Solutions for Sustainable Urbanisation
Report to Stakeholders 2017 Vision Mission Keppel Group’s Operating Principles
A leading real estate company, Guided by our operating principles 1 Best value propositions shaping the best for future and core values, we will create to customers. generations. value for all stakeholders through 2 Tapping and developing best innovative real estate solutions. 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. Solutions for 6 Clarity of focus and operating within our core competence. Sustainable 7 Being prepared for the future. Urbanisation Keppel is a multi-business company committed to providing robust solutions for sustainable urbanisation.
A multi-faceted real estate player, Keppel Land provides innovative urban living solutions in its sterling portfolio of residential developments, integrated townships and commercial properties. Contents
Overview Operations and Market Review Key Figures for 2017 2 Singapore 26 Group Financial Highlights 3 Investments 30 International Network 4 Serviced Co-office 32 Chairman's Statement 6 Retail Management 33 Board of Directors 10 Hospitality Management 34 Senior Management 12 China 36 Key Personnel 14 Vietnam 42 Corporate Profile 16 Indonesia 46 Corporate Milestones in 2017 17 Myanmar/The Philippines 48 Awards and Accolades 18 Thailand/India/Malaysia 49 Corporate Governance 19 United States/United Kingdom 50 Risk Management 23 Property Portfolio 51 Overview
Key Figures for 2017
Revenue Net Profit Return on Equity
1 $1.8b $701.4m 14.6%
Revenue decreased by 4.5% year-on-year Net profit increased by 19.6%1 year-on-year Keppel Land achieved average return to $1.8 billion. to $701.4 million. on equity of 14.6% over the last 10 years.
Total Assets Total Homes Sold Total Commercial Gross Floor Area $15.2b 5,480 1.5m sm
Total assets decreased by 6.0% year-on-year Achieved strong home sales of more than Commercial portfolio includes to $15.2 billion. 5,480 units in 2017, at a total sales value 924,500 square metres (sm) of of about $2.8 billion. gross floor area under development.
Volunteerism Safety Training 6,600hrs 54,000
A total of 6,600 hours were clocked by staff A total of 54,000 workers trained to-date for corporate social responsibility activities at Keppel Land’s Safety Awareness Centres in Singapore and overseas. in China, Vietnam, Indonesia and Malaysia.
Note: 1. Net profit/return for 2016 excluded the $563 million gain from the divestment of Keppel Land’s fund management business to Keppel Capital. Including this, the average ROE over the past decade would be 15.2%.
2 Keppel Land Limited | Report to Stakeholders 2017
Group Financial Highlights
2017 2016 2015 2014 2013 For the year ($’000) Revenue 1,776,083 1,859,951 1,598,260 1,497,177 1,461,048 Pre-tax profit 897,024 1,300,568 728,855 953,325 1,000,773 Net profit 701,413 1,149,313 564,076 752,486 885,892 Funds from/(used in) operations 1,103,157 844,996 495,565 200,443 (1,308,680)
At year-end ($’000) Fixed assets 409,152 490,484 485,597 370,157 325,842 Investments properties 3,342,988 3,096,890 2,326,186 1,207,124 1,568,209 Associates and joint ventures 2,955,620 2,986,447 3,272,764 2,837,505 2,917,588 Properties held for sale 5,219,152 5,929,696 5,910,208 6,530,988 6,391,786 Cash and cash equivalents 1,771,211 1,577,892 1,692,125 2,593,719 1,285,350 Other assets 1,521,326 2,116,089 1,187,930 1,033,303 1,363,799 Total assets 15,219,449 16,197,498 14,874,810 14,572,796 13,852,574
Shareholders’ equity 8,115,045 8,905,770 8,143,153 7,655,537 6,989,419 Short term borrowings 1,356,420 1,149,769 83,775 1,055,670 283,275 Long-term borrowings 2,486,527 2,886,134 3,646,982 3,147,338 3,869,749 Non-controlling interests and other liabilities 3,261,457 3,255,825 3,000,900 2,714,251 2,710,131 Total equities and liabilities 15,219,449 16,197,498 14,874,810 14,572,796 13,852,574
Financial ratios Return on equity (%) 8.2 13.5 7.1 10.7 14.1 Interest cover (times) (Note 1) 8.6 14.4 5.2 8.4 8.9 Net debt-equity ratio (times) (Note 2) 0.25 0.26 0.24 0.20 0.38
Employees (Note 3) Number (average) 3,222 3,760 4,150 4,071 4,207 Wages and salaries ($’000) 200,963 197,251 212,453 195,940 176,189 Pre-tax profit per employee ($’000) 136 240 63 111 105
Notes: 1. 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. 2. In the calculation of the net debt-equity ratio, net debt includes borrowings net of cash and equity includes non-controlling interests in subsidiaries. 3. 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.
3 Overview Keppel Land Limited | Report to Stakeholders 2017
International Network
Geographically diversified with Singapore and China as core markets, as well as Vietnam and Indonesia as growth markets.
China Shanghai Beijing Tianjin The Netherlands Chengdu Almere Wuxi Shenyang United Kingdom Jiangyin Germany London Kunming Frankfurt
United States New York Vietnam Houston Ho Chi Minh City Hanoi Dong Nai Myanmar Vung Tau Yangon
Thailand The Philippines India Bangkok Manila Bangalore Singapore Number of Countries We Operate In Malaysia Johor Bahru Indonesia 14 Jakarta Bintan Batam Pipeline of Homes
Australia > 60,000 Sydney Melbourne Brisbane Perth Total Commercial Gross Floor Area 1.5 million sm Legend Residences Offices / Mixed-use / Data Centres Hotels / Serviced Apartments / Resorts / Marina
4 5 Overview Keppel Land Limited | Report to Stakeholders 2017
Chairman’s Statement
at high single-digit levels in the recent forward to new recreational amenities Total Asset Distribution By Country (%) Key Developments in 2017 three years, we are reasonably comfortable in the region, such as the 17-hectare (ha) as at 31 December 2017 Sold about 5,480 homes in Asia, with a longer-term target of 12% considering Serangoon North Linear Park. mostly in China and Vietnam. that Keppel Land had achieved an average ROE of 14.6%1 over the past decade. We will In addition, Keppel Land is looking within Announced $1 billion worth of divestments, continue to focus on capital recycling to its portfolio and considering the conversion including assets in China and Indonesia. improve returns as we look to turn our of our office development, Keppel Towers, inventory more, and build up an investment into a prime mixed-use development Seized opportunities and invested portfolio for stable recurring income. in the Tanjong Pagar business district, strategically in nine sites worth about which can potentially add more than $1.6 billion across Singapore, China, In 2017, Keppel Land announced five 30,000 square metres (sm) of office space. Vietnam, Indonesia and Thailand. divestments totalling more than $1 billion This, together with the redevelopment of involving projects mainly in China and our Nassim Woods condominium located Indonesia. These include the sale of stakes in the Embassy belt close to Orchard Road, Singapore 40.0 in a waterfront development in Zhongshan is expected to add another 500 homes and a large-scale residential development to our Singapore residential landbank, China 42.2 in Nantong, both in China, long-held making it a total of 1,700 homes. Vietnam 7.6 Dear Stakeholders, development sites in Bali and Surabaya, Indonesia 5.2 in Indonesia, as well as data centre asset, In China, despite the cooling measures, Others 5.0 On behalf of the Board of Directors, Keppel DC Singapore 4. we believe that the fundamental demand I am pleased to present Keppel Land’s for good quality homes remains healthy. Total 100.0 annual report for the year ended At the same time, we seized opportunities In 2017, Keppel Land saw steady sales 31 December 2017. to replenish our portfolio and invested with some 3,725 homes sold. Take-up in strategically across the region. We announced China came mostly from projects in the Strong Financial Performance nine acquisitions worth about $1.6 billion in Sino-Singapore Tianjin Eco-City, V City Total Asset Distribution By Segment (%) 2017 marked another year of growth our core markets of Singapore and China, and Park Avenue Heights in Chengdu as at 31 December 2017 for Keppel Land. The global economy growth markets of Vietnam and Indonesia, as well as Waterfront Residences in Wuxi. experienced a broad-based upturn, as well as in emerging markets like Thailand. Despite the competitive conditions, with improved business sentiments in With a relatively low net gearing of 0.25 at we replenished our landbank with the both developed and emerging markets. the end of 2017 and a strong cash position acquisition of a prime 18-ha site in Wuxi, Rapid urbanisation and a growing of $1.8 billion, Keppel Land is well-positioned adding 2,800 homes to our pipeline. middle-class across Asia have generated to pursue acquisitions and new investments. Keppel Land will continue to deepen its healthy demand for quality homes, offices presence in its five focus cities of Shanghai, and retail developments. New technologies Deepening Presence in Key Markets Beijing, Chengdu, Tianjin and Wuxi. and business models as well as disruptive Despite property market cooling measures innovation in the sharing economy have continuing in a few key markets, Keppel Land As one of the largest and pioneer foreign also presented many new opportunities. continued to achieve strong home sales in real estate developers in Vietnam, 2017, transacting more than 5,480 units at Keppel Land has been privileged to have Property Trading 50.5 Amidst this backdrop, Keppel Land delivered a total sales value of about $2.8 billion. contributed to the country’s progress Property Investments 39.8 strong results, achieving revenue of Due to tightening measures in China and and development over the past 20 years. $1.8 billion for the year ended 31 December the timing of our launches in Vietnam, The continued urbanisation, growing income Hotels & Resorts 2.4 2017. Net profit rose 19.6%1 to $701 million, overall sales volume was marginally lower levels, relaxation of the Housing Law and Others 7.3 of which about $212 million came from compared to the 5,720 homes sold in 2016. Real Estate Business Law, increase in foreign Total 100.0 divestment gains. direct investments as well as improvements In Singapore, there continues to be healthy in public infrastructure will continue to In 2017, our overseas operations performed demand for our high quality developments drive demand for quality homes and well and accounted for 68% of net profit among discerning homebuyers. In 2017, investment-grade offices. Keppel Land is Loh Chin Hua (excluding revaluation and other gains/losses), Keppel Land sold about 380 homes on well-positioned to tap Vietnam’s vibrant Executive Chairman with the bulk contributed by China, compared the back of improved market sentiments. property market with its prime landbank with 55% in 2016. About 70% of the sales came from The Glades located mostly in Ho Chi Minh City. and Highline Residences. The 726-unit Keppel Land will continue to be a Recycling Capital for Higher Returns The Glades was fully sold in August 2017, During the year, Keppel Land sold about We are transforming Keppel Land to be ahead of its additional buyer’s stamp duty 1,110 units in Ho Chi Minh City. We launched multi-dimensional real estate player, a multi-dimensional real estate player, deadline. Meanwhile, Highline Residences is the 472-unit Tilia Residences under Phase 2 with a strong focus on returns. providing solutions for sustainable also fully sold and has received its temporary of Empire City, which registered strong sales urbanisation. Our goal is for Keppel Land occupational permit in February 2018. of over 450 units. Other existing projects Our goal is for Keppel Land to be a to be a property company with one of the Both Reflections and Corals at Keppel Bay such as Estella Heights, Riviera Point and property company with one of the highest returns on equity (ROE) in Asia. have continued to chalk up sales. About 88% Palm City also continued to sell well. Our target is a through-the-cycle ROE of of the 1,129 units at Reflections at Keppel Bay highest returns on equity in Asia. about 12%. Although returns have hovered and 73% of the 366 units at Corals at Keppel Bay Harnessing synergies across the Keppel have been sold respectively as at end-2017. Group, Keppel Land is collaborating with Keppel Urban Solutions, a new business Leveraging the positive market sentiments, unit under Keppel Corporation, to develop Note: Keppel Land’s joint venture project with Saigon Sports City, a 64-ha township in the 1. Net profit/return for 2016 excluded the $563 million Wing Tai Land, The Garden Residences in prime District 2 of Ho Chi Minh City. We will gain from the divestment of Keppel Land’s fund Serangoon North, will be launched in 2018. develop Saigon Sports City into a bustling management business to Keppel Capital. Including this, the average ROE over the past Apart from the comprehensive amenities hub, combining high quality urban living decade would be 15.2%. in the mature estate, homebuyers can look with vibrant and healthy lifestyle concepts.
6 7 Overview
Chairman’s Statement
In Indonesia, we remain positive about immediately to the year’s profit. The value in 2020, and will contribute to the vibrancy the country’s long-term prospects which that we unlock can then be recycled into of the Tianjin Eco-City. are supported by sound fundamentals of projects with higher growth potential. a large and young population, growing In Ho Chi Minh City, Keppel Land increased middle-class and continued urbanisation. Strengthening Commercial Portfolio its stake in the landmark Saigon Centre. In 2017, we sold about 270 homes at West Keppel Land has actively expanded its Saigon Centre Tower 2 commenced Vista at Puri and The Riviera at Puri. In line commercial portfolio to capitalise on the rising operations in July 2017 and about 90% of the with our strategy to strengthen our presence demand for prime office and retail space in office space has been leased to multinational in Jakarta, we secured a prime residential Asia as well as to grow a steady recurring corporations such as AIA, Lazada, Chanel site in the capital’s central business district income stream to balance the cyclical nature and Royal Thai. Saigon Centre retail mall is (CBD), adjacent to our office development, of the property development business. fully leased and has achieved a footfall of International Financial Centre Jakarta, close to 14 million visitors since its opening where we will develop 400 luxury apartments. Strengthening its commercial presence, in August 2016. We are also developing Keppel Land and Alpha Investment Partners Empire City, in the up-and-coming new CBD We continue to seek opportunities in (Alpha), together with a co-investor, in the Thu Thiem New Urban Area, into over emerging markets such as Thailand collaborated to acquire Trinity Tower 250,000 sm of commercial space including and have partnered local developer, (formerly known as SOHO Hongkou), offices, prime retail space, a hotel and KPN Land, to develop a total of 400 homes an office and retail mixed-use development serviced apartments. in two freehold luxury condominiums in Shanghai’s CBD, for approximately along Bangkok’s popular Sukhumvit Road. US$525 million. This is the second time that In Indonesia, the existing International Keppel Land and Alpha have collaborated Financial Centre Jakarta Tower 1 will be In the current environment where land to acquire a commercial development in redeveloped into a 56-storey office tower. prices in key markets are high, we are Shanghai. The first was Life Hub @ Jinqiao, We also acquired an additional stake in the fortunate to have entered some markets a retail complex which was successfully Junction City mixed-use development in early. With a strong pipeline of more than repositioned and divested at a significant Yangon, Myanmar, another market which 60,000 homes in Asia, equivalent to premium in 2016. Similarly, we are adding Keppel Land has been in for many years. about 10 years supply, Keppel Land is in value through asset enhancements Phase 2 of Junction City will commence an enviable position. We will acquire land and improving the tenant mix at K-Plaza, construction in 2018 and will comprise very selectively, and only when there are a community mall which we acquired in 2016. offices and serviced apartments. good returns. Our focus is on inventory turnover and we will launch projects for In Shanghai’s Jing’an District, we are Today, Keppel Land has a total commercial sale in markets with favourable conditions. also developing Park Avenue Central, portfolio of 1.5 million sm of gross floor area, We can also choose to monetise part of which adjoins two successful residential either completed or under development. our sizeable residential landbank, if there projects, One Park Avenue and 8 Park When fully stabilised, this portfolio can are good opportunities, to unlock capital. Avenue. Meanwhile, Phase 1 of Seasons generate an annual net operating income In 2017, Keppel Land divested three City in the Sino-Singapore Tianjin Eco City, of about $300 million. These will contribute residential projects, equivalent to about which comprises an office tower and a retail to our recurring income, and eventually to 4,330 units sold en bloc, which contributed complex, is slated to complete construction divestment gains when they are monetised.
1. Apart from purchasing land for development, Keppel Land can also selectively acquire newly-completed assets in prime locations, such as Trinity Tower in Shanghai, China.
2. Harnessing strengths across the Keppel Group, Keppel Land is collaborating with Keppel Urban Solutions to develop the 64-hectare Saigon Sports City in Ho Chi Minh City, Vietnam.
1
8 Keppel Land Limited | Report to Stakeholders 2017
We must be nimble, be prepared to take calculated risks, and constantly evolve to ensure that Keppel Land remains relevant to our customers and the market place.
