Epigram MH238879 MAC6 27.03.2008 C K DALIM
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Main Cover_156PP Artwork_P1 CAPITALAND LIMITED 2007 ANNUAL REPORT 1 2 3 4 5 6 7 8 9 10 OK While every effort has been taken to carry out instruction to customers satisfaction bmc M Y MH NO RESPONSIBILITY liablilty will be accepted for errors 1 CUSTOMERS ARE THEREFORE URGED TO CHECK THOROUGHLY BEFORE MH701 AUTHORISING PRINT RUNS Epigram MH238879 MAC6 27.03.2008 C K DALIM Main Cover_156PP Artwork_P2 www.capitaland.com Company Reg. No. 198900036N 198900036N No. Reg. Company Tel: (65) 6823 3200 Fax: (65) 6820 2202 2202 6820 (65) Fax: 3200 6823 (65) Tel: Capital Tower, Singapore 068912 068912 Singapore Tower, Capital 168 Robinson Road, #30-01 #30-01 Road, Robinson 168 CAPITALAND LIMITED LIMITED CAPITALAND CAPITALAND LIMITED 168 Robinson Road, #30-01 Capital Tower, Singapore 068912 Tel: (65) 6823 3200 Fax: (65) 6820 2202 Company Reg. No. 198900036N www.capitaland.com 1 2 3 4 5 6 7 8 9 10 OK While every effort has been taken to carry out instruction to customers satisfaction BMC/CYS MH NO RESPONSIBILITY liablilty will be accepted for errors 2 CUSTOMERS ARE THEREFORE URGED TO CHECK THOROUGHLY BEFORE Pantone 7472 c Epigram MH238879 MaAC6 31.03.2008 DALIM MH701 AUTHORISING PRINT RUNS CREDO Building for People to Build People Building People to Build for People MISSION To build a world-class real estate company with international presence that: Creates sustainable shareholder value; delivers quality products and services; attracts and develops quality human capital. 1 OUR GROUP TOTAL MARKET CAPITALISATION STANDS AT OVER S$27,000, 2 000,000 AS AT END-2007 Changi Airport Terminal 3, Singapore 3 The CapitaLand Group comprises eight listed companies with a total market capitalisation of over S$27 billion. This is not possible without wider group interest at work – business unit CEOs anchor teams that work together to create a whole S$27,000,that is greater than the sum of its parts. This synergy of talent, creativity, commitment and innovation continually sharpens CapitaLand’s competitive edge. Sonia Meyer Investor Relations, Edward Bin Ascott Residence Trust Finance, Management Limited CapitaLand Commercial Limited Thiruchelvi Balarama Treasury, CapitaLand Limited 4 000,000 AS AT END-2007 Changi Airport Terminal 3, Singapore 5 WE ARE IN MORE THAN10 0 6 CITIES AND OVER 20COUNTRIES National Museum of Australia, Canberra 7 Headquartered in Singapore, the CapitaLand Group is a multi-national company with a real estate and hospitality portfolio spanning more than 100 cities in over 20 countries. Its footprint spans a geography that spreads over Asia-Pacifi c, the Gulf Co-operation Council (GCC) region and Europe. It is the largest real estate company in Southeast Asia, the largest international serviced residence owner- operator and the largest retail mall owner/manager in Asia. Irina Gazoukina Investments, Seraphine Iskandar CapitaLand ILEC Pte. Ltd. New Markets, CapitaLand Residential Limited Dominic Gan Asset Management and Investments, CapitaCommercial Trust Management Limited 8 CITIES AND OVER 20COUNTRIES National Museum of Australia, Canberra 9 WE ACHIEVED A RECORD PROFIT AFTER TAX OF ALMOST S$2,800,0 10 00,000 IN 2007 – OUR FOURTH IN A ROW Beijing National Stadium, China 11 CapitaLand’s 2007 record profi t after tax of almost S$2.8 billion is a result of the Group’s investment management and execution excellence. The Group continuously leverages on its real estate domain knowledge, capital-effi cient business S$2,800,0model, fi nancial skills and strong network of local partners to deliver sustainable growth, especially in growth cities of the core markets of Singapore, Australia and China. Martin Ngoo Guest Services, The Ascott Group Limited Haslinda Sanosi Jason Teou Customer Service, Project Management, CapitaLand Retail Limited CapitaLand Residential Limited 12 00,000 IN 2007 – OUR FOURTH IN A ROW Beijing National Stadium, China 13 WE INVESTED OVER S$8,000, 14 000,000 INCLUDING IN NEW MARKETS Bahrain World Trade Center 15 Exporting real estate expertise overseas is one of CapitaLand’s fortes and something that we’ve been doing since Day One. We always study a location for a significant period to gain local knowledge before entering the market. Today, we are replicating the same businessS$8,000, model in new markets like Vietnam, India, and oil-rich countries like the Gulf Co-operation Council (GCC) region. It is this pioneering spirit that will help us realise our vision of becoming a world-class, lasting and entrepreneurial real estate company. Sophian Abdul Rahman Business Development, Wong Hooe Wai Colin Low CapitaLand GCC Holdings Pte. Ltd. Design Management Business Development (New Markets), and Asset Management, CapitaLand Residential Limited The Ascott Group Limited 16 