Driving Sustainable Growth
Report to Stakeholders 2016
Contents
OVERVIEW OPERATIONS AND MARKET REVIEW 02 32 02 Key Figures for 2016 32 Singapore 03 Group Financial Highlights 36 Investments 04 International Network 38 Retail Management 06 Chairman’s Statement 40 Hospitality Management 10 Interview with the CEO 42 China 14 Board of Directors 48 Vietnam 18 Senior Management 52 Indonesia 20 Key Personnel 54 The Philippines/Myanmar 22 Corporate Profile 55 United States/United Kingdom 23 Corporate Milestones in 2016 56 India/Malaysia 24 Awards and Accolades 57 Property Portfolio 25 Corporate Governance 29 Risk Management
Driving Sustainable Growth
Keppel is a multi-business company committed to providing robust solutions for sustainable urbanisation. At Keppel Land, we are driving sustainable growth by meeting needs for quality urban living and seizing opportunities to seek higher returns.
Vision A leading real estate company, shaping the best for future generations.
Mission Guided by our operating principles and core values, we will create value for all stakeholders through innovative real estate solutions.
Keppel Group’s Operating Principles 1 Best value propositions to customers. 2 Tapping and developing best talents from our global workforce. 3 Cultivating a spirit of innovation and enterprise. 4 Executing our projects well. 5 Being financially disciplined to earn best risk-adjusted returns. 6 Clarity of focus and operating within our core competence. 7 Being prepared for the future.
View our report online: www.keppelland.com
01 Overview
Key Figures for 2016
Revenue $1.9b Revenue rose by 16% year-on-year to $1.9 billion.
Return on Equity 1 Return on equity is one of the highest among Asia’s leading property developers at 19% per annum over 19% 10 years, from 2007 to 2016.
Total Assets Total assets grew from $14.9 billion to $16.2 billion $16.2b year-on-year.
Total Homes Sold Total homes sold in Singapore and overseas in 2016 5,720 is 25% higher than the 4,570 homes sold in 2015.
Commercial Gross Floor Area Gross floor area of commercial projects under Under Development 1.089m sm development.
Volunteerism A total of 5,600 hours were clocked by staff for corporate social responsibility activities in 5,600hrs Singapore and overseas.
Safety Training A total of 46,000 workers trained to-date at Keppel Land’s Safety Awareness Centres in Vietnam, 46,000 Indonesia and Malaysia.
Note: 1. Return for 2016 includes $563 million gain from the divestment of the Keppel Land’s fund management business to Keppel Capital.
02 Keppel Land Limited Report to Stakeholders 2016 Group Financial Highlights
2016 2015 2014 2013 2012
For the year ($’000) Revenue 1,859,951 1,598,260 1,497,177 1,461,048 938,856 Pre-tax profit 1,300,568 728,855 953,325 1,000,773 987,308 Net profit 1,149,313 564,076 752,486 885,892 838,368 Funds from/(used in) operations 868,363 495,565 200,443 (1,308,680) (612,268)
At year-end ($’000) Fixed assets and investment properties 3,587,374 2,811,783 1,577,281 1,894,051 1,590,744 Investments 3,242,782 3,494,114 3,028,776 3,040,799 2,709,394 Deferred tax assets 34,346 17,425 45,248 30,047 10,002 Other non-current assets 384,341 294,062 211,603 761,409 775,886 Net current assets (Note 1) 6,423,786 6,062,058 7,767,480 6,183,482 4,784,231 Deferred tax liabilities (234,246) (229,623) (216,261) (212,065) (160,546) Other non-current liabilities (18,592) (22,236) – – – Assets employed 13,419,791 12,427,583 12,414,127 11,697,723 9,709,711
Shareholders’ equity 8,905,770 8,143,153 7,655,537 6,989,419 6,169,141 Non-controlling interests 409,854 489,443 489,401 496,168 477,314 Long-term borrowings 2,886,134 3,646,982 3,147,338 3,869,749 2,348,613 Short-term borrowings 1,149,769 83,775 1,055,670 283,275 714,643 Loans from non-controlling shareholders 68,264 64,230 66,181 59,112 – Total funds invested 13,419,791 12,427,583 12,414,127 11,697,723 9,709,711
Financial ratios Return on equity (%) 13.5 7.1 10.7 14.1 14.8 Interest cover (times) (Note 2) 14.4 5.2 8.4 8.9 12.3 Net debt-equity ratio (times) (Note 3) 0.26 0.24 0.20 0.38 0.22
Employees (Note 4) Number (average) 3,760 4,150 4,071 4,207 4,107 Wages and salaries ($’000) 197,251 212,453 195,940 176,189 144,212 Pre-tax profit per employee ($’000) 240 63 111 105 58
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 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 have been excluded.
03 Overview
International Network
Geographically diversified with Singapore and China as core markets, and Vietnam and Indonesia as growth markets.
China Shanghai United Kingdom Beijing London Tianjin The Netherlands Chengdu Almere Germany Wuxi Frankfurt Shenyang United States Nantong New York Zhongshan Houston Jiangyin Kunming Vietnam Ho Chi Minh City Myanmar Hanoi Yangon Dong Nai India Vung Tau Bangalore The Philippines Manila
Indonesia Malaysia Jakarta Johor Bahru Singapore Bintan Batam Bali
Australia Brisbane Number of Countries We Operate In Sydney Perth 13 Melbourne
Pipeline of Homes 66,000
Commercial Gross Floor Area Under Development Legend: Residences Offices/ Mixed-use/ Data Centres 1.089 million sm Hotels/ Serviced Apartments/ Resorts
04 Keppel Land Limited Report to Stakeholders 2016 05 Overview
Chairman’s Statement
Dear Stakeholders, In May 2016, Keppel Land’s selective a strong cash position of $1.6 billion, and Real Estate Business Law, increase in Keppel Land is a multi-faceted property capital reduction exercise to cancel all Keppel Land is well-positioned to pursue foreign direct investments, improvements player, providing solutions to meet the needs On behalf of the Board of Directors, the shares held by the participating acquisitions and new investments. in public infrastructure, growing I am pleased to present Keppel Land’s shareholders of Keppel Land, apart from middle-class as well as high urbanisation of sustainable urbanisation, while focusing on annual report for the year ended those held by Keppel Corporation, was Capitalising on Positive Market rate continue to drive the demand for quality remaining a developer with one of the highest 31 December 2016. effected. As a result, Keppel Corporation Conditions homes and investment-grade offices. now has full ownership of Keppel Land. Keppel Land is focused on its core markets return on equity in Asia. Strong Financial Performance The privatisation of Keppel Land has of Singapore and China as well as its We sold 1,520 units in Vietnam in 2016, 2016 was an eventful and challenging fully aligned the interests of the Company growth markets of Vietnam and Indonesia. which is more than a 60% increase year. Global growth remained slow, with the Keppel Group, providing the year-on-year. Capitalising on positive with weak demand in major advanced Group with a strong pillar for earnings Bolstered by rapid urbanisation and a sentiments in the country, we launched economies and China’s continuing and long-term value creation. growing middle-class across Asia, we sold four residential projects in Ho Chi Minh transition towards more sustainable a total of 5,720 residential units in 2016, City (HCMC) in 2016. These projects are growth. Geopolitical developments Maximising Returns with total sales value of about $2.3 billion. Palm Residence, Palm Heights, The View including Brexit, the United States’ Keppel Land will continue to be a This is about 25% higher than the 4,570 at Riviera Point and Linden Residences, presidential election as well as growing multi-faceted property player, building units sold in 2015. Phase 1 of Empire City. All four launches insularism and anti-globalisation quality homes, offices and commercial were met with strong demand. Palm sentiments have further heightened developments that are well sought-after In Singapore, there continues to be healthy Residence, for example, saw all 135 the volatility and uncertainty in the by buyers and tenants. Our goal is for demand for our high quality developments units sold out over one weekend. With international economy. Keppel Land to be a property company among discerning homebuyers. In 2016, the projects to be completed over the with one of the highest return on equity we sold 380 homes, double the 190 units next few years, profit contribution from Notwithstanding these headwinds, (ROE) in Asia. We do not necessarily have sold in 2015. The recent slight easing of Vietnam is expected to grow steadily in Keppel Land managed to achieve a to be the biggest industry player. Over the residential property curbs in Singapore, the coming years. creditable performance in 2016. last 10 years, Keppel Land has turned in a with calibrated adjustments to the seller’s The Company achieved a revenue laudable average ROE of 19% annually1. stamp duty and total debt servicing ratio We also strengthened our presence of $1.9 billion for the year ended framework from March 2017, is expected in HCMC through consolidating our 31 December 2016, up 16.4% from Looking ahead, the level of returns from to further boost market sentiments. ownership in Riviera Cove, and acquiring the previous year. Net profit rose to the property market throughout Asia is not two prime waterfront sites, totalling $1.15 billion, in part due to gains from likely to be as high as it was a decade ago. Despite property market cooling measures 19.4 hectares, in the Thu Thiem New Urban the divestment of its stakes in the For us to maintain a similar level of ROE, in selected cities in China, we continue Area, which is slated to be the city’s future manager of Keppel REIT and Alpha in line with the Keppel Group’s objectives, to see positive demand, especially for central business district. Through these Investment Partners (Alpha) to we will need to focus on capital recycling our premier developments in Shanghai, developments, we will bring the best in Keppel Capital, the asset management to improve returns. As we look to turn Tianjin, Chengdu and Wuxi. We sold about waterfront and urban lifestyles to HCMC arm of the Keppel Group. Excluding these our inventory more, we can rightsize our 3,800 units, approximately 16% more than as well as augment Keppel Land's quality gains, net profit would be $586.3 million, property book and re-deploy the balance in 2015. portfolio of prime residential and up 3.9% from $564.1 million in 2015. sheet space that is freed up for our other commercial properties in the city. growth businesses. In Shanghai, Keppel Land China acquired Keppel Land continues to hold about a newly completed community mall in We also continued to forge strategic 45% of Keppel REIT and maintain its In 2016, Keppel Land announced 11 the up-and-coming Jiading New City partnerships overseas, raising our investments in various funds under Alpha, divestments totalling about $680 million Core Area. The mall will be managed by investment in Nam Long Investment which will continue to provide Keppel Land in Singapore and overseas. These included Keppel Land Retail Management. Corporation, a leading affordable with investment opportunities in new the sale of stakes in Life Hub @ Jinqiao, housing developer in HCMC, through the markets and recurring income as well a mixed-use development in Shanghai, The strategy of selectively acquiring subscription of VND 500 billion convertible as potential divestment gains from International Centre and Sedona Suites in newly-completed projects can also give bonds due in 2020. This is in addition investment properties in Singapore Hanoi, The Belvedere in Colombo, Keppel us access to prime real estate within to the 7.1 million new shares which and overseas. Thai Properties, Sedona Hotel Mandalay, land-scarce, gateway cities. Life Hub @ Keppel Land subscribed in 2015. If the Jiangyin Yangtze International Country Jinqiao proved to be an excellent total principal amount of bonds were Club as well as township developments investment for Keppel Land and also converted into shares, Keppel Land The Botanica in Chengdu and Central Park Alpha’s investors. We divested our 80% will hold up to approximately 15% in City in Wuxi. stake in the development for US$517 the enlarged share capital of Nam Long million in 2016. This was based on the Investment Corporation. In March 2017, Key Developments in 2016 At the same time, we seized opportunities property’s sale value of RMB 5.5 billion, we also signed a memorandum of proactively to redeploy our funds and which was close to a 70% premium over understanding with Vietnam’s State Capital Sold 5,720 homes, mostly in China and scale up our presence in high growth the original purchase price of RMB 3.3 Investment Corporation to collaborate on Vietnam, about 25% higher than the cities. We made investments of about billion three years ago. Through innovative investment opportunities in the country. 4,570 sold in 2015. $460 million, including in our key markets asset management and enhancement of China, Vietnam and Indonesia. With efforts, we contributed to growing a In Indonesia, we remain positive about Proactively recycled assets to achieve a relatively low net gearing of 0.26 and profitable mall, and achieved over 20% the country’s long-term prospects which higher returns – announced 11 internal rate of return per annum are supported by sound fundamentals of divestments totalling about $680 million. without taking any development risks. continued urbanisation, a large and young population and a growing middle-class. Seized opportunities and invested about We entered into a joint venture with $460 million across markets including As one of the largest and pioneer foreign 1 China, Vietnam and Indonesia. The return for 2016 includes the $563 million gain real estate developers in Vietnam, PT Metropolitan Land Tbk, one of Indonesia’s Loh Chin Hua from the divestment of Keppel Land’s fund Keppel Land has been privileged to play a leading property developers, to build Chairman management business to Keppel Capital. Excluding this, the average ROE over the part in the country’s urbanisation over the 450 landed homes on a 12-hectare site past decade would be 18.4%. years. The relaxation of the Housing Law in Tangerang, Greater Jakarta.
06 Keppel Land Limited Report to Stakeholders 2016 07 Overview
Chairman’s Statement
Keppel Land’s residential portfolio in In HCMC, we recently increased our the data centres in the fund as well as Singapore and overseas comprises a stake in Saigon Centre. Earlier in serve as the facility manager. 66,000-strong pipeline and close to August 2016, we opened the much 19,000 launch-ready homes from 2017 anticipated retail mall under Phase 2 of As an example of how green resources to 2019. We will grow our landbank only the development, with Takashimaya within the Keppel Group are shared, if there are good risk-adjusted returns, department store as the anchor tenant. Keppel Land purchases renewable energy focus on increasing our inventory turn Riding on the strong reputation and from Keppel Infrastructure to power its and launch projects for sale in markets success of Saigon Centre, we have corporate office at Bugis Junction Towers. with favourable conditions. commenced marketing for the office tower The renewable energy is harvested from under Phase 2, which includes 44,000 sm photovoltaic panels installed in premises Expanding Commercial Presence of premium Grade A office space as operated by Keppel Infrastructure, Keppel Land is actively expanding its well as 195 luxury serviced apartments, which is then transferred to Keppel Land. commercial portfolio to capitalise on which will be completed in the second There is also potential for Keppel the rising demand for prime office and half of 2017. Infrastructure and Keppel Land to offer retail space in Asia as well as to grow similar schemes to other office tenants a steady recurring income stream to Our suite of Grade A office buildings in key and external customers. balance the cyclical nature of the property cities was augmented with the completion development business. The Company has of International Financial Centre Jakarta Driving Innovation and Sustainability over a million square metres of gross floor Tower Two in Indonesia and Junction City New technologies and business models area under development. These projects Tower in Yangon, Myanmar. We are also as well as disruptive innovation in a will be progressively completed and will expanding our collaboration with the sharing economy have also created new contribute to our recurring income, and Shwe Taung Group, a reputable opportunities. Keppel Land remains eventually, to revaluation and divestment conglomerate in Myanmar, to develop committed to advance its efforts in gains when they are monetised. premium serviced residences and offices sustainability and innovation in its in the next phase of Junction City. continued drive for excellence. Leveraging its strengthened retail capabilities, Keppel Land acquired a Harnessing Strengths Keppel Land Office Management was 22.4% interest in I12 Katong lifestyle mall Harnessing synergies across the formed in April 2016 to transfer our in Singapore, which is managed by Keppel Keppel Group, Alpha launched the Alpha wealth of knowledge and experience in Land Retail Management. The remaining Data Centre Fund, which collaborates with the development of award-winning office interest is held by the Alpha Asia Macro Keppel Data Centres Holding (KDCH), a buildings such as One Raffles Quay and Trends Fund, which is managed by Alpha. 30-70 joint venture between Keppel Land Ocean Financial Centre in Singapore to This is an example of collaboration in the and Keppel Telecommunications & our overseas units. Keppel Land Office Group where different businesses work Transportation (Keppel T&T), to capture Management will provide advisory together synergistically to extract value investment opportunities riding on the services on the planning, development from various aspects of asset ownership, growth in demand for data centres. and management to all our office and management and operations. mixed-use developments. Set up to invest in brownfield and greenfield assets across key data centre Capitalising on the rising demand of hubs in Asia Pacific and Europe, Alpha shared workspace globally, we have manages the fund and works with launched a new generation of serviced We are committed to provide quality and Keppel T&T to create or acquire assets. co-offices which leverage technology and innovative urban living solutions in Asia. KDCH will develop and project manage cater to users looking for flexible space
Keppel Land sold a total of 5,720 residential units in 2016 from projects such as Seasons Garden (pictured) in Tianjin, China. This is about 25% higher than the 4,570 units sold in 2015.
08 Keppel Land Limited Report to Stakeholders 2016 To succeed in this changing environment, we need to be agile and seize opportunities. We have to evolve our business approach, work our assets harder as well as leverage technology and innovation. solutions. Following the successful pilot management systems at the Workplace Acknowledgements of Workspace at Keppel Towers, we have Safety and Health Awards 2016. On behalf of the Board, I would like to expanded the co-working space concept thank our stakeholders, including our to Keppel Bay Tower in Singapore and will We continued to step up staff customers and business partners, for be introducing it to Park Avenue Central in communication during the year through their continued support. Shanghai, Saigon Centre Phase 2 in HCMC various engagement initiatives. We will and Junction City Tower in Yangon. continue to sharpen our focus on people My appreciation goes out to our Directors development through job rotation and for their guidance in navigating the Keppel Land continued to receive enlargement, localisation, performance Company through these challenging times. international recognition for corporate management and manpower planning I would also like to thank the management excellence, quality and sustainability. to groom a new generation of leaders. team and employees for their hard work The Company was named the Best Overall and commitment. Developer in Singapore, Vietnam and As we do well, we are also focused on Myanmar at the Euromoney Real Estate doing good. The United Nations has We are pleased to welcome Mr Willy Awards 2016. At the Global Real Estate introduced 17 Sustainable Development Shee Ping Yah as a non-independent, Sustainability Benchmark 2016, we were Goals, of which Keppel Land has adopted non-executive Director to the Board. ranked first in the Residential (Global), six which are most aligned with our With his wealth of experience and China and East Asia sectors as well business. We will be setting targets in in-depth expertise in the real estate as third among developers globally. line with the Sustainable Development industry, I am confident that he will be Keppel Land China was conferred the Goals and will be rolling them out over a strong asset to the Board. Top 10 ASEAN Companies in China award the next few years. for the fourth consecutive year by the Although 2017 is expected to be another China-ASEAN Business Council, while In 2016, Keppel Land staff clocked a challenging year, I am confident that Junction City Tower and Sedona Hotel total of about 5,600 hours of community Keppel Land will be able to ride through Yangon’s Inya Wing received accolades service in Singapore and overseas. the challenges with guidance from at the Myanmar Property Awards 2016. In Singapore, we championed the arts the Board, strong commitment of its through a weekly volunteer programme at management team and staff as well as Safety is one of our core values and the National Gallery Singapore and hosted continued support from all stakeholders. remains our top priority. We have underprivileged school children and their made progress in our safety journey. families at the Gallery during the Keppel Yours sincerely, Keppel Land was named Winner at the Community Month in August. We also International Safety Awards 2016 by the collaborated with charitable organisations British Safety Council. Two of our projects to reach out to needy families. Overseas, a in Singapore, Corals at Keppel Bay and the total of five volunteer trips were conducted Highline Residences, were also recognised for the Words on Wheels mobile library Loh Chin Hua for their good safety performance as programme in HCMC and Water for Life Chairman well as workplace safety and health project in Yangon. 13 April 2017
Riding on positive homebuyer sentiments in Vietnam, Keppel Land launched four residential projects in Ho Chi Minh City in 2016. All four launches, including Linden Residences (pictured), achieved high take-up rates.
