) 0.24 0.20 0.38 0.22 0.10
Employees (Note 4) Number (average) 4,150 4,071 4,207 4,107 3,038 Wages and salaries ($’000) 212,453 195,940 176,189 144,212 148,547 Pre-tax profit per employee ($’000) 63 111 105 58 234
Notes: 1. In arriving at net current assets, short-term borrowings have been excluded. 2. In the calculation of interest cover, fair value gain on investment properties/impairment has been excluded. Net interest cost, comprising net interest expense taken to the profit and loss account and interest capitalised under investment properties, properties held for sale and fixed assets, has been used. 3. In the calculation of the net debt-equity ratio, net debt includes borrowings net of cash and equity includes non-controlling interests in subsidiaries. 4. Wages and salaries include amounts capitalised under investment properties and properties held for sale. In the calculation of pre-tax profit per employee, the share of results of associates and joint ventures, and fair value gain on investment properties/impairment have been excluded. Overview / Operations and Market Review 03 Corporate Profile
Corporate Profile
Keppel Land is the property as Marina Bay Financial Centre iconic waterfront residences 01 Through its arm of the Keppel Group, one of and Ocean Financial Centre. at Keppel Bay and Marina Bay unwavering focus on sustaining growth in its Singapore’s largest multinational in Singapore. The Company businesses, empowering groups with key businesses in The Company is committed to has also ventured into the lives of its people, and offshore and marine, property, grow its commercial portfolio United States with a residential nurturing communities wherever it operates, infrastructure and investments. in key Asian cities. Its portfolio development in Manhattan, Keppel Land continues includes Seasons City in the New York. to shape the future One of Asia’s premier property Sino-Singapore Tianjin Eco-City, for the benefit of tomorrow’s generation. companies, Keppel Land is Life Hub @ Jinqiao, Park Avenue With a pipeline of about recognised for its sterling Central in Shanghai, China, 70,000 homes in Singapore portfolio of award-winning Saigon Centre in Ho Chi Minh City, and overseas as well as an residential developments and Vietnam, as well as International increasing commercial presence investment-grade commercial Financial Centre Jakarta in in the region, Keppel Land is properties as well as high Indonesia. The Company plans well-positioned to meet the standards of corporate to expand the SM-KL Project growing demands for quality governance and transparency. in the Philippines and residential, office and Keppel Land was privatised develop Junction City Tower mixed-use developments. and delisted from the Singapore in Yangon, Myanmar. Stock Exchange with effect An established property fund from 16 July 2015. A selective Beyond Asia, Keppel Land has manager, Keppel Land has capital reduction exercise to acquired an office building in two property fund management cancel all outstanding shares London, the United Kingdom. vehicles, Keppel REIT Management held by minority shareholders To strengthen the Company’s Limited, the manager of of Keppel Land was approved retail capabilities, Keppel Land Keppel REIT, a pan-Asian at an extraordinary general has acquired a 75% stake in commercial real estate meeting on 13 April 2016 and retail management company investment trust, and Alpha the court on 5 May 2016. Array Real Estate, which has Investment Partners (Alpha). been renamed Keppel Land As at 31 December 2015, The Company is geographically Retail Management. Keppel REIT and Alpha’s total diversified in Asia, with Singapore assets under management have and China as its core markets as Keppel Land is Asia’s premier grown to $20.5 billion when fully well as Vietnam and Indonesia as home developer with world-class leveraged and invested. its growth markets. Keppel Land focuses on a two-pronged strategy of property development for sale 01 and property fund management. The Company’s total assets amounted to about $14.9 billion as at 31 December 2015.
Keppel Land was ranked fourth in the prestigious Corporate Knights’ Global 100 Most Sustainable Corporations in the World 2015, placing it first in Asia and among real estate companies worldwide. Keppel Land was a component of the Dow Jones Sustainability World and Asia Pacific Indices, as well as the Morgan Stanley International Global Sustainability and Socially Responsible Indices prior to its delisting.
As a leading prime office developer in Singapore, Keppel Land contributes to enhancing the city’s skyline with landmark developments such Overview / Operations and Market Review 04 Keppel Land Limited Report to Shareholders 2015 05 Chairman’s Statement
Chairman’s Statement
Dear Shareholders, participating shareholders receiving $4.24 for each share cancelled. On behalf of the Board of Directors, I am pleased to present Keppel Land’s annual report for the The privatisation of Keppel Land fully aligned year ended 31 December 2015. the interests of the Company with the Keppel Group, providing a strong pillar for earnings Steady Financial Performance and long-term value creation. Leveraging the 2015 was a challenging year with the global Keppel Group’s financial and organisational economic environment affected by depressed strengths, Keppel Land will continue to scale oil prices, slowdown in China’s growth, as up in the property arena as well as build on well as volatility in the international financial and create platforms for collaboration through markets. Despite these headwinds, the Group realising synergies within the Group. performed creditably. Focus on Returns For the year ended 31 December 2015, With a legacy of over a hundred years, Keppel Land achieved a revenue of $1.6 billion, Keppel Land has grown steadily to become a up 6.8% from the previous year. However, premier developer in Asia, with a strong track net profit fell to $564.1 million, compared with record and brand name. To be a leader in the Loh Chin Hua $752.5 million a year ago, mainly due to fewer property industry does not mean that we Chairman asset divestments. In 2014, we divested stakes must aspire to be the biggest player. Instead, in Marina Bay Financial Centre Phase 2 and we want to be the developer with the highest To be a leader in the Equity Plaza, as well as data centres to return in Asia. Amongst Asia’s leading property property industry does Keppel DC REIT. With a relatively low net debt developers, Keppel Land’s return on equity is to equity ratio of 0.24 and a strong cash position one of the highest at 18.9% per annum over not mean that we must of $1.7 billion, we have the ability to pursue 10 years, from 2006 to 2015. aspire to be the biggest acquisitions and new investments. We will continue to focus on asset turnover and capital We continually review our investment player. Instead, we want recycling to improve returns, while continuing portfolios. In line with the Keppel Group’s to be the developer with to exercise prudent financial management. focus on higher returns, over the past two the highest return in Asia. years, we seized opportunities to recycle In 2015, Keppel Corporation, which then capital, strategically monetising almost Amongst Asia’s leading held 54.5% of Keppel Land shares, took $2.4 billion worth of assets and re-investing property developers, Keppel Land private through a voluntary the capital in new acquisitions. unconditional cash offer. Keppel Land was Keppel Land’s return delisted from the Singapore Stock Exchange Expanding Presence in Key Markets on equity is one of the on 16 July 2015, and became 99.3% owned by Our aim is to develop Keppel Land into a Keppel Corporation, with the remaining 0.7% multi-faceted property player, riding on highest at 18.9% per held by various shareholders. urbanisation trends in Asia. annum over 10 years, from 2006 to 2015. Since the delisting of Keppel Land, the The Group is focused on its core markets Company had received many queries from of Singapore and China, as well as its growth shareholders on how they could trade their markets of Vietnam and Indonesia. Being shares. As there is no public market for the geographically diversified has served the Key Developments in 2015 shares of Keppel Land, on 14 March 2016, the Company well in 2015 as it helped offset the Company proposed to undertake a selective subdued sales in Singapore, and allowed us Sold about 4,570 homes in Asia, mostly in capital reduction exercise to cancel all the to commit our resources to scale up and China and Vietnam, almost double the units shares held by the shareholders of Keppel Land strengthen our presence in our focus markets sold in 2014. (participating shareholders), apart from those while seizing opportunities in other emerging held by Keppel Corporation. markets and global gateway cities. Keppel REIT and Alpha Investment Partners’ assets under management grew by 9.6% to At an extraordinary general meeting held on Keppel Land sold a total of 4,570 homes in $20.5 billion when fully leveraged and invested 13 April 2016, participating shareholders 2015, almost double the 2,450 homes sold last as at end-2015. approved a special resolution for the selective year. China and Vietnam accounted for 72% capital reduction, following which court and 20% of the total home sales respectively. Strengthened retail capabilities with acquisition approval of the selective capital reduction of Array Real Estate, which has been renamed was also obtained. The property cooling measures implemented Keppel Land Retail Management. since 2013, coupled with rising interest rates, The selective capital reduction has allowed continued to weigh on the Singapore residential participating shareholders to realise the value market. The Group sold about 190 homes in of their investment in Keppel Land, with Singapore, mainly at The Glades at Tanah Merah 06 Keppel Land Limited Report to Shareholders 2015
Chairman’s Statement
01
01 Keppel Land, together and Highline Residences in Tiong Bahru. well-poised to capture demand for quality with its joint venture Sales also came from Corals at Keppel Bay homes as the market continues to recover. partners, will be developing a prime 14.6-hectare as well as Marina Bay Suites, our luxury waterfront site in the residential project jointly developed with Vietnam, being our second largest overseas Thu Thiem New Urban Cheung Kong Property Holdings and residential market after China, has recovered Area, which is poised to become the future central Hongkong Land, which is now fully sold. after a downturn in the property market for business district of almost five years. Given the country’s strong Ho Chi Minh City, Vietnam. With the easing of monetary and property GDP growth, expanding middle class and market cooling measures in China, recent relaxation of foreign homeownership market sentiments and housing demand regulations, the residential market is expected have improved. to continue its upward trajectory.
We sold 3,280 units in the country, about Our projects achieved record sales of about 70% more than the 1,920 homes sold in 2014. 930 units in 2015, almost six times the 160 units These were mainly contributed by our projects sold in 2014. Estella Heights, our latest in Shanghai, Chengdu, Tianjin and Wuxi. development in District 2 of Ho Chi Minh City (HCMC), achieved a strong take-up with 75% We have embarked on our first joint venture of a total of 872 units sold as of end-2015 project with China Vanke in China with V City, following its launch in the same year. Phase 1A a large-scale residential development located of our riverfront condominium in District 7, between the third and fourth ring roads in Riviera Point, also saw good response with Chengdu. This collaboration extends the about 260 units sold in 2015. In addition, strategic partnership with China Vanke together with our long-term Vietnamese to jointly develop residential projects in partners Tien Phuoc and Tran Thai, as well Singapore and China, which started in 2013 as Hong Kong-based real estate private with The Glades in Singapore. Phase 1 of V City equity fund, Gaw Capital Partners, we will be was launched in August 2015, and about developing a prime 14.6-hectare waterfront 750 units were sold by end-2015. With a healthy site in the Thu Thiem New Urban Area, which is pipeline of about 11,000 launch-ready units in poised to become the future central business China over the next three years, Keppel Land is district (CBD) of HCMC. We are excited that Overview / Operations and Market Review 07 Chairman’s Statement
through the project, we will bring the best gross floor area of about 73,000 sm, while the in waterfront and urban lifestyles to HCMC new office tower will offer about 110,000 sm of as well as augment Keppel Land’s quality Grade A office space when completed in 2019. portfolio of prime residential and commercial properties in the city. In Myanmar, Keppel Land entered into a joint venture with the Shwe Taung Group and In Indonesia, we remain positive about the acquired a 40% stake in a 23-storey Grade A country’s longer term prospects which are office building, Junction City Tower, which is supported by sound fundamentals of a large expected to be completed by 2017. The office and young population, growing middle-class building is part of Junction City, a mixed-use and continued urbanisation. We commenced development in Yangon’s CBD, which also sales and sold about 130 homes at West Vista, comprises the five-star Pan Pacific Hotel, a located in West Jakarta. In line with our shopping centre as well as serviced residences. strategy to focus on Greater Jakarta, Keppel Land secured a second residential While it remains focused on Asia, Keppel Land site at Daan Mogot to tap on the demand also invests opportunistically in key for well-located and affordable homes in global cities with good growth potential. the growth corridor of West Jakarta. In February 2015, Keppel Land purchased a 126,000 sf freehold office building located at Strengthening Commercial Portfolio 75 King William Street, in London’s historic The Group is actively developing its portfolio and central business district. The office tower of commercial properties which has increased is fully-tenanted, and is managed by Alpha to more than one million sm of gross floor area. Investment Partners (Alpha), the Group’s Our aim is to Some of them will come on stream over the private property fund management arm. next two years, allowing us to attract quality develop Keppel Land tenants for steady income streams. Bolstering Retail Platform into a multi-faceted To strengthen our retail capabilities, we In Singapore, Keppel Corporation and acquired a 75% stake in Array Real Estate in property player, Keppel Land divested their combined 39% January 2015, which has since been renamed riding on urbanisation interest in Harbourfront Towers 1 and 2, Keppel Land Retail Management (KLRM). and acquired the remaining 30% interest KLRM will manage our existing retail assets trends in Asia. in Keppel Bay Tower through a share swap and grow our retail and mixed-use commercial exercise with Mapletree Investments Pte Ltd. portfolio. KLRM has also been appointed the With the consolidation of ownership of the retail manager for 112 Katong, a lifestyle mall 450,000 sf Keppel Bay Tower, the Keppel in the eastern part of Singapore. Keppel Land Group will have greater flexibility to maximise acquired a 22.4% stake in the mall in January the potential of the office building. 2016. The remaining 77.6% stake is held by Alpha Asia Macro Trends Fund (AAMTF), We are also progressing with Saigon Centre which is managed by Alpha. Phase 2 development in HCMC, Vietnam. The retail mall, with a gross floor area of With a retail development and management 47,000 sm, is fully committed with leading platform, Keppel Land will be able to harness Japanese retailer, Takashimaya Department the Company’s collective competencies to Store, as the anchor tenant. The mall is capitalise on opportunities in integrated expected to open in the second half of 2016. mixed-use and retail developments to expand its commercial portfolio. In Indonesia, we topped out the 50,200 sm International Financial Centre (IFC) Jakarta Growth in Fund Management Tower 2 in August 2015. The office tower is Keppel REIT Management Limited and Alpha slated for completion in 2016. The existing have grown their combined assets under IFC Jakarta Tower 1 is planned to be management from $18.7 billion as at end-2014 redeveloped into a 54-storey office tower, to $20.5 billion as at end-2015. Both property offering 71,700 sm of quality office space. fund management vehicles have monetised assets and recycled capital into the acquisition The Group is also expanding the SM-KL project of new assets. in the Philippines with Phase 2 development comprising a 42-storey office building and an In October 2015, Keppel REIT completed the extension of the existing five-storey retail acquisition of three remaining prime street component, The Podium. When completed frontage retail units at 8 Exhibition Street in in 2017, the retail mall will have a total Melbourne, gaining strategic control of both 08 Keppel Land Limited Report to Shareholders 2015
Chairman’s Statement
the office and retail components of the On 25 January 2016, Keppel Land received building. In January 2016, Keppel REIT notification of Keppel Corporation’s intention divested its 100% interest in 77 King Street to consolidate its interests in all four of its in Sydney, Australia, for approximately subsidiaries in business trust management, A$160 million. REIT management and fund management under Keppel Capital Holdings Pte. Ltd. During the year, Alpha’s funds divested This includes Keppel Land’s interests in 10 assets across Singapore, Japan and South Keppel REIT Management Limited as well We have continued to Korea. AAMTF II also acquired Kovan Heartland as Alpha. set robust targets Mall and a suburban retail portfolio for about for ourselves, $380 million. Through the same fund, Alpha The proposed consolidation will help to partnered City Developments Limited to invest strengthen the Keppel Group’s capital benchmarking against in three prime office properties in Singapore – recycling platform and create an expanded the best in class Central Mall (Office Tower), 7 & 9 Tampines capital platform for co-investing in new assets. Grande and Manulife Centre for a total value It will also improve the performances of the in Environmental, of $1.1 billion. Leveraging the macro trends of managers of Keppel REIT and Alpha through Social and increasing urbanisation and consumerism in centralising certain non-regulated support Asia, as well as riding on the successes of the functions and creating a larger platform that Governance aspects. first two Asia Macro Trends Funds, Alpha is will enhance recruitment and retention of embarking on its third such fund. talent, as well as sharing of best practices.
01 01 In 2015, Keppel Land sold 3,280 units in China, about 70% more than the 1,920 homes sold in 2014. Overview / Operations and Market Review 09 Chairman’s Statement
In the long run, Keppel Land will also benefit Safety is one of the Group’s core values from improved investment returns from and remains a top priority. For our strong Keppel REIT and Alpha. commitment to the health, safety and well-being of our workforce, Keppel Land Driving Sustainability and garnered the bizSAFE Mentor Award by Upholding Quality the Workplace Safety and Health Council As a property developer, we are mindful of for the third consecutive year. On the the impact that our business operations international front, we were also recognised have on the environment. As such, at the prestigious International Safety Awards we have continued to set robust targets 2015 by the British Safety Council. for ourselves, benchmarking against the best in class in Environmental, Recognising that our people are the most Social and Governance aspects. valuable asset of the Company, we have continued to attract, develop and retain Keppel Land’s commitment to sustainability our talent pool. Over the past few years, won us the Building and Construction our HR emphasis has been on selection and Authority of Singapore’s (BCA) Green Mark recruitment, job rotation and enlargement, Champion Award (Developer) and Built localisation, performance management Environment Leadership (Gold Class) Award. and manpower planning. For our efforts, Keppel Land also clinched seven Green Mark we were recognised at the 2015 Singapore Platinum awards, and currently has in HR Awards for Leading HR Practices its portfolio more than 60 BCA Green in Talent Management, Retention and Mark-certified projects in Singapore Succession Planning. and overseas. Acknowledgements Keppel Land set a new milestone when On behalf of the Board, I would like to thank it was ranked fourth in the prestigious our shareholders, customers and business Corporate Knights’ Global 100 Most partners for their continued support. Sustainable Corporations 2015, the first time an Asian company made My appreciation goes to our Directors for their it to the top 10. Back home, Keppel Land guidance in navigating the Company through clinched the top award for the large the challenging times. We would like to thank organisations category at the inaugural Mrs Lee Ai Ming and Mr Heng Chiang Meng, Singapore Apex Corporate Social who have retired from the Board, for their Responsibility Awards 2015 for invaluable contribution and wise counsel demonstrating a high level of social in the last 13 and 10 years respectively. responsibility and sustainability I would also like to thank the management excellence in its business practices. team and employees for their hard work and perseverance. Keppel Land’s commitment to quality in its developments has also been widely Although 2016 is expected to be another recognised. In the Euromoney Real Estate challenging year, I am confident that Awards 2015, Keppel Land received Keppel Land will be able to ride through the a total of six awards for Singapore, challenges with guidance from the Board, Vietnam and Indonesia. We were named strong commitment of its management team the Best Office/Business Developer and staff, as well as continued support from in the three countries, as well as all stakeholders. the Best Residential Developer in Singapore and Vietnam. For the first time, Yours sincerely, we clinched the Best Overall Investment Manager Award for Alpha.
For its economic and social contributions to the local Chinese communities, Keppel Land China was conferred the Top 10 ASEAN Companies in China Award in 2016 by the China-ASEAN Business Council. It is the only company that has Loh Chin Hua been awarded the accolade for four Chairman consecutive years. 31 May 2016 Overview / Operations and Market Review 10 Keppel Land Limited Report to Shareholders 2015 11 Interview with the CEO
Interview with the CEO
We have continued to be disciplined in recycling assets and redeploying capital to seek higher returns. Over the past two years, we have Ang Wee Gee monetised almost $2.4 billion worth of assets. CEO
We will continue to The success of Keppel Land’s strategy and stake in the Estella Heights residential execution shows in its return on equity which project in Ho Chi Minh City, as well as strengthen presence is one of the highest among Asian developers. stakes in an office tower in Yangon, in our core markets of We have continued to be disciplined in recycling a large-scale residential township joint Singapore and China, assets and redeploying capital to seek higher venture project with China Vanke in Chengdu, returns. Over the past two years, we have a residential apartment block in New York expand in our growth monetised almost $2.4 billion worth of assets. and an office development in London. markets of Vietnam This includes our stakes in Marina Bay Financial We have also recently announced the Centre Tower 3 and Equity Plaza in Singapore, divestment of two properties in Vietnam, and Indonesia, as well as well as BG Junction retail mall in Surabaya, stakes in a Thai-listed company as well as a as seize opportunities Indonesia. Part of these proceeds were property company in Sri Lanka. We are also recycled for the acquisition of two well-located in the process of divesting several other in other emerging residential sites in West Jakarta, an additional assets in the region. markets and global gateway cities. Q Is Keppel Land moving its focus away from A Singapore, as the Company has a limited Singapore remains one of our core markets land supply, we will explore other avenues, residential landbank and we will continue to pursue opportunities such as acquiring existing developments, and no new commercial in residential, office and mixed-use which will offer opportunities for us to development in the developments. For example, we bought value-add through asset enhancement pipeline in Singapore? into Array Real Estate in January 2015, or redevelopment. Looking ahead, what is which we subsequently renamed the Company’s strategy Keppel Land Retail Management (KLRM), For instance, we recently acquired the in Singapore? to strengthen our capabilities in the remaining 22.4% stake in 112 Katong mall, development and management of retail located in the eastern part of Singapore. and mixed-use developments. The majority 77.6% stake is held under Alpha Investment Partners’ Alpha Asia Macro Residential demand in Singapore has Trends Fund. KLRM, which assisted in the sale, A softened in the last two years after the has been appointed the retail manager for government implemented cooling measures the property and will be carrying out asset 2016 will continue to be challenging as the markets of Vietnam and Indonesia, as well as to prevent the sharp escalation of prices. enhancement works to reposition the property Q economy and the property sector in a few seize opportunities in other emerging markets The market is however, showing signs and enhance its value. The Keppel Group of our key markets are expected to remain and global gateway cities. of stabilising. also recently consolidated ownership of Some of the property subdued. However, I am confident that we Keppel Bay Tower in a share swap exercise markets in Asia are will overcome these challenges, just as we Another pillar of our strategy is the recycling of We will continue to selectively seek sites with Mapletree Investments to acquire expected to remain subdued had weathered headwinds over the years, capital through the divestment of assets at the with good value propositions to augment the remaining 30% stake in the property. in 2016. How confident is including the Asian Financial Crisis in 1998 appropriate time. In 2002, we kick-started the our existing land bank. We currently have These acquisitions have augmented our Keppel Land in riding out and the Global Financial Crisis in 2008. divestment of our prime office portfolio with 1,210 homes in our pipeline, of which about quality commercial portfolio, providing these headwinds? Each time, Keppel Land emerged stronger the sale of our 70% stake in Capital Square. 44% are located within the Keppel Bay rental income, while their consolidated by being more focused on our business, In 2006, we spun off four office buildings valued precinct. These homes are valued for ownership will also make it easier for us as well as exercising prudence and discipline. at $630 million into a commercial real estate their unique designs, prime location and to realise the value of the properties at the investment trust (REIT), K-REIT Asia, which has waterfront offerings. appropriate time. Being geographically diversified has served the since been renamed Keppel REIT. Between 2007 Company well. In 2015, overseas contribution, and 2014, we divested to Keppel REIT our stakes As for the commercial market, there have In addition, we are substantially invested in most of which was from China, made up in One Raffles Quay, Ocean Financial Centre, not been many Grade A office or prime the office sector in Singapore through our 57% of our earnings. We will continue to Marina Bay Financial Centre Phases 1 and 2, mixed-use developments released through 45% stake in Keppel REIT, which owns about strengthen presence in our core markets enabling it to grow into one of the largest the government land sales programme in the 2.6 million sf of attributable net lettable area of Singapore and China, expand in our growth commercial REITs in Singapore. past few years. Apart from the government of prime office space in Singapore. 12 Keppel Land Limited Report to Shareholders 2015
Interview with the CEO
Our focus on developing people, driving a culture of innovation, collaboration and sustainability as well as embracing new technologies will help to differentiate us from the competition.
