Gearing up for the Far East Orchard Contents Limited
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GEARING UP FOR THE FAR EAST ORCHARD CONTENTS LIMITED CONTENTS 02 Corporate Profile 30 Corporate Governance 04 Corporate Milestones 59 Sustainability 06 Chairman’s Statement 60 5-Year Financial Highlights 10 CEO’s Message 61 Financial Report 18 Business Structure 152 Statistics of Shareholdings 20 Properties of the Group 154 Notice of Annual General Meeting 22 Board of Directors and Management Proxy Form 29 Corporate Information ANNUAL REPORT 2017 GEARING UP FOR THE FUTURE Committed to delivering long-term growth, Far East Orchard continually refines its strategy, enabling it to better respond to future opportunities and challenges, upholding its strong track record of 50 years Germany Singapore Hungary Denmark Australia Malaysia United Kingdom New Zealand FAR EAST ORCHARD CORPORATE LIMITED PROFILE Far East Orchard Limited (“Far East commercial building in Malaysia into a Orchard”) is a property developer hotel – Oasia Suites Kuala Lumpur. Far and a vertically integrated hospitality East Orchard’s track record includes owner and operator. Far East Orchard euHabitat, Floridian, The Nexus, has been listed on the Mainboard of The Manor Houses and Kew the Singapore Exchange since 1968. It Residencia. is a member of Far East Organization, Singapore’s largest private property Since 2014, Far East Orchard has developer. expanded into property development in Australia and the UK. In 2017, Established since 1967, Far East it completed its first development Orchard has delivered a number of project in Australia – Harbourfront successful residential, commercial, Balmain, a mixed-use residential hospitality and purpose-built student and retail/commercial development accommodation developments in along Sydney’s iconic harbourfront, Australia, Malaysia, Singapore and developed in partnership with the United Kingdom (“UK”). It is Australia’s Toga Group. In the UK, currently developing Woods Square, Far East Orchard is currently an integrated office development redeveloping the former Westminster at Woodlands Regional Centre, Fire Station located in the prime Singapore’s Northern Gateway and central borough of the City of upcoming business hub, with Far East Westminster, London, into a mixed-use Organization and Sekisui House, Ltd. development comprising residential Far East Orchard’s recently completed apartments and a restaurant. Far developments in Singapore include East Orchard also has a portfolio of RiverTrees Residences, a residential purpose-built student accommodation project located along the Punggol properties in Brighton and Newcastle Reservoir and SBF Center, a premier upon Tyne. It has recently completed commercial development with office the development of two student and medical spaces situated within the accommodation buildings – Bryson Central Business District. In 2016, it Court and Marshall Court, in Newcastle completed the redevelopment of its upon Tyne. Former Westminster Fire Station, United Kingdom (under development) 02 ANNUAL REPORT 2017 Oasia Hotel Downtown, Singapore Redefining itself through a strategic into Australia, Denmark, Germany, Far East Orchard also holds a portfolio transformation of the business in Hungary and New Zealand. It now owns of medical suites for lease and for 2012, Far East Orchard expanded more than 10 hospitality assets and sale in Singapore’s premier medical into the complementary businesses manages over 90 properties with more hub in Novena. These purpose-built of hospitality management and than 14,000 rooms internationally. Far medical suites at Novena Medical healthcare real estate. East Hospitality’s stable of 10 unique Center and Novena Specialist and complementary hospitality brands Center are conceptualised to set the Through its hospitality partnerships are Oasia, Quincy, Rendezvous, Village, benchmark for a new generation of with The Straits Trading Company and Far East Collection, Adina Apartment healthcare buildings with premium Toga Group in 2013, Far East Orchard’s Hotels, Medina Serviced Apartments, quality finishes, advanced technology hospitality arm – Far East Hospitality – has Travelodge Hotels, Vibe Hotels and and modern infrastructure for medical grown beyond Singapore and Malaysia, TFE Hotels Collection. specialists. Adina Apartment Hotel Melbourne Pentridge, Australia (pipeline contract) 03 FAR EAST ORCHARD CORPORATE LIMITED MILESTONES 1967 1968 1970 1987 Incorporated as Ming Court Listed on the Mainboard of Opening of Ming Court Hotel Acquired by Far East Limited on 28 December the Singapore Exchange (renamed as Orchard Parade Organization on 20 June Hotel in 1991) Ming Court Hotel, Singapore EXCEEDING PAST ASPIRATIONS, INSPIRING GREATER FUTURE 2016 2015 2014 2013 Expanded into the UK Diversified into