09 Overview
Interview with the CEO
core markets of Singapore and China in Vietnam to launch projects for sale Being geographically diversified has Q 2016 was a challenging year as well as growth markets of Vietnam over the next few years. Total Asset Distribution By Country as at 31 December 2016 served Keppel Land well and allowed and 2017 may pose further and Indonesia. We have also seized uncertainties for Asia with opportunities in other emerging In Indonesia, sales were tepid in us to commit resources to scale up geopolitical developments such markets such as Myanmar and 2016 as prospective buyers and strengthen presence in our focus as Brexit and the new United States invested in global gateway cities continued to tread with caution administration’s policies. Will with good growth potential. As at due to the slower market conditions. markets while seizing opportunities Keppel Land be able to maintain end-2016, Keppel Land’s total assets However, recent government in other emerging markets and global its performance in the year ahead? has grown to $16.2 billion, compared initiatives such as interest rate cuts with $14.9 billion a year ago. and the increased loan-to-value gateway cities. A Over the years, Keppel Land has ratio for mortgages may boost grown to become a multi- In March 2017, the Singapore residential demand. Additionally, the dimensional property player with government announced the first tax amnesty programme, completed strong capabilities, building quality easing of property cooling measures in March 2017, saw Rp 4.9 quadrillion % homes, offices and commercial since market tightening measures worth of assets being declared Singapore 43.4 buildings that are well sought-after. were introduced in 2009. The and part of the repatriated funds China 40.6 calibrated adjustments made to the may be channelled into the real Vietnam 6.9 The general outlook for property seller’s stamp duty and total debt estate sector. markets in Asia remains positive in servicing ratio framework are expected Indonesia 4.4 the long term driven by continuing to improve market sentiments. As for the office market, there is Others 4.7 urbanisation. However, to drive Despite the tepid property market in a considerable amount of office Total 100.0 sustainable growth and be prepared Singapore in 2016, we sold 380 units, space coming on-stream in for the challenges ahead, we have double the 190 units in 2015. During Singapore as well as in some of our to constantly review our business the year, we also acquired Keppel overseas markets. The Singapore Total Asset Distribution By Segment strategies and adapt to seize market Corporation’s stake in the Keppel Bay office market will face pressure on as at 31 December 2016 opportunities. precinct, increasing our stake from occupancies and rentals with almost 30% to 100%. 1.9 million sf of Grade A space in Being geographically diversified has Marina Bay coming on-stream in served Keppel Land well. We continue The easing of the residential property 2017. However, this is mitigated by a to strengthen our presence in our curbs as well as the strong interest pre-commitment of 60% for the new seen in recent new residential supply. In China, Tier 2 cities such as launches raise optimism that the Tianjin and Wuxi will see 20-30% of market could be bottoming, which in office space being added into the turn will attract more buyers in 2017. market. The office markets in Beijing We are also seeing a pick-up in the and Shanghai, which are generally high-end property market. With our more resilient, will see about 5% and landbank of 1.3 million sf in prime 10% office space added respectively. % locations, we are well-positioned to Property Trading 53.0 ride on a recovery in the residential In HCMC, some 60,000 sm or 30% Property Investments 35.9 market when it occurs. of Grade A office space will be added Hotels & Resorts 2.5 to the current stock of less than Others 8.6 The China market, where we are 200,000 sm in 2017. However, in focused on our five key cities of view of the strong Vietnam economy, Total 100.0 Shanghai, Beijing, Tianjin, Chengdu with the entry of new businesses and Wuxi, has become a major and expansion of existing operations, contributor to our profits. Despite the new office space is expected the tightening of property cooling to be absorbed by the market. measures in selected cities in China, In Jakarta, office space take-up has we sold over 3,800 units and handed slowed in tandem with the economy. over some 3,480 units in 2016. Sales 2017 will be challenging with about in China contributed to about 65% of 580,000 sm or an additional 20% the total 5,720 residential units that of Grade A office space being added Keppel Land sold last year. to the current stock.
Market conditions in Vietnam, Despite the challenges in the especially Ho Chi Minh City (HCMC) office market in a few of the cities we where we are focused, have been operate in, the long-term prospects favourable. In 2016, we sold 1,520 remain promising due to the countries’ units, which made up more than 26% sound economic fundamentals. of total home sales for Keppel Land. Keppel Land has over a million sm of With our early mover’s advantage commercial gross floor area under in the country, we have today one of development. These projects will be the best landbanks among foreign progressively completed and will Ang Wee Gee developers in HCMC. We will continue contribute to our recurring income CEO to capitalise on the strong economic and eventually, to revaluation and growth and positive market sentiments divestment gains.
10 Keppel Land Limited Report to Stakeholders 2016 11 Overview
Interview with the CEO
divested in 2016, three years after we $2.5 billion since 2013. By divesting out Q Some Singaporean developers purchased it. An internal rate of return of some locations, we are conserving have ventured into new of over 20% per annum was achieved our resources to focus on more geographies as their profits without us taking any development promising cities and segments. from the Singapore residential risks. Capitalising on Keppel Land sector dip. What is Keppel Land’s Retail Management’s capabilities, we For instance, in Myanmar, we sold strategy? hope to repeat this process with I12 a hotel in Mandalay but scaled up Katong lifestyle mall in Singapore and our investment in Yangon through A As a developer, we seek to strike the community mall that we recently increasing our stake in Junction City, a balance between concentration acquired in Jiading, Shanghai. a landmark mixed-use project in the and diversification into different central business district. In Vietnam, geographies and segments. While The divestment of the property fund we sold our office building and diversification provides a counterweight management business to Keppel serviced residences in Hanoi to focus when some markets or segments are Capital provided us with a profit of on HCMC, where we have increased down, being focused in a few markets $563 million, and yielded gross our residential landbank as well as our allows us to build scalable platforms proceeds of $680 million. Together stake in the Saigon Centre mixed-use to compete against strong local and with the $680 million proceeds from development. Meanwhile, in Indonesia, international players. the 11 assets divested in 2016, we are we partnered a local developer to build well-placed to capture opportunities landed homes in Greater Jakarta, as With rapid urbanisation and growing and scale up in our key markets of we divested our mixed-use development affluence in Asia, homes catering China, Vietnam and Indonesia as well site in Surabaya. to the growing middle-class are as in Myanmar, an up-and-coming expected to see resilient demand. economy in the region. While we will continue to buy land Our residential landbank in Singapore selectively, a landbanking strategy and overseas, totalling 8.4 million sm Moreover, we continue to hold an may not work in some markets as of gross floor area, translates to a approximate 45% stake in Keppel land prices may get too high and thus, pipeline of about 66,000 homes, REIT and will benefit from exposure to do not provide good risk-adjusted mostly in China and Vietnam. its Grade A office buildings in Singapore returns for developers. As the Chinese However, the residential market is and Australia. As we maintain our sometimes say, “The flour has become a cyclical one and with strong investments in various funds under more expensive than the bread in some competition from local developers, Alpha Investment Partners (Alpha), we places”. As such, Keppel Land has also we have also diversified into other continue to have access to developed taken to selling land when prices were segments such as office, retail and markets such as Japan, Hong Kong high and where development profits lifestyle developments overseas. and South Korea. In the long run, may not justify the risks. For instance, Keppel Land can also benefit from in China, we sold our stakes in our To shorten the property development improved investment returns from townships in Chengdu and Wuxi as we cycle, we have selectively acquired Keppel REIT and the funds under Alpha. can extract a higher value from selling certain completed assets, added the land and channelling our capital to value to them through asset We constantly review the assets in better use in other projects. enhancement and then divested them our portfolio so that we can actively when opportune. We did this with recycle our capital for higher returns. Where we have found good partners, Life Hub @ Jinqiao, our first retail The divestment of various assets has we have deepened our relationships investment in Shanghai which we provided us with proceeds of more than and increased our scope of cooperation
The smart home management system, Habitap, was introduced at Keppel Land’s luxury waterfront development, Corals at Keppel Bay, in 2016.
12 Keppel Land Limited Report to Stakeholders 2016 and engagement on different leadership development and staff to contribute ideas on process platforms. Teaming up with strategic management associate programmes. improvement and drive change. partners like China Vanke has Our Innovation Culture taskforce also yielded good results. V City, our joint We will continue to encourage regularly organises talks by industry venture with China Vanke in Chengdu, promising staff to take on overseas experts who share their experiences on is one of our top selling projects. postings, step up our localisation innovation and championing change. In Vietnam, we strengthened our efforts and strengthen our operating relationship with Nam Long platforms overseas. Following our Investment Corporation, a leading establishment of Keppel Land affordable housing developer in China in 2010, our Vietnam team, Q Keppel Land is reputed to be a HCMC, and in Myanmar, we extended headquartered in HCMC, is now also sustainable developer. What are our partnership with reputable autonomous. We hope to grow and the new sustainability initiatives conglomerate Shwe Taung Group for develop our Indonesia operations in you are working on? Phase 2 of Junction City in Yangon. the same manner. A As a responsible developer, we Keppel Land is also involved in continue to keep ourselves at the the growth of the Keppel Group’s forefront of sustainable best practices. data centre business through the Q How do you build an innovative We have adopted six of the 17 United Company’s 30% stake in Keppel Data culture and drive innovation in the Nations’ Sustainable Development Centres Holding and 4.9% stake in Company? What are some of your Goals which are most aligned with Keppel DC REIT. As a result of our recent initiatives? our business. They will further guide investments, we have stakes in data us in making a positive impact on the centres in key data centre hubs A In line with the Company’s brand environment and community at large. across Asia Pacific and Europe. philosophy of Thinking Unboxed, we believe in actively engaging our Under Keppel Land’s Carbon stakeholders to seek innovative Management Plan, we are on track solutions and collaborate with to lowering our carbon emission Q With the challenging external like-minded partners. intensity by 16% below 2010 levels environment, how do you engage by 2020. We have also achieved and motivate your staff? To provide solutions for holistic smart ISO 14001 Environment Management home living, we introduced Habitap, a System certification for our A Keppel Land has a long heritage, mobile application which seamlessly operations in Singapore, China, going as far back as 1890 when it integrates smart home features, Vietnam and Indonesia. was then known as Straits Steamship management of condominium facility Company. We have weathered several bookings as well as lifestyle services, Keppel Land adopts an integrated downturns over the years, each time to some of our Singapore projects approach in the design, construction emerging stronger by being focused in 2016. We will also be rolling out and development of sustainable on our business as well as exercising smart features to our new residential properties. We have set the goals of prudence and discipline. developments in China and Vietnam. achieving at least the Building and Construction Authority (BCA) Green Crucial to the success of any business To further engage our potential Mark GoldPlus and Gold ratings, is having the right culture and right customers, we tapped on social media or their equivalent, for all our new people. In 2016, a total of 21 staff and digital platforms such as Facebook projects in Singapore and overseas, engagement sessions were held and Instagram in Singapore as well as respectively. via various platforms such as the WeChat in China. We launched a Annual Staff Communication session, new content marketing platform, We have also partnered the BCA on a annual staff conferences in Singapore, Keppel Land Live, to create awareness $450,000 public outreach sponsorship China and Vietnam, CEO breakfast of our residential developments’ fund, GreenSeeds, to encourage sessions as well as quarterly unit-level innovative designs and lifestyle partnerships between the corporate townhall meetings. Keppel Land’s offerings. Keppel Land was the first sector and educational institutions overall engagement score in the developer in Singapore to leverage to collaborate on projects to promote Employee Engagement Pulse Survey state-of-the-art Oculus Rift technology environmental sustainability in the has improved from 82% to 85%, to create a 360-degree immersive built environment. placing us in the top quartile virtual reality experience for visitors at of high performing companies, and our Highline Residences show gallery Harnessing strengths of the Keppel above the global average of 80% to showcase different configurations Group, we are collaborating with across various companies, and apartment types. We have also Keppel Electric to power our corporate geographies and industries. implemented virtual reality technology office at Bugis Junction Towers in in our show galleries in HCMC. an innovative offsite solar power We are committed to nurture a purchase scheme. We have also diverse and dedicated talent pool We continually foster an open, leased land plots on the fourth-storey to drive further growth and create collaborative, innovative and of the office development’s roof-top value for the Company. In 2016, entrepreneurial culture within the to tenants to grow vegetables and more than 50 Keppel Land employees Company. In 2016, we launched herbs. This is our first urban farm underwent job rotation, overseas ‘Project Thinking Unboxed’, a in an office development and it has postings or a role change under our company-wide initiative to encourage been very well-received.
13 Overview
Board of Directors
Loh Chin Hua age 55 Ang Wee Gee age 55 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 30 June 2016 Length of service as a director Length of service as a director (as at 31 December 2016): (as at 31 December 2016): 4 years 6 months 4 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 Telecommunications & 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 Keppel Infrastructure Holdings Pte Ltd (Chairman) (Chairman) Keppel Capital Holdings Pte Ltd Keppel Capital Holdings Pte Ltd (Chairman) Alpha Investment Partners Limited Alpha Investment Partners Limited (Chairman) Major Appointments (other than directorships): Major Appointments (other than directorships): Board Member of the Building and Construction Chief Executive Officer of Keppel Corporation Authority of Singapore Limited; Member of the Board of Trustees of the National University of Singapore; Member of the Council of the Singapore Business Federation; Board Member of the Singapore Economic Development Board
14 Keppel Land Limited Report to Stakeholders 2016 Tan Yam Pin age 76 Edward Lee Kwong Foo age 70 Koh-Lim Wen Gin age 72 Non-Executive and Non-Executive and Non-Executive and External Director External Director External Director
Date of first appointment as a director: Date of first appointment as a director: Date of first appointment as a director: 1 June 2003 1 July 2006 20 January 2010 Date of last re-election as a director: Date of last re-election as a director: Date of last re-election as a director: 30 June 2016 30 June 2016 30 June 2016 Length of service as a director Length of service as a director Length of service as a director (as at 31 December 2016): (as at 31 December 2016): (as at 31 December 2016): 13 years 7 months 10 years 6 months 6 years 11 months
Board Committee(s) served on: Board Committee(s) served on: Board Committee(s) served on: Board Safety Committee (Chairman) Board Risk Committee Board Safety Committee (Member) (Member until 28 February 2017) Present Directorships: Board Safety Committee (Member) Present Directorships: Listed companies Listed companies Great Eastern Holdings Limited Present Directorships: Nil Listed companies Other principal directorships Indofood Agri Resources Ltd Other principal directorships Great Eastern Life Assurance (Malaysia) Berhad QAF Limited Nil Overseas Assurance Corporation (Malaysia) Berhad Other principal directorships Major Appointments (other than directorships): Asia Mobile Holdings Pte Ltd Member of National Parks Board; Member of Major Appointments (other than directorships): Gas Supply Pte Ltd Sentosa Development Corporation Board; Deputy Chairman of the Singapore Public First Capital Insurance Ltd Chairman of Sentosa Cove Resort Management Service Commission; Member of the Board PT Dermaga Perkasa Pratama Pte Ltd of the Lee Kuan Yew Scholarship Fund 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
15 Overview
Board of Directors
Yap Chee Meng age 61 Huang Jing age 60 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 2016): (as at 31 December 2016): 3 years 1 month 3 years
Board Committee(s) served on: Board Committee(s) served on: Audit Committee Board Risk Committee (Chairman until 28 February 2017) (Member until 28 February 2017) Board Risk Committee Audit and Risk Committee (Member until 28 February 2017) (Member – effective 1 March 2017) Audit and Risk Committee (Chairman – effective 1 March 2017) Present Directorships: Listed companies Present Directorships: Wasion Group Holdings Limited Listed companies SATS Ltd Other principal directorships Nil Other principal directorships AXA Insurance Singapore Pte Ltd Major Appointments (other than directorships): AXA Life Insurance Singapore Private Limited Professor and Director of Centre on Asia and The Esplanade Co Ltd Globalisation at the Lee Kuan Yew School of Pavilion Gas Pte Ltd Public Policy, National University of Singapore RHB Securities Singapore Pte Ltd (NUS); The first Lee Foundation Chair RHB Investment Bank Berhad Professor of US-China Relations at NUS; SMRT Corporation Ltd Richard Von Weizsäcker Fellow from the Robert Bosch Stiftung; Senior Overseas Major Appointments (other than directorships): Economic Analyst for China’s Xinhua News Member of the Board of the National Research Agency; Board Member of the Fujitsu-JAIMS Foundation, Prime Minister’s Office, Singapore 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
16 Keppel Land Limited Report to Stakeholders 2016 Oon Kum Loon age 65 Chan Hon Chew age 51 Willy Shee Ping Yah age 68 Non-Executive and Non-Executive and Non-Executive and External Director Non-External Director External Director
Date of first appointment as a director: Date of first appointment as a director: Date of first appointment as a director: 1 September 2010 1 July 2014 15 October 2016 Date of last re-election as a director: Date of last re-election as a director: Date of last re-election as a director: 17 April 2014 30 April 2015 N.A. Length of service as a director Length of service as a director Length of service as a director (as at 31 December 2016): (as at 31 December 2016): (as at 31 December 2016): 6 years 4 months 2 years 6 months 2 months
Board Committee(s) served on: Board Committee(s) served on: Board Committee(s) served on: Board Risk Committee Audit Committee Nil (Chairperson until 28 February 2017) (Member until 28 February 2017) Audit Committee Board Risk Committee Present Directorships: (Member until 28 February 2017) (Member until 28 February 2017) Listed companies Audit and Risk Committee Audit and Risk Committee Bund Center Investment Ltd (Member – effective 1 March 2017) (Member – effective 1 March 2017) Other principal directorships Present Directorships: Present Directorships: NTUC Fairprice Co-operative Ltd Listed companies Listed companies Mercatus Co-operative Ltd Nil Keppel Telecommunications & Transportation Ltd Shanghai Golden Bund Real Estate Co., Ltd Keppel DC REIT Management Pte Ltd Other principal directorships (the Manager of Keppel DC REIT) (Chairman) Major Appointments (other than directorships): Singapore Power Limited KrisEnergy Ltd Non-executive Senior Advisor to CB Richard Ellis; Fellow Member of the Singapore Institute Major Appointments (other than directorships): Other principal directorships of Directors; Fellow Member of the Singapore Nil Keppel Offshore & Marine Ltd Institute of Surveyors and Valuers; Honorary Keppel Infrastructure Holdings Pte Ltd Advisor (Valuation) to the Real Estate Keppel Capital Holdings Pte Ltd Developers’ Association of Singapore
Major Appointments (other than directorships): Chief Financial Officer of Keppel Corporation Limited; Member of the Board of the Singapore Accountancy Commission; Member of the Accounting Standards Council Singapore
17 Overview
Senior Management
2 4 6 1 5 7 3
1. Goh York Lin 5. Ng Ooi Hooi President President Indonesia Singapore
2. Ben Lee Siew Keong 6. Linson Lim Soon Kooi President President Keppel Land China Limited Vietnam
3. Lim Kei Hin 7. Sam Moon Thong Chief Financial Officer President Regional Investments 4. Ang Wee Gee Chief Executive Officer Keppel Land Limited
18 Keppel Land Limited Report to Stakeholders 2016 15
13 14 10 11 12 8 9
8. Chu Chee Seng 12. Michael Leong Choon Fai General Manager Chief Executive Officer Keppel Land Hospitality Keppel Land Retail Management Pte Ltd Management Pte Ltd
9. Anthony Chua Eng Kiat 13. Lim Tow Fok Deputy General Manager General Manager Corporate Development Property Management
10. Chan Kam Fai 14. Allen Ang Aik Leng Director General Manager Human Resources Project Management and Sustainable Design 11. Albert Foo Cheur Wee General Manager 15. Peter Shane Jones Marketing General Manager Workplace Safety and Health
19 Overview
Key Personnel
Keppel Land Limited Hospitality Management Corporate
Loh Chin Hua Ng Ooi Hooi Lim Kei Hin Chairman Director Chief Financial Officer Keppel Land Hospitality Ang Wee Gee Management Pte Ltd Chan Kam Fai Chief Executive Officer Director Chu Chee Seng Human Resources General Manager Keppel Land Hospitality Wong Man Li Property Investment, Management Pte Ltd Financial Controller Group Finance and Accounts Development and Management Khoo Peck Khoon General Manager Melissa Tan Siew Ngok Lim Kei Hin (Golf and Marina Operations) General Manager Chief Financial Officer Keppel Land Hospitality Finance and Administration Keppel Land International Limited Management Pte Ltd Albert Foo Cheur Wee Ng Ooi Hooi General Manager President Marketing Singapore Retail Management Allen Ang Aik Leng Ben Lee Siew Keong Michael Leong Choon Fai General Manager President Chief Executive Officer Project Management Keppel Land China Limited Keppel Land Retail and Sustainable Design Management Pte Ltd Linson Lim Soon Kooi Lim Tow Fok President General Manager Vietnam Property Management Goh York Lin Peter Shane Jones President General Manager Indonesia Workplace Safety and Health Sam Moon Thong President Serena Toh Lai Siong General Manager Regional Investments Corporate Services and Corporate Social Responsibility
Anthony Chua Eng Kiat Deputy General Manager Corporate Development
Kevin Chua Kee Wee Deputy General Manager Information Technology
Yeo Hwee Pey Assistant General Manager Risk Management
20 Keppel Land Limited Report to Stakeholders 2016 China Vietnam
Ben Lee Siew Keong Linson Lim Soon Kooi President President Keppel Land China Keppel Land Vietnam
Tan Boon Ping Doan Anh Hung Chief Financial Officer General Manager Keppel Land China Keppel Land Vietnam
William Tan Tin Kwang Joseph Low Kar Yew General Manager General Manager North China Operations
Daniel Chong Siew Hoe General Manager East China Indonesia
Desmond Wong Hong Kiong Goh York Lin General Manager President South & West China Indonesia
Lee Eng Beng Allen Tan Kwang Liang General Manager Deputy General Manager Special Projects Operations Vincent See Wing Chuen General Manager Human Resources Regional Investments Gavin Lu Yee Liang General Manager Sam Moon Thong Project Management President Regional Investments Wong Liang Kit President Deputy General Manager Myanmar Business Development Oh Lock Soon Jacquelyn Wong Rhu Chian President Deputy General Manager The Philippines Marketing Yeo Chee Kian Peck Peng Soon Deputy General Manager Deputy General Manager India Property Management Steven Shum Wing On Samuel Henry Ng Kwang Keng Deputy General Manager Deputy General Manager Malaysia Shanghai
Frank Ong Cheng Poh Deputy General Manager Tianjin
Justin Chew Kok Chuan Deputy General Manager Chengdu
Eric Cheng Lu Deputy General Manager Wuxi
Edwin Hu Wei Deputy General Manager Kunming
21 Overview
Corporate Profile
Keppel Land is the property division of Responsible Design Values Sustainable Development Goals Keppel Corporation, one of Singapore’s To encapsulate Keppel Land’s conscious At the United Nations Sustainable largest multinational companies with effort to deliver the best standards in Development Summit 2015, world leaders key businesses in offshore and marine, liveability, quality, aesthetics and adopted the 2030 Agenda for Sustainable property, infrastructure and investments. sustainability, a set of “Responsible Development. This comprises a set of Design Values” was developed in 2016. 17 Sustainable Development Goals. Keppel Land is recognised for its sterling Keppel Land has identified six goals portfolio of award-winning residential These guidelines are based on four key which are most relevant and aligned developments and investment-grade principles which include innovative with the Company’s business activities commercial properties as well as high designs to differentiate Keppel Land’s (illustrated below). standards of corporate governance and properties, integration of values, cost transparency. effectiveness and the marketability of As a leading sustainable developer, the development projects. Keppel Land operates in an economically, The Company is geographically diversified socially and environmentally responsible in Asia, with Singapore and China as its Keppel Land will adopt these design manner to achieve positive outcomes for core markets as well as Vietnam and values for all new developments in its businesses, the environment and the Indonesia as its growth markets. Singapore and overseas: community at large.