Q Keppel Land has extensive overseas exposure in Asia A and beyond. What will be your key focus and how do Over the past three years, we have established as the country’s large and young population will you plan to grow these greater geographical focus by concentrating on continue to support demand for well-located overseas markets over key cities in our core markets of Singapore and and affordable homes. the next few years? China, and growth markets of Vietnam and Indonesia. In China, the cities are Shanghai, Myanmar is a promising and up-and-coming Beijing, Chengdu, Tianjin and Wuxi, while in country. We have already established our Vietnam, it is Ho Chi Minh City, and in Indonesia, presence with two hotels in Yangon and it is Greater Jakarta. Mandalay under the Sedona brand, and have taken a 40% stake in Junction City Tower, In 2015, we deepened our presence in key the office component of Junction City, markets by investing in a residential site in a mixed-use development in Yangon’s central West Jakarta, a large-scale residential township business district. As investors flock to explore in Chengdu through a joint venture with China opportunities in what is considered the next Vanke, and acquiring a stake in Nam Long frontier in Asia, there will be demand for good Investment Corporation, an affordable quality office space and hotel accommodation. housing developer in Vietnam. Sedona Hotel Yangon, where we have just added a new wing of more than 400 rooms, With China currently experiencing slower will benefit from the influx of business and economic growth, the government has an interest tourist visitors. to keep the property market healthy given that the real estate sector accounts for 25-30% of With rapid urbanisation, a growing middle-class the country’s GDP. The lifting of home purchase and infrastructure improvements, the urban restrictions in many cities, together with the lower landscape in Asia is fast evolving, creating downpayments and low mortgage rates, have opportunities for the development of quality made homes more affordable and will help to residential, office, retail and mixed-use draw buyers back into the market. With our supply developments to meet rising demand for of about 11,000 launch-ready units in China over urban and sustainable living. the next three years, we are well-positioned to capitalise on any uptick in demand. Keppel Land will strengthen its operating platforms and also ride on KLRM’s experience Vietnam is expected to continue its growth and network to capture opportunities in retail momentum after posting the best growth in and mixed-use projects, and scale up our Asia in 2015. Demand for residential properties commercial presence in the region. is expected to continue to be strong, driven by demand for quality housing as well as the Leveraging our established networks and relaxation of foreign homeownership regulations. relationships with the local governments, We have more than 5,200 launch-ready units in partners and business associates in these Vietnam for the next three years. markets, we will further strengthen our footprint in existing and new cities, build new As for Indonesia, although growth has slowed due capabilities as well as deliver innovative and to a fall in demand for oil and commodities, we thoughtful products and experiences to our are optimistic about the longer term prospects homebuyers and tenants. Overview / Operations and Market Review 13 Interview with the CEO
A Keppel Land’s vision and mission were develop and retain strong talents. Our emphasis refreshed in early-2015 to reinforce our on selection and recruitment, job rotation and Q aspiration to be the leading real estate company, job enlargement, localisation of our business What is your vision for shaping the best for future generations. operations overseas, as well as performance Keppel Land? management and manpower planning over To achieve our vision, we need to put in place the recent years have yielded positive results. the right culture, the right people and the right Looking ahead, we will further strengthen business strategy. Over the last few years, we our bench strength through developing our have worked hard to build an open, collaborative, internal talents and hiring exceptional external innovative and entrepreneurial culture at talents. We will continue with our push to Keppel Land. The commendable score in localise so as to strengthen our operating our 2015 employee engagement survey is an platforms overseas, as well as seek to maximise affirmation of our efforts. However, building productivity and improve operations. a positive culture and sustaining an engaged workforce require continual effort and there will We will continually review our strategies to ensure always be areas which we need to improve on. that they remain relevant in the challenging business environment. To maintain our competitive Our people remain central to our ability to do edge, we need to execute our strategies well well and we will continue to attract, motivate, and respond to market changes swiftly.
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01 Indonesia is one of Keppel Land’s key growth markets where it will continue to further strengthen its presence. Pictured is the International Financial Centre Jakarta Tower 2, which topped out in August 2015. 14 Keppel Land Limited Report to Shareholders 2015
Interview with the CEO
A We recognise that people are our most valuable solutions for our residential and commercial Q assets. We have put in place leadership developments. Our recent partnership with development and localisation programmes Keppel’s associated company, M1, for the Smart Can you share your to groom employees with high potential as well Lives programme is one such initiative. We have strategy on developing as provide multiple platforms to engage staff. also formed multi-disciplinary teams comprising talent and driving We will continue to invest in our people by staff from different business and functional innovation within nurturing our talent pool and improving staff units to explore a number of exciting new the Company? engagement to drive growth. business and operational initiatives, some of which may be implemented as early as this year. Upholding the Company’s brand tagline of “Thinking Unboxed”, we will continue to innovate Our focus on developing people, driving a culture and collaborate more closely with other businesses of innovation, collaboration and sustainability as in the Keppel Group to leverage the Group’s well as embracing new technologies will help to diverse strengths to offer greener and smarter differentiate us from the competition.
A Since we embarked on our sustainability journey We will do our part to protect the environment Q about 10 years ago, we have been playing an by developing environmentally-friendly properties, active role in creating sustainable live-work-play preserving biodiversity and inculcating green Keppel Land has garnered environments and giving back to the communities mindsets among our stakeholders. We strive to international recognition wherever we operate. reduce our carbon footprint and target to cut, for its environmental, by 2020, our carbon emissions intensity by 16% social and governance (ESG) Testament to our efforts, our ranking at below 2010’s levels. Looking ahead, we will focus performance. With increasing Corporate Knights’ Global 100 Most Sustainable on engaging our stakeholders along the supply focus on ESG issues in Asia, Corporations in the World rose from 17th in 2014 chain so that we can influence and encourage what steps will Keppel Land to a commendable 4th in 2015, topping Asian our contractors and suppliers to adopt take to tackle challenges and real estate companies worldwide. During sustainable and best procurement practices. such as climate change? the year, we were also conferred the Building and Construction Authority of Singapore’s (BCA) As a responsible corporate citizen, we will continue Quality Champion Gold Award (Developer) and to step up our community outreach initiatives, Built Environment Leadership (Gold Class) Award. with a focus on education and the environment.
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01 Keppel Land continues to engage and nurture communities wherever it operates. The Company was a major sponsor of the Green Corridor Run held in March 2016. Overview / Operations and Market Review 15 Board of Directors
Board of Directors
Loh Chin Hua age 54 Ang Wee Gee age 54 Chairman, Non-Executive Executive Director and and Non-External Director Chief Executive Officer
Date of first appointment as a director: Date of first appointment as a director: 1 July 2012 1 January 2013 Date of last re-election as a director: Date of last re-election as a director: 19 April 2013 19 April 2013 Length of service as a director Length of service as a director (as at 31 December 2015): (as at 31 December 2015): 3 years 6 months 3 years
Board Committee(s) served on: Board Committee(s) served on: Board Safety Committee (Member) Board Safety Committee (Member)
Present Directorships: Present Directorships: Listed companies Listed companies Keppel Corporation Limited Keppel REIT Management Limited Keppel Telecommunication & Transportation Ltd (the Manager of Keppel REIT) (Chairman) Other principal directorships Other principal directorships Keppel Land China Limited (Chairman) Keppel Offshore & Marine Ltd (Chairman) Keppel Land Retail Management Pte Ltd (Chairman) Keppel Infrastructure Holdings Pte Ltd (Chairman) Alpha Investment Partners Limited Alpha Investment Partners Limited (Chairman) Major Appointments Major Appointments (other than directorships): (other than directorships): Member of the Board of the Building and Chief Executive Officer of Keppel Corporation Limited Construction Authority of Singapore 16 Keppel Land Limited Report to Shareholders 2015
Board of Directors
Tan Yam Pin age 75 Edward Lee Kwong Foo age 69 Non-Executive and Non-Executive and External Director External Director
Date of first appointment as a director: Date of first appointment as a director: 1 June 2003 1 July 2006 Date of last re-election as a director: Date of last re-election as a director: 30 April 2015 19 April 2013 Length of service as a director Length of service as a director (as at 31 December 2015): (as at 31 December 2015): 12 years 7 months 9 years 6 months
Board Committee(s) served on: Board Committee(s) served on: Board Safety Committee (Chairman) Board Risk Committee (Member) Board Safety Committee (Member) Present Directorships: Listed companies Present Directorships: Great Eastern Holdings Limited Listed companies Singapore Post Limited Indofood Agri Resources Ltd QAF Limited Other principal directorships Nil Other principal directorships Asia Mobile Holdings Pte Ltd Major Appointments Gas Supply Pte Ltd (other than directorships): PT Dermaga Perkasa Pratama Member of the Singapore Public Service Commission PT Kawasan Industri Kendal PT Fairfax Insurance Indonesia
Major Appointments (other than directorships): Member of the National University of Singapore President’s Advancement Advisory Council Overview / Operations and Market Review 17 Board of Directors
Koh-Lim Wen Gin age 71 Non-Executive and The Directors External Director bring their diverse
Date of first appointment as a director: experiences and 20 January 2010 knowledge to the Date of last re-election as a director: 19 April 2013 strategic governance Length of service as a director (as at 31 December 2015): of the Group. 5 years 11 months
Board Committee(s) served on: Board Safety Committee (Member)
Present Directorships: Listed companies Nil
Other principal directorships Nil
Major Appointments (other than directorships): Member of National Parks Board Member of Sentosa Development Corporation Board Chairman of Sentosa Cove Resort Management Pte Ltd 18 Keppel Land Limited Report to Shareholders 2015
Board of Directors
Yap Chee Meng age 60 Huang Jing age 59 Non-Executive and Non-Executive and External Director External Director
Date of first appointment as a director: Date of first appointment as a director: 2 December 2013 1 January 2014 Date of last re-election as a director: Date of last re-election as a director: 17 April 2014 17 April 2014 Length of service as a director Length of service as a director (as at 31 December 2015): (as at 31 December 2015): 2 years and 1 month 2 years
Board Committee(s) served on: Board Committee(s) served on: Audit Committee (Chairman) Board Risk Committee (Member) Board Risk Committee (Member) Present Directorships: Present Directorships: Listed companies Listed companies Nil SMRT Corporation Ltd SATS Ltd Other principal directorships Nil Other principal directorships AXA Insurance Singapore Pte Ltd Major Appointments The Esplanade Co Ltd (other than directorships): Pavilion Gas Pte Ltd Professor and Director of Centre on Asia and RHB Securities Singapore Pte Ltd Globalisation at the Lee Kuan Yew School of Public Policy, National University of Singapore (“NUS”); Major Appointments The first Lee Foundation Chair Professor of US-China (other than directorships): Relations at NUS; Richard Von Weizsäcker Fellow Member of the Board of The National Research from the Robert Bosch Stiftung; Senior Overseas Foundation, Prime Minister’s Office, Singapore Economic Analyst for China’s Xinhua News Agency; Board member of the Fujitsu-JAIMS Foundation in Japan; Board member of the Advisory Board of the Center on China and Globalization, European-House Ambrosette; Member of the Steering Committee of the NUS Research Institute in Suzhou; Member of the Global Agenda Council at the World Economic Forum Overview / Operations and Market Review 19 Board of Directors
Oon Kum Loon age 65 Chan Hon Chew age 51 Non-Executive and Non-Executive and External Director Non-External Director
Date of first appointment as a director: Date of first appointment as a director: 1 September 2010 1 July 2014 Date of last re-election as a director: Date of last re-election as a director: 17 April 2014 30 April 2015 Length of service as a director Length of service as a director (as at 31 December 2015): (as at 31 December 2015): 5 years 4 months 1 year 6 months
Board Committee(s) served on: Board Committee(s) served on: Board Risk Committee (Chairperson) Audit Committee (Member) Audit Committee (Member) Board Risk Committee (Member)
Present Directorships: Present Directorships: Listed Companies Listed companies Nil Keppel Telecommunications & Transportation Ltd Keppel DC REIT Management Pte Ltd (the Manager Other principal directorships of Keppel DC REIT) (Chairman) Singapore Power Limited KrisEnergy Ltd Jurong Port Pte Ltd Other principal directorships Major Appointments Keppel Offshore & Marine Ltd (other than directorships): Keppel Infrastructure Holdings Pte Ltd Nil Singapore Tianjin Eco-City Investment Holdings Pte Ltd
Major Appointments (other than directorships): Chief Financial Officer of Keppel Corporation Limited; Member of the Board of the Singapore Accountancy Commission; Member of the Council of the Singapore Accounting Standard Council 20 Keppel Land Limited Report to Shareholders 2015
Senior Management
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1. Sam Moon Thong 6. Tan Swee Yiow President President Indonesia Singapore
2. Ho Cheok Kong 7. Christina Tan Hua Mui Director Managing Director Special Projects Alpha Investment Partners Limited 3. Ng Hsueh Ling Chief Executive Officer 8. Linson Lim Soon Kooi Keppel REIT Management Limited President Vietnam 4. Lim Kei Hin Chief Financial Officer 9. Ng Ooi Hooi President 5. Ang Wee Gee Regional Investments Chief Executive Officer Keppel Land Limited 10. Ben Lee Siew Keong President Keppel Land China Limited Overview / Operations and Market Review 21 Senior Management
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16 13 14 15 17 11 12
11. Chu Chee Seng 15. Michael Leong Choon Fai General Manager Chief Executive Officer Keppel Land Hospitality Keppel Land Retail Management Pte Ltd Management Pte Ltd
12. Leong Chi Meng 16. Lim Tow Fok General Manager General Manager Corporate Development Property Management
13. Chan Kam Fai 17. Allen Ang Aik Leng General Manager General Manager Human Resources Project Management and Sustainable Design 14. Albert Foo Cheur Wee General Manager 18. Peter Shane Jones Marketing General Manager Workplace Safety and Health 22 Keppel Land Limited Report to Shareholders 2015
Key Personnel
Keppel Land Limited Property Investment, Development and Management
Loh Chin Hua Keppel Land Singapore Chairman International Limited
Ang Wee Gee Lim Kei Hin Tan Swee Yiow Chief Executive Officer Chief Financial Officer President Singapore
International
China Ho Cheok Kong President Keppel Land China Limited (until 29 February 2016)
Ben Lee Siew Keong President Keppel Land China Limited (effective 1 March 2016)
Vietnam Linson Lim Soon Kooi President Vietnam
Indonesia Sam Moon Thong President Indonesia
India, Malaysia, Myanmar, Sri Lanka, The Philippines and Thailand Ng Ooi Hooi President Regional Investments Overview / Operations and Market Review 23 Key Personnel
Property Fund Corporate Management
Ng Hsueh Ling Special Projects Workplace Safety Chief Executive Officer Ho Cheok Kong and Health Keppel REIT Management Limited Director Peter Shane Jones (effective 1 March 2016) General Manager Kelvin Chow Chung Yip Chief Financial Officer Group Finance and Accounts Human Resources Keppel REIT Management Limited Tan Boon Ping Chan Kam Fai Financial Controller General Manager Christina Tan Hua Mui (until 31 October 2015) Managing Director Corporate Services Alpha Investment Partners Limited Wong Man Li and Corporate Social Financial Controller Responsibility Goo Li Ling (effective 1 November 2015) Serena Toh Lai Siong Chief Financial Officer General Manager Alpha Investment Partners Limited Finance and Administration Melissa Tan Siew Ngok Corporate Development General Manager Leong Chi Meng Hospitality General Manager Management Marketing Albert Foo Cheur Wee Information Technology Tan Swee Yiow General Manager Kevin Chua Kee Wee Director Deputy General Manager Keppel Land Hospitality Project Management Management Pte Ltd and Sustainable Design Group Internal Audit Allen Tan Kuang Liang Jessica Cheong Weai Mun Chu Chee Seng Deputy General Manager Deputy General Manager General Manager (until 11 January 2016) Keppel Land Hospitality Risk Management Management Pte Ltd Allen Ang Aik Leng Yeo Hwee Pey (effective 2 November 2015) General Manager Assistant General Manager (effective 12 January 2016) Khoo Peck Khoon General Manager Property Management (Golf and Marina Operations) Lim Tow Fok Keppel Land Hospitality General Manager Management Pte Ltd (effective 2 November 2015)
Retail Management
Michael Leong Choon Fai Chief Executive Officer Keppel Land Retail Management Pte Ltd 24 Keppel Land Limited Report to Shareholders 2015
Key Personnel
Keppel Land China Limited Vietnam
Ho Cheok Kong Lee Eng Beng Linson Lim Soon Kooi President General Manager President (until 29 February 2016) Marketing Vietnam
Ben Lee Siew Keong Tan Joo Chuah Doan Anh Hung President General Manager General Manager (effective 1 March 2016) Project Management Vietnam General Manager (until 3 January 2016) Operations Joseph Low Kar Yew (until 29 February 2016) Gavin Lu Yee Liang Deputy General Manager General Manager Operations Patrick Lim Jean Loong Project Management Chief Financial Officer (effective 4 January 2016) (until 30 November 2015) Wong Wai Foo Tan Boon Ping Deputy General Manager Chief Financial Officer Property Management (effective 1 December 2015) Vincent See Wing Chuen William Tan Tin Kwang General Manager General Manager Human Resources Northern China Kenny Phua Boon Peow Desmond Wong Hong Kiong Deputy General Manager General Manager Chengdu Regional Head Frank Ong Cheng Poh Daniel Chong Siew Hoe Deputy General Manager General Manager Tianjin Regional Head Eric Cheng Lu Benjamin Kang Min Shin Assistant General Manager General Manager Wuxi Business Development Overview / Operations and Market Review 25 Key Personnel
Indonesia Regional Investments
Sam Moon Thong Ng Ooi Hooi President President Indonesia Regional Investments
Wong Chee Wai Myanmar Deputy General Manager Goh York Lin Operations President
Thailand Oh Lock Soon Managing Director Keppel Thai Properties Public Company Limited
India Yeo Chee Kian Deputy General Manager Bangalore
Malaysia Steven Shum Wing On Deputy General Manager
Sri Lanka R. Pannir Chelvam s/o Ramaya Deputy General Manager (until 29 February 2016)
The Philippines Lee Foo Tuck President Keppel Philippines Properties, Inc. Overview / Operations and Market Review 26 Keppel Land Limited Report to Shareholders 2015 27 Awards and Accolades
Awards and Accolades
Leadership Award (Gold Class), Separately, for its efficient energy inaugural Vietnam Property 01 Keppel Land was BCA Quality Excellence Award management practices, Ocean Awards. Saigon Centre conferred the Bronze Corporate Award for Best Annual Recognition (Quality Champion, Gold), BCA Financial Centre was named the Phase 2 was named the Report in the large Universal Design Mark GoldPlus winner in the Large Green Building winner for Best Commercial capitalisation category (Design) Award for Highline category at the ASEAN Energy and Best Retail Development, at the Singapore Global 100 Most Sustainable Corporate Awards 2015. Corporations in the World Residences, BCA Universal Awards 2015. The award aims while Riviera Point was Keppel Land was ranked Design Mark Gold (Design) to promote regional cooperation named the Best Mid-range Award for The Luxurie and on projects relating to energy Condominium Development 02 At the annual Building fourth in Corporate Knights’ and Construction Global 100 Most Sustainable the inaugural BCA Green Mark efficiency and sustainability. in Ho Chi Minh City (HCMC). Authority Awards 2015, Corporations in the World 2015, Pearl Award for Marina Bay The Company also received the Keppel Land garnered Financial Centre Tower 3. Highly Commended Award for five awards. placing it first in Asia and among real estate Product Excellence Best Office Development and companies worldwide. Singapore Apex CSR Awards Best Retail Architectural Design 03 Keppel Land garnered Keppel Land took top honours FIABCI Prix d’Excellence for Saigon Centre Phase 2, six Euromoney Real Estate Awards in 2015. Top 10 ASEAN in the Large Organisations Marina Bay Suites was Best Residential Architectural Companies in China category at the inaugural conferred the Silver Award in Design for Riviera Point, and For the fourth consecutive Singapore Apex Corporate the Residential (High Rise) Best Luxury Condominium year, Keppel Land China was Social Responsibility (CSR) category at the highly acclaimed Development in HCMC for conferred the Top 10 ASEAN Awards. The award FIABCI Prix d’Excellence Awards. Estella Heights. Companies in China Award by the recognises companies for Marina Bay Financial Centre China-ASEAN Business Council their social responsibility Phase 1 was also awarded the Distinction in Hospitality in 2016. The award honours 01 and sustainability excellence FIABCI Singapore SG50 Special Sedona Suites Hanoi was named model ASEAN companies in their business practices. Award in the Office category at the Best Serviced Residence at which have achieved business the Singapore Property Awards. the 14th Golden Dragon Awards success and contributed Singapore Corporate Fish Friendly Marina organised by the Vietnam positively to the local Chinese Awards Corporate Social Marina at Keppel Bay was Design Excellence Economic Times and Ministry communities they operate in. Keppel Land won the Responsibility accredited as Asia’s first Keppel Land was conferred of Planning and Investment. Keppel Land China is the Bronze Award for Best Fish Friendly Marina by the the Singapore Good Design Mark only company that has been Annual Report in the large The RobecoSAM Marina Industries Association Gold Award for Reflections at Spring City Golf & Lake Resort awarded the accolade for capitalisation category Sustainability Yearbook for its efforts in improving Keppel Bay and for the interactive (Spring City) and Tianjin Eco-City four years running. at the Singapore Corporate For the fifth consecutive year, the habitat of marine life multimedia wall at Highline International Country Club were Awards 2015. Keppel Land was featured in within its waters. Residences’ sales gallery. named among the Top 10 Most Governance and the RobecoSAM Sustainability In addition, the multimedia wall Outstanding Golf Resorts by Transparency Index Euromoney Real Yearbook 2015 as one of the top Sustainable Developments at Highline Residences won China’s Golfers’ Choice Awards. Keppel Land was ranked Estate Awards 15% of companies worldwide in Ocean Financial Centre and Silver in the Multimedia-Interface Spring City was also named seventh out of 639 listed Keppel Land garnered six sustainability leadership. Marina Bay Financial Centre Design category at the one of the Top 10 Most companies in Singapore at Euromoney Real Estate Awards, were among six buildings that 8th International Design Awards. Outstanding Golf Courses the annual Governance and including Best Office/Business International Safety Awards were awarded the Water Efficient at the same event. Golf Digest Transparency Index, jointly Developer in Singapore, For its commitment to Building (Gold) certification by Quality Developments (China edition) also listed organised by CPA Australia, Indonesia and Vietnam, upholding good safety practices, the PUB. Bugis Junction Towers Keppel Land emerged as Spring City among China’s NUS Business School’s Centre Best Residential Developer Keppel Land was recognised at received the Silver certification. one of the big winners at the Top 10 Golf Resorts. for Governance, Institutions in Singapore and Vietnam the prestigious International and Organisations as well as as well as Best Investment Safety Awards 2015 by the The Business Times. Manager (Overall) in real estate British Safety Council. 02 03 services in Singapore. ASEAN Corporate BizSAFE Mentor Governance Awards BCI Asia Awards For its exemplary Workplace Keppel Land was lauded for Keppel Land was named Safety and Health management its high standards of corporate one of the top 10 developers and performance, Keppel Land governance at the 2015 in Vietnam at the BCI Asia was conferred the bizSAFE ASEAN Corporate Governance Top 10 Awards. Mentor certificate for the Awards, an initiative of third consecutive year. the ASEAN Capital Markets Singapore HR Awards Forum and supported by the Keppel Land was recognised BCA Awards Asian Development Bank. for Leading HR Practices Keppel Land garnered five The award recognises in Talent Management, awards at the annual Building companies that continuously Retention and Succession and Construction Authority implement good corporate Planning, and accorded of Singapore (BCA) Awards. governance in their special mentions in This includes the coveted operations and services. Performance Management. BCA Built Environment 28 Keppel Land Limited Report to Shareholders 2015
Corporate Milestones
2015
January • Keppel REIT topped out the December • Keppel Land acquired a David Malcolm Justice Centre • Alpha Investment Partners, well-located 4.6-hectare (ha) office tower in Perth, Australia. through Alpha Asia Macro site in West Jakarta, Trends Fund II, partnered Indonesia, to develop April City Developments Limited a high-rise condominium • Keppel Land topped out the (CDL), in a $1.1 billion joint with ancillary shophouses Inya Wing of Sedona Hotel office investment platform and shop units. Yangon in Myanmar. that acquired three of CDL’s prime office assets. • Keppel Land acquired a 75% July stake in retail management • Keppel Land was privatised • Keppel Land and company Array Real Estate, with Keppel Corporation owning M1 launched the pilot which was subsequently over 99% of the Company at the Smart Lives programme renamed Keppel Land completion of the privatisation. at The Luxurie to provide Retail Management. smart living solutions August for Keppel Land’s February • The Company topped out residential and • Keppel Land acquired a International Financial Centre commercial properties. freehold nine-storey office Jakarta Tower 2, a landmark building at 75 King William commercial development in the • Keppel Corporation and Street in the City of London. central business district of Keppel Land consolidated Jakarta, Indonesia. the Group’s ownership • Keppel Land and of Keppel Bay Tower China Vanke extended • Keppel REIT received the through a share swap their strategic alliance into Certificate of Practical exercise with Mapletree China to jointly develop Completion for the Investments. Keppel a 16.7-ha prime residential David Malcolm Justice Centre. acquired the remaining site in Chengdu. 30% interest in Harbourfront October One Pte Ltd which holds March • Sedona Hotel Yangon celebrated Keppel Bay Tower, in exchange • Keppel Land increased its the soft opening of its new for its 39% interest in stake in Estella Heights Inya Wing which adds an Harbourfront Two Pte Ltd, in Ho Chi Minh City from additional 431 guest rooms which holds Harbourfront 55% to 98%. and suites. Towers 1 and 2.