2
Driving Innovation and Sustainability With people as the cornerstone of our from across the Keppel Group participating In this fast-changing world, we need to business, we are committed to nurture and since 2014, we have once again partnered be agile and bold in seizing opportunities. empower a diverse, competent and dedicated the Singapore International Foundation We must be nimble, be prepared to take talent pool to drive the Company’s growth. and launched the second phase of the calculated risks, and constantly evolve to We continued to step up staff communication programme in March 2018. ensure that Keppel Land remains relevant and engagement during the year. Our efforts to our customers and the market place. have helped to keep staff engaged as shown Acknowledgements in the Employee Engagement Survey where On behalf of the Board, I would like to thank Capitalising on the rising demand for Keppel Land achieved an overall score of our stakeholders, including our customers and shared workspace globally, Keppel Land 86% in 2017, slightly higher than the 85% in business partners, for their continued support. launched KLOUD, a new generation of 2016. We will continue to sharpen our focus serviced co-offices catering to companies on people development to groom a new I would also like to thank Mr Ang Wee Gee for looking for flexible spaces from hot-desks generation of Keppelites who are committed his invaluable contribution during his 27 years to fully-furnished office suites. The flagship to our core values and operating principles, of service, of which five years, from 2013 serviced co-office at Keppel Bay Tower, and at the same time, are innovative, to 2017, were as Chief Executive Officer. KLOUD, offers 18,000 square feet (sf) collaborative and nimble. Wee Gee played an instrumental role in of smart office space. Since its opening, growing Keppel Land into the multi-faceted it has attracted start-ups, small and We also made progress in our sustainability property player that it is today. medium-sized enterprises, as well as journey. Keppel Land has adopted six of the multinational companies from a diverse United Nations’ 17 Sustainable Development My appreciation also goes out to our Directors mix of industries. Goals (SDGs) which are most aligned for their guidance. We would like to thank with our business. We have set stretch Mrs Oon Kum Loon and Mr Edward Lee, Keppel Land plans to operate at least targets in line with the six SDGs, including who have retired from the Board, for their one KLOUD centre in each of the markets environmental targets to achieve reduction committed service and wise counsel in the where it operates. To-date, KLOUD has in waste, water and energy, and will be rolling last seven and 11 years respectively. I would been introduced in Saigon Centre Tower 2 them out over the next few years. also like to thank the management team and in Ho Chi Minh City and Junction City Tower staff for their dedication and hard work. in Yangon, bringing Keppel Land’s total At Keppel Land, we constantly seek ways to serviced co-office footprint to about contribute meaningfully in the communities There will be new challenges that we have 60,000 sf. where we operate. In 2017, Keppel Land to overcome in 2018. However, with all our staff gave generously of their time and stakeholders’ support, we are confident that Keppel Land continued to receive effort, clocking a total of about 6,600 hours we will be able to ride out the uncertainties, international recognition for corporate of community service in Singapore and and continue our growth trajectory. excellence, quality and sustainability. overseas. In Singapore, we brought cheer We clinched a total of nine awards at to underprivileged children and their Yours sincerely, the Euromoney Real Estate Awards families through activities such as visits 2017, including Best Overall Developer in to the Keppel Centre for Art Education at Myanmar, Best Office Developer in Vietnam the National Gallery Singapore during the and Indonesia, and Best Residential Keppel Community Month in August. Developer in Vietnam. In the Global Real Estate Sustainability Benchmark 2017, Overseas, a total of four volunteer trips Keppel Land topped four categories, were conducted for the Words on Wheels namely, the Global/Developer/Residential, mobile library programme in Ho Chi Minh Loh Chin Hua Developer/Residential, Asia Pacific/ City in 2017. Following the success of the first Executive Chairman Residential and Asia/Developer categories. phase, which saw more than 200 volunteers 13 April 2018
9 Overview
Board of Directors
Loh Chin Hua age 56 Tan Yam Pin age 77 Koh-Lim Wen Gin age 73
Executive Chairman, B Non-Executive B Non-Executive B Executive and Non-External Director and External Director and External Director
Date of first appointment as a director: Date of first appointment as a director: Date of first appointment as a director: 1 July 2012 1 June 2003 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: 23 June 2017 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 2017): (as at 31 December 2017): (as at 31 December 2017): 5 years 6 months 14 years 7 months 7 years 11 months
Board Committee(s) served on: Board Committee(s) served on: Board Committee(s) served on: Board Safety Committee (Member) Board Safety Committee (Chairman) Board Safety Committee (Member)
Present Directorships: Present Directorships: Present Directorships: Listed companies Listed companies Listed companies Keppel Corporation Limited Great Eastern Holdings Limited Nil Keppel Telecommunications & Transportation Ltd (Chairman) Other principal directorships Other principal directorships Great Eastern Life Assurance (Malaysia) Berhad Nil Other principal directorships Overseas Assurance Corporation (Malaysia) Keppel Offshore & Marine Ltd (Chairman) Berhad Major Appointments (other than directorships): Keppel Infrastructure Holdings Pte Ltd Member of National Parks Board; Member (Chairman) Major Appointments (other than directorships): of Sentosa Development Corporation Board; Keppel Capital Holdings Pte Ltd (Chairman) Deputy Chairman of the Singapore Public Chairman of Sentosa Cove Resort Keppel Care Foundation Limited Service Commission; Member of the Board Management Pte Ltd; Member of Urban of the Lee Kuan Yew Scholarship Fund Redevelopment Authority Conservation Major Appointments (other than directorships): Advisory Panel Chief Executive Officer of Keppel Corporation 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
Board Committees
A B Audit and Risk Committee Board Safety Committee
10 Keppel Land Limited | Report to Stakeholders 2017
Yap Chee Meng age 62 Chan Hon Chew age 52 Willy Shee Ping Yah age 69
Non-Executive A Non-Executive A Non-Executive A and External Director and Non-External Director and External Director
Date of first appointment as a director: Date of first appointment as a director: Date of first appointment as a director: 2 December 2013 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: 23 June 2017 30 April 2015 23 June 2017
Length of service as a director Length of service as a director Length of service as a director (as at 31 December 2017): (as at 31 December 2017): (as at 31 December 2017): 4 years 1 month 3 years 6 months 1 year 2 months
Board Committee(s) served on: Board Committee(s) served on: Board Committee(s) served on: Audit and Risk Committee (Chairman) Audit and Risk Committee (Member) Audit and Risk Committee (Member)
Present Directorships: Present Directorships: Present Directorships: Listed companies Listed companies Listed companies SATS Ltd Keppel Telecommunications & Transportation Ltd Bund Center Investment Ltd Keppel DC REIT Management Pte Ltd Other principal directorships (the Manager of Keppel DC REIT) (Chairman) Other principal directorships AXA Insurance Pte Ltd KrisEnergy Ltd Mercatus Co-operative Ltd (Non-Executive Chairman) Shanghai Golden Bund Real Estate Co., Ltd The Esplanade Co Ltd Other principal directorships Ascendas Hospitality Fund Management Pte Ltd Pavilion Gas Pte Ltd Keppel Offshore & Marine Ltd Ascendas Hospitality Trust Management Pte Ltd RHB Securities Singapore Pte Ltd Keppel Infrastructure Holdings Pte Ltd RHB Investment Bank Berhad Singapore Tianjin Eco-City Investment Holdings Major Appointments (other than directorships): Pte Ltd Non-Executive Senior Advisor to CBRE; Major Appointments (other than directorships): Keppel Capital Holdings Pte Ltd Fellow Member of the Singapore Institute of Nil Directors; Fellow Member of the Singapore Major Appointments (other than directorships): Institute of Surveyors and Valuers Chief Financial Officer of Keppel Corporation Limited; Member of the Singapore Accounting Standards Council; Member of ISS Management Board, Institute of Systems Science, National University of Singapore
11 Overview
Senior Management
1. Goh York Lin 4. Lim Kei Hin 7. Ben Lee Siew Keong President Chief Financial Officer President Indonesia China 5. Loh Chin Hua 2. Linson Lim Soon Kooi Executive Chairman 8. Sam Moon Thong President Keppel Land Limited President Vietnam Regional Investments 6. Louis Lim Lu-yi 3. Ng Ooi Hooi Chief Operating Officer President Singapore
1 – 8
12 Keppel Land Limited | Report to Stakeholders 2017
9. Chu Chee Seng 11. Albert Foo Cheur Wee 13. Allen Ang Aik Leng General Manager General Manager General Manager Hospitality Management Marketing Project Management and Sustainable Design 10. Vincent See Wing Chuen 12. Lim Tow Fok General Manager General Manager 14. Peter Shane Jones Human Resources Property Management General Manager Workplace Safety and Health
9 – 14
13 Overview
Key Personnel
Keppel Land Limited Hospitality Management Corporate
Loh Chin Hua Ng Ooi Hooi Lim Kei Hin Chairman Director Chief Financial Officer (appointment till 31 December 2017) Executive Chairman Chu Chee Seng Chan Kam Fai (effective 1 January 2018) General Manager Director Human Resources Ang Wee Gee Khoo Peck Khoon (appointment till 31 December 2017) Chief Executive Officer General Manager (appointment till 31 December 2017) (Golf and Marina Operations) Vincent See Wing Chuen General Manager Louis Lim Lu-yi Human Resources Chief Operating Officer (effective 1 October 2017) (effective 1 January 2018) Retail Management Wong Man Li Financial Controller Michael Leong Choon Fai Group Finance and Accounts Chief Executive Officer Property Investment, (appointment till 31 December 2017) Melissa Tan Siew Ngok Development and Management General Manager Victor Tan Peng Guan Finance and Administration Lim Kei Hin Senior Executive Vice President Albert Foo Cheur Wee Chief Financial Officer (effective 1 January 2018) General Manager Marketing Ng Ooi Hooi President Allen Ang Aik Leng Singapore General Manager Project Management Ben Lee Siew Keong and Sustainable Design President China Lim Tow Fok General Manager Linson Lim Soon Kooi Property Management President Vietnam Peter Shane Jones General Manager Goh York Lin Workplace Safety and Health President Indonesia Serena Toh Lai Siong General Manager Sam Moon Thong Corporate Services and President Corporate Social Responsibility Regional Investments Kevin Chua Kee Wee Deputy General Manager Information Technology
Yeo Hwee Pey Assistant General Manager Risk Management (appointment till 30 April 2017)
Yeo Ling Min Assistant General Manager Risk Management (effective 1 May 2017)
14 Keppel Land Limited | Report to Stakeholders 2017
China Vietnam
Ben Lee Siew Keong Linson Lim Soon Kooi President President
Tan Boon Ping Doan Anh Hung Chief Financial Officer General Manager Business Development William Tan Tin Kwang General Manager Joseph Low Kar Yew North China General Manager Operations Daniel Chong Siew Hoe General Manager East China
Desmond Wong Hong Kiong Indonesia General Manager South & West China Goh York Lin President Lee Eng Beng General Manager Allen Tan Kwang Liang Special Projects General Manager Operations Vincent See Wing Chuen General Manager Human Resources (appointment till 30 September 2017) Regional Investments Fred Wu Yuan Wen General Manager Human Resources Sam Moon Thong (effective 12 October 2017) President Regional Investments President Jacquelyn Wong Rhu Chian Myanmar General Manager Marketing Oh Lock Soon President Gavin Lu Yee Liang The Philippines General Manager Project Management Yeo Chee Kian Deputy General Manager Frank Ong Cheng Poh India General Manager Tianjin Steven Shum Wing On Deputy General Manager Wong Liang Kit Malaysia Deputy General Manager Business Development
Peck Peng Soon Deputy General Manager Property Management
Samuel Henry Ng Kwang Keng Deputy General Manager Shanghai
Justin Chew Kok Chuan Deputy General Manager Chengdu
Eric Cheng Lu Deputy General Manager Wuxi
Edwin Hu Wei Deputy General Manager Kunming
15 Overview
Corporate Profile
Keppel Land is the property arm of Responsible Design Values Sustainable Development Goals Keppel Corporation, a multi-business To encapsulate Keppel Land’s conscious As a leading sustainable company, company providing robust solutions effort to deliver the best standards Keppel Land operates profitably yet for sustainable urbanisation, with key in liveability, quality, aesthetics and in a socially and environmentally businesses in offshore and marine, sustainability, a set of Responsible responsible manner. property, infrastructure and investments. Design Values was developed in 2016. Keppel Land has adopted six of the United Keppel Land is recognised for its sterling These guidelines are based on four key Nations’ 17 Sustainable Development Goals portfolio of award-winning residential principles which include innovative which are most aligned with its business. developments and investment-grade designs to differentiate Keppel Land’s They are Goal 3: Good Health and Well-Being; commercial properties as well as high properties, integration of values, cost Goal 9: Industry, Innovation and Infrastructure; standards of corporate governance and effectiveness and the marketability of Goal 11: Sustainable Cities and Communities; transparency. the development projects. Goal 12: Responsible Consumption and Production; Goal 13: Climate Action; and The Company is geographically diversified Keppel Land will adopt these design Goal 17: Partnership for the Goals. in Asia, with Singapore and China as its core values for all new developments in markets as well as Vietnam and Indonesia Singapore and overseas: as its growth markets. 1. Liveability Keppel Land is Asia’s premier home developer, • Health and Well-Being with a pipeline of more than 60,000 homes • Inclusiveness in Singapore and overseas. It brought • Safety and Security waterfront living to a whole new level with iconic residences at Keppel Bay and Marina 2. Quality Bay in Singapore. The Company is also a • Fit for Purpose leading prime office developer in Singapore, • Maintainability contributing to enhancing the city’s skyline with landmark developments such as Marina 3. Aesthetics Bay Financial Centre, Ocean Financial Centre and One Raffles Quay. 4. Sustainability • Design for climate responsiveness, Keppel Land is committed to grow its resource efficiency and ecological commercial portfolio in key Asian cities conservation such as Shanghai, Beijing and Tianjin • Productivity in China, Ho Chi Minh City in Vietnam, Jakarta in Indonesia, Yangon in Myanmar and Manila in the Philippines.
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16 Keppel Land Limited | Report to Stakeholders 2017
Corporate Milestones in 2017
1. Keppel Land is recognised for its sterling portfolio of award-winning residential developments, which includes the luxury residences along the coveted waterfront precinct of Keppel Bay.
2. In line with its strategy to grow its commercial portfolio in key Asian cities, Keppel Land increased its stake in Saigon Centre in Ho Chi Minh City, Vietnam, in 2017.
2
Partners, together with Allianz Real Estate, acquired a mixed-use development, Trinity Tower (formerly known as SOHO Hongkou), Q1 in Shanghai, China, for US$525 million. Q4
Keppel Land divested its 80% stake in a Keppel REIT announced the acquisition of Keppel Land announced the divestment prime site in Surabaya’s central business a 50% interest in a new office tower to be of its 80% stake in Keppel Cove, district (CBD). developed at 311 Spencer Street in Melbourne a residential cum marina development from Australia Postal Corporation. in Zhongshan City, China. When completed, Keppel Land increased its stake in Saigon the divestment is expected to yield a Centre in Ho Chi Minh City (HCMC), Vietnam. gain of about $290 million.
Keppel Land signed a Memorandum of Keppel Land divested its 20.5-hectare Understanding with Vietnam’s State Capital Q3 site in West Bali’s Tanah Lot district for Investment Corporation to collaborate on a gain of about $17.6 million. investment opportunities in Vietnam. Keppel Land and Wing Tai Land were jointly Keppel Land partnered Thai property awarded the tender for a prime residential developer, KPN LAND, to acquire two site in Serangoon North Avenue 1, which prime sites in Bangkok’s CBD for about can yield over 600 homes in an attractive $90 million to develop two premium Q2 and mature residential estate. freehold condominiums. Keppel Land entered into a conditional Keppel Land entered into two conditional Keppel Land acquired a 40% stake in a sales and purchase agreement with sales and purchase agreements to joint venture with the Shwe Taung Group Bank Central Asia to acquire a prime site acquire 100% interest in two prime to develop an office tower and serviced in Jakarta’s CBD, which can yield about residential sites in HCMC with a total residences for the second phase of the 400 luxury apartments in one of the development cost of about $407 million. Junction City mixed-use development in city’s most coveted addresses. Yangon, Myanmar, for about US$48.6 million. The Company acquired a prime The Company divested its 100% stake in 18-hectare residential site in Wuxi, Harnessing synergies across the Keppel Group, Waterfront Residences, a residential project in China, for $517 million through a Keppel Land China and Alpha Investment Nantong, for a net gain of about $79 million. government land tender.
17 Overview
Awards and Accolades
1. Keppel Land clinched 12 awards for its properties in Singapore and overseas, including the prestigious BCA Quality Champion (Gold) award for the 1 second consecutive year.
Corporate Recognition Sustainability Benchmarks Product Excellence
Euromoney Real Estate Awards Global Real Estate Sustainability Asia Pacific Property Awards Keppel Land clinched a total of nine awards Benchmark Saigon Centre in Ho Chi Minh City was at the Euromoney Real Estate Awards 2017, Keppel Land topped four categories, namely, named the best mixed-use development including Best Overall Developer the Global/Developer/Residential, Developer/ in Vietnam at the Asia Pacific Property in Myanmar, Best Residential Developer Residential, Asia Pacific/Residential and Asia/ Awards 2017. and Best Office/Business Developer in Developer categories in the Global Real Estate Vietnam, Best Office/Business Developer Sustainability Benchmark 2017. The Company EdgeProp Singapore Excellence Awards in Indonesia and Best Leisure/Hotel also maintained its third position globally Keppel Land was named one of the Developer in Singapore. among developers. Top Developers at the inaugural EdgeProp Singapore Excellence Awards 2017. Top Foreign Developer in China Sustainable Business Awards The Glades was also conferred the Landscape Keppel Land China was recognised as one Keppel Land received special recognition Excellence Award while Corals at Keppel Bay of the top foreign property developers by for land use, biodiversity and environment at garnered the People’s Choice Award. Guandian Property Net for the second time. the Sustainable Business Awards organised by Global Initiatives in partnership with Distinction in Hospitality BrandLaureate Special Edition PwC Singapore. Sedona Hotel Yangon was named the World Awards Best Business Travel Hotel by Ctrip at the Keppel Land was the only real estate BCA Awards second Ctrip Global Hotel Partners Summit. developer in Vietnam to receive the Brand Keppel Land clinched 12 awards at the BCA Excellence in Real Estate and Property at Awards 2017 organised by the Building and Spring City and Ria Bintan Golf Club the BrandLaureate Special Edition World Construction Authority of Singapore (BCA). (Ria Bintan) were ranked sixth and 52nd Awards 2017 (Vietnam edition) organised This includes the coveted Quality Champion respectively at the Ali Golf Awards by the Asia Pacific Brands Foundation. (Gold) award for the second consecutive year 2016-2017 in the category of ‘Asia’s Top 100 as well as the Green Mark GoldPLUS award for Golf Courses’. Spring City was also ranked the Keppel Bay Tower management office second under the ‘Asia’s Top 10 Beautiful and Sedona Hotel Yangon (Inya Wing). Golf Courses’ category. At the Golf Travel Awards 2016-2017, Spring City’s Lake Course Safety Recognition and Mountain Course were ranked seventh In recognition of its efforts to provide a safe, and 25th respectively in the category secure and healthy environment for locals of ‘Asia’s Top 100 Golf Courses’, while and visitors, Spring City Golf & Lake Resort Ria Bintan’s Ocean Course was ranked 45th. (Spring City) was awarded the Work Safety At the Asian Golf Awards 2017, Spring City Standardisation Certificate by China’s State and Ria Bintan were named Best Golf Administration of Work Safety. Courses in China and Indonesia respectively.
18 Keppel Land Limited | Report to Stakeholders 2017
Corporate Governance
The Company’s Directors and Management areas such as accounting or finance, legal, is determined. Recommendations from, firmly believe that full commitment to business or management experience, inter alia, Directors and Management are high standards of corporate governance is industry knowledge, strategic planning the usual source for potential candidates. essential to ensure the sustainability of the experience and customer-based experience However, external search consultants are Company’s businesses and performance as or knowledge. In terms of composition of the also considered. well as to safeguard shareholder’s interests Board, External Directors form the majority. and maximise long-term shareholder value. Formal interviews with the shortlisted Chairman and Chief Operating Officer candidates are conducted to assess their Board Matters The Chairman of the Board, Mr Loh Chin Hua, suitability and the candidates are verified of The Board’s Conduct of Affairs is also the Executive Chairman. Mr Loh Chin Hua their awareness of the expectations and the The Board oversees the effectiveness of plays an instrumental role in providing level of commitment required, after which Management as well as the corporate the Company with strong leadership and suitable candidates will be approved. governance of the Company with the vision, leads the Board in the development objective of maximising long-term of policies and strategies, and ensures The following criteria are used to assess all shareholder value and protecting the that these are implemented effectively. new appointments: Company’s assets. Its key roles include As Chairman of the Board, he bears primary the review and approval of the Group’s responsibility for the workings of the Board (1) Integrity; corporate strategies and directions, annual by ensuring effectiveness on all aspects of (2) Independent mindedness; budgets, major investments, divestments its role, encourages the Board’s interaction (3) Possession of core competencies and funding proposals and the review with Management, facilitates effective that meet the needs of the Company of the Group’s financial performance, contribution of the Directors, encourages and complements the skills and risk management processes and systems, constructive relations among the Directors, competencies of the existing Directors and sustainability considerations including and promotes high standards of corporate on the Board; corporate governance practices. The Board governance. As Executive Chairman, he is (4) Ability to commit time and effort to is also responsible for setting the Company’s the most senior executive in the Company carry out duties and responsibilities core values and ethical standards. and bears executive responsibility for the effectively; Group’s businesses. (5) Track record of making good decisions; Board Committees included the Audit (6) Experience in high-performing Committee (AC), Board Risk Committee Assisting the Executive Chairman is organisations; and (BRC) and Board Safety Committee (BSC). the Chief Operating Officer, Mr Louis Lim, (7) Financial literacy. On 1 March 2017, the AC and the BRC who was appointed with effect from were merged to form the Audit and Risk 1 January 2018. Mr Louis Lim shares executive The internal guideline adopted by the Committee (ARC). Following the merger, responsibilities with the Executive Chairman Company to address the issue of multiple the duties and obligations of the AC and the for the implementation of the business board representations is that Directors BRC are now undertaken by the ARC. These strategies and decisions of the Board in the should not have more than six listed Board Committees have clearly defined operations of the Group. He is not related company board representations and other written terms of reference. Matters which to the Executive Chairman. principal commitments. are delegated to Board Committees for more detailed evaluation and approval are Board Membership The Board recognises that proper succession reported to and monitored by the Board. Process and Criteria Used for Selection planning plays an important role in ensuring and Appointment of New Directors continuous and effective stewardship The Board has included in its oversight, To increase the reliability of the process, of the Company. As such, the Company’s consideration of sustainability issues such the Board’s diversity in terms of mix of succession plans are reviewed annually as environmental, social and governance expertise, knowledge and experience on the to ensure the progressive renewal of factors in the strategic formulation and Board is evaluated and, in consultation with the Board, including the Chairman. execution of the Company’s objectives. Management, the role and the desirable Succession and leadership development Every Board meeting includes an update competencies for a particular appointment plans for Management are also reviewed. on sustainability issues. The Board meets regularly on a quarterly basis and as warranted.