Keppel Land is Asia’s premier home 1. Liveability developer, with a pipeline of about • Health and Well-being 66,000 homes in Singapore and overseas. • Inclusiveness The Company is also a leading prime office • Safety and Security developer in Singapore, contributing to enhancing the city’s skyline with landmark 2. Quality developments such as Marina Bay • Fit for Purpose Financial Centre, Ocean Financial Centre • Maintainability and One Raffles Quay. 3. Aesthetics Keppel Land is committed to grow its commercial portfolio in key Asian cities 4. Sustainability such as Shanghai, Beijing and Tianjin • Design for climate responsiveness, in China, Ho Chi Minh City in Vietnam, resource efficiency and ecological Jakarta in Indonesia, Yangon in Myanmar conservation and Manila in the Philippines. • Productivity
As one of Asia’s leading property companies, Keppel Land has contributed to enhancing Singapore’s skyline with landmark developments such as Marina Bay Financial Centre and Ocean Financial Centre.
22 Keppel Land Limited Report to Stakeholders 2016 Corporate Milestones in 2016 Q1 Q3 Keppel REIT divested its 100% interest in Keppel Land unveiled Asia’s first fully The Company unveiled Singapore’s first 77 King Street in Sydney, Australia. integrated smart home management Oculus Rift virtual reality show suites system, Habitap, at Corals at Keppel Bay. at Highline Residences. Keppel Land acquired a 22.4% stake in I12 Katong lifestyle mall, managed by Keppel Land opened Saigon Centre Keppel Land and Keppel REIT appointed Keppel Land Retail Management. This will retail mall in HCMC, Vietnam, with the Mr Willy Shee and Mrs Penny Goh to their add to the Company’s commercial portfolio city’s first Takashimaya department Boards of Directors, respectively. of retail and mixed-use developments. store as anchor tenant.
Keppel Land divested its stakes in two property companies in Colombo, Sri Lanka, and Hanoi, Vietnam.
Keppel Land divested its 45.5% equity stake in Keppel Thai Properties.
Keppel Land entered into a joint venture to develop premium residential apartments, office and retail properties as well as an 86-storey integrated mixed-use tower complex on a prime waterfront site in the Thu Thiem New Urban Area in Ho Chi Minh City (HCMC), Vietnam. Q2 Keppel Land divested its interest in Sedona Keppel Land extended its cooperation Keppel Land and Keppel Infrastructure Suites Hanoi in Vietnam. with local Myanmar developer, Shwe Taung harnessed strengths to make Keppel Land’s Group, for the development of offices and headquarters at Bugis Junction Towers the Keppel Land subscribed for VND 500 billion premium serviced residences in Phase 2 first Green Mark-certified office to be fully convertible bonds in Nam Long Investment of Junction City in Yangon. powered by renewable energy. Corporation, a leading affordable housing developer in Vietnam. Keppel Land China and Alpha Investment Keppel Land China divested its 44% stake Partners divested their 80% stake in Life in The Botanica township in Chengdu, China. The Company launched Highline Residences Hub @ Jinqiao in Shanghai, China, realising an in Singapore. internal rate of return of over 20% per annum. Corals at Keppel Bay, the third development to launch in the Keppel Bay Keppel Land’s selective capital reduction Keppel Land China announced the waterfront precinct, achieved Temporary exercise was successfully effected, resulting acquisition of a newly completed retail Occupation Permit. in Keppel Corporation gaining full ownership development in Jiading District, Shanghai. of the Company. Guangdong’s first Customs, Immigration, Quarantine and Port-clearance post in a Keppel Land divested its 95% interest in the private marina was opened in Keppel Cove Jiangyin Yangtze International Country Club Q4 in Zhongshan City, China. in China. Keppel Land announced the divestment of Keppel Land acquired an additional Keppel Land topped off Junction City Tower its 100% stake in Sedona Hotel Mandalay 40% stake in Riviera Cove and divested and opened Sedona Hotel Yangon’s Inya in Myanmar. its 60% stake in Casuarina Cove in HCMC, Wing in Myanmar. Vietnam. Keppel Land announced its partnership with PT Metropolitan Land Tbk, one of Indonesia’s leading property developers, to jointly build landed homes on a 12-hectare site in Tangerang, Greater Jakarta, Indonesia.
The Company divested its 49.7% stake in Central Park City, Wuxi.
23 Overview
Awards and Accolades
Corporate Recognition Sustainability Benchmarks Product Excellence
Top 10 ASEAN Companies in China Global Real Estate Sustainability Top 50 Engineering Feats Keppel Land China was conferred Benchmark Keppel Bay was named one of the the Top 10 ASEAN Companies in Testament to its continuous effort to Top 50 Engineering Feats at IES-SG50, China award by the China-ASEAN strengthen its environmental, social and organised by the Institution of Engineers Business Council. governance (ESG) standards, Keppel Land Singapore (IES). was ranked first in the Residential (Global), The award honours model ASEAN China and East Asia sectors as well as Distinction in Hospitality companies which have achieved third among developers globally in the Sedona Hotel Yangon’s Inya Wing and business success and contributed Global Real Estate Sustainability Junction City Tower clinched seven positively to the local Chinese Benchmark (GRESB) 2016. awards at the Myanmar Property Awards, communities they operate in. including accolades for Best Commercial Keppel Land China is the only The Company also achieved an outstanding Development, Best Office Development company that has been awarded the score in its ESG performance, significantly and Best Hotel Development. accolade for four consecutive years. surpassing its peers. Sedona Hotel Yangon’s Inya Wing Euromoney Real Estate Awards GRESB assesses the sustainability was also named winner of New Hotel Keppel Land garnered 10 Euromoney performance of property companies and Construction and Design (Myanmar) Real Estate Awards, including Best real estate funds globally on its integrated at the Asia Pacific Property Awards 2016, Overall Developer for Singapore, organisational approach and performance and was awarded the Best Hotel Interior Vietnam and Myanmar. in environmental measurement and Design (South East Asia) at the 2016 management. South East Asia Property Awards. The annual Euromoney Real Estate Awards ranks the best developers, BCA Awards Ria Bintan Golf Club was named advisors, banks and investment Keppel Land clinched 11 awards at among the Top 3 Best Golf Courses managers globally. the BCA Awards 2016 conferred by the in Indonesia at the Asian Golf Building and Construction Authority (BCA) Monthly Awards. of Singapore. This includes the coveted Quality Champion (Gold) Award, the Marina Excellence Universal Design Mark (Gold) Award for For achieving excellence in functionality, The Luxurie as well as the Green Mark aesthetics and environmental for Office Interior Platinum rating for its sustainability, Marina at Keppel Bay corporate office at Bugis Junction Towers. was bestowed the Marina Excellence Design Jack Nichol Award 2016 by Safety Recognitions The World Association for Waterborne For its commitment to good health and Transport Infrastructure. safety management, Keppel Land was named Winner at the International Safety Awards 2016 by the British Safety Council. Corals at Keppel Bay and Highline Residences also received the Safety and Health Award Recognition for Projects at the Workplace Safety and Health Awards 2016.
Keppel Land garnered 10 Euromoney Real Estate Awards in 2016, including Best Overall Developer for Singapore, Vietnam and Myanmar.
24 Keppel Land Limited Report to Stakeholders 2016 Corporate Governance
The Company’s Directors and The Board has included in its oversight, responsibilities at the top level of Management firmly believe that full consideration of sustainability issues the Company, with the non-executive commitment to high standards of corporate such as environmental, social and Chairman and the CEO having governance is essential to ensure the governance factors in the strategic separate roles. sustainability of the Company’s businesses formulation and execution of the and performance as well as to safeguard Company’s objectives. Every Board The Chairman leads the Board and shareholder’s interests and maximise meeting includes an update on is responsible for the management long-term shareholder value. sustainability issues. The Board of the Board, encourages Board’s meets regularly on a quarterly basis interaction with Management, facilitates Board Matters and as warranted. effective contribution of the Directors, The Board’s Conduct of Affairs encourages constructive relations among The Board oversees the effectiveness Board Composition the Directors, and promotes high of Management as well as the corporate Presently, there are 10 Directors. With standards of corporate governance. governance of the Company with the the exception of Mr Ang Wee Gee, who The Chairman approves the agenda objective of maximising long-term is the Chief Executive Officer (CEO), for Board meetings and ensures shareholder value and protecting the rest of the nine Directors are sufficient time is spent to cover all items the Company’s assets. Its key roles non-executive Directors. With the in the agenda, especially on strategic include the review and approval of exception of Mr Loh Chin Hua, Mr Ang issues. The Chairman and CEO are the Group’s corporate strategies and Wee Gee and Mr Chan Hon Chew, the separate persons and are not related directions, annual budgets, major rest of the seven Directors are external to each other. investments, divestments and Directors (External Directors). External funding proposals and the review Directors are directors who do not have The CEO has full executive responsibilities of the Group’s financial performance, an executive position within the Company over the business directions set by the risk management processes and and its related companies. Board and operational decisions of the systems, and sustainability Group. The CEO is accountable to the considerations including corporate The Directors provide an appropriate Board for the conduct and performance governance practices. The Board is balance and diversity of skills, experience, of the Group. also responsible for setting the Company’s gender and knowledge of the Company core values and ethical standards. as well as relevant core competencies in Board Membership areas such as accounting or finance, legal, Process and Criteria Used Board Committees included the Audit business or management experience, for Selection and Appointment Committee (the AC), Board Risk Committee industry knowledge, strategic planning of New Directors (the BRC) and Board Safety Committee experience and customer-based To increase the reliability of the (the BSC). On 1 March 2017, the AC and the experience or knowledge. The Chairman of process, the Board’s diversity in BRC were merged to form the Audit and the Board is Mr Loh Chin Hua. In terms of terms of mix of expertise, knowledge Risk Committee (the ARC). Following the composition of the Board, External and experience on the Board is evaluated merger, the duties and obligations of the Directors form the majority. and, in consultation with Management, AC and the BRC are now undertaken by the role and the desirable competencies the ARC. These Board Committees have Chairman and Chief Executive Officer for a particular appointment is determined. clearly defined written terms of reference. To ensure an appropriate balance Recommendations from, inter alia, Matters which are delegated to Board of power, increased accountability Directors and Management are the Committees for more detailed evaluation and a greater capacity of the Board for usual source for potential candidates. and approval are reported to and monitored independent decision-making, the However, external search consultants by the Board. Company has a clear division of are also considered.
The nature of current Directors’ appointment and membership on Board Committees are as follows:
Board Committee Memberships Directors Board Membership Audit2 Board Risk2 Board Safety Audit and Risk2
Loh Chin Hua Non-executive Chairman – – Member – Non-External Director Ang Wee Gee CEO – – Member – Non-External Director Tan Yam Pin External Director – – Chairman – Edward Lee Kwong Foo External Director – Member Member – Koh-Lim Wen Gin External Director – – Member – Yap Chee Meng External Director Chairman Member – Chairman Huang Jing External Director – Member – Member Oon Kum Loon External Director Member Chairperson – Member Chan Hon Chew Non-External Director Member Member – Member Willy Shee Ping Yah1 External Director – – – –
1 Willy Shee Ping Yah was appointed to the Board on 15 October 2016. 2 The Audit and Risk Committee was formed on 1 March 2017 following the merger of the Audit Committee and the Board Risk Committee.
25 Overview
Corporate Governance
Formal interviews with the shortlisted The annual performance incentive which (7) Investigate any matters within the candidates are conducted to assess their is tied to the performance of the Company, AC’s purview, whenever it deems suitability and the candidates are verified business unit and individual employee, necessary; of their awareness of the expectations is inclusive of a portion which is tied to (8) Report to the Board on and the level of commitment required, economic value added (EVA) performance. material matters, findings and after which suitable candidates will The EVA performance incentive is currently recommendations; be approved. extended to only key management (9) Review the AC’s terms of reference personnel who have greater line of sight annually and recommend any The following criteria are used to assess to value creation. proposed changes to the Board; all new appointments: (10) Perform such other functions as the The compensation structure is directly Board may determine; and (1) Integrity; linked to corporate and individual (11) Sub-delegate any of its powers (2) Independent mindedness; performances, both in terms of financial, within its terms of reference as listed (3) Possession of core competencies non-financial performance and the above from time to time as the AC that meet the needs of the Company creation of shareholder wealth. may deem fit. and complements the skills and competencies of the existing Directors Accountability and Audit During the year, the AC reviewed the on the Board; The Board, previously supported by the internal and external auditors’ plans and (4) Ability to commit time and effort to AC and the BRC, and following the merger findings to ensure that they are sufficient carry out duties and responsibilities of the AC and the BRC, is now supported by to assess the adequacy and effectiveness effectively; the ARC, oversees the Group’s system of of the Company’s significant internal (5) Track record of making internal controls and risk management. controls, including financial, operational, good decisions; compliance and information technology (6) Experience in high-performing Audit Committee controls and management of risks of organisations; and The AC’s primary role is to assist the fraud and other irregularities. The AC (7) Financial literacy. Board to ensure the integrity of financial also reviewed the effectiveness of the reporting and the existence of sound actions taken by Management on the The internal guideline adopted by the internal control systems. The AC is kept recommendations made by the internal Company to address the issue of multiple abreast of changes to accounting and and external auditors in this respect. board representations is that Directors governance standards and issues which should not have more than six listed have a direct impact on financial The AC also performed independent company board representations and statements through quarterly updates reviews of the financial statements of the other principal commitments. and discussion with the external auditor. Company. The AC has explicit authority to investigate any matter within its terms of The Board recognises that proper The AC is guided by the following terms reference, full access to and cooperation succession planning plays an important of reference: by Management and full discretion to role in ensuring continuous and effective invite any Director or executive officer to stewardship of the Company. As such, the (1) Review financial statements relating attend its meetings, and has reasonable Company’s succession plans are reviewed to financial performance, and review resources to enable it to discharge its annually to ensure the progressive renewal significant financial reporting issues functions properly. of the Board, including the Chairman and and judgements contained in them, the CEO. Succession and leadership for better assurance of the integrity The AC held five meetings during the year. development plans for Management are of such statements; The Company’s internal and external also reviewed. (2) Review and report to the Board at auditors reported their audit findings and least annually the adequacy and recommendations independently to the Remuneration Matters effectiveness of the Group’s internal AC. The AC also met with the internal and Remuneration Policy for controls, including financial, external auditors, without the presence Executive Director and Other operational, compliance and of Management. At the meetings, the Key Management Personnel information technology controls external auditor briefed the members The Company adopts a remuneration (such review can be carried out of the AC on the latest developments in system that is aimed at attracting, internally or with the assistance of accounting and governance standards retaining and motivating talent on a any competent third parties); and practices. In addition, the AC reviewed sustainable basis. In designing the (3) Review audit plans and reports of the independence and objectivity of the compensation structure, the Company the external auditor and internal external auditor through discussions with seeks to ensure that the level and mix of auditor, and consider the the external auditor. remuneration is competitive, relevant effectiveness of actions or policies and appropriate in finding a balance taken by Management on the On 1 March 2017, the AC was merged between current versus long-term recommendations and observations; with the BRC and the functions and compensation and between cash versus (4) Review the independence and responsibilities of the AC are now equity incentive compensation. objectivity of the external auditor; undertaken by the ARC. The ARC comprises (5) Meet with external auditor and four directors, of which three are The annual fixed cash component internal auditor, without the presence non-executive and External Directors. comprises the annual basic salary plus of Management, at least annually; fixed allowances which the Company (6) Review the adequacy and Board Risk Committee benchmarks with the relevant industry effectiveness of the Company’s internal The Board, assisted by the BRC, has market data. audit function, at least annually; oversight of risk management in the Group.
26 Keppel Land Limited Report to Stakeholders 2016 The BRC examines the adequacy and (4) Receive and review at least quarterly The framework lays out the governing effectiveness of the Company’s risk reports from Management on major policies, processes and systems management system, and ensures risk exposures and the steps taken to pertaining to each of the key risk areas that a robust risk management system monitor, control and mitigate such risks; of the Group, and assessments are made is maintained. (5) Review the Group’s capability to on the adequacy and effectiveness of identify and manage new risk types; the Group’s risk management system in The BRC reviews and guides Management (6) Review and monitor Management’s managing each of these key risk areas. in the formulation of risk policies and responsiveness to the findings and processes to identify, evaluate and recommendations of the risk The Group also has in place the Keppel manage significant risks, to safeguard management department; Land’s System of Management Controls Framework (the Framework) outlining shareholder’s interests and the Company’s (7) Provide timely input to the Board on the Group’s internal control and risk assets. The BRC also discusses risk critical risk issues; management processes and procedures. management strategies with Management (8) Report to the Board on material The Framework comprises three Lines of and the Board. In addition, the BRC matters, findings and Defence towards ensuring the adequacy makes visits to the Company’s project recommendations; and effectiveness of the Group’s system of sites and discuss the risk mitigation (9) Review the BRC’s terms of reference internal controls and risk management. actions and issues that the Group faces annually and recommend any in the various markets. proposed changes to the Board; Under the first Line of Defence, (10) Perform such other functions as the Management is required to ensure good The BRC’s terms of reference are Board may determine; and corporate governance through the as follows: (11) Sub-delegate any of its powers implementation and management of within its terms of reference as listed policies and procedures relevant to the (1) Receive, as and when appropriate, above from time to time as the BRC Group’s business scope and environment. reports and recommendations may deem fit. Under the second Line of Defence, from Management on risk tolerance significant business units are required to and strategy, and recommend to On 1 March 2017, the BRC was merged conduct self-assessment exercise on an the Board for its determination with the AC and the functions and annual basis. Under the third Line of the nature and extent of significant responsibilities of the BRC are now Defence, to assist the Company to risks which the Group overall undertaken by the ARC. ascertain the adequacy and effectiveness may take in achieving its strategic of the Group’s internal controls, business units are required to provide the Company objectives, and the overall Group’s Risk Management and Internal Controls with written assurances as to the levels of risk tolerance and The Company’s approach to risk adequacy and effectiveness of their risk policies; management is set out in the “Risk system of internal controls and risk (2) Review and report to the Board at Management” section on pages 29 to 31. management. Such assurances are also least annually the adequacy and The Company is guided by a set of Risk sought from the Company’s internal and effectiveness of the Group’s risk Tolerance Guiding Principles as disclosed external auditors based on their management system; on page 29. independent assessments. (3) Review and discuss, as and when appropriate, with Management the The Group also has in place a Risk Employee Code of Conduct Group’s risk governance structure Management Assessment Framework To build a culture of high integrity as well and its risk policies, and risk to facilitate the Board’s assessment on as reinforce ethical business practices, mitigation and monitoring processes the adequacy and effectiveness of the the Company has in place an employee and procedures; Group’s risk management system. code of conduct (the Code).