01 Overview / Operations and Market Review 29 Corporate Governance
Corporate Governance
Keppel Land is committed to achieving high standards of corporate governance to ensure the sustainability of the Company’s businesses as well as to safeguard shareholders’ interests.
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The Company’s Directors and Board Committees include the Directors are external Directors 01 Keppel Land topped Management firmly believe Audit Committee, Board Risk (“External Directors”). External out International Financial Centre Jakarta that full commitment to Committee and Board Safety Directors are directors who do Tower Two in Indonesia high standards of corporate Committee. The Nominating not have an executive position in August 2015. governance is essential to Committee and the Remuneration within the Company and its ensure the sustainability Committee have been dissolved. related companies. 02 Keppel Land of the Company’s businesses These Board Committees have proactively engages and performance as well as clearly defined written terms of The Directors provide an shareholders on the Company’s strategic to safeguard shareholders’ reference. Matters which are appropriate balance and directions at its Annual interests and maximise delegated to Board Committees diversity of skills, experience, General Meetings. long-term shareholder value. for more detailed evaluation and gender and knowledge of the approval are reported to and Company, as well as relevant Board Matters monitored by the Board. core competencies in The Board’s Conduct areas such as accounting or of Affairs The Board has included in its finance, legal, business or The Board oversees the oversight, consideration of management experience, effectiveness of Management sustainability issues such as industry knowledge, strategic as well as the corporate environmental, social and planning experience, and governance of the Company governance factors in the customer-based experience with the objective of maximising strategic formulation and or knowledge. The Chairman long-term shareholder value execution of the Company’s of the Board is Mr Loh Chin Hua. and protecting the Company’s objectives. Every Board In terms of composition of assets. Its key roles include meeting includes an update on the Board, External Directors the review and approval of sustainability issues. The Board form the majority. the Group’s corporate strategies meets regularly on a quarterly and directions, annual budgets, basis and as warranted. Chairman and major investments, divestments Chief Executive Officer and funding proposals and the Board Composition To ensure an appropriate review of the Group’s financial Presently, there are nine balance of power, increased performance, risk management Directors. With the exception accountability and a greater processes and systems, and of Mr Ang Wee Gee, who is the capacity of the Board for sustainability considerations Chief Executive Officer (“CEO”), independent decision-making, including corporate governance the rest of the eight Directors the Company has a clear practices. The Board is also are non-executive Directors. With division of responsibilities at responsible for setting the the exception of Mr Loh Chin Hua, the top level of the Company, Company’s core values and Mr Ang Wee Gee and Mr Chan with the non-executive Chairman ethical standards. Hon Chew, the rest of the six and the CEO having separate roles. 30 Keppel Land Limited Report to Shareholders 2015
Corporate Governance
01 Keppel Land was lauded for its high standards of corporate governance at the 2015 ASEAN Corporate Governance Awards. Receiving the award on behalf of Keppel Land was Mr Linson Lim (second from left), President (Vietnam).
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The Chairman leads the Board diversity in terms of mix of skills and competencies and is responsible for the expertise, knowledge and of the existing Directors management of the Board, experience on the Board is on the Board; encourages Board’s interaction evaluated and, in consultation (d) Ability to commit time and with Management, facilitates with Management, the role and effort to carry out duties and effective contribution of the desirable competencies responsibilities effectively; the Directors, encourages for a particular appointment is (e) Track record of making constructive relations among determined. Recommendations good decisions; the Directors, and promotes from, inter alia, Directors (f) Experience in high-performing high standards of corporate and Management are the organisations; and governance. The Chairman usual source for potential (g) Financial literacy. approves the agenda for candidates. However, Board meetings and ensures external search consultants The internal guideline adopted sufficient time is spent to are also considered. by the Company to address cover all items in the agenda, the issue of multiple board especially on strategic issues. Formal interviews with the representations is that The Chairman and CEO are short-listed candidates are Directors should not have separate persons and are not conducted to assess their more than six listed company related to each other. suitability and the candidates board representations and are verified of their awareness other principal commitments. The CEO has full executive of the expectations and the responsibilities over the business level of commitment required, The Board recognises that directions set by the Board and after which suitable candidates proper succession planning operational decisions of the will be approved. plays an important role in Group. The CEO is accountable ensuring continuous and to the Board for the conduct The following criteria are used to effective stewardship of and performance of the Group. assess all new appointments: the Company. As such, the Company’s succession plans Board Membership (a) Integrity; are reviewed annually to ensure Process and Criteria Used (b) Independent mindedness; the progressive renewal of the for Selection and Appointment (c) Possession of core Board, including the Chairman of New Directors competencies that meets and the CEO. Succession and To increase the reliability of the needs of the Company leadership development plans for the process, the Board’s and complements the Management are also reviewed. Overview / Operations and Market Review 31 Corporate Governance
The nature of current Directors’ appointment and membership on Board Committees are as follows:
Board Committee Memberships Board Directors Membership Audit Nominating 1 Remuneration 1 Board Risk Board Safety
Loh Chin Hua Non-executive – Member Member – Member Chairman Non-External Director Ang Wee Gee CEO – – – – Member Non-External Director Lee Ai Ming 2 External Director Member – – Member – Tan Yam Pin External Director – – Chairman – Chairman Heng Chiang Meng 3 External Director Member – – – Member Edward Lee Kwong Foo 4 External Director – Chairman Member Member Member Koh-Lim Wen Gin External Director – – – – Member Yap Chee Meng External Director Chairman Member – Member – Huang Jing External Director – – – Member – Oon Kum Loon External Director Member – – Chairperson – Chan Hon Chew Non-External Member – – Member – Director
1 The Nominating Committee and Remuneration Committee were dissolved on 24 July 2015. 2 Lee Ai Ming retired from the Board and did not seek re-election at the Company’s Annual General Meeting (“AGM”) on 30 April 2015. She also ceased to be a member of the Audit Committee and the Board Risk Committee. 3 Heng Chiang Meng retired from the Board and did not seek re-election at the Company’s AGM on 30 April 2015. He also ceased to be a member of the Audit Committee and the Board Safety Committee. 4 Edward Lee Kwong Foo was appointed to the Board Safety Committee on 1 February 2016.
Remuneration Matters is inclusive of a portion which accounting and governance Remuneration Policy for is tied to economic value added standards and issues which Executive Directors and Other (“EVA”) performance. The EVA have a direct impact on financial Key Management Personnel performance incentive is currently statements through quarterly The Company adopts a extended to only key management updates and discussion with remuneration system that is personnel who have greater line the external auditor. aimed at attracting, retaining of sight to value creation. and motivating talent on a The AC is guided by the following sustainable basis. In designing The compensation structure is terms of reference: the compensation structure, directly linked to corporate and the Company seeks to ensure individual performances, both in (1) Review financial statements that the level and mix of terms of financial, non-financial relating to financial remuneration is competitive, performance and the creation of performance, and review relevant and appropriate in shareholder wealth. significant financial reporting finding a balance between current issues and judgements versus long-term compensation Accountability and Audit contained in them, for better and between cash versus equity The Board, supported by the assurance of the integrity incentive compensation. Audit Committee (“AC”) and Board of such statements; Risk Committee (“BRC”), oversees (2) Review and report to the The annual fixed cash component the Group’s system of internal Board at least annually the comprises the annual basic salary controls and risk management. adequacy and effectiveness plus fixed allowances which the of the Group’s internal Company benchmarks with the Audit Committee controls, including financial, relevant industry market data. The AC’s primary role is to assist operational, compliance the Board to ensure the integrity and information technology The annual performance incentive of financial reporting and the controls (such review can be which is tied to the performance existence of sound internal carried out internally or with of the Company, business unit control systems. The AC is the assistance of any and individual employee, kept abreast of changes to competent third parties); 32 Keppel Land Limited Report to Shareholders 2015
Corporate Governance
(3) Review audit plans and The AC also performed The BRC’s terms of reference are reports of the external independent reviews of the as follows: auditor and internal auditor, financial statements of the and consider the Company. The AC has explicit (1) Receive, as and when effectiveness of actions authority to investigate any appropriate, reports and or policies taken by matter within its terms of recommendations from Management on the reference, full access to and Management on risk recommendations and cooperation by Management tolerance and strategy, observations; and full discretion to invite any and recommend to the (4) Review the independence Director or executive officer Board for its determination and objectivity of the to attend its meetings, and the nature and extent of external auditor; has reasonable resources to significant risks which the (5) Meet with external auditor enable it to discharge its Group overall may take in and internal auditor, functions properly. achieving its strategic without the presence objectives, and the overall of Management, at The AC held five meetings Group’s levels of risk least annually; during the year. The Company’s tolerance and risk policies; (6) Review the adequacy internal and external auditors (2) Review and report to the and effectiveness of the reported their audit findings and Board at least annually the Company’s internal audit recommendations independently adequacy and effectiveness function, at least annually; to the AC. The AC also met of the Group’s risk (7) Investigate any matters with the internal and external management system; within the AC’s purview, auditors, without the presence (3) Review and discuss, as and whenever it deems of Management. At the meetings, when appropriate, with necessary; the external auditor briefed the Management the Group’s risk (8) Report to the Board on members of the AC on the latest governance structure and material matters, findings developments in accounting and its risk policies, and risk and recommendations; governance standards and mitigation and monitoring (9) Review the AC’s terms of practices. In addition, the AC processes and procedures; reference annually and reviewed the independence and (4) Receive and review at least recommend any proposed objectivity of the external auditor quarterly reports from changes to the Board; through discussions with the Management on major risk (10) Perform such other external auditor. exposures and the steps functions as the Board taken to monitor, control may determine; and Board Risk Committee and mitigate such risks; (11) Sub-delegate any of The Board, assisted by the (5) Review the Group’s capability its powers within its BRC, has oversight of risk to identify and manage terms of reference as management in the Group. new risk types; listed above from The BRC examines the adequacy (6) Review and monitor time to time as the and effectiveness of the Management’s responsiveness AC may deem fit. Company’s risk management to the findings and system, and ensures that a recommendations of the risk During the year, the AC reviewed robust risk management management department; the internal and external system is maintained. (7) Provide timely input to the auditors’ plans and findings Board on critical risk issues; to ensure that they are sufficient The BRC reviews and guides (8) Report to the Board on to assess the adequacy and Management in the formulation material matters, findings effectiveness of the Company’s of risk policies and processes to and recommendations; significant internal controls, identify, evaluate and manage (9) Review the BRC’s terms of including financial, operational, significant risks, to safeguard reference annually and compliance and information shareholders’ interests and the recommend any proposed technology controls and Company’s assets. The BRC also changes to the Board; management of risks of discusses risk management (10) Perform such other fraud and other irregularities. strategies with Management and functions as the Board The AC also reviewed the the Board. In addition, the BRC may determine; and effectiveness of the actions makes visits to the Company’s (11) Sub-delegate any of its taken by Management on project sites and discuss the powers within its terms of the recommendations made risk mitigation actions and issues reference as listed above by the internal and external that the Group faces in the from time to time as the auditors in this respect. various markets. BRC may deem fit. Overview / Operations and Market Review 33 Corporate Governance
Risk Management and comprises three Lines of Defence Employee Code of Conduct Internal Controls towards ensuring the adequacy To build a culture of high The Company’s approach to and effectiveness of the Group’s integrity as well as reinforce risk management is set out in system of internal controls and ethical business practices, the “Risk Management” section risk management. the Company has in place an on pages 35 to 37. The Company employee code of conduct. is guided by a set of Risk Under the first Line of Defence, Tolerance Guiding Principles management is required to This policy addresses, at the as disclosed on page 35. ensure good corporate employee level, the standards governance through the of acceptable and unacceptable The Group also has in place a implementation and management behaviour and personal decorum Risk Management Assessment of policies and procedures as well as issues of workplace Framework to facilitate the relevant to the Group’s business harassment. On the business Board’s assessment on the scope and environment. front, the policy addresses the adequacy and effectiveness of Under the second Line of Defence, standards of business behavior the Group’s risk management significant business units pertaining to the offering and system. The framework lays out are required to conduct receiving of business courtesies the governing policies, processes self-assessment exercise on as well as issues on conflict of and systems pertaining to each an annual basis. Under the interests. The policy also requires of the key risk areas of the Group, third Line of Defence, to assist all staff to avoid any conflict and assessments are made on the Company to ascertain the between their own interests the adequacy and effectiveness adequacy and effectiveness and the interests of the Company of the Group’s risk management of the Group’s internal controls, in dealing with its suppliers, system in managing each of business units are required to customers and other third parties. these key risk areas. provide the Company with written assurances as to the adequacy The rules require business The Group also has in place and effectiveness of their system to be conducted with integrity, Keppel Land’s System of of internal controls and risk fairly, impartially, in an ethical Management Controls Framework management. Such assurances and proper manner, and in (the “Framework”) outlining the are also sought from the compliance with all applicable Group’s internal control and Company’s internal and external laws and regulations. Relevant risk management processes auditors based on their anti-corruption rules are also and procedures. The Framework independent assessments. spelled out to protect the
Keppel Land’s System of Management Controls
Policies
Board 4 Oversight Board of Directors
3 Assurance Business Unit Internal External representation Audit Audit
Management & Systems 2 Assurance Self-Assessment Enterprise Risk Fraud Risk IT Governance Processes Frameworks Process Management Management Framework
Business 1 Governance/ Core Values, Corporate & Employee Conduct Rules of Governance Policy Compliance Operational Financial Management Governance Governance Governance
People 34 Keppel Land Limited Report to Shareholders 2015
Corporate Governance
business, resources and and policies which resulted in Department, headed by the reputation of the Company. or may cause the perpetration General Manager, Workplace The general rule is that of the fraud and/or misconduct, Safety and Health, and a team of employees must not offer or to prevent any recurrence. safety professionals from various authorise the giving, directly or engineering disciplines, conducts through third parties, of any bribe, Briefings for all staff on the regular site safety inspections and kickback, illicit payment, or any Employee Code of Conduct and audits on all the active projects in benefit-in-kind or any other Whistle-blower Protection Policy Singapore and overseas. advantage to any person or entity, were held when the policies were as an inducement or reward for introduced. New employees are The BSC is guided by the following an improper performance or briefed on the policies when they terms of reference: non-performance of a function join the Company’s orientation or activity. Similarly, employees programme. Subsequently, (1) Establish the health and must not solicit or accept illicit to maintain awareness, all safety (“H&S”) policies; payment, directly or indirectly, employees are required to (2) Monitor the Company’s from any person or entity that acknowledge the policies annually. compliance with the approved is intended to induce or reward Any revisions are highlighted to H&S policies by: an improper performance them when they perform the (a) Assessing the adequacy or non-performance of a annual acknowledgements. of H&S standards function or activity. prepared by the MSC; Board Safety Committee (b) Assessing the operations Whistle-blower The Company’s Board Safety of the Company and Protection Policy Committee (“BSC”) guides recommendations of the The Company has a Management to enhance the MSC on training, safety whistle-blower protection Group’s commitment to work audits, elimination, policy to encourage the safely in all workplaces and foster control and minimisation reporting in good faith of a safety culture in the Company. of H&S risks; and suspected reportable conduct The BSC is supported by the (c) Assessing the compliance by establishing clearly defined Management Safety Committee of the Company with processes through which such (“MSC”). The BSC meets quarterly applicable legislation; reports may be made with the to discuss safety issues and (3) Recommend the adoption of confidence that employees and provide guidance and direction acceptable H&S practices in other persons making such to chart safety milestones. the industries in which the reports to the employees’ The BSC makes regular field visits Company operates; supervisors, AC Chairman or to project sites in Singapore and (4) Receive reports concerning Head of Group Internal Audit overseas to enforce the Board’s H&S incidents within the will be treated fairly and, to commitment to safety. Company; and the extent possible, protected (5) Consider H&S issues that may from reprisal. The MSC members comprise have strategic, business and nominated senior personnel reputational implications for The AC Chairman is kept informed from each of the Company’s the Company. of all cases reported. Anonymous business units. The MSC is reports are also accepted if there formed to lead, champion and The BSC held four meetings during are strong merits to look further manage workplace safety and the year. into the cases. Upon receipt of health, and build a strong safety allegations of fraud or other culture in the Company. The MSC misconduct reported under the meets quarterly to discuss safety whistle-blower protection policy, issues and spearhead the safety the AC will ensure that the programmes and directives necessary investigations are endorsed by the BSC. Regular carried out in a timely manner. visits are made to project sites in The AC will also ensure that any Singapore and overseas to ensure disciplinary, civil and/or criminal that contractors are complying action that is initiated following with the local regulations and completion of investigation, is industry’s best practices. appropriate, balanced, and fair. The AC will also monitor the The BSC and the MSC are actions taken to correct the supported by the Workplace weaknesses in the existing Safety and Health (“WSH”) system of internal processes Department. The WSH Overview / Operations and Market Review 35 Risk Management
Risk Management
Keppel Land maintains a robust risk management system which enables it to meet challenges and seize business opportunities in a dynamic business environment.
01
Robust Risk Management (1) Risk taken should be carefully mechanisms, specific risk 01 Keppel Land evaluated, commensurate management processes and advocates a strong Framework safety culture Keppel Land’s Board of Directors with rewards and in line with tools in addressing key risks, and strives for a (the Board) is responsible for the Group’s core strengths as well as Group policies zero-harm workplace. governing risks and ensuring and strategic objectives. and limits. that the management maintains a (2) No risk arising from a single sound system of risk management area of operation, investment The Group’s five-step risk and internal controls to safeguard or undertaking should be so management process consists shareholders’ interests and the huge as to endanger the of risk identification, risk Company’s assets. Assisted by entire Group. assessment, formulation the Board Risk Committee (BRC), (3) The Group does not condone of risk mitigation measures, the Board provides valuable safety breaches or lapses, communication and advice to the management non-compliance with laws implementation as well as in formulating risk policies and regulations, as well as monitoring and review. and guidelines. acts such as fraud, bribery The assessment process takes and corruption. into account both the impact and Comprising five Directors, likelihood of the risks occurring the BRC held a total of four Ongoing improvements are made and also covers the financial, meetings in 2015. In addition, to strengthen the existing risk operational, reputational and the BRC visited various ongoing governance. Our risk management strategic aspects. projects in Yangon and Mandalay, framework is set out on page 33 Myanmar, as well as Bangkok, of this Annual Report. In 2015, the A set of key risk indicators, Thailand, during the year to Board has assessed that the risk which are closely monitored understand and review the risks management system is adequate by the business units and risk that may affect the Company. and effective in addressing the owners, serve as early warning key risks of the Company. signals. Risk plans and key risk Since 2013, Keppel Land has indicators are regularly reviewed adopted three risk tolerance The enterprise risk management to ensure risks identified remain guiding principles which serve (ERM) framework, a component relevant and mitigating actions to determine the nature and of Keppel Land’s System of continue to be adequate, timely extent of the significant risks Management Controls, provides and effective. that the Board is willing to take in the Group with a holistic and achieving its strategic objectives. systematic approach in risk An ERM Committee, comprising These three risk tolerance management. It outlines the business unit and functional guiding principles are: reporting structure, monitoring department heads, drives and 36 Keppel Land Limited Report to Shareholders 2015
Risk Management
The Keppel Group’s Five-Step Risk Management Process
Step 1 Step 2 Step 3 Step 4 Step 5
Identify Assess Mitigate Implement Monitor Understand Assess risk level based Develop action plans Communicate and Monitor and review. business strategy on impact and likelihood to mitigate risks. implement action plan. and identify risks. of occurrence.
coordinates Group-wide risk a strong risk ownership across Led by the BCM Committee, 01 Keppel Land conducts management initiatives. the Company but also reduces business units in various regular drills simulating disruptions to ensure The risk registers of the individual uncertainties associated locations conduct drills business continuity and business units and functional with executing our strategies, simulating disruptions relevant effective responses departments are reviewed allowing us to harness to their respective locations. during crises. regularly to ensure the risks opportunities with agility. These plans are continuously identified and accompanying tested and refined to ensure mitigating measures remain Despite best efforts, the Group responses are practical, relevant in view of the dynamic recognises that risks can never executable and effective while business environment. be entirely eliminated, especially critical business functions in an evolving landscape of continue to operate smoothly. As part of the control assurance uncertainties and vulnerabilities. process, Keppel Land has also Enhancing a implemented the Control Bolstering Operational Risk-Centric Culture Self-Assessment and Group-wide Readiness Effective risk management information technology (IT) Keppel Land is committed to hinges equally on mindsets and risk assessment. enhance its operational resilience attitudes as well as systems and through the establishment of processes. The management is Risk management is an integral a robust business continuity committed to foster a strong part of strategic, operational management (BCM) plan that risk-centric culture in the Group, and financial decision-making will allow it to respond effectively which encourages prudent processes at all levels of the to potential crises and external risk-taking in decision-making Group. The Group’s holistic threats while minimising and business processes. approach to identifying and any impact on its people, managing risks not only instils operations and assets. Risk management workshops are conducted to enhance risk management competency and awareness of staff. 01 The Group also seeks to enhance senior staff accountability for risk management through the performance evaluation process.
Proactive Risk Management Keppel Land will continue to review and refine its risk management methodology, systems and processes to ensure its adequacy and effectiveness. The Group will continue to leverage its educational initiatives to raise employees’ risk management awareness and capabilities as well as enhance the process in sharing of lessons learned. Overview / Operations and Market Review 37 Risk Management
Managing Key Risks
The key risks identified and • The Group ensures that • Reviews are carried out appropriate mitigating actions adequate funding resources annually to ensure alignment undertaken by Keppel Land are available for investments to IT policies and procedures. in 2015 are as follows: and cash flows are • The IT Disaster Recovery Plan actively managed. is reviewed and tested regularly 1. Business Strategy Risks to ensure the robustness of the • The Group’s strategic 5. Misstatement of IT system. IT audits are also direction and business Financial Statements carried out. Policies governing strategies are reviewed • The Group ensures that end-user computing as well as the by the Board and senior the consolidated financial safeguarding and backing up of management. Factors statements have been information have been put in place. including the laws and prepared in accordance regulations, market with the Singapore Financial 9. Business Continuity Risks conditions and competitive Reporting Standards. • Business units continually review landscape within each market • Internal and external audits and test their business continuity are considered carefully. are conducted to provide plans to ensure effective Keppel Land continues to reasonable assurance on response to disruptive events. look into matters relating the accuracy of financial • Critical business functions are to technology, innovation statements. determined and alternative and solutions as part of its processes, resource requirements strategy to develop alternative 6. Project Management Risks and interdependencies are business products and • Project management identified to support operation innovative solutions. processes are reviewed at times of disruption. regularly by the Project 2. Concentration Management & Sustainable 10. Fraud/Corruption Risks Exposure Risks Design department. Through • Keppel Land has put in place • A concentration risk these processes, the Group the enhanced code of conduct, management policy that adopts good industry insider trading and whistle-blower governs the exposure limits practices to achieve project protection policies, financial of each market and project delivery on time, within authority limits and control is established to manage budgeted cost and and self-assessment tools to mitigate concentration exposure risk. desired quality of works. the risk of fraud, corruption • Exposure to all countries • Trainings are conducted for and misconduct by staff. and projects are monitored project managers to increase • Internal and external audits are regularly to ensure that the their familiarisation and conducted regularly to prevent, Group is not overly exposed to ensure their compliance detect and mitigate fraud risk. any single project or market. with the processes. 11. Quality of Deliverables 3. Investment/ 7. Human Resources Risks • The Group has put in place the Divestment Risks • Keppel Land leverages Quality Assurance/Quality Control • Guided by investment scholarships as well as procedures and Keppel Quality parameters, all major management associate and Standards to ensure excellence investments are subject to leadership development in project deliveries. due diligence processes and programmes to identify and • The defects management and evaluated by the Board. develop its talent pipeline. handover procedures standard • All investment and • Succession planning for key operating procedures are adopted divestment proposals executive positions is regularly to ensure customer satisfaction submitted for approval would reviewed to ensure relevance. of products delivered. have to be accompanied by a completed set of risk 8. Information 12. Health and Safety Risks assessment template. Technology Risks • Keppel Land has put in place a • The IT department has Health and Safety (H&S) Policy 4. Exposure to established the IT Security to raise staff awareness on the Financial Market Risks Framework to address importance of workplace H&S. • Keppel Land hedges against IT security risks. Various • Various initiatives and policies are foreign exchange and interest measures such as intrusion implemented via the Workplace rate risks through the prevention and detection Safety and Health (WSH) utilisation of various systems and firewalls are department. WSH also ensures financial instruments put in place to protect a safety mindset is inculcated where appropriate. confidential information. in all employees. Innovation Value Talent Enterprise Discipline Readiness Customer Focus Integrity Execution We exercise discipline in Enterprise Collective our drive for operational Focus efficiency, strong performance, Can Do Strength prudent financial management AccountabilityFocus Value Talent SafetyInnovation We will seize new and sound investments, opportunities, leveraging with a focus on returns.