Board Composition Presently, there are six Directors. With The nature of current Directors’ appointment and membership on Board Committees are the exception of Mr Loh Chin Hua, who as follows: became the Executive Chairman on 1 January 2018, the rest of the five Directors are Board Committee Memberships non-executive Directors. With the exception Directors Board Membership Audit and Risk1 Board Safety of Mr Loh Chin Hua and Mr Chan Hon Chew, the rest of the four Directors are external Loh Chin Hua Executive Chairman – Member Non-External Director Directors (External Directors). External Directors are directors who do not have Tan Yam Pin External Director – Chairman an executive position within the Company Koh-Lim Wen Gin External Director – Member and its related companies. Yap Chee Meng External Director Chairman – Chan Hon Chew Non-External Director Member – The Directors provide an appropriate balance and diversity of skills, experience, Willy Shee Ping Yah External Director Member – gender and knowledge of the Company 1 The Audit and Risk Committee was formed on 1 March 2017 following the merger of the Audit Committee and as well as relevant core competencies in the Board Risk Committee.
19 Overview
Corporate Governance
Remuneration Matters on financial statements through quarterly in achieving its strategic objectives Remuneration Policy for updates and discussion with the external and the overall Group’s levels of risk Key Management Personnel auditors. The ARC also reviews and guides tolerance and risk policies; The Company adopts a remuneration Management in the formulation of risk (9) Review and discuss, as and when system that is aimed at attracting, retaining policies and processes to identify, appropriate, with Management the and motivating talent on a sustainable basis. evaluate and manage significant risks, Group’s risk governance structure and In designing the remuneration structure, to safeguard shareholder’s interests framework, including risk policies, risk the Company seeks to ensure that the level and the Company’s assets. In addition, mitigation and monitoring processes and mix of remuneration is competitive, the ARC discusses risk management and procedures; relevant and appropriate in finding a strategies with Management and the Board (10) Receive and review quarterly reports balance between current versus long-term and makes visits to the Company’s project from Management on major risk remuneration and between cash versus sites and discusses the risk mitigation exposures and the steps taken to equity incentive remuneration. actions and issues that the Group faces monitor, control and mitigate such risks; in the various markets. (11) Review the Group’s capability to In 2017, the Company revised its total identify and manage new risk types; remuneration structure reflecting four The ARC is guided by the following terms (12) Review and monitor Management’s key objectives: of reference: responsiveness to the findings and recommendations of the risk (1) Shareholder alignment: To incorporate (1) Review financial statements and management department; performance measures that are aligned review significant financial reporting (13) Investigate any matters within the ARC’s to shareholder’s interests; issues and judgements contained purview, whenever it deems necessary (2) Long-term orientation: To motivate in them, for better assurance of the or as may be directed by KCL; employees to drive sustainable integrity of such statements; (14) Report to the Board on material matters, long-term growth; (2) Review and report to the Board at findings and recommendations; (3) Simplicity: To ensure that the structure least annually the adequacy and (15) Provide timely input to the Board on is easy to understand and communicate effectiveness of the Group’s risk critical risk and compliance issues; to stakeholders; and management and internal controls (16) Review the ARC’s terms of reference (4) Synergy: To facilitate talent mobility and systems, including financial, annually and, after consultation with enhance collaboration across businesses. operational, compliance and KCL Audit Committee and Board Risk information technology controls Committee, recommend any proposed The revised total remuneration structure (such review can be carried out changes to the Board for approval; comprises two key components; that is, internally or with the assistance of (17) Perform such other functions as the annual fixed cash and annual performance any competent third parties); Board may determine; bonus. The annual fixed cash component (3) Review audit plans and reports of (18) Sub-delegate any of its powers within comprises the annual basic salary plus any the external auditors and internal its terms of reference as listed above other fixed allowances, which the Company auditors, and consider the effectiveness from time to time as the ARC may benchmarks with the relevant industry of actions or policies taken by deem fit; market median. The size of the annual Management on the recommendations (19) Receive and review updates from performance bonus pot is determined by and observations; Management to assess the adequacy the Group’s financial performance and the (4) Review the independence and and effectiveness of the Group’s Company’s performance, and is distributed objectivity of the external auditors; compliance framework in line with to employees based on individual (5) Meet with the external auditors and relevant laws, regulations and best performance. A portion of the annual internal auditors, without the presence practices; performance bonus is granted in the of Management, at least annually; (20) Through interactions with the form of deferred shares that are awarded (6) Receive all whistle-blower reports Compliance Lead who has a direct under the Share Plans of Keppel Corporation pertaining to the Company from the reporting line to the Committee, Limited (KCL). Receiving Officer, immediately upon review and oversee performance of the receipt of a complaint. The ARC shall Group’s implementation of compliance Accountability and Audit provide oversight, under expressed programmes; and The Board, previously supported by the authority from the Board and the KCL (21) Review and monitor the Group’s AC and the BRC, is now supported by the Whistle-Blower Committee and receive approach to ensuring compliance with ARC following the merger of the AC and the final report upon the completion of regulatory commitments, including the BRC on 1 March 2017, oversees the such investigations. On a quarterly progress of remedial actions where Group’s system of internal controls and basis, the ARC shall also receive applicable. risk management. an update on the whistle-blower reports received during the quarter During the year, the ARC reviewed the Audit and Risk Committee and the status of any such pending internal and external auditors’ plans The ARC’s primary role is to assist the investigations; and findings to ensure that they are Board to ensure the integrity of financial (7) Review the adequacy and effectiveness sufficient to assess the adequacy and reporting, the adequacy and effectiveness of the Company’s internal audit effectiveness of the Company’s significant of risk management and internal control function, at least annually; internal controls, including financial, systems, to oversee risk management in (8) Receive, as and when appropriate, operational, compliance and information the Group and to ensure that a robust risk reports and recommendations technology controls and management management system is maintained. from Management on risk tolerance of risks of fraud and other irregularities. and strategy, and recommend to the The ARC also reviewed the effectiveness The ARC is kept abreast of changes to Board for its determination the of the actions taken by Management on the accounting and governance standards nature and extent of significant risks recommendations made by the internal and issues which have a direct impact which the Group overall may take and external auditors in this respect.
20 Keppel Land Limited | Report to Stakeholders 2017
The ARC also performed independent Board Risk Committee control and risk management processes reviews of the financial statements of the The BRC held one meeting prior to and procedures. The Framework comprises Company. The ARC has explicit authority 1 March 2017. On 1 March 2017, the BRC three Lines of Defence towards ensuring to investigate any matter within its terms was merged with the AC and the functions the adequacy and effectiveness of the of reference, full access to and cooperation and responsibilities of the BRC are now Group’s system of internal controls and by Management and full discretion to undertaken by the ARC. risk management. invite any Director or executive officer to attend its meetings, and has reasonable Risk Management and Internal Under the first Line of Defence, Management resources to enable it to discharge its Controls is required to ensure good corporate functions properly. The Company’s approach to risk management governance through the implementation is set out in the “Risk Management” section and management of policies and procedures Prior to 1 March 2017, the AC held two on pages 23 to 25. The Company is guided relevant to the Group’s business scope meetings during the year. After the by a set of Risk Tolerance Guiding Principles and environment. Under the second Line merger of the AC and the BRC to form the as disclosed on page 23. of Defence, significant business units are ARC on 1 March 2017, the ARC held three required to conduct self-assessment exercise meetings during the year. The Company’s The Group also has in place a Risk on an annual basis; this is bolstered by internal and external auditors reported Management Assessment Framework to second line independent monitoring their audit findings and recommendations facilitate the Board’s assessment on the by centralised functions such as Control independently to the ARC. The ARC also adequacy and effectiveness of the Group’s Assurance, Risk & Compliance, Information met with the internal and external auditors, risk management system. The Framework Systems and Health, Safety & Security. without the presence of Management. lays out the governing policies, processes Under the third Line of Defence, to assist the At the meetings, the external auditors briefed and systems pertaining to each of the key Company to ascertain the adequacy and the members of the ARC on the latest risk areas of the Group, and assessments effectiveness of the Group’s internal controls, developments in accounting and governance are made on the adequacy and effectiveness business units are required to provide the standards and practices. In addition, the ARC of such policies, processes and systems Company with written assurances as to the reviewed the independence and objectivity in managing each of these key risk areas adequacy and effectiveness of their system of the external auditors through discussions every quarter. of internal controls and risk management. with the external auditors. The Company’s internal and external The Group also has in place the Keppel Land’s auditors provide an added independent The ARC comprises three directors, of which System of Management Controls Framework assessment of the overall control two are non-executive and External Directors. (Framework) outlining the Group’s internal environment.
Keppel Land's System of Management Controls
Policies
4 Board Oversight Board of Directors
Business Unit Internal External 3 Assurance Representation Audit Audit Processes
Management & Self-Assessment Enterprise Risk Regulatory IT Governance 2 Assurance Frameworks Process Management Compliance Framework Systems Business Governance/ 1 Core Values, Corporate & Employee Conduct Rules of Governance
Policy Compliance Operational Financial Management Governance Governance Governance
People
21 Overview
Corporate Governance
Employee Code of Conduct The Supplier Code sets out the standards policies when they join the Company’s To build a culture of high integrity as well of conduct to which the Company’s suppliers orientation programme. Subsequently, as reinforce ethical business practices, the and their parent entities, subsidiaries to maintain awareness, all employees Company has in place an Employee Code or affiliate entities and employees, are are required to acknowledge the policies of Conduct (Code). expected to adhere. Suppliers are required annually. Any revisions are highlighted to conduct their business operations to them when they perform the annual The Code addresses, at the employee level, with the highest standards of integrity, acknowledgements. the standards of acceptable and unacceptable fairness and impartiality, in an ethical behaviour and personal decorum as well and proper manner. Suppliers are Board Safety Committee as issues of workplace harassment. On the expected to observe and comply with The Company’s BSC guides Management business front, the policy addresses standards all applicable laws and regulations in to enhance the Group’s commitment to of ethical business behaviour including relation to anti-corruption, fair competition, work safely in all workplaces and foster a anti-corruption, the offering and receiving human rights, safety and health, and positive safety culture in the Company. of gifts, hospitality and promotional environment management, in their The BSC is supported by the Management expenditures, dealings with third party respective countries of operations. Safety Committee (MSC). The BSC meets associates as well as conflicts of interest. quarterly to discuss safety issues and The rules require business to be conducted Suppliers are required to acknowledge provide guidance and direction to chart with integrity, fairly, impartially, in an ethical that they understand the Supplier Code safety milestones. The BSC makes regular and proper manner, and in compliance with and to communicate the requirements field visits to project sites in Singapore all applicable laws and regulations. of the Supplier Code to their own suppliers and overseas to enforce the Board’s and subcontractors and secure their commitment to safety. The Code also requires all staff to avoid compliance. any conflict between their own interests The MSC members comprise nominated and the interests of the Company in Whistle-Blower Protection Policy senior personnel from each of the dealing with its suppliers, customers The Company has a Whistle-Blower Company’s business units. The MSC meets and other third parties. Protection Policy to encourage the reporting quarterly to discuss safety issues and makes in good faith of suspected reportable regular visits to project sites in Singapore Relevant anti-corruption rules are also conduct, violations of the Code or applicable and overseas, ensuring that contractors are spelled out to protect the business, laws (including the U.S FCPA, U.K. Bribery complying with the local regulations and resources and reputation of the Company. Act 2010, the Singapore Prevention of industry’s best practices. Employees must under no circumstances Corruption Act, the anti-bribery legislation offer or authorise the giving, directly or of the People’s Republic of China and The BSC and the MSC are supported by through third parties, of any bribe, kickback, other applicable anti-bribery laws) by the Workplace Safety and Health (WSH) illicit payment, or any benefit-in-kind or establishing clearly defined processes Department. The WSH Department, any other advantage to any government through which such reports may be made headed by the General Manager, Workplace official or government entity, private sector with the confidence that employees Safety and Health, and a team of safety customer, supplier, contractor or any and other persons making such reports professionals from various engineering other person or entity, as an inducement to the employees’ supervisors, ARC disciplines, conducts regular site safety or reward for an improper performance Chairman or Receiving Officer will be inspections and audits on all the active or non-performance of a function or treated fairly and, to the extent possible, projects in Singapore and overseas. activity. Similarly, employees must not protected from reprisal. under any circumstances solicit or accept The BSC is guided by the following terms illicit payment, directly or indirectly, from The ARC Chairman is kept informed of all of reference: any government official or government cases reported. Every Protected Report entity, private sector customer, supplier, received (whether oral or written, and (1) Establish the health and safety (H&S) contractor or any other person or entity that anonymous or otherwise) will be assessed policies; is intended to induce or reward an improper by the Receiving Officer, who will review (2) Monitor the Company’s compliance performance or non-performance of a the information disclosed, interview with the approved H&S policies by: function or activity. the whistle-blower when required and (a) Assessing the adequacy of H&S if contactable and, in consultation with standards prepared by the MSC; The Code is published on the Company’s the Whistle-Blower Committee, make (b) Assessing the operations of the intranet which is accessible by all employees. recommendations to the ARC as to Company and recommendations On an annual basis, all employees are whether the circumstances warrant an of the MSC on training, safety required to acknowledge the Code and investigation. The ARC will also ensure audits, elimination, control and undergo annual training and assessments that any disciplinary, civil and/or criminal minimisation of H&S risks; and to ensure awareness. action that is initiated following completion (c) Assessing the compliance of of an investigation, is appropriate, balanced, the Company with applicable Supplier Code of Conduct and fair. The ARC will also monitor the legislation; The Company is committed to conducting actions taken to correct the weaknesses (3) Recommend the adoption of acceptable our businesses ethically and responsibly. in the existing system of internal processes H&S practices in the industries in which The Company’s core values of integrity and policies which resulted in or may the Company operates; and accountability are fundamental to the cause the perpetration of the fraud and/or (4) Receive reports concerning H&S way it does businesses, including how it misconduct, to prevent any recurrence. incidents within the Company; and manages its supply chain and the impact of (5) Consider H&S issues that may have the Company’s business activities beyond Briefings for all staff on the Code and strategic, business and reputational its direct operations. In this regard, the Whistle-Blower Protection Policy were implications for the Company. Company has in place a Supplier Code of held when the policies were introduced. Conduct (Supplier Code). New employees are briefed on the The BSC held four meetings during the year.
22 Keppel Land Limited | Report to Stakeholders 2017
Risk Management
Robust Risk Management Framework significant risks that the Board will take to addressing key risks as well as the Group’s Risk management is an integral part achieve its strategic objectives. policies and limits. of strategic, operational and financial decision-making processes at all levels These guiding principles which are reviewed The Group’s five-step risk management of the Keppel Group. The Keppel Group’s yearly are: process consists of risk identification, holistic approach to identifying and risk assessment, formulation of risk managing risks instils a strong risk 1. Risk taken should be carefully evaluated, mitigation measures, communication ownership across the Company and commensurate with rewards and in line and implementation as well as monitoring reduces uncertainties associated with with Keppel Land Group’s (the Group) and reviews. The assessment process executing our strategies, allowing us to core strengths and strategic objectives. takes into account both the likelihood and seize opportunities with agility. 2. No risk arising from a single area of impact on the financial, operational and operation, investment or undertaking reputational aspects. Keppel Land’s Board of Directors (the Board) should be so huge as to endanger the is responsible for governing risks and entire Group. A set of key risk indicators, which are closely ensuring that the management maintains 3. The Group does not condone safety monitored by business units and risk a sound system of risk management and breaches or lapses, non-compliance with owners, serves as early warning signals. internal controls to safeguard stakeholders’ laws and regulations as well as acts such Risk plans and key risk indicators are interests and the Company’s assets. as fraud, bribery and corruption. regularly reviewed to ensure risks identified The Board is assisted by the Audit and Risk remain relevant and mitigating actions Committee (ARC), which was formed on Ongoing improvements are made to continue to be adequate, timely and effective. 1 March 2017 following the merger of the strengthen the existing risk governance Audit Committee and the Board framework. Our risk governance framework The risk registers of the individual business Risk Committee. is set out on page 21. In 2017, the Board units and functional departments are has assessed that the risk management reviewed regularly to ensure the risks Comprising three Directors, the ARC held system is adequate and effective in identified and accompanying mitigating quarterly meetings in 2017. During the year, addressing the key risks of the Company. measures remain relevant in view of the the ARC also visited various ongoing projects dynamic business environment. in Johor Bahru, Malaysia, and Ho Chi Minh The enterprise risk management framework, City, Vietnam, to better understand and a component of Keppel’s System of As a Group, Keppel Land adopts a review the risks that may affect Keppel Land. Management Controls, provides the Group balanced approach to risk management, with a holistic and systematic approach in recognising that not all risks can be Since 2013, Keppel Land has adopted three risk management. It outlines the reporting eliminated. The Company will undertake risk tolerance guiding principles which structure, monitoring mechanisms, specific appropriate and well-considered risks to determine the nature and extent of the risk management processes and tools in optimise returns for the Group.
1. Keppel Land is committed to enhance its operational resilience and conducts regular simulations to respond effectively to 1 potential crises.