Keppel Land’s System of Management Controls
Policies
Board Oversight 4 Board of Directors
3 Assurance Business Unit Representation Internal Audit External Audit Processes
2 Management & Self-Assessment Enterprise Risk Regulatory IT Governance Assurance Process Management Compliance Framework Frameworks Systems Business 1 Governance/ Core Values, Corporate & Employee Conduct Rules of Governance Policy Compliance Operational Financial Management Governance Governance Governance
People
27 Overview
Corporate Governance
The Code addresses, at the employee employees, are expected to adhere. all employees are required to acknowledge level, the standards of acceptable and Suppliers are required to conduct their the policies annually. Any revisions are unacceptable behaviour and personal business operations with the highest highlighted to them when they perform the decorum as well as issues of workplace standards of integrity, fairness and annual acknowledgements. harassment. On the business front, the impartiality, in an ethical and proper policy addresses standards of ethical manner. Suppliers are expected to observe Board Safety Committee business behaviour including anti- and comply with all applicable laws and The Company’s BSC guides Management corruption, the offering and receiving regulations in relation to anti-corruption, to enhance the Group’s commitment to of gifts, hospitality and promotional fair competition, human rights, safety and work safely in all workplaces and foster expenditures, dealings with third party health, and environment management, in a positive safety culture in the Company. associates as well as conflicts of interest. their respective countries of operations. The BSC is supported by the Management The Code also requires all staff to avoid Safety Committee (MSC). The BSC meets any conflict between their own interests Suppliers are required to acknowledge quarterly to discuss safety issues and and the interests of the Company in that they understand the Supplier Code provide guidance and direction to chart dealing with its suppliers, customers and to communicate the requirements safety milestones. The BSC makes regular field visits to project sites in Singapore and other third parties. of the Supplier Code to their own and overseas to enforce the Board’s suppliers and subcontractors and commitment to safety. The rules require business to be conducted secure their compliance. with integrity, fairly, impartially, in an ethical The MSC members comprise nominated and proper manner, and in compliance Whistle-blower Protection Policy senior personnel from each of the with all applicable laws and regulations. The Company has a whistle-blower Company’s business units. The MSC meets protection policy to encourage the quarterly to discuss safety issues and Relevant anti-corruption rules are also reporting in good faith of suspected makes regular visits to project sites in spelled out to protect the business, reportable conduct, violations of the Singapore and overseas, ensuring that resources and reputation of the Company. Code or applicable laws (including contractors are complying with the local Employees must under no circumstances the U.S FCPA, U.K. Bribery Act 2010, regulations and industry’s best practices. offer or authorise the giving, directly the Singapore Prevention of Corruption or through third parties, of any bribe, Act, the anti-bribery legislation of the The BSC and the MSC are supported by kickback, illicit payment, or any benefit-in- People’s Republic of China and other the Workplace Safety and Health (WSH) kind or any other advantage to any applicable anti-bribery laws) by Department. The WSH Department, government official or government entity, establishing clearly defined processes headed by the General Manager, private sector customer, supplier, through which such reports may be made Workplace Safety and Health, and a contractor or any other person or entity, as with the confidence that employees and team of safety professionals from various an inducement or reward for an improper other persons making such reports to engineering disciplines, conduct regular performance or non-performance of a the employees’ supervisors, AC Chairman site safety inspections and audits on function or activity. Similarly, employees or Head of Group Internal Audit will be all the active projects in Singapore must not under any circumstances solicit treated fairly and, to the extent possible, and overseas. or accept illicit payment, directly or protected from reprisal. indirectly, from any government official The BSC is guided by the following terms or government entity, private sector The AC Chairman is kept informed of all of reference: customer, supplier, contractor or any other cases reported. Anonymous reports are person or entity that is intended to induce also accepted if there are strong merits to (1) Establish the health and safety or reward an improper performance or look further into the cases. Upon receipt of (H&S) policies; non-performance of a function or activity. allegations of fraud or other misconduct (2) Monitor the Company’s compliance reported under the whistle-blower with the approved H&S policies by: The Code is published on the intranet protection policy, the AC will ensure that (a) Assessing the adequacy of H&S which is accessible by all employees. All the necessary investigations are carried standards prepared by the MSC; employees are required to acknowledge out in a timely manner. The AC will also (b) Assessing the operations of the the Code annually to ensure awareness. ensure that any disciplinary, civil and/or Company and recommendations of the MSC on training, safety criminal action that is initiated following audits, elimination, control and Supplier Code of Conduct completion of investigation, is appropriate, minimisation of H&S risks; and The Company is committed to conducting balanced, and fair. The AC will also (c) Assessing the compliance of our businesses ethically and responsibly. monitor the actions taken to correct the the Company with applicable The Company’s core values of integrity weaknesses in the existing system of legislation; internal processes and policies which and accountability are fundamental to the (3) Recommend the adoption of way it does businesses, including how it resulted in or may cause the perpetration acceptable H&S practices in manages its supply chain and the impact of the fraud and/or misconduct, to prevent the industries in which the of the Company’s business activities any recurrence. Company operates; beyond its direct operations. In this regard, (4) Receive reports concerning H&S the Company has in place a Supplier Code Briefings for all staff on the Employee incidents within the Company; and of Conduct (the Supplier Code). Code of Conduct and Whistle-blower (5) Consider H&S issues that may have Protection Policy were held when the strategic, business and reputational The Supplier Code sets out the standards policies were introduced. New employees implications for the Company. of conduct to which the Company’s are briefed on the policies when they join suppliers and their parent entities, the Company’s orientation programme. The BSC held four meetings during subsidiaries or affiliate entities, and Subsequently, to maintain awareness, the year.
28 Keppel Land Limited Report to Stakeholders 2016 Risk Management
Keppel Land maintains a robust risk management system to anticipate and meet challenges as well as seize business opportunities in a dynamic business environment.
Robust Risk Management Framework objectives. These guiding principles, the reporting structure, monitoring Risk management is an integral part of which are reviewed yearly, are: mechanisms, specific risk management strategic, operational and financial processes and tools in addressing key decision-making processes at all levels of (1) Risk taken should be carefully risks, as well as the Group’s policies the Group. The Group’s holistic approach evaluated and commensurate with and limits. to identifying and managing risks instils a rewards as well as aligned with strong risk ownership across the Company Keppel Land Group’s (the Group) core The Group’s five-step risk management and reduces uncertainties associated with strengths and strategic objectives. process consists of risk identification, executing our strategies, allowing us to (2) No risk arising from a single area of risk assessment, formulation of risk harness opportunities with agility. operation, investment or undertaking mitigation measures, communication should be so large as to endanger and implementation as well as monitoring Keppel Land’s Board of Directors (the the entire Group. and review. The assessment process Board) is responsible for governing risks (3) The Group does not condone safety takes into account both the likelihood and ensuring that management maintains breaches or lapses, non-compliance and impact on the Company’s finances, a sound system of risk management with laws and regulations as well operations and reputation. and internal controls. Assisted by the as acts such as fraud, bribery Board Risk Committee (BRC), the Board and corruption. A set of key risk indicators, which are provides advice to management in closely monitored by business units formulating risk policies and guidelines. Ongoing improvements are made to and risk owners, serves as early warning strengthen the existing risk governance signals. Risk plans and key risk indicators Comprising five Directors, the BRC held a framework. Our risk governance are regularly reviewed to ensure risks total of four meetings in 2016. In addition, framework is set out on page 27. In 2016, identified remain relevant and mitigating the BRC visited various ongoing projects the Board has assessed that the risk actions continue to be adequate, timely in Singapore, China and Indonesia during management system is adequate and and effective. the year to understand and review the effective in addressing the key risks of risks that may affect Keppel Land. the Company. The risk registers of the individual business units and functional Since 2013, Keppel Land has adopted The Enterprise Risk Management departments are reviewed regularly three risk tolerance guiding principles framework, a component of Keppel’s to ensure the risks identified and which serve to determine the nature and system of Management Controls, provides accompanying mitigating measures extent of the significant risks that the the Group with a holistic and systematic remain relevant in view of the dynamic Board will take to achieve its strategic approach in risk management. It outlines business environment.
Keppel Land has processes and systems in place to inculcate a strong safety culture in all employees.
29 Overview
Risk Management
As a Group, we adopt a balanced Proactive Risk Management Policies and Procedures approach to risk management, recognising Keppel Land will continue to review and Keppel has a strict Employee Code that not all risks can be eliminated. refine its risk management methodology, of Conduct which guides employees We will undertake appropriate and systems and processes to ensure their in carrying out their duties and well-considered risks to optimise adequacy and effectiveness. The Group responsibilities to the highest standards returns for the Group. will continue to leverage its training of personal and corporate integrity initiatives to raise employees’ risk when dealing with suppliers, customers Bolstering Operational Readiness management awareness and capabilities and other third parties. It covers areas Keppel Land is committed to enhance as well as enhance sharing of key such as conduct in the workplace its operational resilience through the lessons learned. and business conduct including establishment of a robust business anti-corruption and conflict of interest. continuity management (BCM) plan to Regulatory Compliance We expect our business partners and respond effectively to potential crises and Keppel has built the trust of all our associates, including individuals or external threats while minimising impact stakeholders by developing a reputation entities that provide services, or engage to its people, operations and assets. for conducting our business fairly, in business activities, on behalf of the impartially and with integrity. We place Group, to apply the same regulatory Led by the BCM committee, business units significant emphasis on ensuring we compliance standards. in various locations conduct a range of operate in an ethical and proper manner, simulations under a broad spectrum of and in compliance with all applicable Training and Communications disruptions such as severe air pollution, laws and regulations. Training is a key component within flood, earthquake, pandemic disease, our regulatory compliance framework fire and civil unrest to enhance their Regulatory Compliance Framework and we continue to focus on refining operational preparedness. These plans and Governance Structure our compliance training programmes are tested and refined to ensure responses The Group has a defined framework and curriculum for new and existing are practical, executable and effective and continues to work towards employees. while critical business functions continue strengthening our policies and processes to operate smoothly. surrounding regulatory compliance. Training programmes are tailored to the The framework deals with the structure, audience and we leverage Group-wide A Risk-Centric Culture people, policies and activities required for forums to reiterate key compliance Effective risk management hinges equally management to identify, assess, mitigate messages. Employees are also required on mindsets and attitudes as well as and monitor key compliance risks. to complete mandatory annual e-training systems and processes. Management is programmes and assessment, covering committed to foster a strong risk-centric The Regulatory Compliance Governance key policies and to acknowledge that culture in the Group, which encourages Structure of Keppel Land comprises they have read and understood the policy prudent risk-taking in decision-making the Regulatory Compliance Management including declaration of any potential and business processes. Committee (RCMC) chaired by the conflict of interest. CEO and key members including business Risk management and training workshops unit heads. The RCMC is supported are conducted to enhance risk management by respective country Regulatory competency and awareness of staff. Compliance Working Teams to drive the The Group also seeks to enhance staff implementation of the Group’s Code of accountability for risk management through Conduct and regulatory compliance the performance evaluation process. programmes.
5-Step Risk Management Process
Step 1 Step 2 Step 3 Step 4 Step 5 Identify Assess Mitigate Implement Monitor Understand strategy, Prioritise risk factors by Develop action plans to Communicate and Monitor mitigation identify value drivers assessing their potential mitigate risks and identify implement action plans. results and KRI. and risk factors. impact and likelihood key risk indicators (KRI) of occurrence. to monitor risks.
30 Keppel Land Limited Report to Stakeholders 2016 Managing Key Risks The key risks identified and appropriate 5. Misstatement of Policies governing end-user computing mitigating actions undertaken by Financial Statements as well as the safeguarding and Keppel Land in 2016 are as follows: • The Group ensures that the backing up of information have been consolidated financial statements put in place. 1. Business Strategy Risks have been prepared in accordance • The Group’s strategic direction with the Singapore Financial 9. Business Continuity Risks and business strategies are Reporting Standards. • Business units continually review reviewed by the Board and senior and test their business continuity management. Factors including • Internal and external audits are plans to ensure effective response laws and regulations, market conducted to provide reasonable to disruptive events. conditions and competitive assurance on the accuracy of landscape within each market, financial statements. • Critical business functions are are considered carefully. determined and alternative 6. Project Management Risks processes, resource requirements Keppel Land continues • Project management processes and interdependencies are identified to look into matters relating to are reviewed regularly by the Project to support operations at times technology, innovation and solutions Management and Sustainable Design of disruption. as part of its strategy to develop department. Through these processes, alternative business products the Group adopts good industry 10. Fraud/Corruption Risks and solutions. practices to achieve project delivery • Keppel Land has put in place the on time, within budgeted cost and enhanced code of conduct, insider 2. Concentration Exposure Risks desired quality. trading and whistle-blower protection • A concentration risk management policies, financial authority limits policy that governs the exposure • Training is conducted for project and control self-assessment tools to limits of each market and project, managers to increase their mitigate the risks of fraud, corruption is established to manage familiarisation and ensure their and misconduct by staff. concentration exposure risks. compliance with the processes. • Internal and external audits are • Exposure to all countries and projects 7. Human Resources Risks conducted regularly to prevent, are monitored regularly to ensure the • Keppel Land leverages scholarships detect and mitigate fraud risks. Group is not overly exposed to any as well as management associate single project or market. and leadership development 11. Quality of Deliverables programmes to identify and develop • The Group has put in place the 3. Investment/Divestment Risks its talent pipeline. Quality Assurance/Quality Control • Guided by investment parameters, procedures and Keppel Quality all major investments are subject to • Succession planning for key executive Standards to ensure excellence due diligence processes and evaluated positions is reviewed regularly to in project deliveries. by the Board. ensure relevance. • The defects management and • All investment and divestment 8. Information Technology Risks handover procedures as well as proposals submitted for • The Information Technology (IT) standard operating procedures approval have to be accompanied department has an established IT are adopted to ensure customer by a completed set of risk Security Framework to address IT satisfaction of products delivered. assessment template. security risks. Various measures such as intrusion prevention and detection 12. Health and Safety Risks 4. Exposure to Financial Market Risks systems and firewalls are put in place • Keppel Land has put in place a • Keppel Land hedges against to protect confidential information. Health and Safety (H&S) Policy to foreign exchange and interest rate raise staff awareness on the risks through the utilisation of • Reviews are carried out annually importance of workplace H&S. various financial instruments to ensure alignment to IT policies where appropriate. and procedures. • Various initiatives and policies are implemented via the Workplace Safety • The Group ensures that adequate • The IT Disaster Recovery Plan is and Health department to ensure funding resources are available for reviewed and tested regularly to that a strong safety culture investments and cash flows are ensure the robustness of the IT is inculcated in all employees. actively managed. system. IT audits are also carried out.
31 Operations and Market Review
Operations and Market Review
Moderate Growth Amidst Condominiums The Glades Commercial Future Developments Singapore Global Uncertainties Highline Residences Location: Tanah Merah Keppel Bay Tower New Phases at Keppel Bay The Singapore economy grew by 2.0% in Location: Tiong Bahru Total no. of units: 726 Location: HarbourFront Avenue Location: Keppel Bay 2016, a slight increase from the 1.9% Keppel Land will continue GFA: 549,082 sf GFA: 450,377 sf growth in the previous year. Total no. of units: 500 Estimated no. of units: 320 to pursue opportunities in GFA: 473,218 sf Completion: 2016 Completion: 2002 GFA: 570,490 sf residential, commercial and In April 2016, the Monetary Authority of Expected completion: 2018 Keppel Bay Tower was jointly developed mixed-use developments. Singapore adopted a neutral policy stance Located within an established private Keppel Bay is a 32-hectare exclusive by the Keppel Group and Mapletree by reducing the slope of the Singapore Located at the fringe of the central residential estate, The Glades is situated waterfront precinct in Singapore’s vibrant Investments Pte Ltd (Mapletree). The dollar nominal effective exchange rate business district (CBD), Highline close to the Tanah Merah MRT station. southern waterfront. It is a mere five-minute Keppel Group consolidated its ownership policy band to zero. The policy will continue Residences is nestled within a nostalgic The Changi Business Park and the Singapore drive to the CBD and is close to Resorts Major Developments in 2016 of the office building after a share swap for an extended period to ensure medium- and trendy neighbourhood, part of University of Technology and Design World Sentosa, VivoCity and the HarbourFront exercise with Mapletree in 2015. Completed construction of Corals at term price stability as well as to provide which has been earmarked as a campus are also in the vicinity. Residents Office Park. Residents can enjoy a waterfront Keppel Bay in August and The Glades flexibility to accommodate near-term Heritage Conservation Area by the will benefit from the development of lifestyle as well as a wide array of retail and The 18-storey office building is in December 2016. weakness in inflation and growth. Urban Redevelopment Authority (URA). Project Jewel at the Changi Airport, recreational options, including at the conveniently located within a five-minute Highline Residences is situated close to a new 3.5-hectare integrated development award-winning Marina at Keppel Bay. drive from the CBD and offers excellent Sold about 380 homes, mostly from Global growth is expected to improve the Tiong Bahru MRT station and Tiong with retail and world-class attractions. connectivity via the HarbourFront MRT Highline Residences, The Glades and modestly in 2017, driven mainly by Bahru Plaza, providing residents easy The Glades has sold about 94% of the Keppel Land has two remaining land plots station, major roads and expressways. Corals at Keppel Bay. domestic demand in the United States access to a host of retail and lifestyle 650 launched units as at end-2016. at the precinct, one of which is located on (US) and key ASEAN economies. However, amenities. The development has sold the private Keppel Island. The timing of Tenants enjoy a wide array of dining Launched Habitap, Asia’s first fully uncertainties and downside risks in the about 83% of the 350 launched units their development is subject to market integrated smart home management Reflections at Keppel Bay and lifestyle choices with the office global economy remain, with the United as at end-2016. conditions. building in close proximity to VivoCity system, at Corals at Keppel Bay. Kingdom navigating through the aftermath Location: Keppel Bay View and Resorts World Sentosa. Keppel Bay of the vote on Brexit, changes in policies Total no. of units: 1,129 Acquired a 22.4% stake in I12 Katong Corals at Keppel Bay Tower is 84% committed as at end-2016. Redevelopment of Keppel Towers under the new US administration and GFA: 2,081,738 sf lifestyle mall. Location: Keppel Bay Drive and Keppel Towers 2 increasing insularism and anti-globalisation Completion: 2011 sentiments. Moreover, the continual Total no. of units: 366 I12 Katong Location: Tanjong Pagar Road/ GFA: 509,998 sf Hoe Chiang Road Focus for 2017 slowdown in investment growth in the Reflections at Keppel Bay, an iconic Location: East Coast Road US and China as well as trends of Completion: 2016 condominium designed by master GFA: 281,369 sf The freehold site, located close to the in-sourcing in China, mean that external Monitor the market to optimise value architect Daniel Libeskind at Singapore’s Completion: 2011 Tanjong Pagar MRT station, currently demand for Singapore trade may not see Located adjacent to the historic for projects. southern waterfront, features six towers houses two office buildings, Keppel Towers a significant uplift. King’s Dock and designed by and 11 villa apartment blocks comprising Strategically located at the junction of and Keppel Towers 2. Selectively acquire sites for residential, world-renowned architect Daniel 1,129 luxury homes with commanding East Coast Road and Joo Chiat Road, commercial and mixed-use Against this global backdrop, the Ministry Libeskind, Corals at Keppel Bay views of the waterfront, golf course, parks I12 Katong is a six-storey lifestyle Subject to market conditions, Keppel Land developments. of Trade and Industry expects the offers homeowners a waterfront and lush greenery. mall with a net lettable area of about plans to redevelop the site into a mixed-use Singapore economy to grow at a modest lifestyle at Singapore’s vibrant 207,000 sf. Major tenants include development to meet the growing demand Invest in strategic platforms. pace between 1% and 3% in 2017. southern shores. The condominium The condominium has sold 97% of the Katong Market Place, Golden Village, for city living. This is in tandem with the is easily accessible via HarbourFront 950 launched units as at end-2016 while Food Republic and Tim Ho Wan. transformation of the area into a premium Explore opportunities to monetise and In 2016, Keppel Land completed two major MRT station, West Coast Highway recycle assets for new investments. about 150 units have been set aside as The mall will be undergoing asset waterfront precinct with residential, hotels developments, Corals at Keppel Bay and and Ayer Rajah Expressway. corporate residences. enhancement initiatives. and lifestyle amenities. The Glades. Corals at Keppel Bay is a Key amenities and recreational facilities 366-unit condominium designed are within reach at VivoCity, one of the by world-renowned master architect largest retail malls in Singapore, and Daniel Libeskind. The Glades, a 726-unit Sentosa Island, home to Resorts World condominium located near the Tanah Sentosa and the Universal Studios Merah MRT station, is Keppel Land’s first Singapore theme park. joint venture project with China Vanke in Singapore. The new iconic condominium comprises 11 low- to medium-rise blocks of prime Keppel Land sold a total of about 380 waterfront homes. The blocks cascade residential units in Singapore in 2016, compared with 190 units in 2015. This toward the waterfront, offering residents resulted from improved market sentiments panoramic views of the sea and the lush and the completion of The Glades and central garden. In addition to achieving Plus Corals at Keppel Bay, which allowed the Green Mark Gold award by the potential buyers to view the finished Building and Construction Authority of apartments and move in soon after. Singapore, Corals at Keppel Bay was also conferred the inaugural Landscape Keppel Land will continue to time Excellence Assessment Framework residential launches and adjust its award by the National Parks Board for marketing strategy according to market its outstanding provision and management conditions as well as selectively acquire of greenery. The condominium has The Glades is located well-located sites for residential, sold about 89% of the 250 launched in an established commercial and mixed-use developments. units as at end-2016. private housing estate in Tanah Merah, within a short walk to the MRT station.