Accountability our core competencies. Our disciplined approach, commitment Integrity Customer Focus to good governance and prudent resource Harnessing To drive further growth and performance, allocation will guide us to achieve the best we will strengthen our presence in the risk-adjusted returns for the Company. Collective Strength Value core markets of Singapore and China, Can Do expand in our growth markets of Indonesia Integrity and Vietnam, as well as seize opportunities Innovation in emerging markets and key global cities. StrengthsCan Do People-Centredness Accountability Safety Enterprise Integrity ExecutionValue Agility Accountability Readiness Innovation Safety ValueTalent Quality IntegrityExecution Value Enterprise Accountability Agility InnovationTalent Sustainability Talent Enterprise Integrity Customer Focus Value Enterprise Safety By operating in an Readiness Talent Innovation People-Centredness Quality economically, socially and Can Do environmentally responsible Readiness As a leading property manner, we aim to achieve Sustainability company in Asia, positive and sustainable Talent Safety Execution Integrity Customer Focus Agility we will uphold our quality outcomes for our businesses, Integrity Customer Focus Accountability hallmark, and deliver homes the environment and People-Centredness that offer innovative community at large. Collective Strength lifestyle solutions. Innovation Can Do We believe in doing good as we Readiness Execution Value Accountability Integrity We constantly challenge ourselves do well. Through a multi-faceted Enterprise Talent Customer Focus We will leverage platforms for to think and see things from a approach towards corporate Integrity different perspective. Our sterling social responsibility, we commit collaborations within the Company portfolio of properties is characterised to giving back to communities Enterprise and across the Group to harness by the signature Keppel quality, wherever we operate. Discipline featuring thoughtful innovations Safety Agility Innovation Readiness Can Do strengths and optimise value for thoughtful experiences. Customer Focus through innovative real estate Accountability Integrity solutions, shaping the best for Talent Collective Strength future generations. Special Capturing Retail Opportunities Feature to Grow the Commercial Portfolio Keppel Land has come full circle in the retail To further capture opportunities in Keppel Land in good stead to ensure business with the acquisition of a majority retail and mixed-use projects in Asia, that its retail properties are in tune stake in Array Real Estate (Array) in 2015. Keppel Land acquired a 75% stake with the evolving retail landscape Keppel Land will About two decades ago, in 1995, as part of in Array, a retail management company. to enhance consumers’ experience. a consortium, the Company developed the The partnership has allowed Keppel Land capitalise on the Bugis Junction mixed-use project, which to leverage Array’s experience and tap From Bricks to Clicks expertise and network includes an office tower, a five-star hotel on their network to further augment and According to the eMarketer, the and a retail component. The development strengthen its commercial expertise. Array global shopping centre industry of its retail management features Singapore’s first air-conditioned has since been renamed Keppel Land in 2015 has lost about 7% of its arm to grow its glass-covered shopping streets and very Retail Management (KLRM). market share to online purchases. commercial portfolio, quickly became the place to be. In the United States and China KLRM is positioning itself as the alone, online shopping has now comprising retail In 2005, the Company swapped its stake specialised retail management arm grown to about 7% and 12% of the and mixed-use in the retail component of Bugis Junction of the Keppel Land Group, offering total market share respectively. developments, in Asia. for the office component, Bugis Junction a full range of solutions encompassing Towers, in preparation for its spinning off retail consultancy and development, Despite the challenges posed into a newly created commercial real estate marketing and leasing as well as asset by e-commerce to conventional investment trust, K-REIT, which was and property management services. retail, which has been described 01 later renamed Keppel REIT. At present, With a focus in Asia, the retail assets as the battle between clicks and through Keppel REIT, Keppel Land holds under its growing management portfolio bricks, physical retail space is still a stake in Marina Bay Link Mall, the retail include operating malls and developments required as many shoppers still Harnessing Strengths of the challenges as it shifts 01 Keppel Land and component of the Marina Bay Financial located in Singapore, China, Vietnam like to touch and feel merchandise of New Retail Platform its export-based economy to Alpha Investment Centre integrated development. and Taiwan. Partners acquired before making a purchase. Peek E-commerce is, however, just a consumption-driven one. mixed-use into the Apple stores and one will one of several factors contributing Vietnam’s young and growing development, Overseas, Keppel Land has embarked Keppel Land will capitalise on the see potential customers trying out to declining conventional retail urban population will also drive Life Hub @ Jinqiao, on the development of Saigon Centre expertise and network of the retail in Shanghai, China, the latest gadgets. sales. Intense competition for the demand for shopping centres. in 2013. Phase 2 in Ho Chi Minh City, Vietnam, team to actively seek opportunities the consumer dollar, changing According to Vietnam News, which will comprise offices, retail and to redevelop, refurbish or acquire retail Even among online shoppers, there consumer trends, demographic total retail sales for the first luxury serviced apartments. Phase 1 and mixed-use projects, form strategic are some who prefer to pick up their changes brought on by falling 11 months of 2015 amounted was completed in 1996. alliances to grow its commercial portfolio, goods at the malls. Consumers are birth rates and ageing populations to US$102 billion, an increase of in Asia. The Company will also leverage now empowered with information as well as the weak global 10.7% over the last year. Indonesia Together with Alpha Investment Partners, the strengths of KLRM to manage some gleaned from online sources and economy have contributed to too, will see a greater and faster the Company also acquired mixed-use of its existing retail properties. their visits to the stores help validate the subdued retail performance evolution from traditional high development, Life Hub @ Jinqiao, in the choices they have already made. in various countries. street shopping to malls. Shanghai, China, and has embarked on The retail team’s strong track record in These consumer behavioural the retail mall extension of the SM-KL developing and managing over three million sf patterns blend the ease and Singapore’s retail sector will Keppel Land’s re-entry into Project in Manila, the Philippines. of retail space over the years will put convenience of e-commerce with continue to face other challenges the retail sector is opportune. the reassuring comfort of shopping such as lower tourist arrivals, For greenfield sites, Keppel Land in brick and mortar stores. Singaporeans’ penchant for would be in a good position to Country Keppel Land’s Retail Portfolio GFA (sm) shopping abroad as well as right-size the malls, manage the Meanwhile, to counter the difficulties in attracting good tenant mix well and brand them Singapore 112 Katong 26,140 click-and-collect mentality, workers to join the sector. appropriately, as well as create China Life Hub @ Jinqiao, Shanghai* 98,630 landlords are proactively and thoughtful experiences which Park Avenue Central, Shanghai*+ 114,000 successfully tweaking their tenant Notwithstanding these headwinds, match shoppers’ aspirations. Park Avenue Heights, Wuxi*+ 177,635 mix by placing more emphasis on there is still a whole host of The Company would also be food and beverage, edutainment possibilities in the retail industry. well-placed to secure distressed Seasons City, Sino-Singapore Tianjin Eco-City*+ 162,000 and even recreational activities. The statistics speak for themselves or underperforming malls and Vietnam Saigon Centre, Ho Chi Minh City (Phase 1)* 34,143 – Asia’s middle class tripled from turn them into quality assets. + Saigon Centre, Ho Chi Minh City (Phase 2)* 47,000 Today, malls are increasingly 565 million people in 1990 to Estella Heights (Phase 2)*+ 160,785 repositioned as lifestyle or 1.9 billion in 2008. According to Harnessing the strengths of its Thu Thiem Development* 100,700 community hubs with a library, the OECD, Asia will have 66% of the new retail operating platform, Philippines SM-KL Project – The Podium (Phase 1) 26,767 gym and yoga studio, or vast, glitzy world’s middle class consumers by Keppel Land is poised to build a distinctive brand promising Total Retail Portfolio SM-KL Project – The Podium (Phase 2)*+ 46,323 entertainment complexes targeted 2030, who will spend $32 trillion, at specific population segments. accounting for 59% of global experiential shopping, good Johor Bahru, Sutera Mall 52,862 Mall operators are also challenged middle class consumption. tenant mixes and eco-friendly Malaysia to come up with new concepts attributes in its retail properties 1,047,000sm Total 1,046,985 or ways of drawing customers China, with its huge population which will resonate well with * Mixed-use development. through interesting tenant mixes, and rapid urbanisation, will be in customers in the markets that Keppel Land’s total retail portfolio + Under development. good mall design and amenities. a better position to mitigate some it operates in. is about 1,047,000 sm of gross floor area. Overview / Operations and Market Review 42 Keppel Land Limited Report to Shareholders 2015 43 Overview
Operations and Market Review
Unlocking growth Chengdu are also experiencing a Total Asset Distribution By Country Overview 2015 was a challenging year stable demand-supply situation. as at 31 December 2015 globally. Asia saw a lacklustre market performance due to In China, Keppel Land sold about Keppel Land will continue anxieties over whether the 3,300 units in 2015, compared to United States (US) Federal about 1,900 units sold in 2014. to deepen presence in its Reserve would raise interest This is primarily due to strong core and growth markets, rates, slower growth in China and demand at V City in Chengdu, scale up its commercial falling oil prices. The US economy Keppel Land’s joint venture continued its moderate growth project with China Vanke, footprint overseas as well and job creation, while Eurozone’s Seasons Residence in Shanghai, as invest strategically recovery remained sluggish as well as Central Park City in new platforms throughout 2015. township in Wuxi. % and markets. Notwithstanding the headwinds, The residential market in Vietnam Singapore 37.9 Asia is set for robust growth in recovered in 2015, supported by China 47.5 the medium term and is expected improved economic conditions to remain the fastest growing and infrastructure, as well as Indonesia 3.5 region in 2016. lower interest rates. The Group Vietnam 5.9 sold about 930 units in 2015, Others 5.2 Demand for property will be almost six times the 164 units Total 100.0 Return on Equity stimulated by easing of policy sold in 2014. Estella Heights, measures in China, improved Keppel Land’s latest development economic conditions and in District 2 of Ho Chi Minh City infrastructure in Vietnam and (HCMC), sold 670 units in less Total Asset Distribution By Segment government stimulus packages than a year following its launch 01 as at 31 December 2015 18.9% in Indonesia. Given its healthy in 2015. pipeline of projects and growing 10-year return on equity commercial presence, Keppel Land Despite the challenging market Assets under management (AUM) by capabilities, Keppel Land acquired a per annum. is well poised to capture conditions, Keppel Land Keppel REIT Management Limited majority stake in Array Real Estate, opportunities in these markets. performed creditably in 2015. and Alpha Investment Partners, which has been renamed Keppel Land Keppel Land achieved a net profit have grown steadily over the years. Retail Management, to manage its retail Earnings Review of $564.1 million compared with Total AUM grew by 9.6% year-on-year assets and to grow its retail and mixed-use Keppel Land sold about the $752.5 million in 2014, mainly to $20.5 billion as at end-2015, portfolio. The Group also invested in 4,570 homes in Singapore and due to lower divestment gains of when fully leveraged and invested. Nam Long Investment Corporation, overseas in 2015, almost double $13.8 million compared with the a leading affordable housing developer the 2,450 units sold in 2014. $94.5 million divestment gains Strengthening Presence in HCMC, to tap its market knowledge in 2014. Excluding fair value, In 2015, Keppel Land continued to and project expertise in the fast growing % Higher interest rates, coupled divestment and other gains, strengthen its presence in its core markets affordable housing segment in Vietnam. Property Trading 54.5 with cooling measures, have property trading remained of Singapore and China, expand in its Property Investment 35.2 dampened residential demand the largest profit contributor. growth markets of Vietnam and Indonesia, Keppel Land’s total assets grew to Number of Homes Sold in Singapore. The Group sold as well as seize opportunities in other $14.9 billion as at end-2015, compared Fund Management 0.4 192 units in 2015, lower than the For operations in Singapore, emerging markets and key global cities. with $14.6 billion a year ago. About Hotels & Resorts 2.1 304 units sold in 2014. More than the Group achieved a net profit 48% of the total assets were in China, Others 7.8 half of the 192 units sold were of $139.3 million in 2015, down Keppel Land acquired its partner’s followed by Singapore at 38%. Vietnam Total 100.0 contributed by The Glades. from the $257.6 million in 2014 stake in Estella Heights in HCMC and and Indonesia accounted for 6% and 4,570 due to lower contribution from successfully launched the project in 2015. 4% respectively. Sold about 4,570 homes in China’s continued monetary residential projects in Singapore. The Group also invested some $615 million Singapore and overseas in 2015, easing measures have improved to strengthen its portfolio. This included Keppel Land will continue to focus on mostly in China and Vietnam, market sentiments and housing Meanwhile, net profit from its the acquisition of a residential site in achieving sustainable earnings and almost double the units demand. This signalled the overseas operations increased West Jakarta, an office building in London maximising value from its assets. taken up in 2014. government’s commitment to to $182.5 million in 2015, and a joint venture for a prime residential maintain stable and sustainable up 37% from $133.0 million development in Chengdu with China Vanke. growth in the property market in 2014. Share of profit from In addition, Keppel Land partnered Singapore declined to 43% in 2015 Myanmar’s Shwe Taung Group to develop 01 Keppel Land remains over the long term. Property focused on building prices in China’s first-tier cities compared with 66% from the an international grade office tower in scalable growth continue to rise strongly with previous year, while contribution the heart of Yangon. platforms and capturing high take-up rate and falling from overseas increased to 57% opportunities in key global cities with good inventories. High-growth cities in 2015 compared with 34% In line with its strategy to invest in growth potential. including Tianjin, Wuxi and in the previous year. operating platforms to strengthen its Overview / Operations and Market Review 44 Keppel Land Limited Report to Shareholders 2015 45 Singapore
Operations and Market Review
Singapore However, the continued slowdown Corals at Keppel Bay The Glades in China’s economy, the services- Location: Keppel Bay Drive Location: Tanah Merah driven nature of growth in the Keppel Land will United States (US), as well as Total no. of units: 366 Total no. of units: 726 trends of in-sourcing in China and GFA: 509,998 sf GFA: 549,082 sf selectively seek out the US, may mean that external Expected completion: 2018 Expected completion: 2017 well-located sites demand for Singapore may not for residential, see a significant uplift. Despite Located along the historic King’s Dock Located just next to the these headwinds, the Ministry of and designed by world-renowned Tanah Merah MRT interchange commercial and Trade and Industry expects the master architect Daniel Libeskind, station and near the future Sungei mixed-use Singapore economy to grow Corals at Keppel Bay offers Bedok MRT station, The Glades developments. between 1% and 3% in 2016. homeowners an idyllic lifestyle is situated within an established within Singapore’s vibrant southern private housing estate and is Keppel Land will continue to time shores. The development is easily seamlessly connected to the city its residential launches and accessible via HarbourFront MRT and various parts of Singapore adopt the most appropriate sales station, West Coast Highway and via major expressways. It is also Major Developments in 2015 strategy for its projects, as well as Ayer Rajah Expressway. close to a host of amenities selectively acquire well-located and facilities including Changi Residential sites for residential, commercial Key amenities and recreational Business Park and the newly Completed construction of and mixed-use developments. facilities are within reach at completed Singapore University The Luxurie in June 2015. VivoCity, one of the largest retail of Technology and Design. malls in Singapore, and Sentosa Residents will benefit from the Sold about 190 homes, mostly Condominiums Island, home to Resorts World development of Project Jewel at from Highline Residences, Highline Residences Sentosa and the Universal Changi Airport, a new 3.5-hectare The Glades, Corals at Location: Tiong Bahru Studios Singapore theme park. integrated development with Keppel Bay and Marina Bay Suites. 01 Total no. of units: 500 retail and world-class attractions. Launched M1-Keppel Land GFA: 473,218 sf The iconic development comprises Smart Lives pilot programme Moderate Growth Amidst appreciation of the Singapore dollar. 01 Located in the Expected completion: 2018 11 low- to medium-rise blocks About 88% of the 480 launched at The Luxurie to provide The rate of appreciation was heritage-rich estate of luxurious waterfront homes. units of the development have been Global Uncertainties of Tiong Bahru, smart living solutions for The Singapore economy grew reduced slightly in October 2015, Highline Residences Located at the fringe of the The blocks cascade toward the sold as at end-March 2016. Keppel Land’s residential by 2.0% in 2015, lower than the after taking into account the is well-connected by central business district (CBD), waterfront, offering residents and commercial properties. 3.3% growth in 2014. Average weaker-than-envisaged growth public transportation Highline Residences is nestled panoramic views of the sea and and supported by a wide unemployment rate remained outlook for the Singapore within a nostalgic and trendy the lush central garden. Commercial range of facilities low at 1.9% and the labour market economy. This measured and amenities. neighbourhood, part of which has Acquired a 30% stake in is expected to remain tight. adjustment will support economic been earmarked as a Heritage About 56% of the 366 units of an industrial property at Investment commitments growth in 2016, while ensuring Conservation Area by the Urban the development have been sold 20 Tampines Street 92 02 Designed by master in 2015 amounted to $11.5 billion, price stability over the medium architect Daniel Libeskind, Redevelopment Authority (URA). as at end-March 2016. for redevelopment into slightly lower than the $11.8 billion term. Inflation decreased from Corals at Keppel Bay The development is conveniently a new data centre. offers homeowners in 2014. A more moderate flow 1.0% in 2014 to -0.5% in 2015 spectacular views of located within a short stroll Consolidated ownership of investments is projected and is expected to be about the sea and the lush to Tiong Bahru MRT station and 02 of Keppel Bay Tower with in 2016 and about 20,000 and 0.6% in 2016. central garden. the future Havelock MRT station acquisition of the remaining 30% 22,000 skilled jobs are expected on the Thomson line, as well as interest in holding company, to be created. Global economic outlook is Tiong Bahru Plaza, providing Harbourfront One Pte Ltd. expected to improve modestly residents easy access to a The Monetary Authority of in 2016, supported by a host of retail and lifestyle Acquired 22.4% stake in Singapore continued its monetary strengthening of growth in amenities. It is also close to the 112 Katong retail mall. policy of a modest and gradual the advanced economies. Orchard Road shopping belt, the Singapore General Hospital Focus for 2016 and the Duke-NUS Graduate Singapore Monitor the market to optimise Medical School campus. value for projects. 2014 2015 2016F 2017F Highline Residences features Selectively acquire sites for Real GDP growth (%) 3.3 2.0 1.0-3.0 3.3 an elevated green ridge which residential, commercial and Prime rate (average, %) 5.4 5.4 5.4 5.4 spans an impressive 180 metres mixed-use developments. Inward FDI (US$ bn) 67.5 69.6 66.5 69.5 with a wide range of recreational Invest in strategic platforms. Exchange rate (S$/US$, average) 1.27 1.38 1.42 1.40 and communal facilities. About Personal disposable income (US$ bn) 163.4 159.1 158.6 169.3 86% of the 210 launched units of Explore opportunities to the development have been sold CPI change (average, %) 1.0 -0.5 0.6 1.7 monetise and recycle assets as at end-March 2016. for new investments. Source: Ministry of Trade and Industry Singapore, Economist Intelligence Unit Overview / Operations and Market Review 46 Keppel Land Limited Report to Shareholders 2015 47 Singapore
Operations and Market Review Singapore
Marina Bay Suites It is conveniently located within Market Review Private Residential Supply, Demand and Price Index a five-minute drive from the CBD Location: Marina Bay and is seamlessly connected Residential Units Index Total no. of units: 221 to the rest of the island via the Cautious Market Sentiments GFA: 469,386 sf HarbourFront MRT station, 25,000 250 Singapore’s residential market continued to major roads and expressways. Completion: 2013 remain subdued due to the prevailing cooling 20,000 200 measures, coupled with global economic Completed in June 2013, the In December 2015, a share swap 15,000 150 uncertainties. Residential prices continued to soften 66-storey Marina Bay Suites is exercise with Mapletree was while transaction volume remained low. Prices in 10,000 100 designed by the world-renowned completed which saw Keppel the private housing market have been moderating architecture firm Kohn Pedersen Group consolidating its ownership since the fourth quarter of 2013, with URA’s private 5,000 50 Fox Associates. The development of Keppel Bay Tower. residential price index declining by 3.7% in 2015, is located in the heart of Singapore’s 0 0 compared with the 4.0% decline in 2014. A total new financial and business 2011 2012 2013 2014 2015 112 Katong of 7,440 new homes were sold in 2015, a slight district and is easily accessible Units launched 17,710 21,478 15,885 7,693 7,056 Location: East Coast Road/ increase from the 7,316 units sold in 2014. via major expressways and the Joo Chiat Road Units sold 15,904 22,197 14,948 7,316 7,440 Downtown MRT station. GFA: 281,369 sf Rising interest rates will put further pressure URA price index 147.4 151.5 153.2 147.0 141.6 Completion: 2011 on the property market. Nonetheless, there The 221-unit development is Source: Urban Redevelopment Authority (URA) are still genuine buyers on the sidelines due to fully sold. Strategically located at the increased liquidity. Hence, projects with good attributes such as attractive pricing and location junction of East Coast Road Office Supply and Demand Reflections at Keppel Bay and Joo Chiat Road, 112 Katong, are expected to continue to enjoy better take-up. Location: Keppel Bay View completed in November 2011, Overall, residential transaction volume is expected Million sf % Total no. of units: 1,129 is a six-storey shopping mall to remain subdued in 2016 and prices may face downward pressures as the government is unlikely GFA: 2,081,738 sf with a net lettable area of about 4 96 207,000 sf. Major tenants to lift property cooling measures soon. Private home Completion: 2011 include a premium supermarket, sales are forecast to moderate to around 6,000-7,000 3 94 Katong Market Place, Golden Village, units in 2016. Participation in government land sales The multi award-winning 2 92 Food Republic and a number of for attractive sites remains fairly strong and land development is one of well-known restaurants. prices have been relatively resilient, reflecting 1 90 Singapore’s most coveted developers’ long-term confidence in the real addresses for exclusive 0 88 estate market. waterfront living. Reflections Future at Keppel Bay features six glass Developments -1 86 Commercial 2011 2012 2013 2014 2015 towers and 11 villa apartment New Phases at Keppel Bay 01 blocks comprising 1,129 luxury Challenging Office Leasing Market Annual net supply (million sf) 2.96 0.92 1.44 0.91 0.993 Location: Keppel Bay homes with commanding views Singapore’s slowing economy has weighed down 320 01 The Keppel Group Annual net demand (million sf) 2.11 1.33 2.14 1.51 (0.33) of the waterfront, golf course, Estimated no. of units: Redevelopment of on office demand, particularly in the second half of consolidated its 2015. According to statistics from the URA, the office Islandwide occupancy (%) 93.3 94.2 95.6 95.3 parks and lush greenery. GFA: 570,490 sf Keppel Towers and ownership of 94.8 Keppel Towers 2 Keppel Bay Tower market saw islandwide take-up of 0.7 million sf in Core CBD occupancy (%) 91.2 92.2 95.2 95.7 95.1 Some 97% of the 950 launched Keppel Bay is a 32-hectare Location: Tanjong Pagar Road/ in December 2015. 2015 compared with 0.8 million sf in 2014. Core CBD units have been sold as at exclusive waterfront precinct in Hoe Chiang Road occupancy declined to 95.1% in end-2015 from Sources: URA, CB Richard Ellis end-March 2016 while about Singapore’s vibrant southern 95.7% a year ago, according to CB Richard Ellis. 150 units have been set aside shores. It is a five-minute drive The freehold site, which is located Grade A rents also declined 7.1% to average Average Office Rents as corporate residences. to the CBD and is close to close to the Tanjong Pagar MRT $10.40 psf per month in the fourth quarter of 2015 Resorts World Sentosa, VivoCity station, currently houses two compared with $11.20 psf per month a year ago. and the HarbourFront Office Park. office buildings, Keppel Towers $ psf/month Commercial Residents can enjoy waterfront and Keppel Towers 2. Notwithstanding the weaker performance, 12 Keppel Bay Tower living as well as a wide selection leasing activities benefited from growth in a Location: HarbourFront Avenue of dining and lifestyle options Subject to market conditions, number of sectors including technology, media 9 GFA: 450,377 sf at the award-winning Marina Keppel Land plans to redevelop and telecommunications as well as insurance, 6 Completion: 2002 at Keppel Bay, which is home the site into a mixed-use and the growth in Asian financial institutions to international luxury yachts. development to capitalise and pharmaceutical companies. Demand 3 Keppel Bay Tower was jointly on the growing demand for from these sectors is expected to continue and developed by Keppel Group Keppel Land has two remaining city living, and the transformation this would support CBD office take-up in the 0 and Mapletree Investments land plots at the precinct, one of of the area into a premium coming quarters. 2011 2012 2013 2014 2015 (Mapletree). Close to VivoCity which is located on the private waterfront precinct with Grade A 11.00 9.58 9.75 11.20 10.40 and Resorts World Sentosa, Keppel Island. The timing of residential developments, In the near term, with the impending new office Grade B (Core CBD) 7.86 7.50 7.70 8.55 8.20 tenants enjoy a wide array of their development is subject hotels, lifestyle amenities supply in 2H 2016, office occupancy and rents are dining and lifestyle amenities. to market conditions. and attractions. expected to face downward pressure in 2016. Sources: URA, CB Richard Ellis Overview / Operations and Market Review 48 Keppel Land Limited Report to Shareholders 2015 49 Property Fund Management