23 Overview
Risk Management
Bolstering Operational Readiness competency and staff awareness. respective country’s Regulatory Compliance Keppel Land is committed to enhance The Group also seeks to enhance staff Working Teams to drive the implementation its operational resilience through the accountability for risk management through of the Employee Code of Conduct and establishment of a robust business the performance evaluation process. regulatory compliance programs. continuity management (BCM) framework that will allow it to respond effectively to Proactive Risk Management Policies and Procedures potential crises and external threats while Keppel Land will continue to review and Keppel has a strict Employee Code of minimising any impact on its people, refine its risk management methodology, Conduct which guides employees in operations and assets. In response to rising systems and processes to ensure its carrying out their duties and responsibilities terrorism risks, a security unit reporting to adequacy and effectiveness. The Group will to the highest standards of personal and the Property Management team has been continue to leverage its training initiatives corporate integrity when dealing with set up at Keppel Land’s headquarters to to raise employees’ risk management suppliers, customers and other third parties. coordinate and oversee the implementation awareness and capabilities as well as It covers areas such as conduct in the of security initiatives across the Company’s enhance sharing of key lessons learned. workplace, business conduct, including developments in Singapore and overseas. anti-corruption and conflict of interests. Regulatory Compliance We expect our business partners and Led by the BCM committee, business units We place significant emphasis on ensuring associates, including individuals or entities in various locations conduct a range of we operate in an ethical and proper manner, that provide services, or engage in simulations under a broad spectrum of and in compliance with all applicable laws business activities, on behalf of disruptions such as severe air pollution, and regulations. the Group, to apply the same regulatory flood, earthquake, pandemic disease, fire compliance principles and standards. and civil unrest, to enhance their operational Regulatory Compliance Framework preparedness. These BCM plans are tested and Governance Structure Training and Communications and refined to ensure responses are The Group has a defined framework and Training is a key component within our practical, executable and effective while continues to work towards strengthening regulatory compliance framework and critical business functions continue to its policies and processes surrounding we continue to refine our compliance operate smoothly. regulatory compliance. The framework training programmes and curriculum for deals with the structure, people, policies new and existing employees. Training A Risk-Centric Culture and activities required for management to programmes are tailored to the audience Effective risk management hinges equally on identify, assess, mitigate and monitor key and we leverage Group-wide platforms mindsets and attitudes as well as systems compliance risks. to reiterate key compliance messages. and processes. Management is committed Employees are also required to complete to foster a strong risk-centric culture in the Keppel Land’s Regulatory Compliance mandatory annual e-training and Group, which encourages prudent risk-taking Governance Structure comprises the assessment programmes, covering in decision-making and business processes. Regulatory Compliance Management key policies and to acknowledge that they Committee (RCMC), chaired by the CEO, have read and understood the policies Risk management and training workshops and key members including business unit including declaration of any potential are conducted to enhance risk management heads. The RCMC is supported by the conflicts of interest.
Five-Step Risk Management Process
Step 1 Step 2 Step 3 Step 4 Step 5
Identify Assess Mitigate Implement Monitor Understand the Prioritise risk factors Develop action plans Communicate Monitor mitigation strategy, identify by assessing their to mitigate risks and implement results and KRI. value drivers and potential impact and identify key risk action plans. risk factors. and likelihood of indicators (KRI) to occurrence. monitor risks.
24 Keppel Land Limited | Report to Stakeholders 2017
Managing Key Risks 6. Project Management Risks 10. Fraud/Corruption Risks The key risks identified and appropriate • Project management processes are • Keppel Land has put in place an mitigating actions undertaken by reviewed regularly by the Project enhanced Employee Code of Conduct, Keppel Land in 2017 are as follows: Management and Sustainable Design insider trading, Whistle-Blower Protection department. Through these processes, Policy, gift and hospitality policy, agent 1. Business Strategy Risks the Group adopts good industry fees policy as well as financial authority • The Group’s strategic direction and practices to deliver quality projects limits and control self-assessment tools business strategies are reviewed by the on time and on budget. to mitigate the risk of fraud, corruption Board and senior management. Factors • Trainings are conducted for project and misconduct by staff. including laws and regulations, market managers to increase their familiarisation • Internal and external audits are conditions and competitive landscape and ensure their compliance with the conducted regularly to prevent, within each market are considered processes. detect and mitigate fraud risks. carefully. Keppel Land continues to look into matters relating to technology, 7. Human Resources Risks 11. Quality of Deliverables innovation and solutions as part of its • Keppel Land leverages leadership • The Group has put in place the Quality strategy to develop alternative business development and local graduate Assurance/Quality Control procedures products and innovative solutions. programmes to identify and develop and the Keppel Quality Standards to its talent pipeline. ensure excellence in project deliveries. 2. Concentration Exposure Risks • Succession planning for key executive • To encapsulate Keppel Land’s efforts to • There is an established concentration positions is reviewed regularly and deliver the best standards in the design risk management policy that governs rigorously to ensure relevance. of its projects, a set of Responsible the exposure limits of each market Design Values was developed and has and project to manage concentration 8. Information Technology Risks been adopted for all new developments exposure risk. • The Information Technology (IT) in Singapore and overseas. To ensure • Exposure to all countries and projects are department has established the customer satisfaction of products monitored regularly to ensure the Group IT Security Framework to address delivered, Keppel Land has established a is not overly exposed to any single project IT security risks. Various measures standard operating procedure for defects or market. such as intrusion prevention, detection management and handover of units. systems and firewalls are put in place 3. Investment/Divestment Risks to protect confidential information. 12. Health and Safety Risks • Guided by investment parameters, all • Reviews are carried out annually to • Keppel Land has put in place a health major investments are subjected to due ensure alignment to IT policies and and safety policy to raise staff awareness diligence processes and evaluated by procedures. on the importance of workplace health the Board. • The IT Disaster Recovery Plan is and safety. • All investment and divestment proposals reviewed and tested regularly to • Various initiatives and policies are submitted for approval have to be ensure the robustness of the IT system. implemented via the Workplace Safety accompanied by a completed set of risk IT audits are also carried out. Policies and Health department which ensures assessment template. governing end-user computing as well that a strong safety culture is inculcated as the safeguarding and backing up of in all employees. 4. Exposure to Financial Market Risks information have been put in place. • Keppel Land hedges against foreign exchange and interest rate risks through 9. Business Continuity Risks the utilisation of various financial • Business units continually review instruments, where appropriate. and test their business continuity • The Group ensures that adequate plans to ensure effective response funding resources are available for to disruptive events. investments and cash flows are • Critical business functions are actively managed. determined and alternative processes, resource requirements 5. Misstatement of and interdependencies are identified Financial Statements to support operations at times • The Group ensures that the of disruption. consolidated financial statements • A security strategic framework has have been prepared in accordance been established to coordinate security with the Singapore Financial measures for Keppel Land’s assets. Reporting Standards. The framework adopts a systematic • Internal and external audits are approach based on the strategic thrusts conducted to provide reasonable of deterrence, detection and response, assurance on the accuracy of which guides the development of financial statements. Keppel Land’s security initiatives.
25 Operations and Market Review Keppel Land Limited | Report to Stakeholders 2017
Operations and Market Review
The Glades golf course, parks and lush greenery. for its lifestyle offerings and laid-back Location: Tanah Merah About 88% of the 1,129 units have been charm. Future residents can enjoy Total no. of units: 726 sold as at end-2017. myriad recreational and dining amenities Singapore GFA: 549,082 sf within the vicinity, including MyVillage Completion: 2016 Corals at Keppel Bay at Serangoon Gardens, Chomp Chomp Keppel Land will continue Location: Keppel Bay Drive Food Centre, and Serangoon Gardens to pursue opportunities Located within an established private Total no. of units: 366 Country Club. The NEX shopping mall in residential, commercial residential estate, The Glades is situated GFA: 509,998 sf is also just a short drive away. Families close to the Tanah Merah MRT station. Completion: 2016 with school-going children will appreciate and mixed-use The Changi Business Park and the Singapore the site’s proximity to reputable educational developments. University of Technology and Design campus Located adjacent to the historic King’s Dock institutions including Rosyth School, are also in the vicinity. Residents will benefit and designed by world-renowned architect Nanyang Junior College and Lycee Francais from the development of Project Jewel at Daniel Libeskind, Corals at Keppel Bay de Singapour (French School of Singapore). the Changi Airport, a new 3.5-ha integrated offers homeowners a waterfront lifestyle The development is expected to be development with retail and world-class at Singapore’s vibrant southern shores. launched in 2018. attractions. All 726 residential units have The iconic condominium comprises 366 prime been sold as at end-2017. waterfront homes in 11 low-to medium–rise New Phases at Keppel Bay blocks. The blocks cascade towards the Location: Keppel Bay Reflections at Keppel Bay waterfront, offering residents panoramic Total no. of units: 320 Location: Keppel Bay View views of the sea and the lush central garden. GFA: 570,492 sf Total no. of units: 1,129 About 73% of the 366 units have been sold GFA: 2,081,738 sf as at end-2017. Keppel Bay is a 32-ha exclusive waterfront Completion: 2011 precinct in Singapore’s vibrant southern The Garden Residences waterfront. It is a mere five-minute drive Reflections at Keppel Bay is an iconic and Location: Serangoon North to the CBD and is close to Resorts World award-winning condominium designed Total no. of units: 613 Sentosa, VivoCity and the HarbourFront by master architect Daniel Libeskind. GFA: 462,561 sf Office Park. Residents can enjoy a waterfront Situated at Singapore’s southern waterfront, Completion: 2020 lifestyle as well as a wide array of retail and the condominium development features recreational options, including those at the Brighter Economic Outlook Though Keppel Land sold a total of about 380 six glass towers and 11 villa apartment The Garden Residences is located in award-winning Marina at Keppel Bay. Major Developments in 2017 Downside Risks Remain residential units in Singapore in 2017, blocks comprising 1,129 luxury homes the established Serangoon Gardens Jointly acquired a residential site in the The global economy expanded 3.7% in comparable with the number of units with commanding views of the waterfront, neighbourhood, which is sought after Keppel Land has two remaining land plots Serangoon Gardens neighbourhood with 2017, the strongest pace of expansion since sold in 2016. About 70% of the sales came at the precinct, one of which is located Wing Tai Land to develop over 600 homes. the rebound from the global financial crisis from Highline Residences, which has since on the private Keppel Island. The timing in 2010. The International Monetary Fund been fully sold, and The Glades, which was of their developments is subject to market Sold about 380 homes, mostly from expects this broad-based cyclical upturn fully sold out in August 2017, ahead of its conditions. Highline Residences and The Glades. to be sustained, led by the advanced additional buyer’s stamp duty deadline. economies, and has revised global growth Redevelopment of Nassim Woods to 3.9% in 2018 and 2019. Keppel Land will continue to time residential Location: Nassim Road Focus for 2018 launches and adjust its marketing strategy Total no. of units: 106 Activate existing landbank to seize The Singapore economy grew 3.6% in 2017 according to market conditions as well GFA: 99,600 sf opportunities on the back of positive compared to the 2.4% growth in 2016. as activate its existing landbank to seize market sentiments. Growth is mainly driven by the manufacturing opportunities on the back of positive Nassim Woods is a 35-unit luxurious and services sectors and this is expected to market sentiments. condominium located in the prime residential Explore opportunities to monetise and continue in 2018. area of Nassim Hill. The development is recycle assets for new investments. CONDOMINIUMS located near foreign embassies, a country Since April 2016, the Monetary Authority Highline Residences club and the Singapore Botanic Gardens, of Singapore has maintained its neutral Location: Tiong Bahru a UNESCO World Heritage Site. policy stance on the zero appreciation of the Total no. of units: 500 Singapore dollar against the currencies of GFA: 473,218 sf Keppel Land is studying the redevelopment key trading partners. However, strengthening Completion: 2018 of Nassim Woods which could yield about growth in the global economy could lead 106 units. to an impending rise in imported inflation. Located at the fringe of the central business Tighter monetary policy may be expected district (CBD), Highline Residences is COMMERCIAL in 2018. Against this macro backdrop, the nestled within a nostalgic and trendy Keppel Bay Tower Ministry of Trade and Industry expects the neighbourhood, part of which has been Location: HarbourFront Avenue Singapore economy to grow at a modest earmarked as a Heritage Conservation Area GFA: 450,377 sf pace of between 1.5% and 3.5% in 2018. by the Urban Redevelopment Authority Completion: 2002 (URA). Highline Residences is situated In 2017, Keppel Land and Wing Tai Land close to the Tiong Bahru MRT station and The 18-storey office building is conveniently jointly secured a prime residential site in Tiong Bahru Plaza, providing future located within a five-minute drive from the Serangoon North Avenue 1. The 1.7-hectare residents easy access to a host of retail CBD and offers excellent connectivity via the (ha) site will yield over 600 quality homes in and lifestyle amenities. About 90% of the 1. HabourFront MRT station, major roads and an attractive and mature residential estate. 500 units have been sold as at end-2017. Highline Residences expressways. Tenants enjoy a wide array of is located in the trendy estate of Tiong Bahru dining and lifestyle choices with the office which has been named building in close proximity to VivoCity and one of the coolest neighbourhoods in Resorts World Sentosa. Keppel Bay Tower 1 the world. is 97% committed as at end-2017.
26 27 Operations and Market Review Keppel Land Limited | Report to Stakeholders 2017
Operations and Market Review Singapore
1. I12 Katong In 2017, there was strong participation in Keppel Bay Tower offers Private Residential Supply, Demand and Price Index tenants a wide array of Location: East Coast Road the government land sales programme with dining and lifestyle choices GFA: 282,103 sf aggressive bid prices. There was a surge in with its close proximity collective sales in 2017, with 30 sites sold Units Index to VivoCity and Resorts Completion: 2011 World Sentosa. with a total value of around $8.7 billion, 12,500 200 Strategically located at the junction of compared to just three en bloc transactions East Coast Road and Joo Chiat Road, with a total value of $1 billion in 2016. 10,000 160 I12 Katong is a six-storey lifestyle mall with The en bloc sales have fuelled demand a net lettable area of about 207,000 square for replacement units while providing 7,500 120 feet (sf). Major tenants include Katong developers with the opportunity to replenish 5,000 80 Market Place, Golden Village and Tim Ho Wan. their landbank. The mall is currently undergoing asset 2,500 40 enhancement works which is expected For the first half of 2018, government land to be completed by August 2018. sales supply can potentially yield about 0 0 8,045 private residential units. This is 2014 2015 2016 2017 Redevelopment of Keppel Towers comparable to the land supply of 8,125 units Unit launched 7,693 7,056 7,877 6,020 and Keppel Towers 2 in the government land sales slate in the Units sold 7,316 7,440 7,972 10,566 Location: Tanjong Pagar Road/ second half of 2017. URA price index 147.0 141.6 137.2 138.7 Hoe Chiang Road In February 2018, the top marginal buyer’s Source: URA The freehold site, located close to the stamp duty rate for residential properties Tanjong Pagar MRT station, currently houses was raised from 3% to 4%. The new top two office buildings, Keppel Towers and marginal rate of 4% will apply to the Keppel Towers 2. portion of residential property value which is in excess of $1 million, for properties Office Supply and Demand Subject to market conditions, Keppel Land acquired from 20 February 2018. The hike plans to redevelop the site into a mixed-use is expected to weigh more heavily on Million sf development comprising homes and more large-ticket properties and land as well as 2.5 98 than 30,000 sm of prime office space. This en bloc purchases. is in tandem with the transformation of the 2.0 96 area into a premium waterfront precinct with Singapore’s property market is expected residential, hotels and lifestyle amenities. to be positive in 2018 given the growth 1.5 94 in Singapore’s Gross Domestic Product Market Review and strong pick-up in residential demand, 1.0 92 Upturn in Private Residential Market which in turn will support the recovery of 0.5 90 In March 2017, the Government slightly private home prices. eased some residential property measures 0 88 relating to the seller’s stamp duty (SSD) as Recovery in the Office Sector well as the total debt servicing ratio (TDSR) The office sector ended 2017 on a strong -0.5 86 2014 2015 2016 2017 1 framework. The calibrated adjustments note with robust leasing activity in the last helped to improve new home sales as quarter, as both existing and some pipeline Annual net supply (million sf) 1.32 0.15 1.52 2.27 homebuyers no longer have to pay SSD projects enjoyed notable increases in Annual net demand (million sf) 1.11 (0.31) 1.15 2.07 if they sell a residential property more than commitment levels. Demand for office Islandwide occupancy (%) 95.3 94.5 94.0 93.89 three years after the date of purchase on space was led by firms in the technology, or after 11 March 2017. The 60% TDSR media and telecommunications sector, Core CBD occupancy (%) 95.7 95.1 95.8 93.76 threshold also no longer applies to with information technology and Sources: URA, CBRE mortgage equity withdrawal loans with internet-based companies being the loan-to-value ratios of 50% and below, most active. Another source of demand hence incentivising buyers to invest in came from co-office operators, which Upcoming Core CBD Office Supply (2018-2021) new properties. These measures helped are aggressively expanding to offices in Expected Completion Developments Location Net Floor Area1 (sf) move the residential market sales slightly the CBD fringe. Average Office Rents as they gave positive vibes to the market 2018 18 Robinson Robinson Road 145,000 and signalled that the market could According to CBRE, net absorption in the $ psf / month be bottoming, which in turn attracted office market was about 2.1 million sf for 15 Frasers Tower Cecil Street 663,000 more buyers. the whole of 2017, while islandwide vacancy dropped in 4Q 2017 to 6.1%, compared to 12 2020 79 Robinson Road Robinson Road 500,000 New private home sales in 2017 were the 7.4% in the previous quarter. Grade A core (formerly CPF Building) strongest in four years, reflecting the upbeat CBD rents continued to recover, with average 9 demand that is supporting recovery in rents in 2017 recording a 3.3% year-on-year Afro-Asia Building Robinson Road 153,526 the residential market. Developers sold a increase to $9.40 per sf per month. Stronger 6 Redevelopment rental performance may emerge as the total of 10,566 homes (excluding executive 3 condominiums), surpassing the 7,972 units market enters a period of lower new supply 2021 CapitaSpring Raffles Place 635,000 sold in 2016 and a yearly average of 7,576 units of 0.7 million sf annually over 2018 to 2020. 0 from 2014 to 2016. Strong home buying 2014 2015 2016 2017 Sources : URA, CBRE sentiments and buoyant demand also led The general outlook for the office market Grade A 11.20 10.40 9.10 9.40 List includes only projects which are under construction or have obtained provisional or written permission, to a turnaround in prices, with prices remains positive, underpinned by stronger as at end-2017. New space is considered as space under construction, additions/extensions and total Grade B (Core CBD) 8.55 8.20 7.35 7.45 refurbishment of existing space. increasing by 1.1% for the whole of 2017 economic fundamentals and lower new supply 1 The Net Floor Area is an estimation, based on the assumption of 85% of gross floor area. compared with the 3.1% decline in 2016. entering the market over the medium term. Sources: URA, CBRE
28 29 Operations and Market Review Keppel Land Limited | Report to Stakeholders 2017
Operations and Market Review
Keppel REIT Management, as Manager of the Victoria Police. The addition of a Keppel Telecommunications & Keppel REIT, remained focused on providing triple-A rated tenant on a 30-year long Transportation, the fund offers investors stable and sustainable distributions to lease will extend the REIT’s portfolio the opportunity to participate in the Investments Unitholders. The Manager continued weighted average lease expiry and provide fast-growing data centre sector. When its drive for operational excellence, a sustainable income stream. Construction fully leveraged and invested, the fund will Keppel Land is a sponsor adopting a disciplined approach towards of the freehold Grade A development is potentially have assets under management of Keppel REIT and an portfolio management, exercising on track, with piling works completed of approximately US$2.3 billion. investor in several funds prudent capital management as well as as at end-2017. upholding a meticulous and strategic The AAMTF III is the third in the AAMTF managed by Alpha stance towards investments. Looking ahead, notwithstanding an series, which was first launched in 2007 Investment Partners. improving economic outlook for Asia and to ride on mega trends, including rising Unitholder return was 29.1%1 for FY 2017, the pick-up in global growth momentum, urbanisation and consumerism, which are and approximately 10.0%2 per annum since Keppel REIT continues to face a challenging driving long-term growth in the Asia Pacific. Keppel REIT’s listing in 2006. This reflects operating environment as sufficient lead the long term value creation for Unitholders. time is required to transit expiring rents to In 2017, the funds under Alpha invested achieve optimal rent levels. over US$910 million worth of real estate The Manager’s proactive leasing strategy and data centre assets, and captured value enabled the REIT to maintain a high portfolio The Manager will continue to leverage through the divestment of 11 assets worth committed occupancy of 99.7% as at Keppel REIT’s best-in-class properties and over US$880 million. end-December 2017, and a portfolio tenant its active tenant-centric leasing strategy retention rate of 95% for FY 2017. to pursue opportunities to capture the expected uplift in the office market. Riding on the attractive prospects of Australia’s office market, and following the Alpha Investment Partners divestment of the approximately 40-year-old Alpha registered strong fundraising efforts 77 King Street development in Sydney in for its private funds in 2017. The ADCF closed 2016, in July 2017, Keppel REIT acquired during the year at US$1.0 billion, double the a 50% interest in a premium office tower initial target size, while the AAMTF III raised 1 Based on the Unit prices as at the respective to be developed at 311 Spencer Street. approximately US$560 million. year-ends and distributions declared for FY 2017. Keppel Corporation consolidated its interests and possibly, the global economy at large. This is Keppel REIT’s second asset in 2 Based on the Unit prices as at the respective Major Developments in 2017 in the Group’s asset management business On the back of labour market growth the fast-growing city of Melbourne. The ADCF is among the first few unlisted year-ends and distributions declared since Keppel REIT’s listing on 28 April 2006, and assuming Keppel REIT acquired a 50% interest under Keppel Capital Holdings Pte Ltd and an overall uptick of the economy, When completed in 4Q 2019, the new funds of its kind in Asia. Riding on the that Unitholders participated in all three rights issue in a new office tower that is currently (Keppel Capital) in 2016. This includes business fundamentals could see potential office tower will be the headquarters for expertise and strong track record of exercises in 2008, 2009 and 2011. under development at 311 Spencer Street Keppel Land’s interests in Keppel REIT improvements, translating into greater in Melbourne, Australia. Management Limited and Alpha. demand for real estate and higher occupancy rates, catalysing the growth in Alpha Investment Partners (Alpha) raised As at end-2017, Keppel Land holds demand for office space. This may potentially US$1 billion for the Alpha Data Centre Fund approximately 44% interest in Keppel REIT boost future REIT earnings and dividends. (ADCF) and approximately US$560 million and the Company is an investor in several Nonetheless, in a bid to reduce the volatility for the Alpha Asia Macro Trends Fund funds managed by Alpha. Together, from interest rates movements, more REITs (AAMTF) III. both Keppel REIT and Alpha have total have restructured their loan structure from assets under management of approximately a floating to a fixed interest rate framework. Alpha invested over US$910 million $22 billion as at end-2017, on a fully-leveraged worth of assets during the year as and fully-invested basis. Looking ahead, S-REITs are projected to well as divested 11 assets worth over perform favourably and weather the US$880 million, generating good Keppel REIT and Alpha will continue to gradual interest rate rise. The characteristics returns for investors. manage their portfolios through proactive of REITs having competitive long-term asset management and value creation returns as well as the ability to hedge against initiatives as well as seek strategic inflation, will continue to place REITs as an Focus for 2018/19 acquisitions and opportunistic divestments. attractive financial product. Continue to deliver long-term value and seek growth opportunities, while Market Review and Outlook On private funds, PERE, in its 2017 full year maintaining a proactive and innovative The Singapore Real Estate Investment Trust fundraising report, stated that 168 funds asset management approach. (S-REIT) sector in Singapore continues to had a final close in 2017, attracting a total grow, indicating the attractiveness of the of US$93 billion. There was a general Maintain a long and healthy lease expiry investment product due to its high yielding slowdown in fundraising for close-ended profile for Keppel REIT. nature and recurring passive income. private real estate funds and a decrease in As of 4Q 2017, the aggregate market the total amount raised by vehicles holding Continue to adopt a prudent and proactive capitalisation of the 41 listed S-REITs and a final close for the second year in a row. capital management strategy. Property Trusts were in excess of $80 billion. Keppel REIT The United States (US) Federal Reserve 2017 was an eventful year for the Singapore is expected to continue with interest office sector. The office market recovered 1. rate hikes in 2018, raising concerns in the gradually, especially towards the latter Data centre utilisation market as ramifications on the REIT market half of 2017, resulting in overall positive trends in Singapore are expected to remain robust. performance are uncertain. However, absorption in office space in Singapore’s Pictured here is Keppel DC the move to raise interest rates stems from central business district and steadily Singapore 4, which the Alpha Data Centre Fund a general confidence in the US economy improving rental rates. 1 owns a 70% stake.