32 Keppel Land Limited Report to Stakeholders 2016 33 Operations and Market Review
Operations and Market Review Singapore
Market Review In March 2017, the Government relaxed Upcoming Core CBD Office Supply (1Q 2017 – 2020)* Private Residential Supply, Demand and Price Index Stabilising Residential Market some residential property measures Transaction volume picked up in 2016 relating to the sellers’ stamp duty (SSD) Units Index Expected Completion Developments Location Net Floor Area*** (sf) after the government’s reiteration on the as well as the total debt servicing ratio need to keep the property market stable framework (TDSR). The new rules are 25,000 250 1Q 2017 Marina One Marina Bay 1,875,630 and sustainable. Lower price expectation expected to improve new home sales as 1Q 2017 UIC Building Shenton Way 277,540 from sellers and deferred payment homebuyers will no longer have to pay 20,000 200 1Q 2017 GSH Plaza** Raffles Place 282,000 schemes offered by developers for SSD if they sell a residential property 15,000 150 2017 EON Shenton** Shenton Way 101,045 completed projects also contributed to the three years after the date of purchase 1Q 2018 Robinson Towers Robinson Road 145,000 increase in sales transactions in 2016. on or after March 11. The 60% TDSR 10,000 100 Redevelopment Despite a 7.2% increase in the total threshold will also no longer apply to 5,000 50 2Q 2018 Frasers Tower Shenton Way 663,000 number of new homes sold in 2016 to mortgage equity withdrawal loans with 2020 Afro-Asia Building Shenton Way 153,526Sengkang 7,972 units compared to 7,440 units in loan-to-value ratios of 50% and below, 0 0 2015, the URA private residential price hence incentivising buyers to invest in Redevelopment 2012 2013 2014 2015 2016 index continued to decline by 3.1%, new properties. Units launched 21,478 15,885 7,693 7,056 7,877 Sources : Urban Redevelopment Authority (URA), CBRE compared with the 3.7% decline in 2015. List includes only projects which are under construction or have obtained provisional or written permission. Units sold 22,197 14,948 7,316 7,4 40 7,972 * (As at end-2016) New space is considered as space under construction, additions/extensions and Such moves will help move the total refurbishment of existing space. In 2016, participation in government land residential market sales slightly as URA price index 151.5 153.2 147.0 141.6 137.2 ** Strata-titled project sales for attractive sites was fairly strong they give positive vibes to the market *** Estimates only. The Net Floor Area is based on the assumption of 85% of Gross Floor Area. Source: URA and land prices have been relatively and signal that the market could be resilient, reflecting developers’ long-term bottoming, which in turn will attract confidence in the real estate market. more buyers.
Private home sales volume for 2017 is forecast to remain at around Office Supply and Demand Location of Singapore Properties 7,000-8,000 units.
ay Million sf essw Tanah Merah nd Expr Isla Promising Signs for Office Pan 10 Leasing Market 4 96
y Singapore’s slowing economy continued a 3 94 w s s to weigh down on office demand. e r p x According to statistics from the URA, 2 92 l E ra t n the office market saw islandwide e 1 90 C take-up of 0.3 million sf in 2016 1 7 East Coast Parkway Bugis compared with 0.7 million sf in 2015. 0 88 According to CBRE, the core occupancy in CBD increased slightly from 95.1% -1 86 in 2015 to 95.8% in 2016, while 2012 2013 2014 2015 2016 Grade A office rents declined 6.8% Annual net supply (million sf) 0.92 1.44 1.32 0.15 1.52 4 East West Line year-on-year to $9.10 psf per month in Tiong Bahru 8 Raffles North South Line Annual net demand (million sf) 1.33 2.14 1.11 (0.31) 1.15 Ayer R Place ajah Ex y 2016 compared with $10.40 psf per pre Bayfront a North East Line ss Downtown w Islandwide occupancy (%) 94.2 95.6 95.3 94.5 94.0 w ss month a year ago. ay re Downtown Line xp 5 l E Downtown Line Stage 3 Core CBD occupancy (%) 92.2 95.2 95.7 95.1 95.8 6 ta as (Under Construction) Tanjong Marina Co 3 a Given the cautious market sentiments, Pagar Bay in Circle Line Sources: URA, CBRE ar Telok Blangah M Thomson-East Coast Line new office demand is expected to (Under Construction) remain soft in the short term. Expressway 2 Nonetheless, recent leasing activity HarbourFront 9 among new developments has been encouraging, supported mainly by tenants in the financial technology, Commercial Residential 4 9 e-commerce and co-working sectors, Average Office Rents 1 Bugis Junction Towers+ 8 Highline Residences albeit with smaller footprint 2 Keppel Bay Tower 9 Keppel Bay precinct* requirements. $ psf / month 3 Keppel Towers and 10 The Glades Keppel Towers 2^ 12 In the near term, while there is a 4 Ocean Financial Centre+ 9 5 One Raffles Quay+ sizeable office supply expected in 2017, 6 the two- to three-year supply position is Marina Bay Financial Centre 6 – Towers 1, 2 and 3+ manageable, given the recent higher – Marina Bay Residences leasing volumes and the bulk of new CBD – Marina Bay Suites 3 – Marina Bay Link Mall+ office supply mainly restricted to Marina 0 7 I12 Katong One. Hence, the prospect for rents to increase looks possible by late 2017. 2012 2013 2014 2015 2016 + Assets owned by Keppel REIT in which the Group has a 44.8% stake. Higher quality CBD buildings, which have Grade A 9.58 9.75 11.20 10.40 9.10 ^ To be redeveloped into a mixed-use development. been the beneficiary of recent leasing * A waterfront precinct which includes Caribbean at Keppel Bay, Reflections at Keppel Bay, Corals at Keppel Bay, Grade B (Core CBD) 7.50 7.70 8.55 8.20 7.35 Marina at Keppel Bay and Keppel Bay Plots 4 and 6. activity, are likely to see the greatest gain when the market begins to pick up. Sources: URA, CBRE
34 Keppel Land Limited Report to Stakeholders 2016 35 Operations and Market Review
Operations and Market Review
In July 2016, Keppel Corporation completed The Manager’s pre-emptive leasing Alpha can leverage and draw on According to Colliers International, Business Outlook Investments the consolidation of its interests in the approach, especially in the last two years, the Keppel Group’s varied businesses concerns over China’s slowing economic Keppel REIT and Alpha will continue to Group’s asset management businesses has also helped to mitigate leasing risk for and depth of expertise to develop high growth and domestic debt developments manage their portfolios through proactive under Keppel Capital Holdings Pte. Ltd. Keppel REIT, with only 3.9% and 1.7% of quality real assets and create value at the start of 2016 saw the Singapore Keppel Land is a sponsor of asset management and value creation (Keppel Capital). This includes Keppel leases due for renewal and review in 2017, for investors. REIT (S-REIT) market off to a negative initiatives as well as strategic acquisitions Keppel REIT and an investor Land’s interests in Keppel REIT respectively, as at end-2016. start. The vote to withdraw the United and divestments. in several funds managed by Management Limited and Alpha. The AAMTF III is the third in the AAMTF Kingdom from the European Union in Alpha Investment Partners. To maximise and capture value for series, launched in response to demand June 2016 and the United States (US) The synergies derived from the increased Keppel Land holds about 45% interest in Unitholders, Keppel REIT divested its from existing investors. This flagship election in November 2016 created scale, improved operational efficiencies, Keppel REIT and is an investor in several interest in 77 King Street in Sydney, fund series was first launched in 2007 volatilities in the equities market, against sharing of best practices as well as better funds managed by Alpha. Through Keppel Australia, in January 2016. The sale to ride on mega trends, including the backdrop of a highly uncertain global talent recruitment and retention, will put Major Developments in 2016 REIT and Alpha’s funds, Keppel Land will price of A$160 million was approximately rising urbanisation and consumerism, economic outlook. The US Federal Reserve’s Keppel Capital’s asset managers in a continue to enjoy investment opportunities 40% above the original purchase price which are driving long-term growth in subsequent decision to raise interest rates, stronger position to grow and improve Keppel Corporation completed the in new markets and recurring income as and 27% higher than the property’s Asia Pacific. with more rate hikes expected in 2017, saw their business performance. In the long consolidation of its interests in the four well as divestment gains from investment latest valuation. an increase in net outflows for S-REITs run, Keppel Land can also benefit from asset managers under Keppel Capital. properties. Together, both Keppel REIT In 2016, Alpha divested a total of 14 towards the end of 2016. improved investment returns from This included Keppel Land’s interests and Alpha have total assets under Alpha Investment Partners assets across Singapore, China and Keppel REIT and the funds under Alpha. in Keppel REIT Management Limited management of approximately $19.6 billion Sustained Performance Japan, generating good returns for its Colliers International further opined and Alpha Investment Partners as at end-2016. investors. These include the divestment that ongoing uncertainties in the global Limited (Alpha). Alpha achieved first closing of two new Looking ahead, Keppel Capital will play a private equity funds in July 2016 – the of a retail mall in Shanghai, Life Hub @ economic outlook will likely see investors key role in collaborating with the business Keppel REIT divested its interest in Keppel REIT Alpha Data Centre Fund (Alpha DC Fund) Jinqiao, through AAMTF II, which realised re-focus on S-REITs, especially those units across the Keppel Group, including 77 King Street in Sydney, Australia. Navigating Challenging Market and Alpha Asia Macro Trends Fund an internal rate of return (IRR) of over with strong balance sheets, long Keppel Land, in developing, owning and 2016 was a difficult year for the office (AAMTF) III, with initial commitments 20% on the sale of the development weighted average lease expiries and operating real assets. It provides the Alpha achieved first closing of two new market, particularly in Singapore given of US$410 million. as well as the divestment of its resilient portfolios. Keppel Group an effective capital recycling private equity funds, Alpha Data Centre the oncoming supply of office space. Singapore suburban retail portfolio, platform and greater capacity to seize Fund and Alpha Asia Macro Trends Notwithstanding the challenging Alpha, in collaboration with Keppel achieving an IRR of over 50%. According to PERE, an estimated opportunities for growth. Fund III, with both funds completing environment, Keppel REIT continued its Telecommunications & Transportation US$100.5 billion was raised in 2016 for their first acquisitions during the year. proactive leasing efforts and ensured its (Keppel T&T), launched the US$500 million Market Review private real estate, a 30% decline from assets remain well-leased to a diverse Alpha DC Fund, which is among the first Globally, financial markets were faced 2015. The lack of fund closures was a key Alpha divested a total of 14 assets and quality tenant base. The Manager’s few unlisted funds of its kind in Asia. with a challenging year. In Singapore, reason for the drop in fundraising in 2016. across Singapore, China and Japan, tenant-centric approach in its leasing Riding on the expertise and strong the Straits Times Index ended 2016 at Since 2013, the number of fund closures generating good returns for investors. efforts have enabled Keppel REIT to track record of Keppel T&T, the fund 2,881 points, down from 2,883 points in have reduced by 12% on average each maintain a high tenant retention rate of offers investors the opportunity to 2015. The FTSE ST REIT Index closed at year. In 2016, 183 funds held a final close, 95% and a committed portfolio occupancy participate in the fast-growing data 710 points in end-2016, up slightly from which was 25% and 38% fewer than in Focus for 2017/18 rate of 99.2% as at end-2016. centre sector. This is testament to how 696 points a year ago. 2015 and 2014 respectively. Continue to seek growth opportunities through strategic acquisitions and divestments, while maintaining a proactive and innovative asset management approach.
Minimise leasing risk through focusing on tenant retention to maintain a long and healthy lease expiry profile for Keppel REIT.
Continue to adopt a prudent and proactive capital management strategy.
Leverage Keppel Capital’s expanded capital platform to co-invest in new assets.
Proactive leasing efforts have enabled Keppel REIT to maintain a high tenant Alpha Data Centre retention rate of 95% Fund made its maiden and a committed acquisition of a data portfolio occupancy centre in Frankfurt, rate of 99.2% as at Germany in 2016. end-2016.
36 Keppel Land Limited Report to Stakeholders 2016 37 Operations and Market Review
Operations and Market Review
In Vietnam, Estella Place is an Strengthening Retail Presence Keppel Land Retail Management’s Portfolio Retail Management Keppel Land Retail Management offers upcoming retail podium located at a full range of professional real estate the Estella Heights condominium in GFA (sm) solutions in Asia, encompassing retail the prime District 2 of Ho Chi Minh City. Keppel Land will harness Singapore I12 Katong 26,140 consultancy and development, marketing Keppel Land Mall Management the strengths of its retail and leasing as well as asset and property Vietnam has been appointed retail Heartland Mall 11,302 management arm to grow its management services. consultant and mall manager of Wisteria Mall 10,931 commercial portfolio. the 26,000 sm of net leasable retail China Park Avenue Central, Shanghai 33,000 Since Keppel Land’s acquisition of I12 space spread across five storeys. Retail component in Sheshan Riviera, Shanghai 6,603 Katong in January 2016, Keppel Land Keppel Land Mall Management Retail mall in Jiading District, Shanghai 40,927 Retail Management has been working Vietnam is now in the midst of Major Developments in 2016 Seasons City, Tianjin 80,564 closely with the owners on asset pre-leasing the mall’s spaces as well Park Avenue Heights, Wuxi 59,000 enhancement plans for the property to as reviewing and managing the retail Represented the buyer to broker the Taiwan TaiMall Shopping Centre, Taoyuan 94,951 sale of two retail properties in the improve its tenancy mix. Retail concepts layout and configuration of shops. Syntrend Creative Park, Taipei 62,180 eastern region of Singapore. are being explored to further strengthen the mall’s positioning as a premier lifestyle Singapore Vietnam Estella Place, Ho Chi Minh City 37,000 Successfully secured anchor tenants and dining destination in the eastern Incoming islandwide retail supply Total 462,598 such as NTUC Fairprice Finest and region of Singapore, including a loop of significantly slowed in the past two Kopitiam food court for Wisteria Mall trendy food and beverage outlets at level years. According to Singapore’s in Singapore. four of the mall. Urban Redevelopment Authority, net retail supply islandwide was Despite the challenging environment, will continue to drive retail growth over Vietnam Assisted Keppel Land China in the In China, Keppel Land acquired a newly approximately 0.6 million sf in 2015 the retail market, in particular, fashion the next 10 years. Vietnam’s economy grew 6.2% acquisition and retail management completed retail mall in Jiading District, and 0.8 million sf in 2016, compared apparels, jewellery as well as food and in 2016, making it among the world’s of a newly completed mall in Jiading Shanghai, in 2016. Keppel Land Mall to the 2.3 million sf in 2014. Major beverage outlets, continues to see Chinese consumers are trading up and fastest growing economy as its District, Shanghai. Management Shanghai is the retail completions were concentrated new entrants. About 30 new retailers are willing to pay for better quality as exports remained resilient to global manager and consultant for the planning, in the suburban areas, with no new set up shops or flagship stores in 2016. well as heath- and convenience-driven trade slowdown. The disbursed foreign positioning and pre-leasing of the mall. completion in the main shopping belt Fast-fashion brands such as Japanese products. Large retailers such as direct investment in Vietnam increased Focus for 2017/18 of Orchard Road. fashion store, Uniqlo, and the emergence McDonald’s opened 250 restaurants by 9.0% y-o-y to US$15.8 billion Enhancement works are currently of character-themed cafés are trends in 2016 and Uniqlo plans to open 100 in 2016. This contributed to an Focus on development management underway and the retail mall, with a total Despite the tight supply, average that were observed in 2016. stores a year, with a long-term goal of impressive retail sales growth consultancy, trade-mix planning and gross floor area of 40,927 sm, is expected prime retail rents islandwide have fallen 3,000 stores in China. of 10.2% in 2016. pre-leasing of spaces for Keppel Land’s 4.8% since their peak in 2014, according China existing retail assets which will open to commence operations in 1H 2018. The China’s retail sales grew 9.6 % year-on- Despite China being the world’s from 2Q 2018 onwards. retail mall, which is directly connected to to research by Cushman & Wakefield. Vietnam presents a promising the bus terminal and subway, is envisaged The pace of decline has since moderated, year (y-o-y), outpacing its GDP growth leader in e-commerce, physical retail platform for retail growth with its Consolidate and optimise resources and to be a community mall to serve the needs with a dip of 2% in 2016. For 2017, of 6.7% in 2016. As the economy is space continues to be in demand increasing population and urbanisation, market intelligence in managing retail of residents, in particular, young couples the sluggish economy is expected to gradually shifting towards domestic as many retailers are still seeking rising incomes as well as positive properties secured in the different and families in the immediate and continue to weigh on retail activity and consumption, the growing middle-class opportunities in the still-unsaturated changes in fiscal and foreign geographical locations. neighbouring precincts. consumer sentiment. and the relaxing of the one-child policy lower-tier cities. homeownership policies.
I12 Katong will be undergoing asset enhancement initiatives to further Keppel Land Retail strengthen its position Management is the as a premier lifestyle manager of the newly and dining destination completed community in the eastern region mall in Jiading District, of Singapore. Shanghai, China.
38 Keppel Land Limited Report to Stakeholders 2016 39 Operations and Market Review
Operations and Market Review
Keppel Land Hospitality Management, the Immigration, Quarantine and Port- Hospitality hospitality arm of Keppel Land, operates a clearance (CIQP) post was opened in Keppel Land’s Hospitality Portfolio portfolio of hotels, serviced apartments, November 2016. The CIQP post provides Management golf courses and marinas across Asia. a one-stop service encompassing Country Property Name Location Description customs clearance, border inspection Keppel Land’s hospitality Positive Tourism Outlook and quarantine to homeowners as Singapore Residences at Reflections Singapore 151 apartments portfolio has grown in repute According to the latest United Nations well as members and guests of Marina Marina at Keppel Bay Singapore 168 berths for its offerings of thoughtful World Tourism Organisation Barometer, at Keppel Cove, which will be operational China Spring City Golf & Lake Resort Kunming Two 18-hole golf courses, 73 guest rooms and 530 resort homes experiences. international travel between January and in 2017. September 2016 grew 4% as compared Eco-City International Country Club Sino-Singapore Tianjin Eco-City 18-hole golf course to the same period in 2015. Asia Pacific led Despite China’s slower economic growth, Marina at Keppel Cove Zhongshan Integrated resort and marina under development the growth, with international tourist arrivals the Eco-City International Country Club Vietnam Sedona Suites Ho Chi Minh City Ho Chi Minh City 89 apartments and another 195 apartments Major Developments in 2016 up 9% in the first nine months of 2016. in Tianjin experienced an increase in golf under development rounds of 6% y-o-y. However, activities Indonesia Ria Bintan Golf Club Bintan 9- and 18-hole golf courses and 31 rooms Completed the upgrading of Ria Bintan Pacific Asia Travel Association forecasts at Spring City Golf & Lake Resort Golf Club’s Ocean Course in Indonesia. Club Med Ria Bintan* Bintan 302 rooms (Spring City) in Kunming were impacted international visitor demand into the Asia Nongsa Point Marina and Resort* Batam 65 berths and 192 rooms Pacific region to grow at an average rate by the government’s policy to curb luxury Opened Sedona Hotel Yangon’s Myanmar Sedona Hotel Yangon Yangon 797 rooms of 4.6% each year to reach in excess of spending by officials and state-owned 431-room Inya Wing in Myanmar. 657 million by 2020. Intra-regional travel enterprises. As a result, the golf rounds Sedona Suites Yangon Yangon 260 serviced apartments under development within Asia is forecast to remain strong at Spring City decreased by 3% y-o-y. Sedona Hotel Mandalay # Mandalay 251 rooms and grow from 72% in 2015 to over 73% With the divestment of the Jiangyin Focus for 2017 * Keppel Land has equity stakes in these properties which are not managed by Keppel Land Hospitality Management. in 2020. Yangtze International Country Club in # Keppel Land signed a conditional sales and purchase agreement to divest its 100% stake on 5 October 2016. Keppel Land Hospitality Management is still Open additional tower in Sedona Suites June 2016, Keppel Land Hospitality the existing operator for the hotel. Ho Chi Minh City in Vietnam under Singapore Management ceased management of Saigon Centre Phase 2 development. Visitor arrivals into Singapore increased the golf course. by 7.7% year-on-year (y-o-y) to reach visitors. The Ocean Course at Ria Bintan Myanmar and the opening of two new Open Marina at Keppel Cove in 16.4 million in 2016, according to the Vietnam Golf Club was partially closed in mid-2015 terminals at Yangon airport. Zhongshan City, Guangdong Province, Singapore Tourism Board. Total international arrivals in Vietnam for upgrading works, which was completed China. reached 10 million in 2016, an increase of in July 2016. This resulted in a 21% y-o-y The new Inya Wing at Sedona Hotel Despite a slow property market and 26% y-o-y. decline in the golf rounds in 2016. Yangon was opened in May 2016. declining expatriate arrivals to Singapore, Initiatives to improve online customer Sedona Hotel Yangon is now the corporate leasing at Residences at Sedona Suites Ho Chi Minh City maintained services and enhance service delivery largest hotel in the city with a total Reflections maintained good occupancy a stable occupancy of 80%, despite the were implemented in 2016. of 797 rooms. It continues to be the in 2016. To stay resilient and competitive strong supply of accommodation from accommodation of choice for business in this challenging climate, Keppel Land buy-to-rent residences which offer Myanmar and leisure travellers. has introduced several value-added competitive long term rental rates. Trade and travel opportunities in Myanmar services such as Laureate, a concierge have improved through its economic In September 2016, Keppel Land entered and lifestyle membership programme The opening of the retail mall under treaties, the lifting of economic sanctions into a conditional joint venture agreement for residents of Keppel Bay. Saigon Centre Phase 2 development, by the United States as well as the visa with the Shwe Taung Group to develop with Takashimaya department store waiver for leisure travellers. premium serviced residences and Marina at Keppel Bay enjoyed a strong as anchor tenant, is expected to boost offices in Phase 2 of Junction City. berthing occupancy of 95% in 2016. occupancy for Sedona Suites Ho Chi According to the Ministry for Hotels and The development will house the first The marina’s new charter brokerage Minh City. An addition of 195 serviced Tourism, Myanmar is expected to reach Sedona Suites in Yangon comprising programme contributed to a strong 75% apartments will commence operations its target of 7.5 million visitor arrivals by about 260 serviced apartments. y-o-y growth in the yacht charter business in the second half of 2017. 2019. Visitor arrivals to Yangon is expected Construction of Phase 2 of Junction City as compared to 2015. to increase with additional flights to is expected to commence in 2018. Following Keppel Land’s sale of its stake China in a joint venture company which owns Keppel Land China has embarked on Sedona Suites Hanoi in March 2016, an integrated residential-cum-marina the Company ceased its hospitality lifestyle development in the affluent management service at Sedona Suites Pearl River Delta region. Located on Hanoi on 1 September 2016. Modao Island in the Shenwan Town of Zhongshan City, Guangdong Province, Indonesia Keppel Cove is one of the first premium Alongside Jakarta and Bali, the Indonesia integrated waterfront developments government is stepping up promotions in the region, offering premium homes on golfing in Bintan through various with private berthing amenities, leisure marketing campaigns and tournaments facilities and comprehensive marina as Indonesia faces stiffer competition from recreational activities for residents other golf courses in the region. and visitors. As more new resorts open in Bintan, the Keppel Land opened the new 29-storey Keppel Cove has also been selected as island is becoming an attractive travel Inya Wing at Sedona China’s first national-level development destination to both tourists and golfers. Hotel Yangon in May with direct yacht sailing rights between Total visitor arrivals in 2016 increased 2016, bringing the total room inventory at the Macau and Zhongshan. The Customs, by 22% y-o-y to an approximate 677,000 hotel to 797.