000,000 INCLUDING IN NEW MARKETS Bahrain World Trade Center 17 OUR ASSETS UNDER MANAGEMENT AT END-2007 IS NEARLY S$18,000, 18 000,000 Infosys Campus, Pune, India 19 We are the leading Asia-based private equity real estate fund and REIT manager, with almost S$18 billion of assets under management. The asset pipeline for these funds connects gateway cities S$18,000,like Shanghai, Mumbai and Tokyo. However, all this would not be possible without carefully managing the most valuable asset of all – quality human capital. Which explains why, while the common mantra in real estate is “Location, Location, Location”, at CapitaLand, it is “People, People, People”. Chew Peet Mun Financial Services, CapitaLand Financial Limited Lo Mun Wah Investments, CapitaCommercial Trust Management Limited Jesline Goh Investments, CapitaMall Trust Management Limited 20 000,000 Infosys Campus, Pune, India 21 Corporate Profile CapitaLand is the largest real estate company in Southeast Asia by market capitalisation. Headquartered in Singapore, the multinational company’s core businesses in real estate, hospitality and real estate fi nancial services are focused in growth cities in Asia Pacifi c, Europe and the Gulf Co-operation Council (GCC) countries. The company’s real estate and hospitality portfolio spans more than 100 cities in over 20 countries. CapitaLand also leverages on its signifi cant asset base, real estate domain knowledge, fi nancial skills and extensive market network to develop real estate fi nancial products and services in Singapore and the region. The listed subsidiaries and associates of CapitaLand include Australand, CapitaMall Trust, CapitaCommercial Trust, Ascott Residence Trust and CapitaRetail China Trust. Contents Global Presence 24 Awards & Accolades 2007 84 Letter to Shareholders 26 CapitaLand Residential 88 7-Year Share Price Performance 35 CapitaLand Commercial 94 Financial Highlights 36 CapitaLand Retail 98 Financial Calendar 37 CapitaLand Integrated Developments 104 Board of Directors 38 CapitaLand Financial Services 108 Corporate Directory 45 CapitaLand Serviced Residences 114 International Advisory Panel 46 Performance Review 118 Group Businesses 47 Economic Value Added Statements 128 Council of CEOs 48 Value Added Statements 129 Corporate Offi ce 53 Portfolio Details 130 Corporate Governance 54 Portfolio Analysis 142 Risk Assessment and Management 64 5-Year Financial Summary 143 Innovation, Creativity, Entrepreneurship 66 Other Information 144 Investor & Media Relations 67 Shareholding Statistics 148 Human Resource 68 Notice of Annual General Meeting 149 Corporate Social Responsibility 70 Proxy Form 153 InfoNet 72 Notes to Proxy Form 154 Year in Brief 73 22 VISION 2010 A world-class entrepreneurial, prosperous and lasting real estate company led and managed by people with core values respected by the business and social community. Ranked among the top fi ve real estate companies in Asia, reputed for its innovative and quality real estate products and services. A company with a strong global network of long-term investors and blue-chip partners. A company which attracts, develops and retains a diversity of talents; and which is committed to developing local talents to lead its overseas operations. A company which delivers consistently above-market total shareholder returns. 23 Global Presence Russia United Kingdom Kazakhstan Belgium Germany Georgia France Spain India Bahrain Qatar UAE Presence in more than 100 cities in over 20 countries ASIA PACIFIC Australia China Kunshan Wuhu India Udaipur Brisbane Anyang Macau Xi’an Amritsar Varanasi Hobart Beijing Maoming Xinxiang Bangalore Melbourne Changsha Mianyang Yangzhou Chennai Indonesia Perth Chengdu Nanchang Yibin Cochin Jakarta Sydney Chongqing Nanhai Yiyang Gwalior Surabaya Dalian Ningbo Zhangzhou Hyderabad Deyang Quanzhou Zhanjiang Jaipur Japan Dongguan Shanghai Zhaoqing Jalandhar Fukuoka Foshan Shenzhen Zhengzhou Khanna Hiroshima Guangzhou Shunde Zibo Mangalore Hokkaido Hangzhou Suzhou Mumbai Kobe Hong Kong Tianjin Georgia Mysore Kyoto Huhehaote Weifang Tbilisi Nagpur Nagoya Huizhou Wuhan 24 • CapitaLand Residential • CapitaLand Commercial • CapitaLand Retail • CapitaLand Integrated Leisure, Entertainment and Conventions • CapitaLand Financial • The Ascott Group China South Korea Japan Thailand Philippines Vietnam Malaysia SINGAPORE Indonesia Australia New Zealand GCC EUROPE REGION Nishinomiya New Zealand Thailand Belgium Toulouse Bahrain Osaka Auckland Bangkok Brussels Manama Saga Germany Sendai Philippines Vietnam France Berlin Qatar Tokyo Manila Hanoi Aix-en-Provence Munich Doha Ho Chi Minh City Bordeaux Kazakhstan Russia Cannes Spain UAE Aktau Moscow Ferney Voltaire Barcelona Abu Dhabi Almaty St. Petersburg Grenoble Dubai Astana Lille United Kingdom Singapore Lyon Edinburgh Malaysia Marseille London Johor