Operations and Market Review
Property Fund 01 Keppel REIT’s to Unitholders, 5.4% above the corresponding value for Unitholders through strategic portfolio of premium period in 2014. This was due to higher property acquisitions and divestments. Grade A commercial Management assets includes income from all of Keppel REIT’s assets in Marina Bay Singapore and Australia, as well as higher On 12 October 2015, the Manager acquired Financial Centre. contributions from share of results of the three remaining prime street-fronting Total assets under associates and joint ventures. The higher retail units at 8 Exhibition Street in management (AUM) 02 Proactive marketing distributable income was despite the Melbourne. The retail units are fully and rigorous leasing absence of income from Prudential Tower, leased to two popular and established by Keppel REIT and approach to retain as well as attract good and which was divested in September 2014, F&B outlets for 10 years with options for Alpha Investment creditworthy tenants saw as well as the absence of rental support another 30 years. The acquisition gives Partners was about Keppel REIT achieve a from Keppel REIT’s 87.5% stake in Keppel REIT strategic control over the high tenant retention rate Ocean Financial Centre and Marina Bay 35-storey freehold office building and $20.5 billion as at of 90% as at end-2015. Financial Centre (MBFC) Phase One from all five retail units within the development. end-2015, when fully January 2015 and February 2014 respectively. leveraged and invested. On 29 January 2016, the Manager divested The Manager’s prudent capital management its 100% interest in 77 King Street in strategy saw Keppel REIT’s aggregate leverage Sydney for A$160 million. The sale price is ratio improve significantly to 39.3% as at approximately 40% above the property’s end-2015 from 43.3% a year ago. Average original purchase price and an approximate Major Developments cost of debt remained stable at 2.5%, with 27% premium over the property’s last in 2015/2016 interest coverage ratio at a healthy 4.4 times. valuation. The strategic divestment will provide Insulating the REIT against interest rate volatility Keppel REIT with greater financial flexibility. Keppel REIT and providing certainty of interest expenses Concluded 114 leases and as well as financial and operational flexibility, The Manager continued its proactive marketing maintained a high tenant fixed-rate loans were maintained at a level and rigorous leasing approach to retain as well retention of 90% with positive of 70% as at end-2015. as attract good and creditworthy tenants. rent reversion of 13% for Despite the challenging operating environment, Singapore portfolio as at Keppel REIT continued to maintain a the Manager concluded a total of 114 leases end-2015. well-staggered debt maturity profile, in 2015. Tenant retention rate remained at a Acquired three remaining prime with its weighted average term to expiry high of 90% and a positive rent reversion of retail units at 8 Exhibition Street at 3.7 years. As at end-2015, almost all of 13% achieved for its Singapore portfolio. in Melbourne and divested the Manager’s refinancing requirements 77 King Street in Sydney. in 2016 have been completed. In managing the impending increase in office 01 supply in 2016 and 2017, the Manager has Alpha Investment Partners The Manager also continued its been focusing its efforts on engaging tenants Acquisition totalled US$767 million commitment to maximise and capture with leases expiring over these two years. in gross asset value. On 25 January 2016, functions and sharing of Keppel Corporation Limited best practices, as well as Divested 10 assets across announced its intention create a larger platform that 02 Singapore, Japan and Korea. to consolidate its interests will enhance recruitment in all four of its subsidiaries in and retention of talent. Focus for 2016 business trust management, Keppel REIT REIT management and fund Keppel REIT Focus on tenant retention to management under Keppel Delivering Sustained Returns maintain a long and healthy Capital Holdings Pte. Ltd. 2016 marks Keppel REIT’s th lease expiry profile. This includes Keppel Land’s 10 anniversary. Since inception interest in Keppel REIT in 2006, Keppel REIT has Adopt a prudent and proactive Management Limited and Alpha grown to become one of capital management strategy. Investment Partners (Alpha). Singapore’s largest real estate investment trusts with an Alpha Invesment Partners The proposed consolidation will AUM of over $8 billion. Set up a fund for data centre help to strengthen Keppel Land’s Today, Keppel REIT has the developments. capital recycling platform and youngest and largest portfolio Launch Alpha Asia Macro Trends create an expanded capital of premium Grade A commercial Fund (AAMTF) III. platform for co-investing assets in Singapore’s prime in new assets. It will also business and financial district. Invest capital for a separate improve the performances of account into core assets in the managers of Keppel REIT For FY 2015, the Manager key target markets in Asia, and Alpha through centralising delivered higher distributable and expand into new markets. certain non-regulated support income of $217.3 million Overview / Operations and Market Review 50 Keppel Land Limited Report to Shareholders 2015 51 Property Fund Management
Operations and Market Review Property Fund Management
As at end-2015, approximately enhanced with the addition returns to its Unitholders 01 Alpha Investment returns and close to two times 75% of total leases are not due of two new cafes at the office through its ongoing tenant Partners, through its of equity multiple. Alpha Asia Macro for renewal till 2018 and beyond, lobby. At MBFC, a sheltered retention and engagement Trends Fund II, invested when limited new office supply pedestrian walkway was added programme. Keppel REIT will in a portfolio of three Alpha has capitalised on is expected in Singapore. between Towers 1 and 3 also continue to focus its efforts office buildings including opportunities to make favourable Manulife Centre (pictured). to provide tenants and visitors on maintaining a healthy and acquisitions at attractive prices In Australia, the Government a more comfortable and long lease expiry profile, as well for AAMTF II, despite the of Western Australia has seamless connectivity between as monitor interest rates and 02 Hotel ibis Novena challenging environment of was certified Green commenced its 25-year lease the office towers. Meanwhile, foreign exchange exposures to Mark Platinum by the compressing yields. Acquisitions at the David Malcolm Justice to meet the growing demand manage finance risks. Building and Construction concluded in 2015 totalled Centre office tower in Perth. from tenants at 8 Exhibition Authority of Singapore. US$767 million in gross asset The lease includes fixed annual Street in Melbourne, a new Alpha Investment Partners value and included a Japanese rental escalations throughout its end-of-trip facility was added Sustained Performance office asset, as well as a portfolio entire lease term, with options and features more bicycle racks, Despite ongoing uncertainty of nine suburban retail assets and for another 25 years. locker rooms as well as enhanced and volatility in the external a portfolio of three office buildings change and shower facilities. environment, Alpha’s managed in Singapore. As at end-2015, the Manager funds continued to outperform continued to maintain a On the sustainability front, with investment themes focused Expanding beyond Asia, Alpha healthy weighted average lease Keppel REIT has once again on long-term secular growth is managing a freehold office expiry (WALE) of approximately topped the coveted Global trends such as rising urbanisation building in the City of London eight years and six years for Real Estate Sustainability and consumerism, as well as a which was acquired by 02 Keppel REIT’s top 10 and overall Benchmark 2015 with growing middle class in Asia. Keppel Land in February 2015 portfolio respectively. The long numerous accolades in for $186 million. This is in line with WALE will provide Unitholders various sectors. It is the first In 2015, Alpha divested 10 assets Keppel Land’s strategy to invest markets in Asia is expected to Market Review with income stability and sustain REIT in Asia to maintain its pole across Japan, Singapore and Korea, opportunistically in key global remain relatively strong despite returns over a longer term. position as the Regional Leader realising a gross asset value of cities with good growth potential. the heightened volatility and Seizing Opportunities in for Office Sector in Asia for US$809 million. In particular, the slowdown in China’s growth. Real Estate Fund Management In ensuring that its properties two consecutive years. divestment of Haimanten, As at end-2015, Alpha’s asset Periods of market disruption Fundraising for private real estate remain relevant to tenants’ a commercial building in Japan, under management has grown present opportunities for Alpha funds has remained strong in 2015. business needs, the Manager Looking Ahead generated a gross internal rate steadily to $12.1 billion when to acquire assets across cycles A total of US$107 billion was embarked on several asset Market conditions are of return of 27% and an equity fully leveraged and invested. and countries, given its pan-Asian raised in 2015 which was roughly enhancements in 2015. expected to remain demanding multiple of 3.6 times following Its assets are well-diversified presence and in-depth knowledge equivalent to the amount raised in 2016. Keppel REIT will continue asset management initiatives to across various segments of the local markets. in 2014. Driving investor appetite The overall ambience at to harness strengths to capture drive rental and ancillary income including offices, retail malls, for the asset class is strong Ocean Financial Centre was value and deliver sustainable growth. In Shanghai, the average hotels, residential and logistics Alpha is working on a fund for performance and as a result, retail rent of Life Hub @ Jinqiao properties. Alpha continues to data centre developments in institutional appetite for real has increased by 48% and net manage its portfolio intensively to Asia and Europe. This is on estate is considerable and many 01 property income by 38% since maximise value for its investors, the back of the growth in data investors are planning sizeable Alpha and Keppel Land China and at the same time, achieve creation and trends in cloud commitments to real estate acquired it in 2013. high standards of safety and computing, e-commerce, in 2016, according to Preqin. sustainability. government regulation and In Singapore, Alpha successfully continued trend in outsourcing. However, capital remains divested the remaining units of Alpha-managed assets concentrated among a small a residential portfolio as well as won a number of safety and Alpha will continue to build on number of managers. About 45% an office building, and also sustainability awards in 2015. its market leading position to of capital was raised by 10 largest disposed of a logistic asset in Hotel ibis Novena in Singapore develop new products that funds that reached a final close, Korea. The sale of these assets was certified Green Mark match its investors’ needs, such indicative of investor focus and enabled Alpha not only to Platinum by the Building as creating bespoke special capital concentration amongst generate returns, but also return and Construction Authority accounts for investors to build large top performing managers. a sizeable portion of invested of Singapore (BCA). a portfolio of core assets across North America and developed capital to its investors across its The air-conditioning system key gateway cities in Asia. markets have attracted the funds totalling US$451 million. was retrofitted to a centralised Capitalising on macro trends majority of investor capital and the Asia No. 1 Fund has successfully water-cooled refrigeration in Asia, Alpha will be launching market remains very competitive divested all assets, generating system which reduces the a new fund under its flagship with 492 funds in market seeking positive returns and equity energy consumption by an AAMTF series. US$174 billion from investors as multiple with above median estimated 33%. of January 2016. Alpha intends to returns to investors for its vintage Alpha will also continue capitalise on the strong investment year. Alpha Core Plus Fund Looking Ahead to monitor and invest appetite with new fund products, will likely be fully divested by Alpha’s core investment themes opportunistically in key gateway leveraging its successful platform end-2016, generating strong remain intact and growth in key cities in developed markets. and track record. Overview / Operations and Market Review 52 Keppel Land Limited Report to Shareholders 2015 53 Retail Management
Operations and Market Review
Retail 01 and 02 Keppel Land in the face of sluggish retail sales, Vietnam Retail Management is tighter foreign labour supply and rising Hailed as the fastest growing Asian country, the development/project Management manager and marketing operating costs. Demand for prime Vietnam’s economy expanded to 6.7% in 2015, manager for The Wisteria retail space, however, continues to up from 6.0% in 2014. Vietnam presents and Wisteria Mall (01) as be favourable as a result of continuous a promising platform for retail growth with Keppel Land will well as the retail manager for 112 Katong (02) influx of local shoppers and tourists increasing population and urbanisation, leverage acquired in Singapore. spending in well managed shopping malls. rising incomes and positive changes in fiscal experiences and and foreign ownership policies. A wholly owned KLRM continues to receive a steady fee subsidiary, Keppel Land Mall Management networks to capture based income as the mall manager Vietnam, has been established to expand opportunities in for 112 Katong and Heartland Mall Keppel Land’s retail presence in the country. retail and mixed-use in Singapore. Malaysia projects, both locally China Malaysia’s economy grew 4.7% in 2015, and abroad. Although its GDP growth has slowed, China supported mainly by domestic demand. remains the most important country for With the weakening of the Ringgit and a sustainable retail growth. A wholly owned depressed commodity exports market, foreign enterprise named Keppel Land as well as the implementation of the goods Mall Management Shanghai has been and services tax, retail sales have remained Major Developments in 2015 incorporated to manage and scale up stagnant. Despite the economy slowdown, Acquired 75% majority stake in Keppel Land’s retail projects in Shanghai, Keppel Land is reviewing opportunities to retail management specialist, Wuxi and Tianjin. optimise assets return on Sutera Mall. Array Real Estate. Incorporated wholly owned Keppel Land Retail Management China and Vietnam offices. Provided master planning and consultancy on retail projects in Singapore, China, Vietnam and Malaysia. 01 Appointed as the development/ 02 project manager and marketing manager for The Wisteria and To strengthen its commercial retail market in Asia will Wisteria Mall. expertise in retail management, be supported by strong Assisted in Alpha Investment Keppel Land acquired a 75% demographic and income Partner’s acquisition of a stake in retail management growth, rising urbanisation portfolio of retail properties company, Array Real Estate, and changing consumers’ including Heartland Mall, six in January 2015. Renamed lifestyles. Growing investment retail centres and two strata Keppel Land Retail Management in flagship stores are evident units in Havelock totalling (KLRM), it offers a full range in growth cities as well as $380 million, through Alpha of professional real estate in well-located and Asia Macro Trends Fund II. solutions in Asia encompassing well-managed malls. Appointed retail manager of retail consultancy and 112 Katong after Keppel Land’s development, marketing Singapore acquisition of 22.4% stake in and leasing as well as GDP grew by 2.0% against the mall. asset and property a backdrop of economic management services. uncertainty and financial volatility. According to the Focus for 2016 Retail Growth in Asia Singapore Tourism Board, Seek retail opportunities The global retail landscape visitor arrivals into Singapore in core and growth markets is constantly evolving reached 15.2 million in 2015, through strategic investments with Asia leading as the with limited upside on tourist and partnerships. fastest growing region globally spending as a result of the Consolidate and optimise for consumer spending. strong Singapore currency. resources and marketing E-commerce continues intelligence in managing retail to remain a challenge to A number of department store properties secured in the brick-and-mortar retailers. operators have consolidated different geographical locations. However, the growth in the and reduced their store counts Overview / Operations and Market Review 54 Keppel Land Limited Report to Shareholders 2015 55 Hospitality Management
Operations and Market Review
Hospitality 01 Spring City Golf & China To maintain its competitiveness, Lake Resort, a premier China National Tourism Administration Ria Bintan Golf Club started upgrading integrated golf resort Management in Kunming, China, registered 134 million tourist arrivals works to its golf course in June 2015. is a popular destination into the country, a 4.1% increase from This includes upgrading works on for golf aficionados 2014. This is mainly contributed by tee surfaces, fairways and aprons in worldwide. Keppel Land intra-regional travel from Hong Kong, order to improve play. will build on Macau and Taiwan, contributing to a its experience total of 108 million tourist arrivals, a 5.9% Vietnam growth y-o-y. Total international arrivals in Vietnam to grow its grew by 0.9% in 2015 to a total of hospitality portfolio. The government’s policy of curbing luxury 7.9 million. Both Sedona Suites spending by officials and state-owned Ho Chi Minh City and Sedona Suites enterprises indirectly impacted business Hanoi continue to maintain steady activities and the number of functions held occupancies of 82%. at the Eco-City International Country Club in Tianjin and Jiangyin Yangtze International Myanmar Country Club. With the growing international interest in Myanmar, the Ministry of Hotels and Meanwhile, Spring City Golf & Lake Resort Tourism recorded 4.7 million tourist in Kunming saw 43,000 golf rounds, arrivals in 2015, up from three million a 7.5% increase from 40,000 in 2014. in 2014. This upward trend is set to This is a result of positive local golfer continue. The World Travel and programmes and strategic partnerships Tourism Council forecasts Myanmar with travel agents to capture both inbound to be in the top 15 of the fastest and domestic markets. growing tourist destinations globally by 2020 with an estimate of 7.5 million Indonesia arrivals and to rank first by 2025. 01 While the Tourism Office of the Riau islands has set a target for 2.5 million international Sedona Hotels in Yangon and visitors in 2015, Bintan continues to trail Mandalay are poised to maintain Keppel Land Hospitality in 2015, according to the behind the main gateway of Batam. their positions as the accommodation Management, the hospitality Singapore Tourism Board. With the new wave of infrastructural of choice for business and leisure Major Developments arm of Keppel Land, operates developments, from the construction of travellers. Sedona Hotel Yangon’s in 2015 a portfolio of hotels, serviced Residences at Reflections Lagoi Bay to a second airport near Bintan new 431-room Inya Wing was completed apartments, golf courses and achieved positive occupancy Resorts, Bintan is poised to receive more and soft opened in October 2015, Completed and soft marinas across Asia. of 75% in 2015 despite tougher inbound travellers in the near future. and is now fully operational. opened Sedona Hotel market conditions, a slowing Yangon’s new 431-room Positive Tourism Outlook property market and a decline in Inya Wing. According to the latest World expatriate arrivals to the country. Keppel Land’s Hotels and Resorts Portfolio Tourism Organisation Barometer, To stay resilient and remain Country Property Name Location Description Commenced upgrading international tourist arrivals competitive, Residences at of a golf course at are expected to grow by 4% Reflections has introduced Singapore Residences at Reflections Singapore 153 apartments Ria Bintan Golf Club. worldwide in 2016. Growth several value-added services Marina at Keppel Bay Singapore 168 berths in Asia Pacific is expected to be including Laureate, a concierge China Jiangyin Yangtze International Jiangyin 18-hole golf course stronger, between 4% and 5%, and lifestyle membership Country Club Focus for 2016 to reach around 277 million. programme for residents, Spring City Golf & Lake Resort Kunming Two 18-hole golf courses, 73 guest rooms and which was launched in 530 resort homes Opening of Sedona Hotel Intra-regional travel continues November 2015. Eco-City International Country Club Sino-Singapore Tianjin Eco-City 18-hole golf course Yangon’s new Inya Wing. to dominate with more than 80% within Northeast Asia, Marina at Keppel Bay enjoyed Marina at Keppel Cove Zhongshan Integrated resort and marina under construction Embark on portfolio spearheaded by China, while a strong berthing occupancy Indonesia Ria Bintan Golf Club Bintan 31 rooms, 9- and 18-hole golf courses refurbishments to maintain Southeast Asia continues to of 98% in 2015. The marina Club Med Ria Bintan* Bintan 302 rooms competitiveness. be an important generator of saw a 15% increase in the Nongsa Point Marina and Resort* Batam 192 rooms, 65 berths international arrivals into yacht charter business with Vietnam Sedona Suites Hanoi Hanoi 175 apartments Asia Pacific. the introduction of a new Sedona Suites Ho Chi Minh City Ho Chi Minh City 89 apartments and 195 apartments charter brokerage programme. under development Singapore For 2016, Marina at Keppel Bay Myanmar Sedona Hotel Mandalay Mandalay 251 rooms Visitor arrivals into Singapore will continue to offer attractive Sedona Hotel Yangon Yangon 797 rooms increased by 0.9% year-on-year packages to cater to the various (y-o-y) to reach 15.2 million groups of customers. * Keppel Land has equity stakes in these properties which are not managed by Keppel Land Hospitality Management. Overview / Operations and Market Review 56 Keppel Land Limited Report to Shareholders 2015 57 China
Operations and Market Review
China Focus Cities
Keppel Land will continue US$58.9b US$13b US$7.5b US$21.1b US$3.2b to deepen its FDI 2015 FDI 2015 FDI 2015 FDI 2015 FDI 2015 presence in key focus cities 6.9% 6.9% 8.0% 9.3% 7.1% where it has GDP 2015 GDP 2015 GDP 2015 GDP 2015 GDP 2015 established strong track records, networks and local teams.
Shanghai Beijing Chengdu Tianjin Wuxi
Growing Presence assets, more than double its strategic alliance with the end of the year, with average China’s continued monetary China is one of Keppel Land’s the 20% in 2010. To date, China Vanke to develop a new home prices in 70 major easing measures have improved Major Developments core markets and the Group Keppel Land China has presence 16.7-ha prime residential site cities up 7.7 % year-on-year market sentiments and housing in 2015 is committed to scale up in in 10 cities with over 20 projects in Chengdu. The new development (y-o-y) in December 2015. demand, signalling the high-growth cities, with a and a total pipeline of about is expected to comprise 6,480 government’s strong support Sold about 3,280 homes. focus on Shanghai, Beijing, 37,000 homes. high-rise apartments, 649 retail Property prices in China’s for the sector. With the real estate Chengdu, Tianjin and Wuxi. shops and a kindergarten. first-tier cities continue to rise sector’s importance as a pillar Entered into joint venture In 2015, Keppel Land sold This is Keppel Land’s sixth project strongly with high absorption rate industry of the country, the with strategic partner, Keppel Land has been building 3,280 homes in China, which in Chengdu and will further and falling stock. High-growth Chinese government is expected China Vanke, to develop its reputation and track record accounted for 72% of total sales. enhance the Company’s market cities including Tianjin, Wuxi to be committed to maintaining a prime 16.7-hectare as a choice home developer in Home sales were about 70% presence in the city. Phase 1, and Chengdu are also seeing stable and sustainable growth residential site China for over two decades, higher than the 1,920 homes sold named V City, comprising some balanced demand-supply with in the property market in the in Chengdu. completing a total of about in 2014, supported by the easing 5,760 homes, was launched stable price. long term. 30,000 units in more than of home purchase restrictions in August 2015 and has sold 10 cities. In 2010, the Group across Shanghai, Chengdu, about 750 units in a span of five Focus for 2016 reorganised its operations and Tianjin and Wuxi. months by end-2015. fortified its position in China China Focus on five cities – with the establishment of Keppel Land has a healthy Stable Economic Growth to 2014 2015 2016F 2017F Shanghai, Beijing, Keppel Land China to sharpen pipeline of about 11,000 Support Property Market Chengdu, Tianjin its focus in the vast and launch-ready units in China China’s economy grew by Real GDP growth (%) 7.3 6.9 6.5 6.0 and Wuxi. growing market. for the next three years and is 6.9% in 2015, its slowest Lending interest rate (average, %) 5.6 4.4 4.4 4.6 poised to capture the pent-up expansion in 25 years. Inward FDI (US$ bn) 289.1 280.9 277.2 279.4 Grow commercial Keppel Land’s exposure in and new demand for quality Despite a challenging economic Exchange rate (RMB/US$, average) 6.14 6.23 6.67 6.75 presence in Tier 1 cities. China has increased over homes as the market recovers. environment, the growth rate Personal disposable income (US$ bn) 4,502 4,876 5,036 5,385 the years. As at end-2015, stood close to the government’s CPI change (average, %) 2.1 1.5 2.1 2.5 Monitor market for Keppel Land China contributed In the first quarter of 2015, target of 7%. The property residential launches. about 48% of the Group’s total the Group strengthened market improved towards Source: Economist Intelligence Unit Overview / Operations and Market Review 58 Keppel Land Limited Report to Shareholders 2015 59 China
Operations and Market Review China
The Springdale Jing’an Metro Line 7. It is also near the Nanjing West Road commercial belt, Location: Xinchang Town, Pudong District The Bund and major hotels. Development type: High- and low-rise apartments and terrace homes The 1,117-unit One Park Avenue is fully sold. 8 Park Avenue comprises Total no. of units: 2,596 10 residential towers with 918 high-rise GFA: 328,792 sm apartments. The first six towers, Completion: 2015 comprising 552 units, are fully sold. Almost all of the 812 units in Located in Xinchang Town, Pudong District, blocks 7 and 8 have been sold as at The Springdale comprises 2,596 units of end-March 2016. Blocks 9 and 10, high- and low-rise apartments and terrace comprising 106 units, were launched houses. It is a five-minute drive from the in 2015 and 49% of the units have Xinchang Town metro station and a been sold as of end-March 2016. 15-minute drive from the upcoming An office-cum-retail development is Disney theme park which is slated to open planned for Park Avenue Central. in June 2016.