40 Keppel Land Limited Report to Stakeholders 2016 41 Operations and Market Review
Operations and Market Review
Growing Presence about 16% higher than the 3,280 homes newly completed retail mall in Jiading growth target at around 6.5% for 2017, China China is one of Keppel Land’s core sold in 2015, backed by the easing of home District in Shanghai. Positioned as as the government takes steps to markets and the Group is committed to purchase restriction across Shanghai, a community retail centre, the mall, avoid an asset bubble and a build-up Tianjin, Chengdu and Wuxi. with a total gross floor area of 40,927sm, of non-performing loans in the Keppel Land will continue scale up in high-growth cities, with a focus on Shanghai, Beijing, Tianjin, is expected to open in 1H 2018 after economy. Continuing property cooling to strengthen presence Chengdu and Wuxi. Keppel Land has a healthy pipeline of renovation works are completed. measures will curb prices and keep in its core market of China, about 8,800 launch-ready units in China growth in check. focusing on five key cities Keppel Land has been building its for the next three years and is poised to Stable Economic Growth where it has established reputation and track record as a choice capture the pent-up and new demand for China’s economy grew 6.7% year-on-year The United Nations has forecast strong track records, home developer in China for over two quality homes as the market recovers. (y-o-y) in 2016, compared with 6.9% in China’s urban population to grow by networks and local teams. decades, completing a total of about 2015. The service sector, which accounted another 240 million between 2015 and 33,000 units in more than 10 cities. In 2016, Keppel Land China proactively for 51.6 % of GDP in 2016, grew 1.4% 2030 as the urbanisation rate increases recycled assets to achieve higher y-o-y. Internet technology, the sharing from 55.6% to 68.7%. Keppel Land’s exposure in China has returns for the Group. Keppel Land economy, e-commerce and tourism have Major Developments in 2016 increased since the Group reorganised successfully monetised assets such become major driving forces behind the This translates to an average annual its operations with the establishment as Life Hub @ Jinqiao, a shopping service sector. increase of 16 million urbanites. Sold about 3,800 homes, 16% more mall in Shanghai, Jiangyin Yangtze Based on China’s official average homes than 2015. of Keppel Land China in 2010. As at end-2016, Keppel Land China contributed International Country Club as well as China’s contracted sales for property household size of three persons Monetised assets such as Life Hub @ about 41% of the Group’s total assets, township developments, The Botanica in grew by 36.2% y-o-y to a record high of as of 2013, there will be a demand Jinqiao, Jiangyin Yangtze International more than double the 20% in 2010. Chengdu and Central Park City in Wuxi, RMB 9.9 trillion in 2016, driven by growth for about 5.3 million new urban Country Club as well as The Botanica To date, Keppel Land China has presence both mostly completed, for a total in both sales volume and average prices. dwellings annually. and Central Park City townships in 10 cities with over 20 projects and a consideration of about $468 million. Average new home prices in 70 major for a total consideration of about pipeline of about 33,000 homes. cities rose 12.4% in December from a Urbanisation plays an important role $468 million. In line with Keppel Land’s strategy to year earlier. in China’s economic transformation In 2016, Keppel Land sold 3,800 homes in expand its commercial portfolio and ride and the central government is Invested in a newly completed China, accounting for about 65% of total on the expertise of its retail management Despite the robust uptrend in the reforming its hukou system to community mall in Shanghai. sales. Home sales achieved in China were arm, Keppel Land China acquired a property market, China has set its GDP facilitate the urbanisation process.
Focus for 2017
Focus on five cities – Shanghai, Beijing, Tianjin, Chengdu and Wuxi. Focus Cities
Grow commercial presence in Tier 1 cities.
Monitor market for residential launches. FDI 2016 FDI 2016 FDI 2016 FDI 2016 FDI 2016 US$51.0b US$13.0b US$10.1b US$8.5b US$3.2b
GDP 2016 GDP 2016 GDP 2016 GDP 2016 GDP 2016 6.8% 6.7% 9.0% 7.7% 7.5%
Shanghai Beijing Tianjin Chengdu Wuxi
42 Keppel Land Limited Report to Stakeholders 2016 43 Operations and Market Review
Operations and Market Review China
Shanghai Seasons Residences two blocks, have been sold. An office-cum- Beijing development base for advanced comprises 918 apartments with completion Shanghai’s GDP grew 6.8% y-o-y to retail development is planned for Park Beijing continued to achieve steady manufacturing, a shipping hub for expected in 2020. Location: Nanxiang, Jiading District RMB 2.75 trillion in 2016. Growth was Avenue Central. economic growth with GDP reaching North China, a pilot ground for financial Development type: High-rise apartments mainly led by the financial and information RMB 2.49 trillion in 2016, a 6.7% y-o-y innovation and an experimental area The last phase of the development, Seasons Total no. of units: 1,102 technology sectors. Sheshan Riviera growth. Growth was mainly led by the for future economic and social reforms. Heights, comprises 372 apartments and GFA: 128,918 sm finance, real estate, health, information Supported by a series of incentive 142 commercial units. It is expected to be Location: Sheshan Town, Songjiang District Home prices increased 20% y-o-y while Completion: 2016 technology and communication as well policies such as reduction in deed tax and completed in 2019. As at end-2016, all 64 Landed homes primary home sales volume declined 7% Development type: as software industries. downpayment as well as an increase in launched units have been sold. to 13.9 million sm in 2016. New market Situated in a mature satellite town in Total no. of units: 217 the Housing Provident Fund loan limits, Seasons City, the commercial sub-centre, supply fell 35% y-o-y to 7.9 million sm Nanxiang, Jiading District, Seasons GFA: 83,174 sm Demand in the Grade A office market residential demand exceeded new supply will feature three office towers and retail in 2016. In view of the limited supply and Residences comprises 1,102 high-rise Expected completion: 2017 (Phase 1) remained strong with net absorption with an absorption rate of 181% during premises with a combined GFA of about cooling measures, transaction volume is apartments. It is a 30-minute drive from registering about 545,517 sm as at the first nine months of 2016. Transaction 162,000 sm. Construction has commenced expected to remain sluggish in 2017. the People’s Square and is well-connected Located within Shanghai’s luxury villa end-2016, driven primarily by the financial, volume rose 50% y-o-y and average selling and Phase 1 is targeted for completion to Shanghai’s city centre via Metro Line 11 enclave, the residential site is at the investment, insurance and high technology prices reached RMB 13,216 psm. in 2019. Meanwhile, Grade A office market and the expressway. boundary of Sheshan National Forest Park industries. Market rents maintained a enjoyed steady growth in rents in 2016 and is well-served by leisure amenities. moderate upward trend in 2016 with a Sino-Singapore Tianjin Eco-City and this trend is expected to continue Almost all of the 310 units under Phase 1, It is close to the Metro Line 9 Sheshan y-o-y growth of 1.7%. Overall demand for Serenity Villas Location: Tianjin Binhai New Area into 2017 with financial institutions and 306 units under Phase 2 and 288 units station, about 20 km from the Shanghai Grade A office space is expected to remain Location: Sino-Singapore Tianjin Eco-City Development type: Eco-township professional services dominating the under Phase 3, have been sold as at Hongqiao International Airport and a robust. Rents are expected to be stable in Development type: Landed homes demand market. end-2016. Phase 4, the last phase, 45-minute drive from the city centre. 2017, due to the incoming supply. Total no. of units Total no. of units: 340 comprising 198 units, was launched in The development will yield 217 landed (36.6-hectare within SUA): 4,294 GFA: 80,000 sm Shanghai’s retail market remains September 2016 and about 88% of the homes with an auxiliary retail component. Commercial Development GFA: 625,292 sm (Residential and commercial) healthy and rents will likely be stable 164 launched units have been sold as at Phase 1 was launched in November 2016 Completion: 2014 Location: CBD, Chaoyang District Expected completion: with low vacancy rates at well-managed end-2016. and 6% of the 53 launched units have 2018 (Seasons Garden Plot 9) Development type: Mixed-use malls in prime locations. Retail sales been sold as at end-2016. 2019 (Seasons Garden Plot 8, Season Heights, Located at Ying Cheng South Island, are expected to remain buoyant, 8 Park Avenue GFA: 104,800 sm Seasons City Phase 1) Hangu District, within the Sino-Singapore supported by rising affluence and the Tianjin Eco-City, Serenity Villas comprises Location: Jing’an, Puxi District Retail Mall government’s efforts to boost domestic The site is centrally located in Beijing’s The Keppel Group leads the Singapore 340 eco-apartments, villas and semi- Development type: High-rise apartments Location: Malu, Jiading District consumption. central business district (CBD) in consortium in the 30-square km Sino- detached houses. Close to 50% of the 340 Total no. of units: 918 Retail mall Development type: Chaoyang District and is slated for the Singapore Tianjin Eco-City project, which units have been sold as at end-2016. The Springdale GFA: 133,393 sm GFA: 40,927 sm development of three Grade A office is now in its ninth year of development. Location: Xinchang Town, Pudong District Completion: 2015 Completion: 2016 towers and retail premises. Given its prime Keppel Corporation and Keppel Land China Waterfront Residences Development type: High-and low-rise location and quality specifications, the hold 45% and 55% interests, respectively, Location: Sino-Singapore Tianjin Eco-City The Park Avenue precinct comprises three apartments and Located in the south of Malu Town within development is expected to attract in a 36.6-hectare site located in the Development Type: Landed homes terrace homes projects – One Park Avenue, 8 Park Avenue the Jiading New City Core Area, the state-owned enterprises and multinational Start-Up Area (SUA) of the Sino-Singapore Total no. of units: 341 Total no. of units: 2,596 and Park Avenue Central. Located in property is a newly-built shopping mall with corporations when completed. Tianjin Eco-City. Development will be GFA: 61,417 sm GFA: 328,792 sm downtown Shanghai, in the prime Jing’an an estimated net lettable area of 32,800 sm. carried out in phases and is expected to District, Park Avenue is highly accessible The mall is part of a mixed-use development yield 4,294 homes, offices and retail outlets. Completion: 2015 Tianjin Expected completion: 2017 (Phase 3) via expressways and the Jing’an Metro comprising offices, shops and residential Tianjin’s GDP grew 9.0% to reach RMB Located in Xinchang Town, Pudong Line 7. towers. It is highly accessible via direct 1.79 trillion in 2016, above the national Seasons Park is the first project in the Situated within the SUA and close to the District, The Springdale comprises connection to the Metro Line 11 Malu average of 6.7%. During the first three Keppel Group’s four-phase residential future city centre of the Sino-Singapore 2,596 units of high-and low-rise The 1,118-unit One Park Avenue is fully station and Malu Bus Terminal as well as quarters of 2016, actual foreign direct development in the SUA. Comprising Tianjin Eco-City, Waterfront Residences apartments and terrace houses. It is a sold. 8 Park Avenue comprises 10 via several highways, including the investments increased by 12.2% y-o-y to 1,672 homes, it was completed in 2012 comprises 341 terrace and semi-detached five-minute drive from the Xinchang Town residential towers with 918 high-rise Huxiang, Hujia and Jiamin Highways. US$10.1 billion, of which 25.1% was and all units were sold by June 2016. houses. Targeted at the upper-middle metro station and a 15-minute drive apartments. The first six blocks, comprising invested in the Tianjin Free Trade Zone. income segment, Phases 1 and 2 from Shanghai Disneyland. All 2,536 units 552 units, are fully sold. Almost all of the Positioned as a community retail centre, Phase 2, Seasons Garden, comprises developments were completed in 2016 while under Phases 1, 2 and 3 have been fully 260 units at blocks 7 and 8 have been the mall is undergoing renovation and is Under the coordinated development plan 1,190 apartments. Almost all of the 596 Phase 3 is expected to be fully completed sold and almost all of the 60 units under sold as at end-2016, while 76% of the 91 expected to commence operations in for the Beijing-Tianjin-Hebei cluster, launched units have been sold as at in 2017. 98% of the 285 launched units Phase 4 have been sold as at end-2016. launched units at blocks 9 and 10, the last 1H 2018. Tianjin will be a national research and end-2016. Phase 3, Seasons Residences, have been sold as at end-2016.
Almost all of the 596 launched units Sheshan Riviera is at Seasons Garden Keppel Land’s latest in the Sino-Singapore villa development in Tianjin Eco-City Shanghai. have been sold.
44 Keppel Land Limited Report to Stakeholders 2016 45 Operations and Market Review
Operations and Market Review China
Chengdu The development comprises 1,535 Serenity Villas Wuxi Surrounded by a 260-hectare national Chengdu, the provincial capital of Sichuan, high-rise apartments with shop spaces. Wuxi’s GDP expanded 7.5% y-o-y Location: Mumashan, Xinjin County wetland park and fronting the scenic is the economic hub of Western China. Capitalising on the growing demand to RMB 659 billion in the first three Li Lake, the development is near the Development type: Landed homes Its GDP grew 7.7% y-o-y to RMB 1 trillion for city living, Phase 1, comprising quarters of 2016, mainly due to strong Metro Line 1 station and is a 15-minute Total no. of units: 573 in 2016. The city continues to enjoy 575 units, was fully sold by end-October growth in the industrial and tertiary drive from the city centre. phenomenal growth as economic 2016. Almost all of the 240 units in GFA: 233,862 sm sectors. The per capita disposable activities shift to Western China and Phase 2A and 220 units in Phase 2B Expected launch: 2020 (Phase 2) income of urban residents rose 7.9% Targeted at the upper-income segment, multinational corporations establish have been sold as at end-2016. to RMB 24,546 in 1H 2016. Phase 1, comprising 62 terrace and villa their presence in Chengdu. Chengdu Launched in June 2016, 88% of the Adjacent to Hill Crest Villas, Serenity Villas units, was launched in December 2015 is the fourth largest city in China with 220 units in Phase 3A have been sold will comprise 573 landed homes. The two The outlook for Wuxi’s economy remains and about 87% of the launched units a total population of nearly 14 million, as at end-2016. Phase 3B, the last landed developments will cater to different positive with GDP growth forecast to have been sold as at end-2016. Phase 2, with 50% of it being urbanites. phase comprising 280 units, is segments of buyers within the middle- to remain stable in 2017. Increased foreign comprising 236 mid-rise apartments, and scheduled to be launched in 1H 2017. upper-income segment. Phase 1 of Serenity investments, rising affluence and greater Phase 7A, comprising eight villas and 75 Chengdu experienced significant increases Villas, comprising 84 units, is launch-ready. transport integration with other Chinese terrace units, are expected to be launched in home prices in 2016. To stabilise The construction of Phases 1, 2 and cities will help sustain its strong in 1H 2017. the property market, the government 3A have been completed while the V City economic growth. released a series of cooling measures construction for Phase 3B is ongoing. Location: Pi County Park Avenue Heights in October 2016 to restrict home loans Wuxi’s residential market was buoyant and purchases. In 2016, total transaction Development type: High-rise apartments in the first three quarters of 2016. Location: Liangxi District Hill Crest Villas volume for residential homes increased Total no. of units: 5,617 With the relaxation of home purchase Development type: Mixed-use Location: Mumashan, Xinjin County by 31.4% y-o-y to 10.7 million sm, GFA: 560,963 sm policies and the lowering of borrowing Total no. of units: 1,048 Development type: Landed homes with the average selling price increasing Expected completion: 2018 (Phase 2) rates, residential sales volume increased GFA: 165,308 sm Total no. of units: 274 by 17.8% y-o-y to RMB 11,587 psm. by 58.6% y-o-y to 8.8 million sm while Expected launch: 2017 (Phase 1) With an absorption rate of 151.7%, GFA: 163,147 sm V City is the second collaboration between average home prices rose 26% y-o-y demand for homes is expected to be Expected completion: 2020 (Phase 2) Keppel Land and China Vanke, following to RMB 10,138 psm. Situated in Liangxi District, at the strong in 2017. their joint venture on a residential project junction of Jianghai Road and Xicheng Situated in an established low-density in Singapore. Waterfront Residences Road as well as near the city centre, the Park Avenue Heights residential enclave in Mumashan, Location: Shanshui, Binhu District mixed-use development will comprise southwest of Chengdu, Hill Crest Villas Located adjacent to the Bai Cao Road Location: Jinjiang District Development type: Low-rise homes, mid-rise 1,048 units of high-rise apartments and will feature 274 landed homes when station of the Metro Line 2, the apartments and commercial components a commercial component. Development type: High-rise apartments completed. The project is located 16.7-hectare land plot will yield 5,617 Total no. of units: 1,481 (Residential), Total no. of units: 1,535 about 20 km from the city centre apartment units when completed. As at 683 (Commercial) Park Avenue Heights is located next to the GFA: 200,200 sm and 10 km from Chengdu’s Shuang Liu end-2016, almost all of the 1,434 units GFA: 306,607 sm Metro Line 1 station. Well-connected via Expected completion: 2017 (Phase 3B) International Airport. It is close to under Phase 1 have been sold. Phase 2, Expected completion: 2017 (Phase 7A) major roads, the development will enjoy Tianfu New City, earmarked to be comprising 1,495 units, was launched in convenient access to numerous amenities Park Avenue Heights is a prime residential Chengdu’s software town and future May 2016 and 82% of 1,413 launched Located in Shanshui, Binhu District, and facilities such as education project located in the city centre, along the CBD. The development is targeted units have been sold as at end-2016. Waterfront Residences will comprise institutions, supermarkets and shopping Second Ring Road, close to the Dongdajie at the upper-middle income segment. The construction of Phase 1 is fully 1,481 units of villas, terrace houses malls. Targeted at the upper-middle financial district and about a 10-minute Fifty-three units under Phase 1 are completed while the construction of and mid-rise apartments and 683 income segment, Phase 1 is expected to walk to the metro station. launch-ready. Phase 2 is ongoing. commercial units. be launched in 2017.