30 31 Operations and Market Review Keppel Land Limited | Report to Stakeholders 2017
Operations and Market Review
Serviced Co-office Retail Management Leveraging the rising Keppel Land will harness demand of quality shared the strengths of its retail workspace globally, management arm to Keppel Land has launched bolster its commercial KLOUD, a new generation portfolio. serviced co-office, in Singapore, Vietnam and Myanmar.
The demand for co-working spaces has been Through a secure smart office mobile Strengthening Retail Presence Major Developments in 2017 Major Developments in 2017 Keppel Land Retail Management’s Portfolio fuelled by increased funding for start-up application, users of KLOUD can access Keppel Land Retail Management offers Launched KLOUD serviced co-offices companies, multinational corporations the serviced co-office and individual office Commenced asset enhancement a full range of professional real estate GFA (sm) in Singapore, Vietnam and Myanmar, looking for flexible workspaces as well as suites round-the-clock, book facilities as well works for I12 Katong in Singapore in solutions in Asia, encompassing retail Singapore I12 Katong 26,208 bringing Keppel Land’s total regional companies looking to attract the millennial as manage their guest lists. Users will also December 2017. consultancy and development, marketing serviced co-office footprint to about workforce. Technology has also changed the be able to enjoy other lifestyle offerings and leasing as well as asset and property Wisteria Mall 10,931 60,000 square feet (sf). way companies function as the workforce by Keppel Land, including rental of serviced Commenced renovation and interior management services. China K-Plaza, Shanghai 40,903 becomes increasingly mobile. Many traditional apartments as well as gain access to design works as well as pre-leasing of Park Avenue Central, 33,000 serviced offices are redesigning their spaces amenities and facilities in other countries spaces for K-Plaza in Shanghai, China. Keppel Land Retail Management Shanghai Focus for 2018 to enhance collaboration and interaction. where KLOUD has presence in. commenced asset enhancement works Retail component 6,603 Expand serviced co-office footprint to Successfully secured key anchor tenants for I12 Katong in December 2017 and this is in Sheshan Riviera, other overseas markets. Leveraging the rising demand for quality The flagship KLOUD centre is located for Estella Place in Ho Chi Minh City (HCMC), expected to be completed by August 2018. Shanghai shared workspace globally, Keppel Land at Keppel Bay Tower spanning 18,000 sf Vietnam. To further strengthen the mall’s positioning Seasons City, Tianjin 80,564 launched KLOUD, a new generation serviced and offers panoramic sea views. as a premier lifestyle and dining destination Vietnam Estella Place, 37,000 co-office to cater to users looking for flexible in the eastern region of Singapore, Ho Chi Minh City space solutions. Besides Singapore, KLOUD is also available Focus for 2018 construction works on a new double volume in Ho Chi Minh City (HCMC), Vietnam, and space of eight metres high is being carried Taiwan TaiMall Shopping 94,951 Continue development management Centre, Taoyuan As both landlord and operator of KLOUD, Yangon, Myanmar. This brings Keppel Land’s consultancy, trade-mix planning, out to house a host of trendy food and Total 330,160 Keppel Land is able to meet supplemental total regional serviced co-office footprint pre-leasing of spaces and centre beverage outlets at level four of the mall. space requirements of existing building to about 60,000 sf. management team resourcing for tenants as well as incubate new growth Keppel Land’s existing retail assets In China, Keppel Land Mall Management businesses before they take up permanent KLOUD Saigon Centre Tower 2 is housed which will open from 3Q 2018 onwards. Shanghai is the retail manager and In Vietnam, Estella Place is a five-storey and possibly, longer leases at its office towers. within Keppel Land’s landmark mixed-use consultant for the planning, positioning and retail podium at Estella Heights, development, Saigon Centre. It is strategically Consolidate and optimise resources pre-leasing of K-Plaza which was acquired a condominium located in the prime KLOUD combines the benefits of serviced located along Le Loi Boulevard in the heart as well as marketing intelligence in in 2016. Located in the south of Malu Town District 2 of HCMC. Situated along the offices and co-working spaces. Its flexible of HCMC’s central business district (CBD) in managing retail properties in the various in Jiading District, K-Plaza is a newly built Hanoi Highway and adjacent to two shared office space ranges from fully-furnished the prime District 1. Occupying 20,000 sf, geographical locations. shopping mall with a total gross floor area of upcoming metro stations, Estella Place office suites to hot-desks, which are KLOUD Saigon Centre Tower 2 commenced about 40,900 square metres (sm). It is highly is slated to open in 4Q 2018, offering available for short- or long-term leases. operations in November 2017. accessible via the Metro Line 11 Malu station 37,000 sm of prime retail space. and Malu Bus Terminal. KLOUD is targeted at start-up companies, KLOUD Junction City Tower, also spanning With a plethora of retail, lifestyle and small and medium-size enterprises, 20,000 sf, began operations in January 2018. Positioned as a community retail centre, dining options, Estella Place is well-positioned entrepreneurs as well as solopreneurs. It is situated in the heart of Yangon’s CBD, the mall will serve the needs of residents, to become a one-stop shopping hub. It has attracted tenants from a diverse mix with easy access to key landmarks and in particular, young couples and families, in Keppel Land Mall Management Vietnam of industries such as fast-moving consumer transportation nodes in the city. the immediate and neighbouring precincts. has been appointed retail consultant and goods, media companies, marine surveyors, K-Plaza is undergoing renovation and asset mall manager. It is in the midst of wholesale businesses, information Looking ahead, Keppel Land plans to enhancement works. The retail mall is pre-leasing the retail spaces as well as technology service providers, education operate a KLOUD centre in each of the expected to commence operations in the reviewing and managing the layout and services and investment companies. markets where it operates. second half of 2018. configuration of shops.
32 33 Operations and Market Review Keppel Land Limited | Report to Stakeholders 2017
Operations and Market Review
Serviced Co-office Retail Management Leveraging the rising Keppel Land will harness demand of quality shared the strengths of its retail workspace globally, management arm to Keppel Land has launched bolster its commercial KLOUD, a new generation portfolio. serviced co-office, in Singapore, Vietnam and Myanmar.
The demand for co-working spaces has been Through a secure smart office mobile Strengthening Retail Presence Major Developments in 2017 Major Developments in 2017 Keppel Land Retail Management’s Portfolio fuelled by increased funding for start-up application, users of KLOUD can access Keppel Land Retail Management offers Launched KLOUD serviced co-offices companies, multinational corporations the serviced co-office and individual office Commenced asset enhancement a full range of professional real estate GFA (sm) in Singapore, Vietnam and Myanmar, looking for flexible workspaces as well as suites round-the-clock, book facilities as well works for I12 Katong in Singapore in solutions in Asia, encompassing retail Singapore I12 Katong 26,208 bringing Keppel Land’s total regional companies looking to attract the millennial as manage their guest lists. Users will also December 2017. consultancy and development, marketing serviced co-office footprint to about workforce. Technology has also changed the be able to enjoy other lifestyle offerings and leasing as well as asset and property Wisteria Mall 10,931 60,000 square feet (sf). way companies function as the workforce by Keppel Land, including rental of serviced Commenced renovation and interior management services. China K-Plaza, Shanghai 40,903 becomes increasingly mobile. Many traditional apartments as well as gain access to design works as well as pre-leasing of Park Avenue Central, 33,000 serviced offices are redesigning their spaces amenities and facilities in other countries spaces for K-Plaza in Shanghai, China. Keppel Land Retail Management Shanghai Focus for 2018 to enhance collaboration and interaction. where KLOUD has presence in. commenced asset enhancement works Retail component 6,603 Expand serviced co-office footprint to Successfully secured key anchor tenants for I12 Katong in December 2017 and this is in Sheshan Riviera, other overseas markets. Leveraging the rising demand for quality The flagship KLOUD centre is located for Estella Place in Ho Chi Minh City (HCMC), expected to be completed by August 2018. Shanghai shared workspace globally, Keppel Land at Keppel Bay Tower spanning 18,000 sf Vietnam. To further strengthen the mall’s positioning Seasons City, Tianjin 80,564 launched KLOUD, a new generation serviced and offers panoramic sea views. as a premier lifestyle and dining destination Vietnam Estella Place, 37,000 co-office to cater to users looking for flexible in the eastern region of Singapore, Ho Chi Minh City space solutions. Besides Singapore, KLOUD is also available Focus for 2018 construction works on a new double volume in Ho Chi Minh City (HCMC), Vietnam, and space of eight metres high is being carried Taiwan TaiMall Shopping 94,951 Continue development management Centre, Taoyuan As both landlord and operator of KLOUD, Yangon, Myanmar. This brings Keppel Land’s consultancy, trade-mix planning, out to house a host of trendy food and Total 330,160 Keppel Land is able to meet supplemental total regional serviced co-office footprint pre-leasing of spaces and centre beverage outlets at level four of the mall. space requirements of existing building to about 60,000 sf. management team resourcing for tenants as well as incubate new growth Keppel Land’s existing retail assets In China, Keppel Land Mall Management businesses before they take up permanent KLOUD Saigon Centre Tower 2 is housed which will open from 3Q 2018 onwards. Shanghai is the retail manager and In Vietnam, Estella Place is a five-storey and possibly, longer leases at its office towers. within Keppel Land’s landmark mixed-use consultant for the planning, positioning and retail podium at Estella Heights, development, Saigon Centre. It is strategically Consolidate and optimise resources pre-leasing of K-Plaza which was acquired a condominium located in the prime KLOUD combines the benefits of serviced located along Le Loi Boulevard in the heart as well as marketing intelligence in in 2016. Located in the south of Malu Town District 2 of HCMC. Situated along the offices and co-working spaces. Its flexible of HCMC’s central business district (CBD) in managing retail properties in the various in Jiading District, K-Plaza is a newly built Hanoi Highway and adjacent to two shared office space ranges from fully-furnished the prime District 1. Occupying 20,000 sf, geographical locations. shopping mall with a total gross floor area of upcoming metro stations, Estella Place office suites to hot-desks, which are KLOUD Saigon Centre Tower 2 commenced about 40,900 square metres (sm). It is highly is slated to open in 4Q 2018, offering available for short- or long-term leases. operations in November 2017. accessible via the Metro Line 11 Malu station 37,000 sm of prime retail space. and Malu Bus Terminal. KLOUD is targeted at start-up companies, KLOUD Junction City Tower, also spanning With a plethora of retail, lifestyle and small and medium-size enterprises, 20,000 sf, began operations in January 2018. Positioned as a community retail centre, dining options, Estella Place is well-positioned entrepreneurs as well as solopreneurs. It is situated in the heart of Yangon’s CBD, the mall will serve the needs of residents, to become a one-stop shopping hub. It has attracted tenants from a diverse mix with easy access to key landmarks and in particular, young couples and families, in Keppel Land Mall Management Vietnam of industries such as fast-moving consumer transportation nodes in the city. the immediate and neighbouring precincts. has been appointed retail consultant and goods, media companies, marine surveyors, K-Plaza is undergoing renovation and asset mall manager. It is in the midst of wholesale businesses, information Looking ahead, Keppel Land plans to enhancement works. The retail mall is pre-leasing the retail spaces as well as technology service providers, education operate a KLOUD centre in each of the expected to commence operations in the reviewing and managing the layout and services and investment companies. markets where it operates. second half of 2018. configuration of shops.
32 33 Operations and Market Review Keppel Land Limited | Report to Stakeholders 2017
Operations and Market Review
Keppel Land’s Hospitality Portfolio
Country Property Name Location Description Hospitality Management Singapore Residences at Reflections Singapore 96 apartments1 Keppel Land’s hospitality Marina at Keppel Bay Singapore 168 berths China Spring City Golf & Lake Resort Kunming Two 18-hole golf courses, 73 guest rooms portfolio has grown in and 530 resort homes repute for its offerings Eco-City International Country Club Sino-Singapore Tianjin Eco-City 18-hole golf course of thoughtful experiences. Vietnam Sedona Suites Ho Chi Minh City 2 Ho Chi Minh City 284 serviced apartments Indonesia Ria Bintan Golf Club Bintan 9- and 18-hole golf courses and 31 rooms Club Med Ria Bintan3 Bintan 302 rooms Nongsa Point Marina and Resort3 Batam 65 berths and 192 rooms Myanmar Sedona Hotel Yangon Yangon 797 rooms Sedona Suites Junction City 4 Yangon 260 serviced apartments
1 Includes 43 units commited to buyers under a deferred payment scheme. 2 Orchid Tower (89 apartments) is targeted to close for upgrading by Q2/early Q3 2018. 3 Keppel Land has equity stakes in these properties which are not managed by Keppel Land Hospitality Management. 4 Operations are expected to commence in 2023.