All 1,380 units under Phases 1, 3 and 4 Sheshan Riviera as well as almost all of the 946 units under Location: Sheshan Town, Songjiang District Phase 2 have been sold as at end-March 2016. Development type: Landed homes Total no. of units: 217 Seasons Residence GFA: 83,174 sm Location: Nanxiang, Jiading District Expected launch: 2016 (Phase 1) Development type: High-rise apartments Located within Shanghai’s luxury villa Total no. of units: 1,102 enclave, the residential site overlooks GFA: 128,918 sm Sheshan National Forest Park and is Expected completion: 2016 (Phase 4) well-served by leisure amenities. It is close to the Metro Line 9 Sheshan station, Situated in a mature satellite town in about 20 km from the Shanghai Hongqiao Nanxiang, Jiading District, Seasons Residence International Airport and a 45-minute comprises 1,102 high-rise apartments. It is drive from the city centre. a 30-minute drive from the People’s Square and is well-connected to Shanghai’s city centre The development will yield around via Metro Line 11 and the expressway. 217 landed homes with an auxiliary retail component. The first phase of the Almost all of the 310 units under Phase 1 and development is expected to be launched 306 units under Phase 2 have been sold as at in 2016. end-March 2016. Phase 3 was launched in 01 July 2015 and 94% of the 161 launched units have been sold as at end-March 2016. Phase 4, Life Hub @ Jinqiao comprising 198 units, is expected to be launched Location: Jinqiao, Pudong District Shanghai with the government committed to support 01 8 Park Avenue is in the first half of 2016. Development type: Mixed-use development Shanghai’s GDP grew 6.9% y-o-y to reach the market. part of the Park Avenue GFA: 98,630 sm (Retail) precinct located in the 16,102 sm (Office) RMB 2.5 trillion in 2015. Growth was led prime Jing’an District in 8 Park Avenue Completion: 2009 mainly by the tertiary industry, which includes Grade A offices enjoyed steady rental growth downtown Shanghai. Location: Jing’an, Puxi District the financial and information technology in 2015, supported by high occupancy rate Development type: High-rise apartments from domestic and foreign companies Life Hub @ Jinqiao comprises 10 low-rise sectors. Shanghai continued to unveil Total no. of units: 918 pilot programmes in the free trade zone as well as limited new Grade A office supply retail buildings and a 10-storey office tower GFA: 133,393 sm to attract foreign investments as well as into the market. atop a three-storey retail podium. It offers enhance its financial reforms to sustain Completion: 2015 about 98,600 sm and 16,100 sm of retail and its economic growth. Shanghai’s retail market remains healthy office space respectively. Located next to the with stable rental returns as vacancy rates The Park Avenue precinct comprises Metro Line 6 Jinqiao station, the development three projects – One Park Avenue, Home prices increased 25% y-o-y and for well-managed malls in prime locations is well-connected to the Lujiazui Financial 8 Park Avenue and Park Avenue Central. primary home sales volume rose 56% to remain low. Retail sales are expected District and the People’s Square. Located in downtown Shanghai, in the reach 14.6 million sm in 2015, driven to grow with rising affluence, underpinned prime Jing’an District, Park Avenue is mainly by first-time buyers and upgraders. by the government’s efforts to boost The retail mall is 95% leased and the office highly accessible via expressways and Sales are expected to remain robust in 2016 domestic consumption. space is fully occupied as at end-March 2016. Overview / Operations and Market Review 60 Keppel Land Limited Report to Shareholders 2015 61 China
Operations and Market Review China
01 Keppel Land China’s Beijing Commercial Development Seasons City, also known as Beijing continued to achieve steady first commercial the commercial sub-centre, will Location: CBD, Chaoyang District development in Beijing economic growth with GDP reaching will meet the demand comprise three office towers and RMB 2.3 trillion in 2015, a 6.9% Development type: Mixed-use development for quality office space retail premises with a combined increase y-o-y. About 80% of GFA: 104,797 sm in the city’s central GFA of about 162,000 sm. Phase 1 business district. the GDP is led by the finance, Expected completion: 2018 will feature an office tower and real estate, health, social security a retail complex with total and welfare, leasing and commercial Centrally located in Beijing’s CBD in Chaoyang 02 Serenity Villa, located above-ground GFA of more than in the Sino-Singapore services, information technology District, the Grade A office development is Tianjin Eco-City, 81,300 sm. Construction has and communications, as well as Keppel Land China’s first commercial comprises 340 commenced and Phase 1 is software industries. development in the capital. eco-apartments, villas targeted for completion in 2019. and semi-detached houses. Grade A office market remains With a GFA of about 100,000 sm, Keppel Land Serenity Villa strong, with demand driven primarily China plans to redevelop the site into a Location: Sino-Singapore Eco-City by financial, hi-tech, professional mixed-use development comprising three 02 services and manufacturing industries. office blocks and retail premises. The unique Development type: Landed homes canopy structure of the three retail blocks, Total no. of units: 340 which are connected to the office towers, Tianjin Sino-Singapore Tianjin Eco-City GFA: 80,000 sm is designed to create an indoor urban oasis. Tianjin continues to be one Completion: 2014 of China’s fastest growing Location: Tianjin Binhai New Area Given its prime location and quality cities. Tianjin’s GDP grew 9.3% Development type: Eco-township Located on Ying Cheng South specifications, the development is expected to to reach RMB 1.65 trillion Total no. of units Island, Hangu District within attract state-owned enterprises and multinational in 2015, above the national (36.6 ha within SUA): Sino-Singapore Eco-City, corporations when completed in 2018. average of 6.9%. Recent initiatives 4,354 Serenity Villa is the third phase and policies continue to support GFA (36.6 ha within SUA): of Serenity Cove. 01 Tianjin’s growth, fortifying its 633,798 sm (Residential) position as a major industrial 162,000 sm (Seasons City) Serenity Villa comprises 340 and trade hub in North China. Expected completion: eco-apartments, villas and The macroeconomic trends 2019 (Seasons City Phase 1) semi-detached houses. Since point to stable growth, growing 2018 (Residential Phase 2 Plot 9) its launch in September 2013, affluence and increasing 2019 (Residential Phase 2 Plot 8) 46% of the 212 launched consumption. units have been sold as at Keppel Corporation and end-March 2016. The Tianjin Free Trade Zone Keppel Land China hold 45%
(FTZ) was formally established and 55% interests respectively in April 2015. As the first FTZ in a 36.6-ha site located in Waterfront Residence in North China, Tianjin FTZ the Start-Up Area (SUA) of Location: Sino-Singapore Eco-City is expected to attract more Sino-Singapore Tianjin Eco-City Development Type: Landed homes companies and further (Sino-Singapore Eco-City). stimulate Tianjin’s Development will be carried Total no. of units: 341 economic development. out in phases and is expected GFA: 61,417 sm to yield 4,354 homes, offices Expected completion: Since September 2014, the and retail outlets. 2016 (Phases 1 and 2) Central Government has rolled 2017 (Phase 3) out several expansionary and Seasons Park is the first project supportive policies, including in the Keppel Group’s four-phase Situated within the SUA and cutting interest rates six times residential development in the close to the future city centre by a total of 1.65%, relaxing SUA. Comprising 1,672 homes, of the Sino-Singapore Eco-City, requirements for business tax it was launched in 2010 Waterfront Residence comprises exemption and reducing mortgage and completed in 2012. 341 terrace and semi-detached down payment requirements. By end-March 2016, 99% houses. Targeted at the These measures have boosted of the units have been sold. upper-middle income segment, market sentiments and housing Phases 1 and 2 developments demand. In 2015, the total Phase 2 of the development, are expected to be completed in transacted residential volume Seasons Garden, comprises May and July 2016 respectively, in Tianjin increased 15% y-o-y 1,190 mid- and low-rise while Phase 3 is expected to be to 12 million sm, while the apartments. Launched in completed in 2017. Since its average transacted residential November 2013, 89% of the launch in April 2015, 96% of the price increased 13% y-o-y to 326 launched units have been 188 launched units have been RMB 11,471 psm. sold as of end-March 2016. sold as at end-March 2016. Overview / Operations and Market Review 62 Keppel Land Limited Report to Shareholders 2015 63 China
Operations and Market Review China
01 V City is the second The project is about 20 km from Wuxi Waterfront Residence Park Avenue Heights the city centre and 10 km from collaboration between Wuxi’s GDP expanded 7.1% Keppel Land and China Location: Shanshui, Binhu District Location: Beitang District Chengdu’s Shuang Liu International Vanke, and will feature in 2015 to RMB 850 billion, Development type: Development type: Mixed-use Airport. It is close to Tianfu New approximately 5,760 mainly due to strong growth in Low-rise homes, mid-rise apartment units to be development City, earmarked to be Chengdu’s the industrial and tertiary sectors. apartments and commercial developed in phases. Total no. of units: 1,048 software town and future CBD, Urban per capita disposable components with supporting lifestyle amenities. income of urban residents Total no. of units: 2,360 GFA: 177,635 sm The development is targeted 02 Waterfront Residence reached RMB 34,322, an increase GFA: 294,174 sm Expected launch: 2016 (Phase 1) in Wuxi, comprises about at the upper-middle income 2,360 villas, terrace of 8.3% y-o-y. The outlook for Expected completion: 2016 (Phase 1) segment and 53 units in houses, mid-rise Wuxi’s economy remains positive Situated in Beitang District, Phase 1 are launch-ready. apartments and with GDP growth forecast to Located in Shanshui, Binhu District, near the city centre and the CBD, commercial components. remain stable in 2016. Increased Waterfront Residence will comprise this mixed-use development Serenity Villa foreign investment, rising about 2,360 villas, terrace houses, will comprise 1,048 units of affluence and enhanced mid-rise apartments and high-rise apartments and Location: Mumashan, Xinjin County transportation integration commercial components. commercial components. Development type: Landed homes 01 with other cities will help sustain Total no. of units: 573 its strong economic growth. Surrounded by a 260-ha national Park Avenue Heights is located GFA: 233,862 sm wetland park and fronting the scenic next to the Metro Line 1 station. Chengdu the city centre, along the Expected launch: 2016 (Phase 1) Wuxi’s residential market Li Lake, the development is near Well-connected via major roads, Chengdu’s GDP grew 8.0% in 2015 Second Ring Road, and close maintained steady growth in the Metro Line 1 station and is a the development will enjoy to RMB 1.08 trillion, outpacing to the city’s financial district, Adjacent to Hill Crest Villa, 2015. With the relaxation of 15-minute drive from the city centre. convenient access to numerous the national average of 6.9%. Dongdajie. It is about a Serenity Villa will comprise home purchase policies and amenities and facilities such The city continues to witness 10-minute walk to the metro 573 landed homes. The two the lowering of borrowing rates, Targeted at the upper-income as educational institutions, phenomenal growth as economic station and a 15-minute drive landed developments will residential sales volume segment, Phase 1, comprising 62 supermarkets and shopping activity shifts to Western China. to the city centre. cater to different segments increased by 16% to 6.3 million sm units of terrace houses and villas, malls. Targeted at the Multinational corporations of buyers within the middle- to while average home prices rose was launched in December 2015, upper-middle income segment, expanding into China have also The development comprises upper-income group. Phase 1 slightly by 1% to RMB 7,930 psm. in which 28 out of 62 launched units Phase 1 is expected to be shown a strong preference for 1,535 high-rise apartments with of Serenity Villa, comprising were sold as at end-March 2016. launched in 2016. shop spaces. Leveraging the 84 units, is under construction Chengdu. By end-2015, 268 of Central Park City the Fortune Global 500 companies growing demand for city living, and is expected to be launched had established their presence Phase 1, comprising 575 units, in 2016. Location: Taihu New City, Binhu District 02 in Chengdu. was launched in December 2012 with some 97% sold by Development type: High-rise V City apartments Since September 2014, in line end-March 2016. Launched Location: Pi County with the Central Government’s in September 2013, 98% of the Total no. of units: 5,339 policies, the Chengdu government 220 units in Phase 2B have been Development type: High-rise GFA: 671,477 sm apartments has rolled out several supportive sold by end-March 2016. Expected completion: 2016 (Phase 3) policies, including cutting interest Phase 2A, totalling 240 units, Total no. of units: 1,434 (Phase 1) rates, relaxing requirements was launched in September 2015 GFA: 560,963 sm Located within the Taihu New City for business tax exemption, and 72% of the 210 launched Expected completion: 2017 (Phase 1) in Wuxi’s Binhu District and about reducing mortgage down units have been sold as at a 20-minute drive from the city payment requirements, widening end-March 2016. V City, to be developed on a centre, Central Park City is the definition of first-time residential site in Chengdu, is expected to yield 5,339 homes homebuyers and loosening the Phases 1 and 2 were completed the second collaboration between with commercial space and Housing Provident Fund loan in 2014 and 2015 respectively. Keppel Land and China Vanke, supporting amenities. policy. These continued measures Construction of Phase 3 is ongoing. following their joint venture on a have helped to boost market residential project in Singapore. Easily accessible via Nanhu sentiments and housing demand. Hill Crest Villa Avenue, Gaolang Road and V City is located adjacent to Metro Line 1, the township Location: Mumashan, Xinjin County Bai Cao Road station of the Park Avenue Heights project is designed as a Development type: Landed homes Metro Line 2. The 16.7-ha self-sufficient enclave. Location: Jinjiang District Total no. of units: 274 land plot will yield approximately Development type: High-rise GFA: 163,147 sm 5,760 apartment units to be Targeted at the middle- to apartments Expected completion: 2017 (Phase 2) developed in phases. Phase 1, upper-middle income segments, Total no. of units: 1,535 comprising 1,434 units, was all 3,075 units under Phases 1 GFA: 200,200 sm Situated in an established launched in August 2015. and 2 have been fully sold. Phase 3, Expected completion: 2017 (Phase 3) low-density residential enclave As at end-March 2016, 90% of comprising 1,484 units, was in Mumashan, southwest of the 1,261 launched units have launched in January 2014. As at Park Avenue Heights is a prime Chengdu, Hill Crest Villa will been sold. Construction of end-March 2016, 94% of the 1,140 residential project located in feature 274 landed homes. Phase 1 is ongoing. launched units have been sold. Overview / Operations and Market Review 64 Keppel Land Limited Report to Shareholders 2015 65 Vietnam
Operations and Market Review
Vietnam In HCMC, over 42,000 apartments Condominiums and leisure amenities, specialty were launched in 2015, with Ho Chi Minh City stores as well as educational 36,000 units sold, an increase and enrichment centres. As one of the of 120% and 100% respectively The Estella and Estella Heights Location: District 2 from 2014. Units sold were mainly Riviera Point largest and located in the Eastern and Total no. of units: 1,591 Location: District 7 pioneer real estate Southern growth corridors GFA: 278,097 sm of HCMC where Keppel Land’s Total no. of units: 2,400 investors in Vietnam, Completion: 2012 (The Estella) projects are located. Vietnam’s 2017 (Estella Heights GFA: 438,814 sm Keppel Land will property market is expected to Phase 1) Completion: 2014 (Phase 1A) build on the strong continue its upward momentum 2018 (Estella Heights partnerships forged in 2016, supported by the growing Phase 2) Riviera Point is the tallest middle class, high urbanisation condominium in District 7 with and deepen its rate and relaxation of foreign The developments are located about 500 m frontage to the presence in homeownership laws. along Hanoi Highway in the Ca Cam River. Residents can enjoy the country. popular An Phu Ward in District 2, direct connectivity to the CBD Vietnam’s retail market posted a residential enclave for the which is a 35-minute drive away, sales of US$108.8 billion in affluent. It is a 15-minute drive international schools as well 2015 and HCMC continues to to the CBD via the East-West as a host of retail and leisure be a choice destination for Highway and Thu Thiem Tunnel. amenities in the established international retailers. Residents will enjoy greater township, Phu My Hung, via connectivity to the city when 01 Phu Thuan Bridge. Due to limited supply, demand the An Phu metro station located for prime retail space within close to the development opens Phase 1A of the development was Upward Momentum a rise of 12.5% from 2014 01 Keppel Land received the central business district in 2020. The developments also launched in 2011 and completed for Property Market while disbursed FDI grew by positive response for (CBD) remains high with stable enjoy close proximity to reputable in 2014. As at end-March 2016, Estella Heights, located international schools such as Major Developments in 2015 Vietnam’s macroeconomic 17.4% year-on-year to reach in An Phu Ward in occupancy rate above 90%. about 87% of the 549 units have conditions continue to improve US$14.5 billion. Vietnam District 2, Ho Chi Minh City. The relaxation of foreign the British International School, been sold. Phase 1B, comprising Sold about 930 homes, in 2015, supported by high gross continues to liberalise its ownership in Vietnamese International School HCMC and 517 units, is planned for launch mostly from Estella Heights domestic product (GDP) growth economy, plugging itself public companies and a growing Australian International School. in mid-2016. and Riviera Point. rate, moderate inflation, strong into the global grid with the middle class are expected to Foreign Direct Investment (FDI) formalisation of the EU-Vietnam have a positive impact on the The Estella, comprising 719 units, was Keppel Land’s Villas Achieved 100% disbursement and overseas Free Trade Agreement and retail market. Ho Chi Minh City pre-commitment for remittance. participation in the Trans-Pacific first condominium development Saigon Centre Phase 2 Partnership. The market saw new supply of in Vietnam. It was launched in Riviera Cove retail mall. Vietnam’s economy expanded around 40,000 sm of Grade A 2008 and is fully sold. Location: District 9 by 6.7% in 2015, up from 6.0% in Vietnam’s housing market office space in HCMC’s CBD in Total no. of units: 96 Increased stake in Estella 2014. Average inflation in 2015 posted a record year in 2015, 2015. Occupancy rate remains Estella Heights is a mixed-use GFA: 34,711 sm Heights from 55% to 98%. dropped to a record low of 0.6% underpinned by improved high at above 90% while development targeted at Completion: 2012 compared to 4.1% in 2014 and economic conditions, rents remain stable. the upper-middle income Acquired 40% equity interest 6.6% in 2013. Vietnam’s GDP liberalisation of housing segment. Phase 1, comprising Located in District 9 of HCMC, in Empire City Limited Liability growth and inflation are forecast laws, development of With the exception of Saigon 496 units, was launched in Riviera Cove is easily accessible Company to jointly develop a to be 6.8% and 1.7% respectively key infrastructure and Centre Phase 2, there will be January 2015 and has achieved from the CBD, which is about a prime 14.6-hectare waterfront in 2016. lower interest rates. no new Grade A office supply a strong take-up rate of about 30-minute drive away. Travelling site in the Thu Thiem New Affordable mortgage rates in HCMC’s CBD until 2017. 90% as of end-March 2016. time to the city centre has been Urban Area. In 2015, Vietnam attracted lifted mortgage loans by Demand for office space will Phase 2’s the Signature significantly shortened with the more than US$22.7 billion in FDI, 22% compared to 2014. likely increase in 2016, with Collection, comprising 376 units, completion of the first stage the expansion of multinational was launched in October 2015 of the Inner Ring Road and the Focus for 2016 companies and a new wave and 63% of the units have been opening of the HCMC-Long Thanh Vietnam of foreign companies sold as of end-March 2016. Expressway. Residents of the Launch Phase 1B 2014 2015 2016F 2017F entering Vietnam. The Signature Collection 96 resort-style villas can enjoy of Riviera Point and offers homeowners a wide riverfront view provided by the the first phase of Real GDP growth (%) 6.0 6.7 6.8 6.9 In Hanoi, rents of Grade A office range of facilities including development’s 280m frontage South Rach Chiec. Lending interest rate (average, %) 8.7 7.1 6.8 7.2 buildings decreased slightly a private gym and lounge to Rach Chiec River. Inward FDI (US$ bn) 9.2 10.0 10.2 10.4 due to excess supply. 2016 at the sky garden as well as Open Saigon Centre Phase 2 Exchange rate (VND/US$, average) 21,189 21,909 22,470 22,929 will see Hanoi’s Grade A office personalised concierge services. The waterfront gated villa Phase 2 development also retail mall in 2H 2016. Personal disposable income (US$ bn) 140.6 125.0 127.6 142.9 rental rates facing further development was completed and downward pressure from features a five-storey retail handed over to homebuyers in 2012. CPI change (average, %) 4.1 0.6 1.7 4.0 moderate demand and podium of 37,000 sm GFA, which About 83% of the villas have been Source: Economist Intelligence Unit excess supply. will offer a wide range of retail sold as at end-March 2016. Overview / Operations and Market Review 66 Keppel Land Limited Report to Shareholders 2015 67 Vietnam
Operations and Market Review Vietnam
01 The first phase Mixed-Use The office space is more than Thu Thiem Development of the South Rach Chiec 96% leased to the diplomatic integrated waterfront Development Location: District 2, Thu Thiem development is Ho Chi Minh City corps and multinational New Urban Area expected to be companies as well as banking Total no. of units: About 3,000 launched in 2H 2016. Saigon Centre and financial institutions, GFA: About 730,000 sm Location: Le Loi Boulevard, District 1 while the serviced apartment, Expected launch: 2016 02 Saigon Centre GFA (Phase 2): Sedona Suites HCMC, is about Phase 2 retail mall 47,000 sm (Retail Podium) 82% leased. The development is located on is 100% pre-committed, 44,000 sm (Office Tower) with leading Japanese 195 units (Serviced Apartments) prime 14.6-hectare waterfront site retailer Takashimaya As at end-2015, the retail mall in the Thu Thiem New Urban Area as the anchor tenant. Expected completion (Phase 2): under Phase 1 has been 2H 2016 (Retail Podium) (Thu Thiem), the future CBD of 2H 2017 (Office Tower) temporarily closed for HCMC. The site is fully cleared and upgrading works. ready for development. Overlooking Saigon Centre is strategically the Saigon River and the current located on Le Loi Boulevard, one Construction of Phase 2 is CBD of HCMC, Thu Thiem is planned of the city’s main thoroughfares progressing on schedule. to be developed into the largest and within proximity to the When completed, Phase 2 will economic, commercial and financial HCMC People’s Committee, comprise 47,000 sm of prime centre of the city, offering cultural, 01 Ben Thanh Market, Opera House, retail area spread over seven entertainment and recreational the Dong Khoi shopping belt floors, a 37-storey tower offering activities. Key transport and prominent hotels. 44,000 sm of Grade A office infrastructure within Thu Thiem Casuarina Cove accessible via HCMC-Long Thanh- about 4,700 apartments with retail, space and about 200 luxury are under development and are Dau Giay Expressway or Hanoi commercial, educational and Location: District 9 Developed in several phases, serviced apartments. expected to be completed in 2017. Highway. Travelling time to the CBD medical facilities. The first phase Total no. of units: 120 Phase 1 was completed in 1996 is significantly reduced to about of the development is expected and comprises a three-storey The retail mall is expected to Upon completion, the development GFA: 39,807 sm 20 minutes with the completion to be launched in 2H 2016. retail podium, 11 floors of open in the second half of 2016. will comprise about 3,000 premium Expected launch: 2017 of major infrastructural works. Grade A office space and 89 The mall is 100% pre-committed, residential apartments, office and Dong Nai luxury serviced apartments. with leading Japanese retailer, retail properties as well as an Located 500 metres from Residents of the development Phase 1 of Saigon Centre Takashimaya as the anchor 86-storey integrated mixed-use Riviera Cove and fronting the Dong Nai Waterfront City will be among the first to embrace has established itself as the tenant. The office tower is tower complex. The first phase Rach Chiec River in the north Location: Long Thanh District a unique live-work-play healthy preferred business and expected to be completed in of the project is expected to be and the Nhanh Tributary in the Total no. of units: About 11,500 lifestyle in Vietnam. Designed residential address in HCMC. the second half of 2017. launched in 2016. east, the development offers as a sports hub, the integrated GFA: 5,000,000 sm (Total) 120 waterfront villas. It is township includes a dedicated Up to 3,600,000 sm (Residential) well-connected to other parts 25 ha sports, commercial, Expected launch: 2017 (Phase 1) 02 of HCMC via the Hanoi Highway, retail and institutional complex. HCMC-Long Thanh-Dau Giay Residents will be able to access The township development is located Expressway and the Inner Ring the facilities via a linear park. in Dong Nai province, a 45-minute Road and is within a 3-km radius Phase 1 of the project is expected drive from HCMC’s CBD. Travelling from the Saigon High-tech Park to be launch-ready in 1H 2017. time to the city centre will be reduced and Rach Chiec Sports Complex. to about 20 minutes with the completion of infrastructural works. South Rach Chiec Targeting affluent locals and Residents will enjoy the site’s close expatriates, Casuarina Cove is Location: District 2 proximity to the Big-C hypermart, expected to be launched in 2017. Total no. of units: About 4,700 HCMC’s Hi-Tech Park and the GFA: 882,376 sm future international airport in Townships Expected launch: 2H 2016 (Phase 1) Long Thanh. Flanked by the Dong Nai Ho Chi Minh City River and its tributaries, the township development will offer residents a Saigon Sports City The waterfront development is situated in the tranquil An Phu Ward tranquil living environment along a Location: District 2 which offers excellent views of the 1.5-km shoreline. Total no. of units: About 4,300 Giong Ong To River and the Muong GFA: 950,000 sm Kinh River. The development is When completed, the township Expected launch: 1H 2017 (Phase 1) about 20-minute drive from the will feature about 11,500 homes CBD and is easily accessible via the comprising terraces, villas and The 64-ha site is located in the East-West Highway and HCMC- mid-rise apartments with a variety upper-middle class residential Long Thanh-Dau Giay Expressway. of commercial facilities. Targeting enclave of An Phu Ward in the middle-income group, the first District 2, which is also popular When completed, the integrated phase of the township is expected with expatriates. The site is waterfront development will offer to be launched in 2017. Overview / Operations and Market Review 68 Keppel Land Limited Report to Shareholders 2015 69 Indonesia
Operations and Market Review
Indonesia Condominiums to meet the growing demand for 01 With the launch investment-grade offices from local of West Vista and Jakarta the acquisition of a and multinational corporations. second residential site, Keppel Land is West Vista Keppel Land is well Location: West Jakarta The existing IFC Jakarta Tower 1 will be poised to capture committed to demand for quality Total no. of units: 2,855 redeveloped into a 54-storey office tower residential developments deepen its presence GFA: 153,464 sm offering about 71,700 sm of quality in West Jakarta, office space. which is experiencing in Indonesia, Expected completion: 2018 rapid growth. with a focus on Located along Jakarta Outer Ring Road IFC Jakarta Tower 2 will offer about Greater Jakarta. 50,200 sm of prime office space. Tenants 02 When fully completed, and close to West Jakarta’s central International Financial business district, West Vista is a secured include Servcorp, Tokio Marine, Centre Jakarta will high-rise condominium development Grant Thornton, Rintis and Ithaca Resources. meet the demand for The office tower was topped off in August 2015 prime office space in the with ancillary shophouses targeted at central business district. the middle-income segment. and is on track for completion in 2016.