Located in Liangxi District, Wuxi, Park Avenue Heights is a mixed-use development comprising 1,048 V City in Chengdu units of high-rise will yield over 5,600 apartments and high-rise apartments a commercial when fully completed. component.
46 Keppel Land Limited Report to Stakeholders 2016 47 Operations and Market Review
Operations and Market Review
Continued Strong Momentum With the significant infrastructure Condominiums 37,000 sm of gross floor area. Estella As at end-2016, 96% of the units have Vietnam Vietnam’s economy remains buoyant improvements and recent developments Ho Chi Minh City Place will be positioned as an eco-friendly been sold. In October 2016, 345 units of supported by a steady GDP growth rate, in the Thu Thiem New Urban Area, mall, offering a host of specialty stores, the 518-unit Phase 1B, The View, was District 2 as well as District 7, Keppel Estella Heights food and beverage outlets as well as launched and is 36% sold as at end-2016. As one of the pioneer and moderate inflation, strong foreign direct investments disbursement and Land’s projects in these growth corridors Location: District 2 educational and enrichment centres. largest foreign developers increasing overseas remittance. will continue to receive positive response. Total no. of units: 872 Estella Place is expected to open by in Vietnam, Keppel Land will Villas Vietnam’s housing market is expected GFA: 160,785 sm end-2018. Ho Chi Minh City continue to leverage its strong In 2016, Vietnam achieved a growth rate to continue its upward momentum Completion: 2017 (Phase 1) reputation in developing of 6.2% while inflation increased from in 2017. Riviera Cove 2018 (Phase 2) Riviera Point premier developments. 0.6% to 2.7% year-on-year (y-o-y). Location: District 9 As there has been no new supply Estella Heights is located in the popular Location: District 7 Total no. of units: 96 Vietnam attracted US$24.4 billion of Grade A office building since An Phu Ward in District 2, a residential Total no. of units: 2,400 GFA: 34,711 sm of pledged foreign direct investments 2H 2015, occupancy for Grade A enclave for the affluent. It is a 15-minute 437,944 sm Completion: 2012 Major Developments in 2016 GFA: with disbursement up by 9% y-o-y office space remains high at around drive to the CBD via the East-West Completion: 2014 (Phase 1A) Located in District 9 of HCMC, Sold more than 1,500 homes, mostly to US$15.8 billion in 2016. Exports 95%, with banking and finance, Highway and Thu Thiem Tunnel. 2019 (Phase 1B, The View) from Palm Residence, Palm Heights, reached US$175.9 billion, up by logistics and technology sectors Residents will enjoy greater connectivity Riviera Cove enjoys easy access to the The View, Phase 1B of Riviera Point, 8.6% y-o-y, while imports reached leading leasing demand. Grade A to the city when the An Phu metro station, Located on an 8.9-hectare site, CBD, which is about a 30-minute drive and Linden Residences, Phase 1 of US$173.3 billion, resulting in a trade office supply in the central business located close to the development, opens Riviera Point enjoys a 500-m frontage away. Travelling time to the city centre Empire City. surplus of US$2.6 billion. Vietnam’s district (CBD) will continue to be in 2020. The development also enjoys of the Ca Cam River, offering luxurious has been significantly shortened with retail and service sectors posted a total limited until 3Q 2017 when the office close proximity to reputable international waterfront living for residents. Targeted the completion of the first stage of the Acquired 40% equity interest in revenue of US$156.1 billion in 2016, tower under Saigon Centre Phase 2 schools such as the British International at the upper-middle income segment, the Inner Ring Road and the opening of the Empire City Limited Liability Company a growth of 10.2% y-o-y. is completed. School, International School HCMC and development will feature 2,400 waterfront HCMC-Long Thanh Expressway. Residents to jointly develop a 14.6-hectare prime Australian International School. apartments when fully completed. of the 96 resort-style villas can enjoy waterfront site in the Thu Thiem In Ho Chi Minh City (HCMC), about Vietnam’s retail market grew 10.2%, waterfront views with the development’s New Urban Area. 35,000 units of the approximately posting a revenue of US$118.5 billion Estella Heights is a mixed-use development The site is about a 35-minute drive to the 280-m frontage to the Rach Chiec River. 37,000 new apartments launched for in 2016. Limited supply of prime retail targeted at the upper-middle income CBD. With the completion of Phu Thuan Subscribed for VND 500 billion sale in 2016 were sold. Mid-end and space will continue to push up both segment. Phase 1, comprising 496 units, Bridge and the newly-built Ca Cam Bridge, The waterfront gated villa development convertible bonds in Nam Long high-end apartments accounted for occupancy and rental rates. Various is about 97% sold as at end-2016. residents can enjoy easy access to was completed and handed over to Investment Corporation, a leading 45% and 28% of the launched supply international trade deals such as the facilities such as international schools, homebuyers in 2012. About 86% of the affordable housing developer in respectively. Prices increased by about European Union free trade deal will Phase 2, the Signature Collection, hospitals as well as retail and leisure villas have been sold as at end-2016. Ho Chi Minh City. 10% and 5% for the mid-end and enable Vietnam’s retail market to comprising 376 units, is 74% sold as at amenities in the commercial centre of the high-end segments, respectively. retain its double digit growth. end-2016. adjacent township, Phu My Hung. In December 2016, Keppel Land acquired Opened Saigon Centre Phase 2 an additional 40% stake in Riviera Cove, retail mall in August. Phase 2 sits atop a five-storey retail Phase 1A, comprising 549 units, was thereby consolidating its ownership in the villa development. Divested International Centre and podium, Estella Place, which comprises handed over to homebuyers in 2014. Sedona Suites in Hanoi.
Acquired additional 40% stake in Riviera Cove and divested 60% stake in Casuarina Cove.
Acquired 45% stake in Quoc Loc Phat Joint Stock Company, which owns a prime waterfront site in the Thu Thiem New Urban Area.
Focus for 2017
Launch Phase 2 of Empire City and Phase 3 of Palm City.
Open the office tower and 195 serviced apartments under Saigon Centre Phase 2 in 2H 2017.
Vietnam, especially Ho Chi Minh City, is The View at Riviera one of Keppel Land’s Point, targeted at the growth markets upper-middle income where it will continue segment, enjoys a to strengthen 500-m frontage of its presence. the Ca Cam River.
48 Keppel Land Limited Report to Stakeholders 2016 49 Operations and Market Review
Operations and Market Review Vietnam
Townships Saigon Sports City With a 1.5 km-frontage to the Dong Nai The 89 serviced apartments under The Thu Thiem New Urban Area is to be River and its tributaries, the township Sedona Suites are 82% leased. developed into HCMC’s largest economic, Ho Chi Minh City Location: District 2 will feature 7,850 homes including commercial and financial centre, offering Palm City Total no. of units: 3,900 terraces, villas and mid-rise apartments Phase 2 of Saigon Centre will comprise cultural, entertainment and recreational Location: District 2 GFA: 783,300 sm with a variety of commercial facilities. 55,000 sm of prime retail space, 44,000 sm activities. Key transport infrastructure Total no. of units: 6,100 Expected launch: 2H 2017 (Phase 1) of premium Grade A office space within the Thu Thiem New Urban Area is GFA: 874,044 sm Mixed-Use and 195 luxury serviced apartments under development and is expected The 64-hectare site is located in the Expected completion: 2017 (Phase 1, Palm Ho Chi Minh City when fully completed. The retail mall is to be completed by 2017. Residence), 2019 (Phase 2, Palm Heights) upper-middle income residential enclave 100% leased with over 400 international of An Phu Ward in District 2, which is Saigon Centre and local brands, including leading Empire City will yield about 2,800 luxury Location: District 1, Le Loi Boulevard The 30-hectare integrated waterfront popular with expatriates. The site is less Japanese department store, Takashimaya, high-rise residences, Grade A office space, development is situated in the tranquil than a 20-minute drive from the CBD and GFA (Phase 2): as its anchor tenant. Since its opening prime retail space as well as an 86-storey 55,000 sm (Retail Podium) An Phu Ward with a 2.7-km frontage to the is easily accessible via HCMC-Long Thanh- in August 2016, the mall has received integrated mixed-use tower complex. Dau Giay Expressway or Hanoi Highway. 44,000 sm (Office) more than 4.3 million visitors as at Phase 1, Linden Residences, comprising Giong Ong To River and Muong Kinh River 195 units (Serviced Apartments) end-2016. 510 units, was launched in December 2016. in District 2. The development is easily Expected completion: 2H 2017 (Phase 2 The development will offer residents a About 82% of the units have been sold as accessible via the East-West Highway, Office Tower) the HCMC-Long Thanh-Dau Giay live-work-play lifestyle with sporting as Construction of the 37-storey office at end-2016. Expressway, and is only a 15-minute well as retail, educational and medical Saigon Centre is strategically located tower is progressing on track for facilities. Phase 1 of the development is drive from the CBD as well as within a on Le Loi Boulevard, one of the city’s completion in 2H 2017. The office Prime 4.8-hectare Site five-minute drive to the Thu Thiem expected to be launched in 2H 2017. main thoroughfares and within proximity tower will house serviced apartments Location: District 2 New Urban Area. to the HCMC People's Committee, under Sedona Suites. Dong Nai Ben Thanh Market, Opera House, Total no. of units: 1,550 the Dong Khoi shopping belt and To be developed in phases, Palm City Dong Nai Waterfront City Empire City GFA: 415,000 sm comprises a mix of landed residential prominent hotels. Dong Nai Location: District 2 Expected launch: 2018 housing, shophouses, high-rise Location: 7,850 Total no. of units: 2,800 apartments, commercial and retail Total no. of units: Developed in several phases, Phase 1 The 4.8-hectare site is located about components as well as supporting GFA: 2,100,000 sm was completed in 1996 and comprises GFA: 661,000 sm one km from the Empire City development amenities including educational and Expected launch: 2021 a 25-storey mixed-use development which Expected completion: 2020 (Phase 1, and comprises one-third of the waterfront medical facilities, kindergarten and parks. includes Grade A office space, retail and 89 Linden Residences) residential plots in the Thu Thiem New The township development is within a luxury serviced apartments. Phase 1 of Urban Area. Phase 1, comprising 135 landed homes, 45-minute drive from the CBD with easy Saigon Centre has established itself as The 14.6-hectare waterfront development was launched in July 2016 and was sold accessibility via Hanoi Highway and the the preferred business and residential is situated in the Thu Thiem New Urban Upon completion, the mixed-use out over a weekend. Phase 2, Palm HCMC-Long Thanh-Dau Giay Expressway. address in HCMC. As at end-2016, the Area, the future CBD of HCMC. Overlooking development is expected to yield about Heights, comprising 816 high-rise Residents will enjoy close proximity to the office tower under Phase 1 is about 97% the Saigon River, the site is about a 1,550 high-end apartments with 225,000 sm apartments, was launched in October Big-C hypermart, the Saigon Hi-Tech Park leased to the diplomatic corps and five-minute drive to the city centre of Grade A office and commercial space. 2016. About 83% of the units have been and the future international airport in multinational companies as well as through the East-West Highway and The project is expected to be launched sold as at end-2016. Long Thanh. banking and financial institutions. the Thu Thiem Tunnel. in 2018.
Keppel Land’s upcoming developments in the Thu Thiem New Urban Area, such as Empire City (pictured), will Phase 2 of Palm City, augment the Company’s Palm Heights, received quality portfolio of positive response with prime residential and 83% of the 816 units commercial properties sold as at end-2016. in Ho Chi Minh City.
50 Keppel Land Limited Report to Stakeholders 2016 51 Operations and Market Review
Operations and Market Review
Moderate growth face headwinds with a moderate economic Future Residential Development excellent connectivity to business districts corporations. Tenants secured include Indonesia’s GDP grew 5% year-on-year recovery and a large incoming office and various facilities and amenities via the Servcorp, Tokio Marine, Shinhan Bank, Indonesia Location: West Jakarta in 2016 as compared to 4.8% in 2015. supply in 2017. However, the recent Merak Toll Road and Karang Tengah Toll Grant Thornton, Rintis and Ithaca interest rate cuts and government Total no. of units: 4,523 Road. The Soekarno-Hatta International Resources. Keppel Land is committed Indonesia’s GDP is expected to average between 5.1% and 5.4% from 2016 to stimulus packages offer grounds for GFA: 226,800 sm Airport is also just a 30-minute drive away. to deepen its presence in 2020. Economic growth is driven primarily optimism in the long term. The existing Tower 1 will be redeveloped Indonesia, with a focus on Expected completion: 2026 by domestic consumption as well as Commercial into a 56-storey office tower offering Greater Jakarta. ongoing infrastructure development projects about 73,000 sm of quality office space. Condominiums Located adjacent to West Vista, the Jakarta initiated by the government. Since August Jakarta development will comprise more than 2015, the government has introduced a 4,500 residential units with ancillary International Financial slew of economic stimulus packages as West Vista at Puri Centre Jakarta Major Developments in 2016 shophouses and shop units. well as a tax amnesty programme which Location: West Jakarta The development will enjoy good Location: Jalan Jenderal Sudirman seeks to strengthen the economy as well Key tenants including Servcorp, Total no. of units: 2,855 connectivity to the western and eastern GFA: 153,809 sm Tokio Marine and Shinhan Bank as facilitate business investment. parts of Jakarta when the future Jakarta GFA: 153,464 sm have moved into International Inner Toll Road is completed in 2019. Completion : 2016 (Tower 2) 2022 (Tower 1) Financial Centre Jakarta Tower 2. In Jakarta, lukewarm buying sentiments Expected completion: 2020 resulted in residential demand remaining Landed Homes Entered into a joint venture with slow in 2016. Notwithstanding the Located along the Jakarta Outer Ring Located in Jakarta’s financial district PT Metropolitan Land Tbk, one of short-term challenges, the fundamentals Road and close to West Jakarta’s central Greater Jakarta and within the golden triangle zone in Indonesia’s leading property for Jakarta’s residential market continue business district, West Vista at Puri is a Metland Puri Site the Sudirman District, International developers, to build landed homes to be sound, supported by improving high-rise condominium development Location: Tangerang Financial Centre Jakarta enjoys excellent in Tangerang, Greater Jakarta. infrastructure, rising domestic wealth, with ancillary shophouses targeted at accessibility via key transport routes such Total no. of units: 442 increasing urbanisation and favourable the middle-income segment. as the Transjakarta busway. Connectivity demographics, including a large and GFA: 72,340 sm will be further enhanced with the future Focus for 2017 young population. Future residents can enjoy excellent Expected completion: 2019 Jakarta mass rapid transit. connectivity to the airport, key business Invest strategically with a focus on Similarly, office demand in Jakarta district and various lifestyle and Completed in May 2016, Tower 2 offers Greater Jakarta. Strategically located within the remained tepid in 2016 amid slower entertainment facilities. As at end-2016, established Metland Puri Township, about 50,200 sm of net leasable area, economic growth and the uncertain global about 50% of the 300 launched units Prudently recycle asset to unlock the development will yield 442 landed meeting the growing demand for prime outlook. Office rentals will continue to have been sold. value on existing investments. homes. Future residents can enjoy office space from local and multinational
Keppel Land has International Financial a pipeline of close Centre Jakarta will to 8,000 homes in meet the demand for Greater Jakarta prime office space including those in West in Jakarta’s central Vista at Puri (pictured). business district.
52 Keppel Land Limited Report to Stakeholders 2016 53 Operations and Market Review
Operations and Market Review
The Philippines With new prime residential units coming Mixed-Use on-stream, occupancy in Makati’s CBD Manila has decreased from 91.1% to 88.5% in The Philippine economy grew by 6.8% 3Q 2016 while rental rates for prime SM-KL Project in 2016 as compared to 5.9% in 2015. residential units have declined by 4.1% Location: Mandaluyong City The economy is expected to grow since the start of 2016. The occupancy GFA: About 73,000 sm (Retail) between 6.0% and 6.5% over the rate is expected to remain at the current About 110,100 sm (Office) next three years on the back of stable level as more new projects are completed Expected completion: 2017 (Retail) macroeconomic fundamentals, in 2017. 2019 (Office) including strong domestic consumption and investment growth. Condominiums Located in the heart of Ortigas’ CBD, Manila The Podium under Phase 1 of the Outlook for the retail sector remains SM-KL project offers a good mix of Palmdale Heights bullish, given increased remittances specialty stores featuring well-known from overseas Filipinos, revenue Location: Pasig City international and local brands. from the expanding business process Total no. of units: 828 outsourcing industry as well as high GFA: 47,063 sm (Phases 1 & 2) Phase 2 will comprise a 42-storey consumer spending. Completion: 2004 (Phases 1 & 2) office tower sited above the extension of The Podium, which will add over The strong demand for office space in With easy access to the CBDs of Makati 30,000 sm of retail space. This brings the CBD as well as emerging hubs in and Ortigas, Palmdale Heights offers the total leasable area for retail to Makati is expected to continue with 99% homeowners a convenient lifestyle around 50,000 sm when completed. occupancy rate in 2017, driven mainly with modern amenities. The office tower, which offers a by the Information Technology-Business net leasable area of over 89,000 sm, Process Management sector. Average Some 99% of the 828 units in the will cater to the growing demand rents for premium buildings in Makati’s first two phases have been sold as at from multinational corporations CBD rose 2.8% since the beginning of end-2016. The remaining five hectares and business process outsourcing 2016 and is expected to increase will be jointly developed with Phinma companies seeking quality between 6% and 10% in 2017. Property Holdings Corporation. office space.
Myanmar According to the Economist Intelligence Commercial Unit, Myanmar’s GDP is expected to grow Yangon at an average of 9% per annum from 2017 to 2022. Economic growth will be spurred Junction City Tower by large projects funded by foreign Location: Junction of Shwedagon Pagoda investors in sectors such as infrastructure Road and Bogyoke Aung San Road as well as oil and gas exploration. GFA: 53,100 sm (Phase 1) 50,000 sm (Phase 2) New demand for office space is expected Completion: 2017 (Phase 1) to come from the financial services, 2021 (Phase 2) infocommunications, infrastructure and energy sectors, all of which are undergoing Strategically located in Yangon’s central important legislative changes which are business district, the 23-storey office primed to attract more multinational tower is part of Phase 1 of Junction City, corporations. a mixed-use development which comprises the five-star Pan Pacific Hotel, The three planned Special Economic a shopping centre and serviced residences. Zones within Myanmar, including Thilawa It houses Yangon’s largest car parking Special Economic Zone, will continue to facility, offering more than 1,500 car attract foreign investments into the park spaces. Junction City Tower offers country and create jobs. a net leasable area of about 33,400 sm of Grade A office space which will meet the demand from multinational corporations seeking quality office space in Yangon.
Phase 2 of Junction City, which includes serviced residences and offices, will house the first Sedona Suites in Myanmar Junction City Tower, comprising about 260 serviced apartments which offers a net leasable area of sited above a retail podium and a 33,400 sm of Grade A convention centre. Construction of Phase 2 office space, was is expected to commence in 2018. completed in 1H 2017.
54 Keppel Land Limited Report to Stakeholders 2016 United States The United States economy grew at an Condominiums annual rate of 1.6% in 2016, supported New York mainly by domestic consumption and government spending. Growth is expected The Residences at 200 East 59 to remain steady at 2.1% in 2017 as Location: Upper East Side/ Midtown East unemployment rate is forecast to drop No. of units: 68 from 4.7% in 2016 to 4.5% in 2017. GFA: 18,170 sm Expected launch: 1H 2017 Lower personal income tax and investments in infrastructure will boost Nestled within an established residential the economy, even as gradual Federal neighbourhood, The Residences at 200 rate hikes are expected in 2017. East 59 is conveniently located within walking distance to the 59th Street subway The residential market in Manhattan, station. The 35-storey condominium New York City, remains healthy. development is well-served by amenities The positive residential demand is as well as dining and entertainment expected to support a moderate price options around Midtown Manhattan. growth in 2017. It is located opposite the flagship outlet of high-end department store, Bloomingdale’s, and is just four blocks away from Central Park, a national landmark in New York City.
The Residences at The project has commenced soft 200 East 59 is located marketing efforts with formal marketing at the intersection of the Upper East Side initiatives to commence in 1H 2017. and Midtown East, across the street from Bloomingdale’s and minutes from Central Park.