student First entry into Europe with Expanded hospitality footprint residential market with the accommodation in the an acquisition of four hotel into Australia, China, Denmark, acquisition of the former United Kingdom (“UK”) via properties in Germany and Germany, Hungary and New Westminster Fire Station the acquisition of a portfolio Denmark with Toga Group Zealand via two milestone located in the prime central of purpose-built student joint venture partnerships with borough of the City of accommodation properties The Straits Trading Company Westminster, London, UK, for consisting of buildings and Limited and Toga Group redevelopment into a mixed- land sites for development use development comprising in Newcastle upon Tyne and residential apartments and a land site for development a restaurant in Brighton Adina Apartment Hotel Berlin Checkpoint Charlie, Germany First foray into the Australian residential market with property development project – Harbourfront Balmain, Former Westminster Fire Station, Rosedale Court, United Kingdom United Kingdom located in Sydney, jointly developed with Toga Group Harbourfront Balmain, Australia 04 ANNUAL REPORT 2017 1988 1989 1990 First property investment via First overseas acquisition in Diversified into property 1991 the acquisition of several Kuala Lumpur, Malaysia, development with the Renamed from Ming Court office units situated in consisting of six shop lots at successful tender of a parcel Hotel to Orchard Parade Singapore: Sungei Wang Plaza and a 24 of 99-year leasehold land at Hotel on 1 January storey commercial building, West Coast Road from the (i) Tong Building, Plaza Atrium. The Group Housing Development Board. Orchard Road completed the redevelopment The project was completed (ii) Tanglin Shopping of Plaza Atrium into Oasia in 1994 Suites Kuala Lumpur in 2016 Centre, Tanglin Road 1994 (iii) International Plaza, Change in name from Ming Anson Road Court Hotel Limited to Orchard Completion of the Group’s Parade Holdings Limited on inaugural residential 31 December development project, West Bay Condominium Plaza Atrium, Malaysia West Bay Condominium, Singapore 2012 1997 1995 Diversified into the food & beverage business via an Renamed as Far East Orchard Completion of the Group’s Successful takeover of Yeo acquisition of 8.9% of Yeo Limited from Orchard Parade residential development Hiap Seng with a 51.0% stake Hiap Seng Limited (“Yeo Holdings Limited on 27 July – Kew Green, the first Hiap Seng”) townhouse development Completion of Tannery House, Underwent a strategic with a condominium status in the Group’s first industrial restructuring exercise and Singapore, allowing foreigners property development commenced new businesses in to purchase the property hospitality management and healthcare real estate Kew Green, Singapore Novena Medical Center and Novena Tannery House, Singapore Specialist Center, Singapore Divested 35.0% of its stake in Yeo Hiap Seng to Far East Organization and distributed the remaining 14.5% stake in Yeo Hiap Seng as a Dividend in Specie to shareholders Injection of three hospitality assets – Orchard Parade Hotel, Albert Court Village Hotel (now known as Village Hotel Albert Court) and Central YEARS OF TRANSFORMATION Square Village Residences (now known as Village Residence Clarke Quay) into Far East Hospitality Trust 05 FAR EAST ORCHARD CHAIRMAN’S LIMITED STATEMENT DEAR SHAREHOLDERS, 2017 marked a significant moment in Far management business, securing East Orchard’s history as we celebrated nine new hospitality management our 50th anniversary. Over the past agreements and leases in Austria, five decades, we have transformed Australia, Germany and Singapore in from an owner of a single hotel to an the past year. established property developer with a diversified real estate portfolio and The extension into the student a hospitality owner and operator with accommodation asset class in the a sizeable overseas footprint. United Kingdom (“UK”) has enabled us to strengthen our recurring income LAYING FOUNDATIONS FOR base. Last year, we completed the GROWTH development of two purpose-built While the global economy grew student accommodation (“PBSA”) a stronger than expected 3.7% in buildings – Bryson Court and Marshall 2017, signs of an economic recovery Court, in Newcastle upon Tyne. The emerged only later in the year. ongoing development of Newton Navigating a hazy outlook and mixed Court in Newcastle upon Tyne and market signals for most of the year, our Brighton student accommodation we remained focused on bolstering property are progressing well. recurring income streams and enhancing We look forward to boosting our our core competencies. recurring income with our growing PBSA portfolio. The Group registered sales of S$151.2 million and profit attributable to equity On the property development