Sedona Suites HCMC Grand Tower commenced Nonetheless, Sedona Hotel Yangon has operations in February 2018, adding another maintained its position as the accommodation 195 luxury serviced apartments. of choice for business and leisure travellers. Keppel Land Hospitality Management, Marina at Keppel Bay enjoyed a strong Despite stiff competition, occupancy rate Major Developments in 2017 the hospitality arm of Keppel Land, operates berthing occupancy rate of 97% as at Indonesia improved to 56.3% as at end-2017 compared Entered into an agreement with Shwe a portfolio of hotels, serviced apartments, end-2017. Revenue was 10% higher at Total visitor arrivals into Bintan in 2017 to 40.8% in end-2016. Taung Group to manage Sedona Suites golf courses and marinas across Asia. $4.95 million y-o-y in 2017 as compared to was more than 898,000, surpassing the Junction City in Yangon, Myanmar. $4.5 million in 2016. The line-up of super total arrivals of 677,000 in 2016. According In May 2017, Keppel Land entered into an Tourism Outlook yachts in 2018 will continue to boost the to a report by Bintan Resort, locals made agreement with the Shwe Taung Group to Completed the upgrading of Ria Bintan According to the United Nations World marina’s revenue. up about 32% of the visitor arrivals with manage Sedona Suites Junction City upon Golf Club’s Forest Course in Indonesia. Tourism Organisation Barometer, Singaporeans at 31%. To meet the needs its completion. Sedona Suites Junction City international travel grew 7% year-on-year China of golfers and tourists, Ria Bintan Golf Club comprises 260 serviced apartments and is (y-o-y) in 2017, the highest in seven years. In 2017, despite intense competition and completed upgrading works on its nine-hole under Junction City Phase 2 development. Focus for 2018 Asia and the Pacific recorded a 6% growth the ongoing curbing of government Forest Course in 2017 which included the Following the divestment of Sedona Commence operations at Sedona Suites y-o-y with 324 million international tourist luxury spending, golf rounds at Eco-City replacement of compacted sands with new Hotel Mandalay in July 2017, Keppel Land Ho Chi Minh City (HCMC) Grand Tower arrivals in 2017. International Country Club (ECICC) in Tianjin sands and upgrading of the bunkers. With an Hospitality Management ceased its under Phase 2 of Saigon Centre in Vietnam. increased by 11% y-o-y while golf rounds at effective sales and marketing campaign, management service of the hotel from The current strong momentum is Spring City Golf & Lake Resort in Kunming Ria Bintan Golf Club achieved 20,091 golf September 2017. expected to continue in 2018 with the remained flat y-o-y. rounds in 2017, a 26% increase y-o-y. Pacific Asia Travel Association forecasting international visitor demand into the ECICC has implemented mobile application, Myanmar Asia Pacific region to grow at an average WeChat, as a payment gateway and marketing According to the Ministry for Hotels and 1. Sedona Hotel Yangon has rate of 5% each year to reach about tool, providing added convenience for visitors. Tourism, Myanmar saw an 18% increase maintained its position 758 million by 2021. Intra-regional flow in visitor arrivals to reach 3.4 million in as the accommodation of within Asia is forecast to remain strong, 2017 as compared to 2.9 million in 2016. choice for business and Vietnam leisure travellers. increasing its share from 82.6% in 2016 Total international visitor arrivals reached The government continues to promote to about 94% by 2021. about 13 million in 2017, an increase of 29% cultural and community-based tourism in y-o-y. Visitors from China continue to lead Yangon and will be actively seeking new Singapore in the total international arrivals with an destinations to boost tourism. Visitor arrivals into Singapore increased increase of 48% to reach four million in 2017. by 6.2% y-o-y in 2017 to reach 17.4 million, China represented 31% of all international With a growing tourism industry and an according to the Singapore Tourism Board. visitors, followed by South Korea with increase of international flights to Myanmar, Tourist arrivals from mainland China 2.4 million travellers, and Japan with about there has been an increase in demand for contributed 18.5% of total visitor arrivals, 798,000 arrivals. high-quality accommodation and numerous making the country the largest source international brands have entered the market for tourism in Singapore. Sedona Suites HCMC Orchid Tower Myanmar hotel industry. As a result, supply maintained a stable occupancy of 85.3% of hotel rooms has outstripped the increase Corporate leasing at Residences at as at December 2017, amid temporary in foreign tourist and business arrivals. Reflections saw a reduction in occupancy suspension of facilities due to the The increased competition has prompted rate due to the sale of units previously construction of Saigon Centre Phase 2 significant cuts in room rates across the reserved for leasing. As of end-2017, development as well as stiff competition hospitality sector among the mid-range 57 of the 153 units have been sold. from new hospitality developments. and high-end operators. 1
34 35 Operations and Market Review Keppel Land Limited | Report to Stakeholders 2017
Operations and Market Review
from 55.6% to 68.7%. This translates to The Springdale an average annual increase of 16 million Location: Xinchang Town, Pudong District urbanites. Based on China’s official average Development type: High-and low-rise China household size of three persons, there will apartments and terrace homes be a demand for about 5.3 million new Total no. of units: 2,596 China is one of urban dwellings annually. GFA: 328,792 sm Keppel Land’s core Completion: 2015 markets where it will Shanghai Shanghai’s GDP grew 6.9% y-o-y to RMB 3 trillion Located in Xinchang Town, Pudong District, continue to deepen in 2017. Growth was mainly led by the financial The Springdale comprises 2,596 units of its presence in key and information technology sectors. high-and low-rise apartments and terrace focus cities. houses. It is a five-minute drive from Home prices increased 25.8% y-o-y in 2017. the Xinchang Town metro station and a New market supply fell 52.8% y-o-y to 15-minute drive from Shanghai Disneyland. 3.79 million square metres (sm) in the same All units have been fully sold as at end-2017. period. In view of the limited supply and cooling measures, transaction volume is Sheshan Riviera expected to remain subdued in 2018. Location: Sheshan, Songjiang District Development type: Landed homes Meanwhile, the Grade A office market enjoyed Total no. of units: 217 steady growth in rents in 2017. This trend is GFA: 83,174 sm expected to continue into 2018 with financial Completion: 2018 (Phase 1) institutions and the technology, media and telecommunications sectors leading demand. Located within Shanghai’s luxury villa High profile co-working space operators are enclave, Sheshan Riviera is situated at also expanding into multiple locations in the the boundary of Sheshan National Forest central business district (CBD). Park and is well-served by leisure amenities. It is close to the Metro Line 9 Sheshan Shanghai’s retail market remains healthy. station, about 20 kilometres (km) from Growing Presence Keppel Land has a healthy pipeline of about Rents are likely to increase with low vacancy the Shanghai Hongqiao International Major Developments in 2017 China is one of Keppel Land’s core markets 5,300 launch-ready units in China from rates at well-managed malls in prime Airport and a 45-minute drive from the Sold 3,725 homes. and the Group is committed to scale up in 2018 to 2020 and is poised to capture the locations. Underpinned by the government’s city centre. The development will yield high-growth cities, with a focus on Shanghai, pent-up and new demand for quality homes efforts to boost domestic consumption, 217 landed homes with an auxiliary Jointly acquired Trinity Tower mixed-use Beijing, Tianjin, Chengdu and Wuxi. as the market recovers. retail rental growth will continue to be driven retail component. About 36% of the development in Shanghai with Alpha by well-located malls with experienced 53 launched units under Phase 1 have Investment Partners (Alpha) and Allianz Keppel Land has been building its reputation In line with Keppel Land’s strategy to expand operators and balanced tenant profiles. been sold as at end-2017. Real Estate. and track record as a choice home developer in its cities of focus, Keppel Land acquired a in China for over two decades, and has prime 18-ha residential site in Wuxi as well as Acquired an 18-hectare (ha) residential site completed a total of about 33,500 units in a 30% stake in Trinity Tower (formerly known in Wuxi. more than 10 cities. as SOHO Hongkou), in the Hongkou District in Shanghai, in a joint venture led by Alpha. Divested Waterfront Residences As at end-2017, China accounted for about in Nantong. 42% of Keppel Land’s total assets, more than Stable Economic Growth double the 20% in 2010 when Keppel Land China’s economy grew 6.9% year-on-year Announced the divestment of Keppel Cove China was established. Keppel Land (y-o-y) in 2017, compared with 6.7% in 2016. in Zhongshan. has presence in close to 10 cities in China, Strength in exports, retail sales and a with over 20 projects and a pipeline of over resilient property market were the main 31,000 homes. drivers of this growth. The service sector Focus for 2018 accounted for about half of China’s Continue to focus on five cities – Shanghai, Keppel Land sold 3,725 homes in China in Gross Domestic Product (GDP) in 2017. Beijing, Tianjin, Chengdu and Wuxi. 2017, accounting for about 68% of total sales. Internet technology, the sharing economy, Home sales volume achieved in China were e-commerce and tourism have become major Grow commercial presence in Tier 1 cities. marginally lower than the 3,800 homes driving forces behind the service sector. sold in 2016, due to property tightening Monitor residential market closely to launch measures in China. China has set its GDP growth target at around new projects and phases. 6.5% for 2018, as the government takes steps In 2017, Keppel Land proactively recycled to avoid an asset bubble and a build-up assets to achieve higher returns and of non-performing loans in the economy. successfully monetised assets such as Continuing property market cooling measures Waterfront Residences, a residential project will curb prices and keep growth in check. in Nantong as well as completed the divestment of two township developments, Urbanisation plays an important role in The Botanica in Chengdu and Central Park China’s economic transformation and the City in Wuxi. This is equivalent to about central government is reforming its hukou 1. 2,030 homes sold en bloc. Keppel Land also system to facilitate the urbanisation process. Sheshan Riviera, comprising 217 landed announced the sale of its stake in Keppel China’s urban population is forecast to grow homes, is located Cove in Zhongshan. The divestment has by another 240 million between 2015 and within Shanghai’s luxury villa enclave in 2030 as the urbanisation rate increases 1 since been completed. the Songjiang District.
36 37 Operations and Market Review Keppel Land Limited | Report to Stakeholders 2017
Operations and Market Review China
8 Park Avenue K-Plaza of leasable area has been occupied with 1. K-Plaza, a community Location: Jing’an, Jinan District Location: Malu, Jiading District tenants including Panasonic and China retail centre located in Development type: High-rise apartments Development type: Retail mall Pacific Insurance. the Jiading New City Core Area in Shanghai, Total no. of units: 918 GFA: 40,903 sm is expected to commence GFA: 133,393 sm Completion: 2016 Beijing operations in the second Completion:2015 Beijing continued to achieve steady economic half of 2018. Located in the south of Malu Town, growth with GDP reaching RMB 2.8 trillion 2. The Park Avenue precinct comprises Jiading District, K-Plaza has a total net in 2017, up 6.7% y-o-y. Growth was mainly Almost all of the 1,190 apartments at three projects – One Park Avenue, lettable area of about 27,000 sm. It is highly led by the finance, real estate, information Seasons Garden in the 8 Park Avenue and Park Avenue Central. accessible with direct connection to Metro technology and communications as well as Sino-Singapore Tianjin Located in downtown Shanghai, in the Line 11 Malu station and the Malu Bus Terminal. software industries. Eco-City have been sold. prime Jing’an District, Park Avenue is highly accessible via expressways and Positioned as a community retail centre, Demand in the Grade A office market remained the Jing’an Metro Line 7. K-Plaza is undergoing renovation and is strong, driven primarily by the financial, expected to commence operations in the investment, insurance and high-tech industries. The 1,118-unit One Park Avenue is fully sold. second half of 2018. The strata-titled shops Market rents maintained a moderate upward 8 Park Avenue comprises 10 residential were launched in May 2017 and 59% of the 120 trend in 2017 with a y-o-y growth rate of 1.6%. towers with 918 high-rise apartments. launched units have been sold as at end-2017. There were 821,062 sm of new Grade A office The development is about 97% sold as at space in 2017. Overall demand for Grade A office end-2017. An office-cum-retail development Trinity Tower space is expected to remain robust in 2018. is planned for Park Avenue Central. Location: Hongkou District However, the increase in Grade A office supply Development type: Mixed-use is expected to cause a slight dip in average rent. 2 Seasons Residences GFA: 70,042 sm Location: Nanxiang, Jiading District Completion: 2015 Commercial Development Development type: High-rise apartments Location: CBD, Chaoyang District Total no. of units: 1,102 Trinity Tower, formerly known as SOHO Development type: Mixed-use GFA: 128,918 sm Hongkou, is located at the fringe of the North GFA: 104,800 sm Completion: 2016 Sichuan Road CBD, in close proximity to the Completion: 2020 North Bund CBD, Lujiazui Financial District Situated in a mature satellite town in and People’s Square in Puxi. It is within The site is centrally located in Beijing’s CBD Nanxiang, Jiading District, Seasons Residences walking distance to Metro Lines 4 and 10 as in Chaoyang District and slated for the comprises 1,102 high-rise apartments. well as major roads and cross-river tunnels. development of three Grade A office towers It is a 30-minute drive from the People’s and retail premises. Given its prime location Square and is well-connected to Shanghai’s Designed by leading architect Kengo Kuma, and quality specifications, the development city centre via Metro Line 11 and the Trinity Tower was completed in 2015 and is expected to attract state-owned Tianjin Keppel Land China holds 100% interest in commenced and Phase 1 is targeted for expressway. About 95% of the 1,102 units boasts an eye-catching structure and facade. enterprises and multinational corporations Tianjin’s GDP grew 3.6% y-o-y to reach a 36.6-ha site located in the Start-Up Area completion in 2020. have been sold as at end-2017. As at December 2017, 99% of the 48,600 sm when completed. RMB 1.86 trillion in 2017. The announcement (SUA) of Sino-Singapore Tianjin Eco-City. by the Chinese government to develop Development is carried out in phases Serenity Villas the Xiong An New Area within the and is expected to yield 4,297 homes, Location: Sino-Singapore Tianjin Eco-City Beijing-Tianjin-Hebei cluster has offices and retail outlets. Development type: Landed homes accelerated the integration process. Total no. of units: 340 Tianjin and Hebei Provinces have signed Seasons Park is the first project in the GFA: 80,000 sm a series of strategic agreements to support four-phase residential development in Completion: 2014 the construction and development of the the SUA. Comprising 1,672 homes, it was Xiong An New Area. completed in 2012 and all units have Located at Ying Cheng South Island, been fully sold. Phase 2, Seasons Garden, Hangu District, within the Sino-Singapore The Tianjin government had introduced comprises 1,190 apartments. Almost all Tianjin Eco-City, Serenity Villas comprises property market cooling measures units have been sold as at end-2017, 340 eco-apartments, villas and semi-detached since 2016, which include an increase in with completion expected in 2020. Phase 3, houses. Around 73% of the 340 units have downpayment as well as purchase and Seasons Residences, comprises 918 been sold as at end-2017. selling restrictions. These cooling measures apartments. Launched in November 2017, are expected to continue into 2018. about 62% of the 380 launched units have Waterfront Residences been sold as at end-2017. Location: Sino-Singapore Tianjin Eco-City Sino-Singapore Tianjin Eco-City Development type: Landed homes Location: Tianjin Binhai New Area The last phase of development, Total no. of units: 341 Development type: Eco-township Seasons Heights, comprises 372 apartments GFA: 63,235 sm Total no. of units (36.6-ha within SUA): 4,297 and 145 commercial units. All 124 launched Completion: 2017 (Phase 3) GFA: 624,416 sm (Residential and commercial) units have been sold as at end-2017. Completion: 2019 (Seasons Garden Plot 9, Construction is expected to be fully Situated within the SUA and close to the Seasons Residences Phase 3A) completed in 2020. future city centre of the Sino-Singapore 2020 (Seasons Garden Plot 8, Tianjin Eco-City, Waterfront Residences Seasons Heights, Seasons City Seasons City, the commercial sub-centre, comprises 341 terrace and semi-detached Phase 1) will feature three office towers and houses. Targeted at the upper-middle retail premises with a combined gross income segment, Phases 1 and 2 The Keppel Group leads the Singapore floor area (GFA) of about 162,000 sm. developments were completed in 2016 consortium in the 30-square km Phase 1 will feature an office tower and while Phase 3 development was completed Sino-Singapore Tianjin Eco-City project, a retail complex with total above-ground in 2017. Almost all of the 341 units have 1 which is now in its 10th year of development. GFA of 81,497 sm. Construction has been sold as at end-2017.
38 39 Operations and Market Review Keppel Land Limited | Report to Stakeholders 2017
Operations and Market Review China
1. Wuxi well as near the city centre, the mixed-use Park Avenue Heights in Chengdu, comprising Wuxi’s GDP expanded 7.4% y-o-y to development will comprise 1,291 units of 1,535 high-rise apartments, RMB 1.05 trillion in 2017, mainly due to high-rise apartments and 451 commercial units. received positive response with 96% of the units sold strong growth in the manufacturing and as at end-2017. service sectors. Park Avenue Heights is located next to the Metro Line 1 station. Well-connected 2. Waterfront Residences The outlook for Wuxi’s economy is positive via major roads, the development will is located in Wuxi’s Binhu with GDP growth forecast to remain stable enjoy convenient access to numerous District and comprises 1,481 units of villas, terrace in 2018. Increased foreign investments, amenities and facilities such as houses and mid-rise rising affluence and greater transport educational institutions, supermarkets apartments as well as and shopping malls. 686 commercial units. integration with other Chinese cities will sustain its strong economic growth. Targeted at the upper-middle income Waterfront Residences segment, Phase 1 comprises 328 units and Location: Shanshui, Binhu District about 80% of the 128 launched units have Development type: Mixed-use been sold as at end-2017. The remaining Total no. of units: 2,167 units are expected to be launched in the first GFA: 306,962 sm half of 2018. Completion: 2018 (Phases 2 & 3A) Seasons Residences Located in Shanshui, Binhu District, Waterfront Location: Xinwu District 1 Residences comprises 1,481 units of villas, Development type: Low-rise, mid-rise and terrace houses and mid-rise apartments as high-rise apartments well as 686 commercial units. Fronting the Total no. of units: 2,755 scenic Li Lake, the development is surrounded GFA: 360,500 sm by a 260-ha national wetland park. It is located near the Metro Line 1 station and Situated in a mature residential precinct is a 15-minute drive from the city centre. within the Xinwu district, the 18-ha site will yield 2,053 high-rise, 456 mid-rise and 246 Targeted at the upper-income segment, low-rise apartments. Located only five km about 90% of the 381 launched units have away from Wuxi’s downtown area, the site been sold as at end-2017. is in close proximity to the Sunan Shuofang International Airport and Wuxi railway Park Avenue Heights station. Chengdu Hill Crest Villas V City Location: Liangxi District Chengdu, the provincial capital of Sichuan, Location: Mumashan, Xinjin County Location: Pi County Development type: Mixed-use The site is also highly accessible via six bus is the economic hub of Western China. Development type: Landed homes Development type: High-rise apartments Total no. of units: 1,742 routes and the future Metro Line 3 station, Its GDP grew 8.1% y-o-y to RMB 1.39 trillion Total no. of units: 274 Total no. of units: 5,399 GFA: 171,593 sm which is currently under construction. in 2017. The city continues to enjoy rapid GFA: 163,147 sm GFA: 557,962 sm Completion: 2018 (Phases 1 & 2) It is also well-supported by a host of growth as economic activities shift to Western Completion: 2020 (Phase 2) Completion: 2018 (Phases 2 & 3) amenities in the vicinity such as the R&F China and multinational corporations 2019 (Phase 4) Situated in Liangxi District, at the junction Commercial Street, Shin Shopping Mall establish their presence in Chengdu. Situated in an established low-density of Jianghai Road and Xicheng Road as and Ren De Hospital. Chengdu is the fourth largest city in China residential enclave in Mumashan, V City is the second collaboration between with a total population of nearly 14 million. southwest of Chengdu, Hill Crest Villas Keppel Land and China Vanke, following will feature 274 landed homes targeted their joint venture on a residential project Chengdu experienced moderate increase at the upper-middle income segment. in Singapore. in home prices in 2017. To stabilise the The project is located about 20 km property market, new housing policies were from the city centre and 10 km from Located adjacent to Bai Cao Road station introduced by the government. Residential Chengdu’s Shuang Liu International Airport. of the Metro Line 2, the 16.7-ha land plot supply reduced by 53% y-o-y to 3.3 million It is close to Tianfu New City, earmarked will yield 5,399 apartment units when sm. Average selling prices increased by 20% to be Chengdu’s software town and the completed. Launched in phases, almost all y-o-y to RMB 13,903 per sm. Demand for future CBD. Some 53 units under Phase 1 of the 4,507 launched units have been sold homes is expected to remain strong in 2018. are launch-ready. with construction ongoing.