United Kingdom GDP growth in the United Kingdom Commercial remained resilient at 2.0% in 2016 London as compared to 2.2% in 2015. Growth was mainly driven by the manufacturing Office Property and service sectors. Loose monetary Location: 75 King William Street and fiscal policies, coupled with the GFA: 11,917 sm depreciation of the pound sterling, Completion: 1989 also supported the economy. Situated in London’s central business However, growth is forecast to slow district, the nine-storey freehold office markedly in 2017 to no more than 1.5% building is close to the city’s historic and as household incomes tighten due to financial centre where the Bank of England higher inflation. Businesses may also and other prominent financial institutions hold back on investment decisions are located. The office building is less following the aftermath of the vote than a five-minute walk to the Bank tube on Brexit. station as well as the Monument and Cannon Street stations. It is also a 12-15 In 2016, office vacancy rates in Central minute walk to the Liverpool station, part London stood at 5.73% compared to of the network on the upcoming Crossrail, 4.33% a year ago. Office demand was which will provide a high speed train supported by the creative industries, service across the east-west axis of banking and finance as well as business London when completed in 2018. service sectors. As at 4Q 2016, the office building is 85% leased to tenants in the financial services, shipping and serviced office industries. Asset enhancement initiatives, including The office building at refurbishment of the lobby and atrium, 75 King William Street in London is leased to are currently underway. tenants in the financial services, shipping and serviced office industries.
55 Operations and Market Review
Operations and Market Review
India Condominium Bangalore India’s economy is projected to expand Elita Horizon at 7.1% in 2017, making India one of the Location: Kanakapura Road fastest growing economies in the world. Total no. of units: 2,049 The Reserve Bank of India has cut the GFA: 167,226 sm short-term lending rates from 6.5% to Expected completion: 2021 6.3% in October 2016, the lowest rate since January 2011. This, together with the Elita Horizon, a high-rise changes to the foreign direct investment condominium development located regulations in November 2015 for the off Kanakapura Road and close to construction-development sector, is the Peripheral Ring Road, has direct expected to further boost economic growth access to the major Information and investments in the real estate sector. Technology hubs as well as the Electronic City and Bannerghatta Road. The Real Estate Regulation and Development Act came into force in 2016. The development is conceptualised It seeks to regulate both the residential to be a self-sustained community and commercial real estate sectors and with residential, retail, leisure and attract more investments. support services.
Bangalore’s residential market remained The sales launch is targeted in 2H 2017. resilient in 2016 with steady growth in new property launches and sales. Rents and capital values appreciated at a slower pace in 2016 while absorption level increased from 30,500 units in 2015 to 33,000 units in 2016.
Malaysia Township Johor Bahru Malaysia’s economy grew 4.3% in Taman Sutera and 2016, supported mainly by domestic Taman Sutera Utama demand and moderated by a weaker Location: Skudai, Johor Bahru global economy. Total no. of units: Over 12,000 GFA (completed units): 111,815 sm Financial markets around the world Completion: In phases from 2003 were adversely impacted by slow global economic growth and geopolitical Taman Sutera and Taman Sutera Utama uncertainties. The decline in oil price and form part of an integrated township the expansionary fiscal policies by the strategically located within the United States have weakened the ringgit, Iskandar Malaysia region. The township resulting in lower consumer spending. development features over 12,000 units of residential and commercial properties, At the same time, the local residential a vibrant shopping mall, Sutera Mall as property market also experienced well as an educational hub. A majority tightening of housing loans. The same of the 4,049 units of residential and challenges are expected to continue commercial properties launched have in 2017. been sold as at end-2016.
Sutera Mall continued to maintain a high occupancy rate over its 570,000 sf leasable area. Planning is underway for the next phase of expansion.
56 Keppel Land Limited Report to Stakeholders 2016 Property Portfolio
Group Properties (Singapore)
Description Held by % Owned Site Area Estimated Estimated Net Year of Tenure (sm) Gross Floor Lettable Area Completion Area (sm) (sm)
Completed Properties
Keppel Bay Tower an 18-storey office building HarbourFront 100% 17,267 41,841 36,015 2002 99-year at HarbourFront Avenue One leasehold
Marina Bay Financial Centre (Phase 1)(a) two office towers of 33 storeys Keppel REIT 14.9% 32,978 189,000 161,805 2010 99-year and 50 storeys with leasehold ancillary retail space at Marina Bay
Marina Bay Financial Centre (Phase 2)(a) a 46-storey office tower with Keppel REIT 14.9% 9,710 151,776 124,581 2012 99-year retail podium at Marina Bay leasehold
Ocean Financial Centre(a) a 43-storey office building Keppel REIT 44.8% 6,109 95,992 82,131 2011 999-year at Raffles Place leasehold
Bugis Junction Towers(a) a 15-storey office tower Keppel REIT 44.8% - 28,525 22,760 1995 99-year at Bugis Junction leasehold
One Raffles Quay(a) two office towers of 50 storeys Keppel REIT 14.9% 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 100% 83,538 193,400 37,458 2011 99-year condominium development (retained leasehold at Keppel Bay interest)
Corals at Keppel Bay a 366-unit waterfront condominum Keppel Bay 100% 38,830 47,380 23,260 2016 99-year development at Keppel Bay leasehold
The Glades a 726-unit condominium Sherwood 70.0% 31,882 51,011 11,066 2016 99-year development at Development (retained leasehold Bedok Rise interest)
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
57 Operations and Market Review
Property Portfolio
Group Properties (Singapore) (continued) Description Held by % Owned Site Area Estimated Estimated Net Year of Tenure (sm) Gross Floor Lettable Area Completion Area (sm) (sm)
Completed Properties (continued)
I12 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 DC Singapore 3 a data centre building Keppel Data 30.0% 5,000 12,438 - 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 100% 38,863 3,000 1,586 2007 99-year at Keppel Bay (includes leasehold foreshore (foreshore area) area: 30-year leasehold)
Properties Under Development
Highline Residences a 500-unit Harvestland 100% 10,991 43,963 - 2018(b) 99-year condominium Development leasehold development at Kim Tian Road
Keppel DC Singapore 4 a data centre building Keppel Data 30.0% 6,805 17,012 - 2017(b) 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 100% 43,701 21,000 - - 99-year condominium development leasehold at Keppel Bay
Keppel Bay Plot 4 a 234-unit waterfront HarbourFront 11.7% 28,579 32,000 - - 99-year condominium development Three leasehold at HarbourFront Avenue
58 Keppel Land Limited Report to Stakeholders 2016 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 22.4% 3,655 - 41,748 2009 Freehold building located in CBD REIT
8 Chifley Square(a) a premium office Sydney Keppel 22.4% 1,581 - 19,350 2013 99 years building located in CBD REIT lease
8 Exhibition Street(a) a Grade A office Melbourne Keppel 22.4% 4,329 - 44,890 2005 Freehold building located in CBD REIT
David Malcolm Justice Centre(a) a 33-storey Grade A Perth Keppel 22.4% 2,947 - 31,176 2015 99 years office tower REIT lease located in CBD
China
Office Units office units in Shanghai Evergro 100% - 635 635 2004 50 years Chang Ning District Properties lease
8 Park Avenue a 918-unit Shanghai Shanghai 99.0% 33,432 133,393 918 2015 70 years residential Pasir Panjang residential lease development Land units
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)
Seasons Residences a 1,102-unit Shanghai Shanghai 100% 71,621 128,918 1,102 2016 70 years residential Ji Xiang residential lease development in Land units Nanxiang, Jiading District
59 Operations and Market Review
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)
Retail Mall a retail mall in Malu, Shanghai Shanghai 99.4% 32,959 40,927 32,800 2016 40 years Jiading District Jilu Land lease that is part of a mixed-use development comprising offices, shops and residential towers
Serenity Villas a 340-unit Tianjin Tianjin 100% 128,685 80,000 28 2014 70 years residential Fushi bungalows, lease development within Property 96 semi- Tianjin Eco-City Development detached houses and 216 apartments
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)
Germany
Keppel DC Frankfurt 1 a two-storey data centre Frankfurt Alpha DC 12.0% 38,445 20,000 - 2009 Freehold facility located in the Fund & Am Martinzehnten Keppel Industrial Park Data Centres Holding
60 Keppel Land Limited Report to Stakeholders 2016 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)
Indonesia
Club Med Ria Bintan a beachfront hotel at Bintan PT 39.0% 200,000 34,340 302 rooms 1997 30 years Ria Bintan Resort Straits - lease with CM Village option for another 50 years
Ria Bintan (Phase 1) a golf course Bintan PT 45.9% 1,467,000 - 27-hole 1998 30 years Ria Bintan 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 16.8% 99,567 - 192 1995 30 years with a marina and Nongsa rooms/ lease with hotel-style chalets Point chalets option for Marina and 65 another berths 50 years
International Financial Centre Jakarta Tower 1(c) a prime office Jakarta PT Kepland 100% 10,428(d) 33,180 27,933 1985 20 years development Investama lease with in CBD option for another 20 years
International Financial Centre Jakarta Tower 2 a Grade A Jakarta PT Kepland 100% 10,428 (d) 61,300 50,200 2016 20 years office development Investma lease with in Jakarta CBD option for another 20 years
Pasadenia Garden a residential Jakarta PT Pulomas 25.0% 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
61 Operations and Market Review
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)
Malaysia
Taman Sutera and Taman Sutera Utama a township Johor Tanah 18.0% 1,985,870 111,815 3,652 2003- Freehold comprising Sutera residential 2016 residential units, Development units, commercial space 343 shop and recreational offices and facilities in Skudai a retail mall
Myanmar
Junction City Tower (Phase 1) a 23-storey Grade A Yangon City Square 40.0% 26,406 53,100 33,400 2017 50 years office building within Office (for entire BOT with a mixed-use mixed- option for development in CBD use another and opposite the famous development) two Bogyoke Market 10-year extensions
Sedona Hotel Yangon a 5-star hotel Yangon Straits 100% 40,516 85,057 797 rooms Garden 50 years fronting the Greenfield Wing: BOT with famous Inya Lake 1997 option for Inya another Wing: two 2016 10-year extensions
Sedona Hotel Mandalay# an international class Mandalay Wiseland 100% 16,467 19,835 251 rooms 1998 50 years hotel opposite the Investment BOT with famous ancient (Myanmar) option for Mandalay Palace another two 10-year extensions
Netherlands
Almera Data Centre 2 a high-specification Amsterdam Keppel 30.0% 9,300 12,842 - 2015 Freehold data centre Data Centres Holding
62 Keppel Land Limited Report to Stakeholders 2016 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)
Philippines(f)
SM-KL Project (Phase 1) a five-storey Mandaluyong SM 24.2% 7,068 24,481 16,057 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
United Kingdom
Office Property a nine-storey office London First King 100% 1,947 11,917 11,731 1989 Freehold building located Properties 75 King William Street
United States
TCB Building a 12-storey Houston, Keppel 30.0% 13,015 27,323 26,858 1982 Freehold office building Texas Houston in the prestigious Group Galleria area Partnership
Vietnam
Vietcombank Tower a 22-storey office Hanoi Vietcombank 6.0% 1,986 30,239 20,000 2001 40 years development at Tower from 1996 Tran Quang Khai Street 198 Ltd
Saigon Centre (Phase 1) a 25-storey office, Ho Chi Keppel Land 53.5% 2,730 34,143 10,536 1996 50 years retail cum serviced Minh City Watco I (office), lease apartment and 89 development at serviced 65 Le Loi Boulevard apartments in District 1
Riviera Cove a gated villa Ho Chi Riviera Cove 100% 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
63 Operations and Market Review
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
China
Park Avenue Central an office and Shanghai Shanghai 99.0% 28,488 115,900 ** 2021 70 years retail development Floraville lease in Park Avenue Land precinct
Sheshan Riviera a 217-unit Shanghai Shanghai 99.4% 175,191 83,174 112 2017 70 years landed development Jinju landed (Phase 1) lease in Sheshan Real Estate homes Development (Phase 1)
Park Avenue Heights a 1,535-unit Chengdu Chengdu 100% 50,782 200,200 280 2017 70 years residential Hillstreet residential (Phase 3B) lease development with Development units (residential) commercial facilities (Phase 3B) 40 years in Jinjiang District lease (commercial)
Hill Crest Villas a 274-unit Chengdu Chengdu 100% 249,330 163,147 45 2020 70 years landed Hilltop landed (Phase 2) lease development Development homes in Xinjin County (Phase 2)
Serenity Villas a 573-unit Chengdu Chengdu 100% 286,667 233,862 97 2020 70 years landed development Shengshi landed (Phase 2) lease in Xinjin County Jingwei homes Real Estate (Phase 2) Investment
V-City a 5,617-unit Chengdu Chengdu 35.0% 167,000 560,963 1,495 2018 70 years residential Taixin residential (Phase 2) lease development with Real Estate units (residential) retail facilities Development (Phase 2) 40 years Co. lease (commercial)
64 Keppel Land Limited Report to Stakeholders 2016 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)
Spring City Golf & Lake Resort an integrated Kunming Spring 68.8% 2,157,361 16,819 97 2018 70 years resort comprising City Golf (Hill Crest residential (Hill Crest lease golf courses, and Residences units Residences resort homes Lake Resort Phase 2B) (Hill Crest Phase 2B) and resort facilities Residences Phase 2B)
Waterfront Residences a 1,481-unit Wuxi Keppel 100% 215,230 306,607 83 2017 70 years residential Lakefront landed (Phase 7A) lease development with (Wuxi) homes (residential) commercial and Property (Phase 7A) 40 years SOHO facilities Development lease in Binhu District (commercial)
Park Avenue Heights a mixed-use Wuxi Keppel 100% 66,010 165,308 328 2017 70 years development Heights residential (Phase 1) lease with 1,048 (Wuxi) units (residential) residential units and Property (Phase 1) 40 years commercial facilities Development lease in Liangxi District (commercial)
The Seasons (Future Phases) a 2,794-unit Shenyang Keppel 100% 348,312 *** *** *** 50 years residential Township lease township with Development (residential) integrated facilities (Shenyang) 40 years in Shenbei lease New District (commercial)
Hunnan Township Development a residential Shenyang Keppel Bay 99.8% *** *** *** *** 50 years township with Property lease integrated facilities Development (residential) in Hunnan (Shenyang) 40 years New District lease (commercial)
65 Operations and Market Review
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)
Keppel Cove a residential Zhongshan Sunsea 80.0% 891,752 460,000 18 villas 2018 70 years development with Yacht with private (Phase 2) lease a mix of villas Club berths (residential) and apartments, (Zhongshan) (Phase 2) 40 years as well as lease integrated marina (commercial) lifestyle facilities
Mixed-use Development a mixed-use Tianjin Tianjin 100% *** *** *** *** 70 years development Fushi lease in North Island Property (residential) within Sino-Singapore Development 40 years Tianjin Eco-City lease (commercial)
Mixed-use Development a mixed-use Tianjin Tianjin 100% *** *** *** *** 70 years development Fulong lease in North Island Property (residential) within Sino-Singapore Development 40 years Tianjin Eco-City lease (commercial)
Waterfront Residences a 341-unit Tianjin Tianjin 100% 103,683 61,417 180 2017 70 years landed home Fulong landed (Phase 3) lease development Property homes within Sino Singapore Development (Phase 3) Tianjin Eco-City
Development in Sino-Singapore Tianjin Eco-City a 4,294-unit Tianjin Keppel 55.0% 365,722 625,292 356 2018 70 years residential Hong Da residential (Seasons lease development with (Tianjin units Garden (residential) office and Eco-city) (Seasons Plot 9) 40 years retail space Property Garden lease Development(g) Plot 9) (commercial)
66 Keppel Land Limited Report to Stakeholders 2016 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)
Stamford City a 1,478-unit Jiangyin Jiangyin 99.4% 82,987 299,991 353 2019 70 years residential Evergro residential (Phases lease development with Properties units 3C (residential) commercial and (Phases & 3D) 40 years SOHO facilities 3C lease & 3D) (commercial)
Waterfront Residences 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 51.0% 26,081 104,800 89,000 2019 40 years/ retail development Aether 50 years in Chaoyang District Property lease Development
India
Elita Horizon a 2,049-unit Bangalore Keppel 51.0% 79,927 167,226 2,049 2021 Freehold residential Puravankara residential development off Development units Kanakapura Road
67 Operations and Market Review
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)
Indonesia
West Vista at Puri a 2,855-residential Jakarta PT 100% 28,851 153,464 1,404 2020 30 years development Harapan residential lease with with ancillary Global Niaga units option for shophouses (Phase 1) another in West Jakarta 1,451 20 years residential units (Phase 2)
Future Residential Development a landed Greater PT 50.0% 120,568 72,340 (e) 442 2019 30 years housing Jakarta Sukses landed lease with development Manis houses option for located within Indonesia another the Metland 20 years Puri township
Future Residential Development a residential Jakarta PT Puri 100% 46,291(e) 226,800(e) 4,523 (e) 2026 30 years development in Land residential lease with West Jakarta Development units option for another 20 years
Pasadenia Residence a residential Jakarta PT 25.0% 39,753 40,806 160 2019 30 years development Pulomas residential lease with within 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 Bali PT 24.5% 846,160 *** *** *** 30 years Tanah Lot Purimas lease with Straits Resort option for another 20 years
68 Keppel Land Limited Report to Stakeholders 2016 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)
Malaysia
Taman Sutera and Taman Sutera Utama a township Johor Tanah 18.0% 2,883,295 - 54 2017 Freehold comprising Sutera (32,520 residential residential units, Development currently units commercial space under currently and recreational development) under facilities in Skudai development
Myanmar
Junction City Tower (Phase 2) within a mixed-use Yangon City 40.0% 26,406 50,000 ** 2021 50 years development in Square (for entire BOT with CBD and oppposite Tower mixed-use option for the famous Bogyoke development) another Market two 10-year extensions
Philippines(f)
SM-KL Project (Phase 2) an office Mandaluyong SM 24.2% 12,932 46,323 30,340 2017 Freehold and retail City Keppel Land (retail) (retail) (retail) development Inc. 110,123 89,279 2019 in Ortigas CBD (office) (office) (office)
United States
The Residences at 200 East 59 a residential New York MIP 82.4% - 18,170 68 2018 Freehold and retail 59th and residential development at Third units Upper East Side Development in Manhattan
69 Operations and Market Review
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)
Vietnam
Saigon Centre (Phases 2 & 3) a prime office, Ho Chi Keppel Land 53.5% 8,355 100,274 37,551 2016 50 years retail cum Minh City Watco II & III (Phases (retail) lease serviced apartment 1&2 retail) 2017 development at 35,859 (office, 65 Le Loi Boulevard (office) serviced in District 1 and 195 apartment) serviced apartments
Saigon Centre (Phases 4 & 5) a prime office, Ho Chi Keppel Land 76.2% 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
Tamarind Park a 20-storey Ho Chi Keppel Land 60.0% 2,808 26,181 173 *** 45 years apartment tower Minh City Agtex residential lease with recreational untis facilities in District 1
Saigon Sports City a township Ho Chi Saigon 90.0% 640,477 783,300 528 2020 50 years with about 3,900 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 98.0% 25,393 160,785 872 2017 50 years residential Minh City Joint Venture residential (Phase 1) lease development with units 2018 commercial space (Phase 2) in An Phu Ward, District 2
Palm City a residential Ho Chi South 42.0% 302,093 874,044 135 2017 50 years township with Minh City Rach landed (Phase 1) lease about 6,100 units Chiec houses 2019 and commercial (Phase 1) (Phase 2) space at 816 South Rach Chiec residential in District 2 units (Phase 2)
70 Keppel Land Limited Report to Stakeholders 2016 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)
Empire City a residential Ho Chi Empire 40.0% 146,000 661,000 510 2020 50 years development with Minh City City LLC residential (Phase 1) lease 2,800 units units and commercial (Phase 1) space at Thu Thiem New Urban Area in District 2
Prime 4.8ha site a residential Ho Chi Quoc 45.0% 48,000 415,000 625 2020 50 years development with Minh City Loc residential (Phase 1) lease about 1,550 units Phat units and commercial JSC (Phase 1) space at Thu Thiem New Urban Area in District 2
Riviera Point a 2,400-unit Ho Chi Riviera Point 75.0% 89,727 437,944 549 2014 50 years residential Minh City residential (Phase 1A) lease development with units 2019 commercial space (Phase 1A) (Phase 1B) in District 7 518 residential units (Phase 1B)
Dong Nai Waterfront City a 7,850-unit Dong Nai Dong Nai 50.0% 3,667,127 2,100,000 300 2023 50 years residential Province Waterfront landed (Phase 1) lease township with City houses commercial space (Phase 1) in Long Thanh District
(a) Assets owned by Keppel REIT in which the Group has a 44.8% stake (b) Expected year of completion (c) To be redeveloped into a Grade A office tower with estimated GFA of 92,509 sm and expected completion in 2022 (d) For entire site which includes International Financial Centre Towers 1 and 2 (e) Preliminary figures subject to change (f) Assets owned by Keppel Philippines Properties in which the Group has a 51% stake (g) For residential component only # Keppel Land entered into a conditional sales and purchase agreement for Sedona Hotel Mandalay dated 5 October 2016 ** Under planning stage *** Plans are under review in accordance to market conditions
71 This page is intentionally left blank. Keppel Land Limited (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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