Future residents can enjoy excellent connectivity to the airport, key business 02 districts and various lifestyle and entertainment facilities. As at end-March 2016, 134 units out of the 300 launched units were sold.
Residential Development at Daan Mogot Location: West Jakarta Total no. of units: About 4,500 01 GFA: 226,800 sm Expected launch: 4Q 2017 Improving Market will continue to support the Conditions demand for homes. In 2015, the Located adjacent to West Vista, the Major Developments in 2015 Indonesia’s economy grew government also announced its development will comprise about 4,500 moderately at 4.8% in 2015 plans to relax the loan-to-value residential units with ancillary shophouses Acquired second residential compared to 5% in 2014. ratio and luxury tax regulations and shop units. site in West Jakarta to develop Since taking office in late 2014, which will benefit the a high-rise condominium President Joko Widodo has property market. The development will enjoy good with ancillary shophouses introduced seven economic connectivity to the western and eastern and shop units. stimulus packages in 2015 to The office market continues to parts of Jakarta when the future Jakarta improve the economy. face headwinds as economic Inner Toll Road is completed in 2019. Launched West Vista, recovery remains tepid, coupled a residential development Although the residential with a large impending office in West Jakarta. market in Jakarta softened supply in 2016. However, Commercial in 2015, the country’s improving premium grade office space Jakarta Topped off International infrastructure, rising domestic remains limited, especially in International Financial Financial Centre (IFC) wealth and growing population of locations within the heart of Centre Jakarta Jakarta Tower 2. young professionals and families Jakarta’s financial district. Location: Jalan Jenderal Sudirman GFA: 146,400 sm Focus for 2016 Indonesia Expected completion : 2016 (Tower 2) 2014 2015 2016F 2017F 2020 (Tower 1) Unlock value and recycle assets. Real GDP Growth (%) 5.0 4.8 5.3 5.7 Located in the heart of Jakarta’s financial Lending Interest Rate (average, %) 12.6 12.9 13.0 12.6 district and within the golden triangle zone Invest strategically Inward FDI (US$ bn) 26.3 28.0 29.9 31.3 at Sudirman District, IFC Jakarta enjoys in Greater Jakarta. Exchange Rate (Rp/US$, average) 11,865 13,312 14,231 14,342 excellent accessibility via key transport routes such as the Transjakarta busway. Personal Disposable Income (US$ bn) 582.3 582.0 614.1 688.6 Redevelop existing Connectivity will be further enhanced CPI Change (average, %) 6.4 6.5 6.0 5.4 IFC Tower 1 into a Grade A with the future Jakarta mass rapid transit. office development. Source: Economist Intelligence Unit The Grade A office tower is well-poised 70 Keppel Land Limited Report to Shareholders 2015
Operations and Market Review
The Philippines central business district (CBD) Mixed-Use Development continue to rise given limited supply. Manila Prime office rents are expected to Despite slower growth, the improve by 11% y-o-y. SM-KL Project Philippine economy expanded Location: Mandaluyong City by 5.7% in 2015 as the increase Condominium GFA: About 73,000 sm (Retail) in employment and workers’ Manila About 110,100 sm (Office) remittances continue to sustain Palmdale Heights Expected completion: 2017 (Retail) domestic demand. The government (Phase 2) 2019 (Office) has set an economic growth target Location: Pasig City of 6.8-7.8% in 2016 while the Total no. of units: 828 Located in the heart of Ortigas’ CBD, country’s central bank maintains GFA: 47,063 sm the first phase of the development, an inflation target of 2-4%. Completion: 2004 The Podium, offers a good mix of specialty stores with well-known In Makati, the rents of prime With easy access to Makati and international and local brands. residential units increased by 5% Ortigas CBDs, Palmdale Heights year-on-year (y-o-y) while occupancy offers homeowners a convenient Phase 2 will comprise a 42-storey remained at 95.6% in 2015. lifestyle with modern amenities. office tower above the extension Occupancy and rents are likely of The Podium which will add over to remain stable in 2016. Some 97% of the 828 units in 46,300 sm of retail space. The office The retail market is expected the first two phases have been tower will cater to the growing to remain healthy in 2016 sold as at end-March 2016. demand from multinational with consumption driven by The remaining five hectares will corporations and business process remittances from overseas be jointly developed with Phinma outsourcing companies seeking Filipinos. Office rents in Makati Property Holdings Corporation. quality office space.
Myanmar Commercial Yangon
According to the Economist Junction City Tower Intelligence Unit, Myanmar’s Location: Junction of GDP growth is estimated to Shwedagon Pagoda Road and Bogyoke Aung San Road increase from 6.6% in 2015 to an average of 7.9% per annum GFA: 53,100 sm from 2016 to 2021. Expected completion: 2017
Economic growth will be Strategically located in Yangon’s spurred by large projects central business district, the funded by foreign investors 23-storey office tower is part in various industries. of Junction City, a mixed-use Demand for office space is development which also comprises expected to remain strong the five-star Pan Pacific Hotel, for the next few years as a shopping centre and serviced more foreign banks establish residences. It will house Yangon’s their operations in Yangon. largest car parking facility, offering more than 1,500 car park spaces. The election in November 2015 further boosted When completed, the office tower investors’ confidence will offer a net leasable area of 01 with increased investment about 33,400 sm of premium to drive the economy. Grade A office space, meeting the demand from multinational 01 With its strategic location, the new office corporations for quality office tower in Junction City space in Yangon. Construction will meet the demand from for the office tower is expected multinational companies for quality office space to be completed by 2017. in Yangon. Overview / Operations and Market Review 71 Others
United States Condominium high-end department store, New York Bloomingdale’s, and is just four blocks away from The United States economy Residential Development Central Park, a national continued to expand at a Location: Upper East Side, historic landmark in New York. moderate pace in 2015, Manhattan supported by higher domestic Estimated no. of units: 70 The development is currently consumption and government GFA: 148,000 sf under construction and is spending. Full year GDP growth Expected launch: 2H 2016 expected to be launched is forecast at 2.1% compared in 2H 2016. to 2.4% in 2014. Growth is Nestled within an established expected to remain steady residential neighbourhood, at 2.4% in 2016 with gradual this prime residential Fed rate hikes. development with a retail component is conveniently The residential market in located within walking Manhattan, New York City, distance to the subway station remained healthy, with at Lexington Avenue and continued improvements 59th Street. in the economy and the financial sector. Apartment The development is well-served prices rose by 12% in 2015. by amenities and entertainment Healthy residential demand options around Midtown is expected to support a Manhattan. It is opposite moderate price growth in 2016. the flagship outlet of
United Kingdom Commercial London
Economic growth in the Office Development United Kingdom (UK) in 2015 Location: 75 King William Street is expected to be at 2.4%, GFA: 126,271 sf compared to 2.9% in 2014. Completion: 1989 Growth is forecast at 2.2% in 2016, supported by employment Situated in London’s CBD, the growth and continued strength office development is close to the in domestic consumption. city’s historic and financial centre, where the Bank of England and Central London’s office other prominent financial market saw strong absorption institutions are located. The office of 14.5 million sf in 2015, building is less than a five-minute which is slightly lower than the walk to the Bank tube station, 15 million sf in 2014, but still as well as the Monument and above the past 10-year average. Cannon Street stations. It is also a Office demand was supported 12-15 minutes’ walk to the Liverpool by the creative industries, station, part of the network on the banking and finance as well as upcoming Crossrail, which will business services sectors. provide a high speed train service across the east-west axis of 02 Despite uncertainty over London when completed in 2018. global economic growth and the UK’s membership in the 02 The office The office building is fully leased development located European Union, the benign to tenants in the financial services, at 75 King William Street economic outlook and strong shipping and serviced office industries. is fully leased to tenants employment growth will Asset enhancement initiatives, in the financial services, shipping and serviced underpin Central London’s including refurbishing the lobby and office industries. office market in 2016. atrium, are currently underway. 72 Keppel Land Limited Report to Shareholders 2015
Operations and Market Review
India Condominium Bangalore
India’s economy is projected Elita Horizon to expand by a healthy 7.4% in Location: Kanakapura Road 2015 and 2016, making it one of Total no. of units: 1,419 the fastest growing economies in GFA: 174,815 sm the world. The reduction in lending Expected launch: 2H 2016 rates by the Reserve Bank of India is expected to boost economic Elita Horizon is a high-rise growth as well as the real condominium development estate sector. located off Kanakapura Road and close to the Peripheral Ring Changes to the Foreign Direct Road. It will have direct access Investment regulations in to the major IT hubs and corridors November 2015 for the of Electronic City and construction-development Bannerghatta Road. sector are expected to give additional boost to investments The development is conceptualised in the real estate sector. to be a self-sustained community with residential, retail, leisure and Bangalore’s residential market support services. remained resilient, supported by the expansion of information The design for Elita Horizon is technology (IT) and IT-enabled underway and the development services firms and multinational is targeted to be launched corporations. in 2H 2016.
Sri Lanka Condominium Colombo
The Sri Lankan economy is The Belvedere estimated to grow by 6.1% in Location: Kotahena District 2015 compared with 4.5% Total no. of units: 297 a year ago. GFA: 51,511sm
For 2016, the Central Bank The Belvedere is located in the has forecast the economy Kotahena District, close to the to grow at 6% and inflation central business district of Colombo. to remain below 5%. Targeted at the upper income segment, the high-rise development The formation of a new is designed to allow majority of the coalition government in units to enjoy panoramic views of September 2015, advocating the Indian Ocean. good governance and transparency as well as In its continual focus to strengthen introducing landmark its presences in its core markets and initiatives to promote the growth cities, as well as recycling country as a regional assets for higher returns, Keppel Land powerhouse, will help completed the divestment of its support positive economic 60% interest in the development growth in the next decade. in March 2016. Overview / Operations and Market Review 73 Others
Malaysia Township over its 569,000-sf leasable Johor Bahru area as at end-2015. The mall also houses a 35,000 sf public Malaysia’s economy grew Taman Sutera and library for the community. 4.7% in 2015, supported Taman Sutera Utama mainly by domestic demand. Location: Skudai, Johor Bahru In line with its vision to create The economy is expected to Total no. of units: Over 12,000 a zero-waste living environment, remain on a steady growth GFA (completed units): 63,905 sm the township continued its path despite a weaker Completion: In phases from 2003 efforts to cultivate a green global economy. The country’s mindset among its residents GDP is forecast to grow by Taman Sutera and Taman through various educational 4.0-5.0% in 2016. Sutera Utama form part of an programmes held under integrated township featuring the Good Earth project. The residential property over 12,000 residential and This includes collaborations with market continued to commercial units, a vibrant schools and non-governmental moderate in 2015 on the shopping mall Sutera Mall as organisations to promote back of stringent financing well as an educational hub. the adoption of Effective rules and oversupply in the The majority of the 4,000 Microorganism Technology property market. The Goods launched units of residential and the 5Rs (Rethink, and Services Tax introduced and commercial properties Reduce, Reuse, Recycle, in April 2015 and the slump have been sold as at end-2015. be Responsible) philosophy. in oil prices are expected to weaken private consumption Sutera Mall continued to maintain levels in 2016. a high occupancy rate of 87.9%
Thailand Villas Bangkok Thailand’s economy grew by Villa Arcadia Srinakarin Villa Arcadia Watcharapol about 2.8% in 2015, compared Location: Srinakarin Road Location: Watcharapol Road to 0.9% a year ago. Growth is Total no. of units: 365 Total no. of units: 270 expected to accelerate to around GFA: 76,622 sm GFA: 68,314 sm 3.3% in 2016 with the government’s plans to extend the value-added Expected completion: 2017 (Phase 2) Completion: 2014 (45 units) tax reduction period, ongoing infrastructural improvements Comprising 365 detached Villa Arcadia Watcharapol as well as the expansion of the houses within a gated comprises 270 detached houses. mass transit network. community, Villa Arcadia Well-connected by the Ram Srinakarin is situated close to Intra-Art Narong Expressway The property market improved the Suvarnabhumi International and Eastern Outer Ring Road, in 2015 with the condominium Airport and expressway which the development is a 30-minute segment making up 57% of the total provides access to the city drive to the central business demand of residential developments. centre and outer ring road. district. The newly completed The development is in close Phahonyothin-Rattanakosin Keppel Land completed the proximity to prominent Sompotch Road has further divestment of its 45.5% stake in international schools, hospitals improved accessibility of Keppel Thai Properties in May 2016. and shopping centres. the development. The divestment is in line with Keppel Land’s strategy to recycle Villa Arcadia Srinakarin will be Villa Arcadia Watcharapol will be capital for higher returns as it pursues divested with Keppel Land’s divested with Keppel Land’s other opportunities in Thailand divestment of its 45.5% stake divestment of its 45.5% stake through partnerships and joint in Keppel Thai Properties. in Keppel Thai Properties. ventures with strong local partners. Overview / Operations and Market Review 74 Keppel Land Limited Report to Shareholders 2015 75 International Network – Other Regions
International Network
United Kingdom China & Hong Kong London China Shanghai Japan & Netherlands Beijing South Korea Japan Almere Chengdu Rest of Asia Tianjin The Philippines Tokyo United States Wuxi Manila South Korea Shenyang New York Myanmar Seoul Houston Nantong Zhongshan Yangon Jiangyin Mandalay Other Regions Kunming Malaysia Hong Kong Residences/Offices/ Johor Bahru Mixed-Use Developments/ India & Thailand Data Centres Sri Lanka Bangkok Vietnam Taiwan Australia+ Bangalore Gurgaon Ho Chi Minh City Taipei • 275 George Street, Brisbane Colombo Hanoi • 77 King Street, Sydney++ Dong Nai • 8 Chifley Square, Sydney Vung Tau • David Malcolm Justice Centre, Indonesia Indonesia Perth • West Vista, Jakarta Singapore Jakarta • 8 Exhibition Street, Melbourne • Residential development, Jakarta Singapore Surabaya Bintan • Pasadenia Garden, Jakarta Batam China • International Financial Centre Jakarta Bali • 8 Park Avenue, Shanghai • Vacant land at Tunjungan, Surabaya • Park Avenue Central, Shanghai Australia • The Springdale, Shanghai Vietnam Brisbane • Seasons Residence, Shanghai • Saigon Centre, HCMC Sydney • Sheshan Riviera, Sheshan, • Estella Heights, HCMC Perth Melbourne Shanghai • Thu Thiem Development, HCMC • Office units, Shanghai • Casuarina Cove, HCMC • Life Hub @ Jinqiao, Shanghai • Saigon Sports City, HCMC • Commercial development, Beijing • South Rach Chiec, HCMC • Park Avenue Heights, Chengdu • Riviera Point, HCMC • Hill Crest Villa, Chengdu • Riviera Cove, HCMC • Serenity Villa, Chengdu • International Centre, Hanoi^ • V City, Chengdu • Dong Nai Waterfront City, Dong Nai • Sino-Singapore Tianjin Eco-City • PetroVietnam Towers, Vung Tau – Seasons City – Seasons Park Myanmar – Seasons Garden • Junction City Tower, Yangon + Assets owned by Keppel REIT in • Serenity Cove, Tianjin which the Group has a 45.7% stake. • Serenity Villa, Tianjin India ++ Keppel REIT divested its 100% interest • Waterfront Residence, Tianjin • Elita Horizon, Bangalore The Philippines** Hotels/Serviced Myanmar in 77 King Street on 29 January 2016. • Vacant land, Tianjin • Palmdale Heights, Manila Apartments/Resorts • Sedona Hotel Yangon ^ Keppel Land announced the divestment of its stake in the property on • Central Park City, Wuxi Sri Lanka • SM-KL project, Manila Vietnam • Sedona Hotel Mandalay 26 January 2016. # • Waterfront Residence, Wuxi • The Belvedere, Colombo • Sedona Suites, Hanoi^^ ^^ Keppel Land announced the divestment • Park Avenue Heights, Wuxi United States • Sedona Suites, HCMC China of its stake in the property on 4 April 2016. • The Seasons, Shenyang Malaysia • Residential development, New York • Spring City Golf & Lake Resort, Kunming # Keppel Land completed the divestment • Tamarind Park, HCMC of its 60% interest in the joint venture in • Waterfront residential township, • Taman Sutera and • TCB Building, Houston • Eco-City International Country Club, March 2016. Hunnan, Shenyang Taman Sutera Utama, Johor Bahru Indonesia Sino-Singapore Tianjin Eco-City * Assets owned by Keppel Thai Properties. • Waterfront Residence, Nantong United Kingdom • Club Med Ria Bintan • Jiangyin Yangtze International Keppel Land completed the divestment of • Keppel Cove, Zhongshan Thailand* • Office development, London Country Club, Jiangyin its 45.5% stake in Keppel Thai Properties • Ria Bintan Golf Club on 18 May 2016. • Stamford City, Jiangyin • Villa Arcadia Srinakarin, Bangkok • Nongsa Point Marina & Resort, Batam ** Assets owned by Keppel Philippines • Hill Crest Residence, Kunming • Villa Arcadia Watcharapol, Bangkok The Netherlands • Vacant land at Tanah Lot, Bali Assets Held Under Alpha Properties in which the Group has a • La Quinta, Kunming • Jewellery Centre, Bangkok • Almere Data Centre 2, Almere Investment Partners' Funds 51% stake. 76 Keppel Land Limited Report to Shareholders 2015
International Network
Singapore
) E Lower Pierce P K ( Reservoir y Upper Pierce a w Reservoir s s Sengkang e r p 10 x E r a b e L a y a P - g n a l l a K Tampines Quarry
P a 13 n MacRitchie Reservoir
Is la Bedok n d Reservoir E xp r es sw ay (P I E)
) PIE ay ( ssw E) xpre T nd E (C n Isla Tanah Merah ay Pa w ss 9 re xp l E ra nt Ce
11 Napier 8 41 East Coast Parkway (ECP) Bugis
East West Line 4 North South Line Tiong Bahru 6 Raffles ) North East Line Ayer R E ajah Express Place C wa Bayfront M Downtown Line y ( Downtown ( AY ay E) w Downtown Line stage 3 (Under Construction) ss re Circle Line 5 xp l E Thomson East Coast Line (Under Construction) ta 3 Tanjong Marina as Sengkang LRT/Punggol LRT Pagar Bay 12 Co a in Expressway ar M Telok Blangah + Assets owned by Keppel REIT in which 2 the Group has a 45.7% stake. 7 ^ To be redeveloped into a mixed-use development. Harbourfront * A waterfront precinct which includes Caribbean at Keppel Bay, Reflections at Keppel Bay, Corals at Keppel Bay, Marina at Keppel Bay Brani Island and Keppel Bay Plots 4 and 6. Sentosa
4 7 12 13
Office Residential Mixed-use Data Centre 1. Bugis Junction Towers+ 6. Highline Residences 11. Joo Chiat shophouses 13. Keppel Datahub 2 2. Keppel Bay Tower 7. Keppel Bay precinct* 12. Marina Bay Financial Centre 3. Keppel Towers and 8. Nassim Woods – Tower 1, 2 and 3+ Keppel Towers 2^ 9. The Glades – Marina Bay Residences 4. Ocean Financial Centre+ 10. The Luxurie – Marina Bay Suites 5. One Raffles Quay+ – Marina Bay Link Mall+ Overview / Operations and Market Review 77 Property Portfolio
Property Portfolio
Group Properties (Singapore)
Description Held by % Owned Site Area Estimated Estimated Year of Tenure (sm) Gross Floor Net Lettable Completion Area (sm) Area (sm)
Completed Properties
Keppel Bay Tower an 18-storey office building HarbourFront 41.7% 17,267 41,841 36,015 2002 99-year at HarbourFront Avenue One leasehold
Marina Bay Financial Centre (Phase 2)(a) Keppel REIT 15.2% 9,710 151,776 124,581 2012 99-year a 46-storey office tower with leasehold retail podium at Marina Bay
Marina Bay Financial Centre (Phase 1)(a) two office towers of 33 storeys Keppel REIT 15.2% 32,978 189,000 161,805 2010 99-year and 50 storeys with leasehold ancillary retail space at Marina Bay
Ocean Financial Centre(a) a 43-storey office building Keppel REIT 45.7% 6,109 95,992 82,131 2011 999-year at Raffles Place leasehold
Bugis Junction Towers(a) a 15-storey office tower Keppel REIT 45.7% - 28,525 22,760 1995 99-year at Bugis Junction leasehold
One Raffles Quay(a) two office towers of 50 storeys Keppel REIT 15.2% 11,367 148,467 123,678 2006 99-year and 29 storeys at Marina Bay leasehold
Keppel Towers and Keppel Towers 2 two office towers Mansfield 100% 9,127 52,946 39,958 1991/1993 Freehold at Hoe Chiang Road Developments
Reflections at Keppel Bay a 1,129-unit waterfront Keppel Bay 30% 83,538 193,400 38,688 2011 99-year condominium development (retained leasehold at Keppel Bay interest) 78 Keppel Land Limited Report to Shareholders 2015
Property Portfolio
Group Properties (Singapore) (continued)
Description Held by % Owned Site Area Estimated Estimated Year of Tenure (sm) Gross Floor Net Lettable Completion Area (sm) Area (sm)
Completed Properties (continued)
Nassim Woods a 35-unit luxurious Parksville 100% 5,785 9,256 8,283 1998 99-year condominium development Development leasehold in the exclusive Nassim Road enclave
112 Katong a six-storey shopping mall DC REIT 22.4% 7,261 26,140 19,245 2011 99-year at the junction of Holdings leasehold East Coast Road and Joo Chiat Road
Joo Chiat Shophouses conservation shophouses Keppel Land 100% 686 - 1,139 1996 Freehold in Joo Chiat Realty
Keppel Datahub 2 a data centre building Keppel Data 30% 5,000 12,450 - 2014 30-year at Tampines Street 92 Centres leasehold Holding with option for another 30 years
Marina at Keppel Bay a marina development Keppel Bay 30% 38,849 3,000 1,590 2007 99-year at Keppel Bay (includes leasehold foreshore (foreshore area) area: 30-year leasehold) Overview / Operations and Market Review 79 Property Portfolio
Group Properties (Singapore) (continued)
Description Held by % Owned Site Area Estimated Estimated Expected Tenure (sm) Gross Floor Net Lettable Year of Area (sm) Area (sm) Completion
Properties under Development