Park Avenue Heights Serenity Villas Location: Jinjiang District Location: Mumashan, Xinjin County Development type: High-rise apartments Development type: Landed homes Total no. of units: 1,535 Total no. of units: 573 GFA: 203,129 sm GFA: 233,862 sm Completion: 2017 Completion: 2020 (Phase 2)
Park Avenue Heights is a prime residential Located adjacent to Hill Crest Villas, project located in the city centre, Serenity Villas will comprise 573 landed along the Second Ring Road, close to homes. The two landed developments Dongdajie Financial District and about will cater to different segments of buyers a 10-minute walk to the metro station. within the middle- to upper-income About 96% of the 1,535 units have been segment. Phase 1 of Serenity Villas, sold as at end-2017. comprising 84 units, is launch-ready. 2
40 41 Operations and Market Review Keppel Land Limited | Report to Stakeholders 2017
Operations and Market Review
to the central business district (CBD) and is within a 25-minute drive to the CBD. located about a 30-minute drive from the via Mai Chi Tho Boulevard and the With the completion of the Phu Thuan CBD. Travelling time to the city centre has Thu Thiem Tunnel. Residents will enjoy Bridge and Ca Cam Bridge, residents enjoy been significantly shortened with the Vietnam greater connectivity to the city when the easy access to facilities such as international completion of the first stage of the An Phu metro station, which is within schools, hospitals as well as retail and leisure Inner Ring Road and the opening of the Keppel Land will continue to walking distance from the development, amenities in the commercial centre of the HCMC-Long Thanh–Dau Giay Expressway. build on its reputation as a is operational in 2020. Estella Heights is also adjacent township, Phu My Hung. Residents of the 96 resort-style villas choice developer, leveraging in close proximity to a number of reputable can enjoy waterfront views with the international schools such as the British Targeted at the upper-middle income segment, development’s 280-m frontage to the its more than 20 years of International School, International School the development will feature 2,400 waterfront Rach Chiec River. All villas have been sold. experience in Vietnam. HCMC and Australian International School. apartments when fully completed. Phase 1A, The development was completed and comprising 549 units, was completed handed over to homebuyers in 2012. The development is targeted at the in 2014 and is fully sold. Phase 1B, The View, upper-middle income segment. Phase 1, comprising 518 units, is 77% sold as at Future Villa Development comprising 496 units, is fully sold and was end-2017. It is currently under construction Location: District 9 handed over to homebuyers in September and is expected to be completed in 2019. Total no. of units: 310 2017. Phase 2, the Signature Collection, GFA: 54,908 sm comprising 376 units, is 98% sold as at Future Residential Development Completion: 2020 end-2017. Phase 2 sits atop Estella Place, Location: Saigon South a retail podium with 37,000 sm of gross Total no. of units: 1,247 The 5.6-ha site is located in District 9 and floor area spanning across five storeys. GFA: 283,749 sm borders the affluent residential enclave of Estella Place, which is scheduled to open by Completion: 2021 District 2. It enjoys easy access to HCMC’s end-2018, is positioned as an eco-friendly CBD and the future CBD in the Thu Thiem mall, offering a host of specialty stores, The 12.6-ha site is located in Saigon South New Urban Area. The site will yield more food and beverage outlets as well as of HCMC, in a highly populated and than 300 landed homes when completed. educational and enrichment centres. established upper mid-end residential area. With easy access to HCMC’s CBD, TOWNSHIPS Riviera Point the site will yield 1,247 landed and high-rise Ho Chi Minh City Location: District 7 condominium units when completed. Palm City Continued Strong Momentum of 2017, average Grade A occupancy rate Total no. of units: 2,400 Location: District 2 Major Developments in 2017 Vietnam achieved a robust Gross Domestic remained high at 91.8%. Grade A office rents GFA: 437,944 sm VILLAS Total no. of units: 3,666 Sold more than 1,110 homes, mostly from Product (GDP) growth rate of 6.8% in 2017, enjoyed a healthy increase of 4.8% y-o-y Completion: 2014 (Phase 1A) Ho Chi Minh City GFA: 521,416 sm Estella Heights, Palm Heights, The View, up from 6.2% in 2016. This was underpinned and this upward trajectory is expected to 2019 (Phase 1B, The View) Riviera Cove Completion: 2017 (Palm Residence) Linden Residences and Tilia Residences. by a record foreign direct investment (FDI) continue in 2018 and 2019 due to the lack of Location: District 9 2019 (Palm Heights) registered, overseas remittance and a surging new supply in the near term. Located on an 8.9-hectare (ha) site with a Total no. of units: 96 Increased stake in Saigon Centre. manufacturing sector. Inflation remained 500-metre (m) frontage of the Ca Cam River, GFA: 34,711 sm The multi-phased integrated waterfront moderate at 3.5%. In the retail sector, major international brands Riviera Point, towering at 40 storeys, is the Completion: 2012 development is situated in the tranquil Commenced operations at Saigon Centre have recently expanded into Vietnam’s market, tallest development in District 7 offering An Phu Ward of District 2, HCMC. Phase 2 office tower in July. In 2017, Vietnam attracted US$35.9 billion such as H&M, Zara, Desigual, Trendiano and unobstructed views of the Saigon River Located in District 9 of HCMC, Riviera Cove The township enjoys easy accessibility pledged FDI, the highest amount since 2009, Coach. Limited supply of prime retail space and the CBD. The site is highly accessible is a gated waterfront villa development to other parts of HCMC via Mai Chi Tho Signed conditional sales and purchase while disbursed FDI reached US$17.5 billion, will continue to boost both occupancy and agreements to acquire two prime residential a growth of 10.8% year-on-year (y-o-y). rental rates. Favourable macroeconomic sites which will yield about 1,550 homes. Exports rose by 21.1% y-o-y to US$213.8 factors such as Vietnam’s young population, billion while imports expanded by 20.8% rising incomes and increasing international Sold two land plots at Palm City. y-o-y to US$211.1 billion, resulting in a trade arrivals, are expected to continue to drive surplus of US$2.7 billion in 2017. Retail and the retail market in the country. services turnover achieved US$172.6 billion Focus for 2018 in 2017, up 10.9% y-o-y. Keppel Land has 20 licensed projects Commence operations at Sedona Suites across Vietnam and a pipeline of more than Ho Chi Minh City (HCMC) Grand Tower In HCMC, demand outstripped supply in 20,000 homes, mostly located in HCMC. under Saigon Centre Phase 2. the residential market, which saw about The Company will continue to leverage its 32,900 apartments sold, while 31,100 new strong reputation as one of the largest and Launch Phase 1 of Saigon Sports City, units were launched in 2017. The high-end pioneer foreign real estate developers in Phase 2 of Palm City, Phase 3 of Empire City segment accounted for 20.5% of units sold, Vietnam to meet the robust demand for and Phase 1C of Riviera Point. with average selling prices up by 4% y-o-y. homes and commercial developments.
Complete Phase 2 of Estella Heights and The southern (District 7) and the eastern CONDOMINIUMS commence operations at Estella Place (Districts 2, 9 and Binh Thanh) regions of HCMC Ho Chi Minh City retail mall. continued to lead in terms of residential supply Estella Heights and demand due to improving infrastructure Location: District 2 and connectivity, which bodes well for Total no. of units: 872 Keppel Land’s projects in these districts. GFA: 160,785 sm Completion: 2017 (Phase 1) Two Grade A office buildings were 2018 (Phase 2) completed in 2017, providing the market 1. Keppel Land has fully sold with 61,200 square metres (sm) of net Estella Heights is located in An Phu Ward, all units at Estella Heights lettable area. Despite new office supply District 2, a popular residential enclave Phase 1 and all 496 units have been handed over for the affluent. It is a short 15-minute drive 1 coming on-stream in the last two quarters to homebuyers in 2017.
42 43 Operations and Market Review Keppel Land Limited | Report to Stakeholders 2017
Operations and Market Review Vietnam
Boulevard and the Thu Thiem Tunnel. middle-class and increasing demand for Dong Nai 1. With a 2.7-kilometre It is also located just a 15-minute drive high-quality urban spaces. The project is Dong Nai Waterfront City frontage to the from the CBD as well as within a five-minute developed in collaboration with Keppel Urban Location: Dong Nai Giong Ong To River drive to the Thu Thiem New Urban Area, Solutions, which is a new business unit under and Muong Kinh River, Total no. of units: 7,850 Palm City will offer the up-and-coming business district in Keppel Corporation and an end-to-end GFA: 2,100,000 sm residents a green HCMC. Its strategic location allows future master developer of urban developments. Completion: 2023 (Phase 1) living environment with a wide range residents easy connectivity to other of amenities. provinces including Dong Nai, Vung Tau Saigon Sports City is envisaged to be a The township development is within a 2. and Phan Thiet as well as to the future bustling hub, combining high-quality urban 45-minute drive from HCMC’s CBD with easy Empire City will yield Long Thanh International Airport via the living with vibrant and healthy lifestyles, accessibility via the Hanoi Highway and the about 3,000 luxury HCMC-Long Thanh–Dau Giay Expressway. which can be a model for other urban high-rise residences, HCMC-Long Thanh-Dau Giay Expressway. Grade A office space, With a 2.7-kilometre (km) frontage to the developments in Asia. The township will The development is also located in close prime retail space as Giong Ong To River and Muong Kinh River, include iconic features such as a waterfront proximity to the Big-C hypermart, the Saigon well as an 88-storey integrated mixed-use the development will offer residents a green boulevard, an open public plaza and Hi-Tech Park and the future international tower complex. living environment supported by a full Vietnam’s first one-stop lifestyle hub airport in Long Thanh, providing added range of services including retail, medical with comprehensive facilities for sports, convenience to future residents. The township and educational amenities. entertainment, shopping and dining. development will offer residents a tranquil Biophilic design principles will be living environment with a 1.5-km frontage to Phase 1 comprises Palm Residence and incorporated into the development, the Dong Nai River and its tributaries. Palm Heights which were launched in July such as natural lighting and ventilation, and October 2016, respectively. The 135 a linear park, vertical greenery and When completed, the township will feature landed homes at Palm Residence have picturesque water features with natural 7,850 homes comprising terraces, villas been fully sold. The project was completed filtration, to create a green and sustainable and mid-rise apartments with a variety of and handed over to homebuyers in environment. commercial facilities. 2 December 2017. Palm Heights, comprising 816 high-rise apartments, is about 99% The development will be empowered MIXED-USE sold as at end-2017. Palm Heights is currently by Azure, Microsoft’s intelligent and Ho Chi Minh City under construction and is expected to be trusted cloud, to enable essential services Saigon Centre completed in the second half of 2019. such as security and access control, Location: District 1, Le Loi Boulevard Phase 2, Palm Garden, comprising about 900 remote monitoring and control of smart GFA (Phase 2): 55,000 sm (Retail Podium) residential units, is slated for launch in 2018. infrastructure as well as monitoring 44,000 sm (Office) of community vitals such as air quality. 195 units (Serviced Apartments) Saigon Sports City An integrated mobile application which Completion: 2018 (Phase 2, Location: District 2 will deliver convenient lifestyle, transport Serviced Apartments) Total no. of units: 4,293 and other value-adding services to residents Developed in several phases, Phase 1 Empire City GFA: 724,000 sm and businesses in Saigon Sports City, Saigon Centre is strategically located on was completed in 1996 and comprises a Location: District 2 Completion: 2022 (Phase 1, Velona) will also be available. Le Loi Boulevard, one of the city’s main 25-storey mixed-use development which Total no. of units: 3,000 thoroughfares and within proximity to the includes Grade A office space, retail and GFA: 661,000 sm The 64-ha Saigon Sports City township is Phase 1 of the development, Velona, HCMC People’s Committee, Ben Thanh Market, luxury serviced apartments. Phase 1 of Completion: 2020 (Phase 1, Linden Residences, strategically located in the prime An Phu is expected to be launched in the second Opera House, the Dong Khoi shopping belt Saigon Centre has established itself as the Phase 2, Tilia Residences) Ward of District 2, where there is a growing half of 2018. and prominent hotels. preferred business and residential address in HCMC. As at end-2017, Tower 1 office The 14.6-ha waterfront development is situated under Phase 1 is about 94% leased to in the Thu Thiem New Urban Area, the future diplomats and multinational corporations CBD of HCMC. Overlooking the Saigon River, as well as banking and financial institutions. the site is about a five-minute drive to the The 89 serviced apartments under Sedona city centre via the East-West Highway and Suites are 85% leased. the Thu Thiem Tunnel. The Thu Thiem New Urban Area is to be developed into HCMC’s Phase 2 of Saigon Centre comprises largest economic, commercial and financial 55,000 sm of prime retail space, 44,000 sm centre, offering cultural, entertainment and of premium Grade A office space and 195 recreational activities. Thu Thiem Bridge 1 and luxury serviced apartments. The retail mall Thu Thiem Tunnel have begun operations in is fully leased with over 400 international 2017. Other key transport infrastructure such and local brands, including leading Japanese as the Metro Line and four other bridges within department store, Takashimaya, as its the Thu Thiem New Urban Area are under anchor tenant. Since its opening in August development, which will shorten travelling time 2016, the mall has received close to 14 million to neighbouring districts by about 15 minutes. visitors as at end-2017. Empire City will yield about 3,000 luxury Tower 2 office under Phase 2 development high-rise residences, Grade A office space, commenced operations in July 2017. prime retail space as well as an iconic As at end-2017, the office is about 81% 88-storey integrated mixed-use tower leased to multinational corporations and complex. Phase 1, Linden Residences, well-established local companies such comprising 510 units, is about 99% sold as AIA, Lazada, Garena,Shopee, Techbase as at end-2017. Phase 2, Tilia Residences, and Toyota Finance. Sedona Suites HCMC comprising 472 units, was launched in July Grand Tower commenced operations in 2017 and about 96% of the units have been 1 February 2018. sold as at end-2017.
44 45 Operations and Market Review Keppel Land Limited | Report to Stakeholders 2017
Operations and Market Review
well-appointed luxury apartments in the to Jakarta’s city centre and other key districts in heart of Jakarta’s CBD. The site is located Greater Jakarta. The development is situated within the city’s golden triangle zone within close proximity to the Puri Indah CBD Indonesia comprising shopping, dining and recreational in West Jakarta while the Soekarno-Hatta amenities, and enjoys excellent accessibility International Airport is just a 30-minute drive Indonesia is one of via key transport nodes, such as the future away. As at end-2017, almost all of the 164 Keppel Land’s key Setiabudi mass rapid transit station which launched units have been sold. growth markets where is expected to be fully operational in 2019. COMMERCIAL the Company will Future Residential Development Jakarta continue to deepen its Location: West Jakarta International Financial Centre Jakarta presence, with a focus Total no. of units: 4,523 Location: Jalan Jenderal Sudirman GFA: 226,800 sm GFA: 92,500 sm (Tower 1) on Greater Jakarta. Completion: 2026 61,300 sm (Tower 2) Completion: 2016 (Tower 2) Located adjacent to West Vista at Puri, 2023 (Tower 1) the development will comprise more than 4,500 residential units with ancillary Located in the heart of Jakarta’s financial shophouses and shop units. The development district and within the golden triangle will enjoy good connectivity to the western zone in the Sudirman CBD, International and eastern parts of Jakarta when the future Financial Centre Jakarta enjoys excellent Jakarta Inner Toll Road is completed in 2019. accessibility via key transport nodes such as the Transjakarta busway. Connectivity LANDED HOMES will be further enhanced with the future Greater Jakarta Setiabudi mass rapid transit station. The Riviera at Puri Location: Tangerang Completed in May 2016, Tower 2 offers about Total no. of units: 493 50,200 square metres (sm) of net leasable GFA: 71,241 sm area, meeting the growing demand for prime Market Affected by Slower Growth rebound in anticipation of improvements in Completion: 2019 (Phase 1) office space from local and multinational Major Developments in 2017 Indonesia’s economy grew about 5% in the economy and infrastructure connectivity 2021 (Phases 2 & 3) corporations. Tenants secured include Divested 80% effective stake in PT Sentral 2017, supported by rising commodity as well as lower supply of office space. Servcorp, Tokio Marine, Shinhan Bank, Tunjungan Perkasa which holds a site along exports. At the same time, fiscal stimulus The Riviera at Puri sits on a 12-ha land plot Grant Thornton, Rintis and Ithaca Resources. Jalan Tunjungan in the prime shopping belt for infrastructure projects also encouraged CONDOMINIUMS situated adjacent to Metland Cyber City. of Surabaya. more investments. Jakarta It is strategically located near the Karang The existing Tower 1 will be redeveloped West Vista at Puri Tengah access to the Jakarta Merak Toll into a 56-storey office tower offering about Acquired an 83,000 square feet (sf) prime Indonesia’s Gross Domestic Product is Location: West Jakarta Road, which provides excellent connectivity 73,000 sm of quality office space. site in Jakarta’s central business district expected to average between 5.1% and Total no. of units: 2,855 (CBD) which can yield about 400 luxury 6.0% per annum from 2018-2020 due to GFA: 153,464 sm apartments. rising investments, increase in fiscal stimulus Completion: 2018 (Phase 1) as well as growing exports on the back of 2022 (Phase 2) Divested a 20.5-hectare (ha) site in the strengthening global economy. West Bali’s Tanah Lot district. Located along the Jakarta Outer Ring Road In Jakarta, the large supply of newly and close to West Jakarta’s CBD, West Vista completed apartments and relatively at Puri is a high-rise condominium Focus for 2018 lukewarm market sentiments have resulted development with ancillary shophouses Invest strategically with a focus on in tepid residential demand in 2017. targeted at the middle-income segment. Greater Jakarta. Notwithstanding government regulations, residential developments in the CBD, Future residents can enjoy excellent Recycle assets to unlock value in including luxury apartments, landed housing connectivity to the airport, key business existing investments. as well as land parcels, continued to attract districts and various lifestyle and demand from investors and homebuyers. entertainment facilities. Close to 60% Launch Phase 2 of landed housing Tangerang, where Keppel Land’s The Riviera of the 424 launched units have been development, The Riviera at Puri, at Puri project is located, will continue to be sold as at end-2017. and the luxury residential project adjacent a popular residential area due to its good to International Financial Centre Jakarta. connectivity and amenities. Future Residential Development Location: Jakarta CBD Although occupancy in the office sector Total no. of units: 408 remained low due to the large office supply GFA: 36,113 sm in 2017, enquiries for office space in the CBD Completion: 2022 have started to increase due to relocation and expansion of companies such as those Strategically located along the main in the e-commerce, information technology thoroughfare of Jalan Jenderal Sudirman and telecommunication industries as well and adjacent to International Financial 1. as a growing number of start-up companies Centre Jakarta, the high-rise residential Keppel Land will develop a premium high-rise and the emergence of co-working development will meet the needs of the residential tower adjacent businesses. By 2020, office occupancy and growing expatriate and local business to the International Financial Centre Jakarta community seeking well-located and 1 rental rates in the CBD are expected to see a (pictured).