The Glades a 726-unit condominium Sherwood 70% 31,882 51,011 - 2017 99-year development at Bedok Rise Development leasehold
Corals at Keppel Bay a 366-unit waterfront Keppel Bay 30% 38,830 47,380 - 2018 99-year condominium development leasehold at Keppel Bay
Highline Residences a 500-unit condominium Harvestland 100% 10,991 43,963 - 2018 99-year development at Development leasehold Kim Tian Road
Keppel Datahub 3 a data centre building Keppel Data 30% 6,805 17,012 - 2016 30-year at Tampines Street 92 Centres leasehold Holding with option for another 30 years
Landbank
Keppel Bay Plot 6 a 86-unit waterfront Keppel Bay 30% 43,701 21,000 - - 99-year condominium development leasehold at Keppel Bay
HarbourFront Avenue (Plot 4) a 234-unit waterfront HarbourFront 11.7% 28,579 32,000 - - 99-year condominium development Three leasehold at HarbourFront Avenue 80 Keppel Land Limited Report to Shareholders 2015
Property Portfolio
Group Properties (Overseas)
Description Location Held by % Owned Site Area Estimated Estimated Year of Tenure (sm) Gross Floor Net Lettable Completion Area (sm) Area (sm) (Commercial)/ No. of Units (Residential)
Completed Properties
Australia
275 George Street(a) a Grade A office Brisbane Keppel REIT 22.9% 7,074 - 41,748 2009 Freehold building located in CBD
77 King Street Office Tower(a)++ a Grade A office Sydney Keppel REIT 45.7% 1,284 - 13,626 1975 Freehold building located in CBD
8 Chifley Square(a) a premium office Sydney Keppel REIT 22.9% 1,581 - 19,350 2013 99 years building located lease in CBD
8 Exhibition Street(a) a Grade A office Melbourne Keppel REIT 22.9% 4,329 - 45,900 2005 Freehold building located in CBD
David Malcolm Justice Centre(a) a 33-storey Grade A Perth Keppel REIT 22.9% 2,945 - 31,176 2015 99 years office tower lease located in CBD
China
Life Hub @ Jinqiao a retail and office Shanghai Equity 36.9% 59,956 114,732 79,214 2009 50 years development in Rainbow II lease Pudong District
Office Units office units in Shanghai Evergro 100% - 635 635 2004 50 years Chang Ning District Properties lease Overview / Operations and Market Review 81 Property Portfolio
Group Properties (Overseas) (continued)
Description Location Held by % Owned Site Area Estimated Estimated Year of Tenure (sm) Gross Floor Net Lettable Completion Area (sm) Area (sm) (Commercial)/ No. of Units (Residential)
Completed Properties (continued)
Jiangyin Yangtze International Country Club a golf course Jiangyin Jiangyin 95% 957,281 - 18-hole 2006 40 years/ development Yangtze golf course 50 years International lease Country Club
Eco-City International Country Club a golf course Tianjin Tianjin 100% 787,405 - 18-hole 2006 40 years development Pearl Beach golf course lease in South Island International Country Club
Spring City Golf & Lake Resort an integrated Kunming Spring 68.8% 2,884,749 - Two 18-hole 1998 70 years resort comprising City Golf and golf courses, lease golf courses, Lake Resort 73 guest (residential) resort homes and rooms and 50 years resort facilities 530 resort lease homes (golf course)
Serenity Villa a 340-unit Tianjin Tianjin 100% 128,685 80,000 28 2014 70 years residential Fushi bungalows, lease development within Property 96 Tianjin Eco-City Development semi-detached houses and 216 apartments
8 Park Avenue a 918-unit residential Shanghai Shanghai 99% 33,432 133,393 918 2015 70 years development Pasir Panjang residential lease Land units 82 Keppel Land Limited Report to Shareholders 2015
Property Portfolio
Group Properties (Overseas) (continued)
Description Location Held by % Owned Site Area Estimated Estimated Year of Tenure (sm) Gross Floor Net Lettable Completion Area (sm) Area (sm) (Commercial)/ No. of Units (Residential)
Completed Properties (continued)
The Springdale a 2,596-unit Shanghai Shanghai 99.4% 264,090 328,792 2,596 2015 70 years residential Hongda residential lease development Property units (residential) with commercial Development 40 years facilities in lease Pudong District (commercial)
Indonesia
Club Med Ria Bintan a beachfront hotel at Bintan PT Straits - 39% 200,000 34,340 302 rooms 1997 30 years Ria Bintan Resort CM Village lease with option for another 50 years
Ria Bintan (Phase 1) a golf course Bintan PT Ria Bintan 45.9% 1,467,000 - 27-hole 1998 30 years golf course lease with with a option for 31-room another golf lodge 50 years
Nongsa Point Marina and Resort a waterfront resort Batam PT Nongsa 16.8% 99,567 - 192 rooms/ 1995 30 years with a marina Point Marina chalets and lease with and hotel-style chalets 65 berths option for another 50 years
International Financial Centre Jakarta Tower 1(b) a prime office Jakarta PT Kepland 100% 10,428(c) 33,180 27,933 1985 20 years development Investama lease with in CBD option for another 20 years Overview / Operations and Market Review 83 Property Portfolio
Group Properties (Overseas) (continued)
Description Location Held by % Owned Site Area Estimated Estimated Year of Tenure (sm) Gross Floor Net Lettable Completion Area (sm) Area (sm) (Commercial)/ No. of Units (Residential)
Completed Properties (continued)
Pasadenia Garden a residential Jakarta PT Pulomas 25% 32,586 32,490 198 1996 30 years development Gemala strata-titled lease with within Pulomas Misori residential option for residential district units another 20 years
Malaysia
Taman Sutera and Taman Sutera Utama a township Johor Tanah 18% 1,896,993 111,815 3,384 2003- Freehold comprising Sutera residential 2015 residential units, Development units, commercial space 343 shop and recreational offices and facilities in Skudai a retail mall
Myanmar
Sedona Hotel Yangon a 5-star hotel Yangon Straits 100% 40,516 85,057 797 rooms 1997- 50 years fronting the Greenfield 2016 BOT with famous Inya Lake option for another two 10-year extensions
Sedona Hotel Mandalay an international Mandalay Wiseland 100% 16,467 19,835 251 rooms 1998 50 years class hotel Investment BOT with opposite the (Myanmar) another famous ancient two Mandalay Palace 10-year extensions 84 Keppel Land Limited Report to Shareholders 2015
Property Portfolio
Group Properties (Overseas) (continued)
Description Location Held by % Owned Site Area Estimated Estimated Year of Tenure (sm) Gross Floor Net Lettable Completion Area (sm) Area (sm) (Commercial)/ No. of Units (Residential)
Completed Properties (continued)
Netherlands
Almere Data Centre 2 a high-specification Amsterdam Keppel 30% 9,300 12,842 - 2015 Freehold data centre Data Centres Holding Philippines(e)
SM-KL Project (Phase 1) a 5-storey Mandaluyong SM 24.2% 7,068 26,767 17,775 2001 Freehold retail mall, City Keppel Land The Podium, Inc. in Ortigas CBD
Palmdale Heights (Phases 1 & 2) a residential Pasig City Buena Homes 30.9% 22,978 47,063 828 2004 Freehold development (Sandoval) residential Inc. units
Thailand(f)
Jewellery Centre a 34-storey Bangkok Keppel Thai 45.5% 5,868 49,694 12,146 1992 Freehold strata-titled Properties (retained commercial building interest) at Nares Road
United Kingdom
Office Development a 9-storey office London First King 100% 1,947 11,917 11,731 1989 Freehold building located at Properties 75 King William Street Overview / Operations and Market Review 85 Property Portfolio
Group Properties (Overseas) (continued)
Description Location Held by % Owned Site Area Estimated Estimated Year of Tenure (sm) Gross Floor Net Lettable Completion Area (sm) Area (sm) (Commercial)/ No. of Units (Residential)
Completed Properties (continued)
United States
TCB Building a 12-storey Houston, Keppel 30% 13,015 27,323 26,858 1982 Freehold office building Texas Houston in the prestigious Group Galleria area Partnership
Vietnam
International Centre^ an 8-storey office Hanoi International 43.2% 1,450 9,064 7,113 1995 49 years development at Centre lease Ngo Quyen Street
Sedona Suites Hanoi^^ a serviced apartment Hanoi Quang Ba 58.8% 28,400 34,917 155 1998 50 years development at Royal Park serviced lease Quang Ba, West Lake Joint Venture apartments and 20 villas
Saigon Centre (Phase 1) a 25-storey office, Ho Chi Keppel Land 45.3% 2,730 34,143 10,430 1996 50 years retail cum serviced Minh City Watco I (office), lease apartment 3,809 development at (retail) Le Loi Boulevard and 89 in District 1 serviced apartments
Riviera Cove a gated villa Ho Chi Riviera Cove 60% 97,000 34,711 96 villas 2012 50 years development Minh City Joint Venture lease in District 9
PetroVietnam Towers a 10-storey Vung Tau Petro Tower 12.9% 6,191 17,026 12,465 1997 40 years office development lease 86 Keppel Land Limited Report to Shareholders 2015
Property Portfolio
Group Properties (Overseas)
Description Location Held by % Owned Site Area Estimated Estimated Expected Tenure (sm) Gross Floor Net Lettable Year of Area (sm) Area (sm) Completion (Commercial)/ No. of Units (Residential)
Properties Under Development
China
Park Avenue Central an office and Shanghai Shanghai 99% 28,488 114,000 ** 2019 70 years retail development Floraville lease in Park Avenue Land precinct
Seasons Residence a 1,102-unit Shanghai Shanghai Ji 100% 71,621 128,918 198 2016 70 years residential development Xiang Land residential (Phase 4) lease in Nanxiang, units Jiading District (Phase 4)
Sheshan Riviera a 217-unit Shanghai Shanghai 99.4% 175,191 83,174 112 2016 70 years landed development Jinju Real landed (Phase 1) lease in Sheshan Estate homes Development (Phase 1)
Park Avenue Heights a 1,535-unit Chengdu Chengdu 100% 50,782 200,200 500 2017 70 years residential Hillstreet residential (Phase 3) lease development with Development units (residential) commercial facilities (Phase 3) 40 years in Jinjiang District lease (commercial)
Hill Crest Villa a 274-unit Chengdu Chengdu 100% 249,330 163,147 45 2017 70 years landed development Hilltop landed (Phase 2) lease in Xinjin County Development homes (Phase 2)
Serenity Villa a 573-unit Chengdu Chengdu 100% 286,667 233,862 84 2016 70 years landed development Shengshi landed (Phase 1) lease in Xinjin County Jingwei homes Real Estate (Phase 1) Investment Overview / Operations and Market Review 87 Property Portfolio
Group Properties (Overseas) (continued)
Description Location Held by % Owned Site Area Estimated Estimated Expected Tenure (sm) Gross Floor Net Lettable Year of Area (sm) Area (sm) Completion (Commercial)/ No. of Units (Residential)
Properties Under Development (continued)
V City a 5,761-unit Chengdu Chengdu 35% 167,000 560,963 1,434 2017 70 years residential Taixin residential (Phase 1) lease development with Real Estate units (residential) retail facilities Development (Phase 1) 40 years Co lease (commercial)
Spring City Golf & Lake Resort an integrated Kunming Spring 68.8% 2,157,361 16,819 97 2018 70 years resort comprising City Golf and (Hill Crest residential (Hill Crest lease golf courses, Lake Resort Residence units Residence resort homes Phase 2B) (Hill Crest Phase 2B) and resort facilities Residence Phase 2B)
Central Park City a 5,339-unit Wuxi CityOne 49.7% 352,534 671,477 344 2016 70 years residential Development residential (Plot C2D) lease township (Wuxi) units (residential) development with (Plot C2D) 40 years commercial and lease SOHO facilities (commercial) in Binhu District
Waterfront Residence a 2,360-unit Wuxi Keppel 100% 215,230 294,174 62 2016 70 years residential Lakefront residential (Phase 1) lease development with (Wuxi) units (residential) commercial and Property (Phase 1) 40 years SOHO facilities Development lease in Binhu District (commercial)
Park Avenue Heights a mixed-use Wuxi Keppel 100% 66,010 177,635 328 2017 70 years development Heights residential (Phase 1) lease with 1,048 residential (Wuxi) units (residential) units and Property (Phase 1) 40 years commercial facilities Development lease in Beitang District (commercial) 88 Keppel Land Limited Report to Shareholders 2015
Property Portfolio
Group Properties (Overseas) (continued)
Description Location Held by % Owned Site Area Estimated Estimated Expected Tenure (sm) Gross Floor Net Lettable Year of Area (sm) Area (sm) Completion (Commercial)/ No. of Units (Residential)
Properties Under Development (continued)
The Seasons (Future Phases) a 2,794-unit Shenyang Keppel 100% 348,312 *** *** *** 50 years residential Township lease township with Development (residential) integrated facilities in (Shenyang) 40 years Shenbei New District lease (commercial)
Waterfront Residential Township a residential Shenyang Keppel Bay 99.8% 302,681 *** *** *** 50 years township with Property lease integrated facilities Development (residential) in Hunnan (Shenyang) 40 years New District lease (commercial)
Keppel Cove a 1,647-unit Zhongshan Sunsea 80% 891,752 460,000 42 villas 2016 70 years residential Yacht with private (Phase 1) lease development with Club berths (residential) a mix of villas (Zhongshan) (Phase 1) 40 years and apartments, lease as well as (commercial) integrated marina lifestyle facilities
Mixed-use Development a mixed-use Tianjin Tianjin 100% 666,665 *** *** *** 70 years development Fushi lease in North Island within Property (residential) Tianjin Eco-City Development 40 years lease (commercial) Overview / Operations and Market Review 89 Property Portfolio
Group Properties (Overseas) (continued)
Description Location Held by % Owned Site Area Estimated Estimated Expected Tenure (sm) Gross Floor Net Lettable Year of Area (sm) Area (sm) Completion (Commercial)/ No. of Units (Residential)
Properties Under Development (continued)
Mixed-use Development a mixed-use Tianjin Tianjin 100% 1,000,000 *** *** *** 70 years development Fulong lease in North Island within Property (residential) Tianjin Eco-City Development 40 years lease (commercial)
Waterfront Residence a 341-unit Tianjin Tianjin 100% 103,683 61,417 161 2016 70 years landed home Fulong landed (Phases lease development Property homes 1 & 2) within Tianjin Eco-City Development (Phases 1 & 2) Development in Sino-Singapore Tianjin Eco-City a 4,354-unit Tianjin Keppel 55% 365,722 633,798 270 2016 70 years residential Hong Da residential (Seasons lease development with (Tianjin units Garden (residential) office and Eco-city) (Seasons Plot 11) 40 years retail space Property Garden lease Development(g) Plot 11) (commercial)
Stamford City a 1,478-unit Jiangyin Jiangyin 99.4% 82,987 304,255 353 2018 70 years residential Evergro residential (Phases lease development with Properties units 3C & 3D) (residential) commercial and (Phases 40 years SOHO facilities 3C & 3D) lease (commercial)
90 Keppel Land Limited Report to Shareholders 2015
Property Portfolio
Group Properties (Overseas) (continued)
Description Location Held by % Owned Site Area Estimated Estimated Expected Tenure (sm) Gross Floor Net Lettable Year of Area (sm) Area (sm) Completion (Commercial)/ No. of Units (Residential)
Properties Under Development (continued)
Waterfront Residence a 1,199-unit Nantong Keppel 100% 172,215 189,437 *** *** 70 years residential Lakefront lease development with (Nantong) a mix of villas, Property terrace houses, Development and apartments
Commercial Development an office and Beijing Beijing Aether 51% 26,081 104,797 81,847 2018 40 years/ retail development Property 50 years in Chaoyang District Development lease
India
Elita Horizon a 1,419-unit Bangalore Keppel 51% 79,927 174,815 1,419 2021 Freehold residential Puravankara residential development off Development units Kanakapura Road
Indonesia
International Financial Centre Jakarta Tower 2 a Grade A office Jakarta PT 100% 10,428(c) 61,300 50,200 2016 20 years development Kepland lease with in Jakarta CBD Investama option for another 20 years
Vacant Land located in Surabaya PT Sentral 80% 23,253 *** *** *** 30 years Tunjungan Tunjungan lease with Perkasa option for another 20 years Overview / Operations and Market Review 91 Property Portfolio
Group Properties (Overseas) (continued)
Description Location Held by % Owned Site Area Estimated Estimated Expected Tenure (sm) Gross Floor Net Lettable Year of Area (sm) Area (sm) Completion (Commercial)/ No. of Units (Residential)
Properties Under Development (continued)
West Vista a 2,855-unit Jakarta PT 100% 28,851 153,464 1,404 2018 30 years residential Harapan residential lease with development Global Niaga units option for with ancillary (Phase 1) another shop houses 1,451 20 years in West Jakarta residential units (Phase 2)
Residential Development a residential Jakarta PT Puri Land 100% 46,291 226,800(d) 4,523(d) 2026 30 years development in Development residential lease with Daan Mogot, units option for West Jakarta another 20 years
Pasadenia Residence a residential Jakarta PT 25% 39,753 40,806 160 2016 30 years development within Pulomas residential lease with Pulomas Gemala units option for residential district Misori another 20 years
Ria Bintan (Phase 2 onwards) an integrated resort Bintan PT 45.9% 2,803,000 *** *** *** 30 years with golf courses, Ria Bintan lease with a Club Med Village option for and resort homes another 50 years
Vacant Land located in Tanah Lot Bali PT 24.5% 846,160 *** *** *** 30 years Purimas lease with Straits Resort option for another 20 years 92 Keppel Land Limited Report to Shareholders 2015
Property Portfolio
Group Properties (Overseas) (continued)
Description Location Held by % Owned Site Area Estimated Estimated Expected Tenure (sm) Gross Floor Net Lettable Year of Area (sm) Area (sm) Completion (Commercial)/ No. of Units (Residential)
Properties Under Development (continued)
Malaysia
Taman Sutera and Taman Sutera Utama a township Johor Tanah 18% 2,972,172 - 268 2016 Freehold comprising Sutera (88,876 residential residential units, Development currently units commercial space under (currently and recreational development) under facilities in Skudai development)
Myanmar
Junction City Tower within a mixed-use Yangon Tinterland 40% 26,406 53,100 33,400 2017 50 years development in (for entire BOT with CBD and opposite mixed-use option for the famous development) another Bogyoke Market two 10-year extensions
Philippines(e)
SM-KL Project (Phase 2) an office cum Mandaluyong SM 24.2% 12,932 46,323 30,340 2017 Freehold retail City Keppel Land (Retail) (Retail) (Retail) development Inc. 110,123 89,279 2019 in Ortigas CBD (Office) (Office) (Office)
Sri Lanka
The Belvedere# a 297-unit Colombo Keppel C T 60% 5,058 51,511 297 2018 Freehold residential Developments residential development units in Kotahena District Overview / Operations and Market Review 93 Property Portfolio
Group Properties (Overseas) (continued)
Description Location Held by % Owned Site Area Estimated Estimated Expected Tenure (sm) Gross Floor Net Lettable Year of Area (sm) Area (sm) Completion (Commercial)/ No. of Units (Residential)
Properties Under Development (continued)
Thailand(f)
Villa Acadia Srinakarin a 365-unit detached Bangkok Thai-Kami 45.5% 159,991 76,622 365 2017 Freehold housing development detached (Phase 2) off Srinakarin Road units (Phase 2)
Villa Arcadia Watcharapol a detached Bangkok Keppel Thai 45.5% 124,985 68,314 *** *** Freehold housing development Properties at Watcharapol Road
United States
Residential Development a residential New York MIP 59th and 82.4% - 13,100 68 2018 Freehold cum retail Third residential development Development units at Upper East Side in Manhattan
Vietnam
Saigon Centre (Phases 2 & 3) a prime office, Ho Chi Keppel Land 45.3% 8,355 100,274 84,497 2016 50 years retail cum Minh City Watco II & III (Retail) lease serviced apartment 2017 development (Office, at 65 Le Loi Boulevard Serviced in District 1 Apartment)
Saigon Centre (Phases 4 & 5) a prime office, Ho Chi Keppel Land 68% 8,623 103,477 82,744 2020 50 years retail cum Minh City Watco IV & V lease hotel development at 65 Le Loi Boulevard in District 1 94 Keppel Land Limited Report to Shareholders 2015
Property Portfolio
Group Properties (Overseas) (continued)
Description Location Held by % Owned Site Area Estimated Estimated Expected Tenure (sm) Gross Floor Net Lettable Year of Area (sm) Area (sm) Completion (Commercial)/ No. of Units (Residential)
Properties Under Development (continued)
Tamarind Park a 20-storey Ho Chi Keppel 60% 2,808 26,181 173 *** 45 years apartment tower Minh City Land residential lease with recreational Agtex units facilities in District 1
Saigon Sports City a township Ho Chi Saigon 90% 640,477 950,000 959 2019 50 years with about 4,300 Minh City Sports residential (Phase 1) lease apartments, City units commercial complexes (Phase 1) and public sports facilities in District 2
Estella Heights a 872-unit Ho Chi Estella 98% 25,393 160,980 872 2018 50 years residential Minh City Joint Venture residential lease development with units commercial space in An Phu Ward, District 2
South Rach Chiec a township with Ho Chi South 42% 302,093 882,376 139 2018 50 years about 4,700 units Minh City Rach landed (Phase 1) lease and commercial Chiec houses space at and 850 South Rach Chiec residential in District 2 units (Phase 1)
Riviera Point a 2,400-unit Ho Chi Riviera 75% 89,727 438,814 549 2014 50 years residential Minh City Point residential (Phase 1A) lease development with units 2019 commercial space (Phase 1A) (Phase 1B) in District 7 519 residential units (Phase 1B) Overview / Operations and Market Review 95 Property Portfolio
Group Properties (Overseas) (continued)
Description Location Held by % Owned Site Area Estimated Estimated Expected Tenure (sm) Gross Floor Net Lettable Year of Area (sm) Area (sm) Completion (Commercial)/ No. of Units (Residential)
Properties Under Development (continued)
Casuarina Cove a 120-unit gated Ho Chi Belwynn - 60% 93,368 39,807 120 villas 2019 50 years waterfront villa Minh City Hung Phu lease development in Joint Venture District 9
Dong Nai Waterfront City a 11,500-unit Dong Dong Nai 50% 3,667,127 5,000,000 300 2019 50 years residential Nai Waterfront landed (Phase 1) lease township with Province City houses commercial (Phase 1) space in Long Thanh District
Thu Thiem Development a 14.6 ha waterfront Thu Thiem Empire City 40% 146,000 730,000 180,000 2024 50 years residential and New Urban LLC (commercial) lease mixed-use area and development(h) 3,500 residential units
(a) Assets owned by Keppel REIT in which the Group has a 45.7% stake (b) To be redeveloped into a Grade A office tower with estimated GFA of 85,131 sm and expected completion in 2020 (c) For entire site (d) Preliminary figuressubject to change (e) Assets owned by Keppel Philippines Properties in which the Group has a 51% stake (f) Assets owned by Keppel Thai Properties. Keppel Land completed the divestment of its 45.5% stake on 18 May 2016 (g) For residential component only (h) Keppel Land announced the acquisition on 2 March 2016
++ Keppel REIT divested its 100% interest in 77 King Street on 29 January 2016 ^ Keppel Land announced the divestment of its stake in the property on 26 January 2016 ^^ Keppel Land announced the divestment of its stake in the property on 4 April 2016 # Keppel Land completed the divestment of its 60% interest in the joint venture in March 2016 ** Under planning stage *** Plans are under review in accordance to market conditions
Keppel Land Limited
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Keppel Land Limited Report to Shareholders 2015 (Incorporated in the Republic of Singapore) 230 Victoria Street #15-05 Bugis Junction Towers Singapore 188024
Tel: (65) 6338 8111 Fax: (65) 6337 7168 www.keppelland.com
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