46 47 Operations and Market Review
Operations and Market Review
Junction City Tower offers a net leasable CONDOMINIUMS Myanmar area of about 33,400 square metres (sm) Manila of Grade A office space which will meet the Palmdale Heights Myanmar’s Gross Domestic Product (GDP) demand from multinational corporations Location: Pasig City is expected to grow at an average of 7.3% seeking quality office space in Yangon. Total no. of units: 828 per annum from 2018 to 2022. Economic Tenants secured include Allen & Gledhill, GFA: 47,063 sm (Phases 1 & 2) growth will be spurred by large projects Wong Partnership, Samsung and the British Completion: 2004 (Phases 1 & 2) funded by foreign investors in sectors Chamber of Commerce. such as infrastructure as well as oil and With easy access to Makati and Ortigas’ CBDs, gas exploration. Phase 2 of Junction City will house the first Palmdale Heights offers homeowners a Sedona Suites in Myanmar comprising about convenient lifestyle with modern amenities. New demand for office space is expected 260 serviced apartments sited above a retail to come from the financial services, podium and a convention centre as well as Some 99% of the 828 units in the first infocommunications, infrastructure an office component, offering a total gross two phases have been sold as at end-2017. and energy sectors, all of which are floor area of about 50,000 sm. Construction The remaining five hectares will be undergoing important legislative changes of Phase 2 is expected to commence in the jointly developed with Phinma Property which are primed to attract more second half of 2018. Holdings Corporation. multinational corporations. MIXED-USE COMMERCIAL Manila Yangon SM-KL Project Junction City Tower Location: Mandaluyong City Location: Junction of Shwedagon Pagoda The Philippines GFA: About 70,800 sm (Retail) Road and Bogyoke Aung San Road About 110,100 sm (Office) GFA: 53,100 sm (Phase 1) The Philippine economy grew by 6.7% in 2017. Completion: 2017 (Phase 2 Retail) 50,000 sm (Phase 2) The economy is expected to grow between 2019 (Phase 2 Office) Completion: 2017 (Phase 1) 5.7% and 6.3% per annum from 2018 to 2022. 2021 (Phase 2) Located in the heart of Ortigas’ CBD, Demand for office space remained The Podium under Phase 1 of the SM-KL Strategically located in Yangon’s central robust in 2017, driven mainly by offshore project offers a good mix of specialty business district (CBD), the 23-storey office gaming and business process outsourcing stores featuring well-known international tower is part of Phase 1 of Junction City, operators. In the retail sector, rental rate and local brands. a mixed-use development which comprises growth in the Makati and Ortigas’ CBDs are the five-star Pan Pacific Hotel, a shopping expected to moderate between 1% and 2% Phase 2 development comprises a 42-storey centre and serviced residences. It houses over the next three years from 2018 to 2020. office tower sited above the extension of Yangon’s largest car parking facility, offering However, the country’s high disposable The Podium retail mall. The expanded more than 1,500 car park spaces. income per capita will support retail demand. five-storey retail mall was opened in October 2017 and features a mix of gourmet dining restaurants, high fashion stores as well as wellness and entertainment establishments. Phases 1 and 2 have a total leasable area of approximately 50,000 sm.
The office tower offers a net leasable area of over 89,000 sm. When completed in 2019, it will cater to the growing demand for quality office space from multinational corporations and business process outsourcing companies.
1. Phase 2 of Junction City will house the first Sedona Suites in Myanmar comprising about 260 serviced apartments.
2. The expanded retail mall of the SM-KL project in Metro Manila, The Podium, opened its 1 doors in end-October 2017.
48 Keppel Land Limited | Report to Stakeholders 2017
CONDOMINIUMS Bangalore Provident Park Square Location: Kanakapura Road Total no. of units: 2,082 GFA: 167,517 sm Completion: 2021
Provident Park Square, a high-rise condominium development located off Kanakapura Road and close to the Peripheral Ring Road, has direct access to the major Information Technology hubs as well as Electronic City and Bannerghatta Road. The development is conceptualised to be a self-sustained community with residential, retail and leisure components as well as support services. Phase 1, comprising about 660 apartment units, was launched in January 2018.
2
Malaysia
Future Residential Development Malaysia’s economy grew by 5.9% Thailand Location: Sukhumvit Road, Soi 28 year-on-year in 2017 on the back of Total no. of units: 265 strong private consumption and increased In 2017, Thailand recorded a healthy GDP GFA: 30,000 sm government spending, investment and growth of 3.9%, driven mainly by exports, Completion: 2022 exports. The implementation of tourism and infrastructure investments. infrastructure projects, possible early The 3,200 sm site is located in a elections as well as the associated The residential market in Bangkok, well-established residential district along pre-election spending, are expected to especially the luxury condominium segment, Sukhumvit Road on Soi 28. It will be boost Malaysia’s economy in 2018. remained stable and continued to be well developed into a condominium that sought-after by the upper-middle income will yield about 265 units spread across Housing affordability remains a key issue in locals and foreigners. With limited new approximately 30 floors, with a net Malaysia, particularly in the capital and key launches, the residential market within key saleable area of about 16,000 sm. cities, as prices have been trending upwards nodes of the downtown region is expected The site is situated within close proximity since 2010. With an oversupply of residential to enjoy moderate price growth with sales to the popular EmQuartier and Emporium properties and stringent bank lending volume remaining healthy for well-located shopping malls. regulations, the residential property market quality developments. is expected to continue to moderate in 2018.
CONDOMINIUMS TOWNSHIP Bangkok Johor Bahru SHAA ASOKE Taman Sutera and Taman Sutera Utama Location: Sukhumvit Road, Soi 19 India Location: Skudai, Johor Bahru Total no. of units: 140 Total no. of units (completed): 3,706 residential GFA: 14,500 sm India’s economy is projected to expand units, 343 shop offices and a retail mall Completion: 2022 by 7.2% in 2018, making India one of the GFA (completed units): 111,815 sm fastest growing economies in the world. Completion: In phases from 2003 Located in a prime residential enclave along Low interest rates is expected to boost Sukhumvit Road on Soi 19, the 1,600 sm growth and provide a fillip to the real Taman Sutera and Taman Sutera Utama site is within close proximity to the Asoke estate sector. is an integrated township strategically commercial area. It will be developed located within the Iskandar Malaysia region. into a 24-storey high-rise condominium, Although Bangalore’s residential sales The township development features over comprising about 140 homes with a net in 2017 was lower than in 2016, demand 12,000 units of residential and commercial saleable area of about 8,000 sm. is picking up. Buyers are gaining more properties, a vibrant shopping mall, confidence after the implementation Sutera Mall as well as an educational hub. Prominent landmarks in the vicinity include of the Real Estate Regulation and Grade A office developments such as the Development Act which seeks to regulate A majority of the 4,049 units of residential Exchange Tower and Interchange Tower, the residential and commercial real estate and commercial properties launched have the Terminal 21 shopping mall and five-star sectors as well as attract more investments. been sold as at end-2017. Sutera Mall, with hotels including Westin Grande Sukhumvit, Rents and capital values remained stable 63,906 sm of leasable area, continued to Sheraton Grande Sukhumvit and Grande in 2017 as developers focused on clearing maintain a high occupancy rate. Planning is Centre Point Terminal 21. unsold units. underway for the next phase of expansion.
49 Operations and Market Review
Operations and Market Review
1. The Residences at 200 East 59 is a 35-storey condominium development located within an established residential neighbourhood 1 in Manhattan.
United States United Kingdom
The US is expected to continue its Real estate investment activity in the economic growth trajectory, although United Kingdom (UK) remained robust core inflation rate remains below the US in 2017, higher than the previous year. Federal Reserve’s target rate of 2%. Looking ahead, investment activity is expected It is also widely expected that the US Federal to hold up, although buyers’ expectations Reserve will continue with the gradual pace could be tempered by the government’s of rate hikes in 2018, a positive indication Autumn Budget announcement in November for the US and global economies. 2017, which will see disposal of investment properties in the UK by non-residents subject New York’s labour market remains healthy to capital gains tax with effect from 1 April 2019. with continued improvement in the Further pressure on rents is also expected as unemployment rate, supporting demand economic growth remains moderate while for apartments in the Manhattan area, the uncertainty surrounding the outcome particularly in the more affordably-priced of the Brexit negotiations persists. submarkets. Meanwhile, demand for homes in the luxury sector remains tepid due to an Office take-up in London remained resilient expanding inventory of high-end apartments. during the year, contributed by strong expansion of serviced offices and co-working CONDOMINIUMS operators. Net absorption of office space New York could remain low for some time as the The Residences at 200 East 59 Brexit negotiations continue. Location: Upper East Side / Midtown East Total no. of units: 68 COMMERCIAL GFA: 18,170 sm London Completion: 2018 75 King William Street Location: City Core, Central London The Residences at 200 East 59 is a GFA: 11,935 sm 35-storey development project located in Completion: 1989 Manhattan. Nestled within an established residential neighbourhood, the prime Situated in central London’s city core location, residential development is conveniently the nine-storey freehold office building located within walking distance to the 59th is close to the city’s historic and financial Street subway station. The development centre where the Bank of England and other is in close proximity to a myriad of dining prominent financial institutions are located. and shopping options, renowned cultural The office building is less than five minutes institutions, Central Park and the Midtown away from the Bank tube station, Monument business district. and Cannon Street stations.
Construction is ongoing for the development The property comprises two lower ground which comprises 68 condominium units and nine upper floors. Occupancy rate for and a retail podium. the building was 85% as at end-2017.
50 Keppel Land Limited | Report to Stakeholders 2017
Property Portfolio
Group Properties (Singapore)
Description Held by % Owned Site Area Estimated Estimated Year of Tenure (sm) Gross Floor Net Lettable Completion Area (sm) Area (sm) (Commercial)/ No. of Units (Residential)
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 14.6% 32,978 189,000 161,459 2010 99-year and 50 storeys with ancillary leasehold retail space at Marina Bay
Marina Bay Financial Centre (Phase 2) (a) a 46-storey office tower with Keppel REIT 14.6% 9,710 151,776 124,503 2012 99-year retail podium at Marina Bay leasehold
Ocean Financial Centre (a) a 43-storey office building Keppel REIT 43.8% 6,109 95,992 81,892 2011 999-year with ancillary retail spaces leasehold at Raffles Place
Bugis Junction Towers (a) a 15-storey office tower Keppel REIT 43.8% - 28,525 22,722 1995 99-year at Bugis Junction leasehold
One Raffles Quay (a) two office towers of 50 storeys Keppel REIT 14.6% 11,367 148,467 123,413 2006 99-year and 29 storeys with a basement leasehold retail link at Marina Bay
Keppel Towers and Keppel Towers 2 two office towers Mansfield 100% 9,127 52,946 39,958 1991/1993 Freehold at Hoe Chiang Road Development
Reflections at Keppel Bay a 1,129-unit waterfront Keppel Bay 100% 83,538 193,400 1,129 2011 99-year condominium development residential leasehold at Keppel Bay units
Corals at Keppel Bay a 366-unit waterfront Keppel Bay 100% 38,830 47,380 366 2016 99-year condominum development residential leasehold at Keppel Bay units
Highline Residences a 500-unit condominium Harvestland 100% 10,991 43,963 500 2018 99-year development Development residential leasehold at Kim Tian Road units
Nassim Woods a 35-unit luxurious Parksville 100% 5,785 9,256 35 1998 99-year condominium development Development residential leasehold in the exclusive units Nassim Road enclave
51 Operations and Market Review
Property Portfolio
Group Properties (Singapore) (continued)
Description Held by % Owned Site Area Estimated Estimated Year of Tenure (sm) Gross Floor Net Lettable Completion Area (sm) Area (sm) (Commercial)/ No. of Units (Residential)
Completed Properties (continued)
I12 Katong a six-storey shopping mall DC REIT 22.4% 7,261 26,208 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 3.0% 5,000 12,438 - 2014 30-year at Tampines Street 92 Data 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)
Keppel DC Singapore 4 a data centre building Alpha Data Centre 9.0% 6,805 17,012 - 2017 30-year at Tampines Street 92 Fund & Keppel leasehold Data Centres with option Holding for another 30 years
Properties Under Development
The Garden Residences A 613-unit condominium Gardens 60.0% 17,189 42,973 613 2020 99-year development at Development residential leasehold Serangoon North Avenue 1 units
Landbank
Keppel Bay Plot 6 a 86-unit waterfront Keppel Bay 100% 43,701 21,000 86 - 99-year condominium development residential leasehold at Keppel Bay units
HarbourFront Avenue (Plot 4) a 234-unit waterfront HarbourFront 11.7% 28,579 32,000 234 - 99-year condominium development Three residential leasehold at HarbourFront Avenue units
52 Keppel Land Limited | Report to Stakeholders 2017
Group Properties (Overseas)
Description Location Held by % Owned Site Area Estimated Estimated Year of Tenure (sm) Gross Floor Net Lettable Area (sm) Area (sm) (Commercial)/ No. of Units (Residential)
Completed Properties
Australia
275 George Street (a) a Grade A Brisbane Keppel 21.9% 3,655 - 41,749 2009 Freehold office building REIT located in CBD
8 Chifley Square (a) a premium Sydney Keppel 21.9% 1,581 - 19,349 2013 99 years office building REIT lease located in CBD
8 Exhibition Street (a) a Grade A Melbourne Keppel 21.9% 4,329 - 45,699 2005 Freehold office building with REIT ancillary retail units located in CBD
David Malcolm Justice Centre (a) a 33-storey Grade A Perth Keppel 21.9% 2,947 - 31,175 2015 99 years office tower located REIT lease 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 residential Shanghai Shanghai 99.0% 33,432 133,393 918 2015 70 years development in Pasir Panjang residential lease Park Avenue precinct Land units
The Springdale a 2,596-unit Shanghai Shanghai 99.4% 264,090 328,792 2,596 2015 70 years residential development Hongda residential lease with commercial facilities Property units (residential) in Pudong District Development 40 years lease (commercial)
Seasons Residences a 1,102-unit Shanghai Shanghai 100% 71,621 128,918 1,102 2016 70 years residential development Ji Xiang residential lease in Nanxiang, Jiading District Land units
K-Plaza a retail mall in Malu, Shanghai Shanghai 99.4% 32,959 40,903 27,045 2016 40 years Jiading District Jilu Land lease
53 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 Area (sm) Area (sm) (Commercial)/ No. of Units (Residential)
Completed Properties (continued)
Trinity Tower a mixed-use Shanghai Shanghai 30.0% 16,427 70,042 48,568 2015 50 years development Xusheng lease comprising office Property (office) and retail units in Investment 40 years Hongkou District, lease Shanghai (retail)
Park Avenue Heights a 1,535-unit residential Chengdu Chengdu 100% 50,782 203,129 1,535 2017 70 years development with Hillstreet residential lease commercial facilities Development units (residential) in Jinjiang District 40 years lease (commercial)
Serenity Villas a 340-unit Tianjin Tianjin 100% 128,685 80,000 28 2014 70 years residential Fushi bungalows lease development Property 96 semi- within Sino-Singapore Development detached Tianjin Eco-City houses, 216 apartments
Waterfront Residences a 341-unit landed home Tianjin Tianjin 100% 103,683 63,235 341 2017 70 years development within Fulong residential (Phase 3) lease Sino-Singapore Property units Tianjin Eco-City Development
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 resort Kunming Spring 68.8% 2,578,705 - Two 18-hole 1998 70 years comprising golf courses, City Golf golf courses, lease resort homes and and 73 guest (residential) resort facilities Lake Resort rooms and 50 years 530 resort lease homes (golf course)
54 Keppel Land Limited | Report to Stakeholders 2017
Group Properties (Overseas) (continued)
Description Location Held by % Owned Site Area Estimated Estimated Year of Tenure (sm) Gross Floor Net Lettable Area (sm) Area (sm) (Commercial)/ No. of Units (Residential)
Completed Properties (continued)
Germany
Keppel DC Frankurt 1 a two-storey data centre Frankfurt Alpha 12.0% 38,445 20,000 - 2009 Freehold facility located in the Data Centre Am Martinzehnten Fund & Industrial Park Keppel Data Centres Holding
Indonesia
Club Med Ria Bintan a beachfront hotel at Bintan PT Straits – 39.0% 200,000 34,340 302 rooms 1997 30 years Ria Bintan Resort CM Village lease with option for another 50 years
Ria Bintan (Phase 1) a golf course Bintan PT 45.9% 1,467,000 - 9- and 1998 30 years Ria Bintan 18-hole lease with golf courses option for with a another 31-room 50 years golf lodge
Nongsa Point Marina and Resort a waterfront resort Batam PT 16.8% 107,383 - 192 rooms/ 1995 30 years with a marina Nongsa chalets lease with and hotel-style chalets Point Marina and 65 option for berths another 50 years
International Financial Centre Jakarta Tower 1 a prime office Jakarta PT 100% 10,428 (b) 33,180 27,933 1985 20 years development Kepland lease with in CBD Investama option for another 20 years
International Financial Centre Jakarta Tower 2 a Grade A Jakarta PT 100% 10,428 (b) 61,300 50,200 2016 20 years office development Kepland lease with in Jakarta CBD Investama option for another 20 years
55 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 Area (sm) Area (sm) (Commercial)/ No. of Units (Residential)
Completed Properties (continued)
Malaysia
Taman Sutera and Taman Sutera Utama a township comprising Johor Tanah 18.0% 2,018,390 111,815 3,706 2003- Freehold residential units, Bahru Sutera (completed residential 2017 commercial space and Development units) units, recreational facilities 343 shop in Skudai offices and a 63,906 sm retail mall
Myanmar
Junction City Tower 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 Build- a mixed-use mixed-use Operate- development in CBD development) Transfer and opposite with option the famous for another Bogyoke Market two 10-year extensions
Sedona Hotel Yangon a five-star hotel Yangon Straits 100% 32,000 85,057 797 rooms 1997 50 years fronting the Greenfield (Garden Build- famous Inya Lake Wing) Operate- 2016 Transfer (Inya with option Wing) for another two 10-year extensions
Netherlands
Almere Data Centre 2 a high-specification Almere Keppel 30.0% 9,300 12,842 2015 Freehold data centre Data Centres Holding
The Philippines
SM-KL Project (Phase 1) a five-storey Mandaluyong SM 27.4% 7,068 24,481 16,301 2001 Freehold retail mall, City Keppel Land The Podium, in Ortigas CBD
56 Keppel Land Limited | Report to Stakeholders 2017
Group Properties (Overseas) (continued)
Description Location Held by % Owned Site Area Estimated Estimated Year of Tenure (sm) Gross Floor Net Lettable Area (sm) Area (sm) (Commercial)/ No. of Units (Residential)
Completed Properties (continued)
SM-KL Project (Phase 2) - Retail Extension of five-storey Mandaluyong SM 27.4% 12,932 46,323 30,340 2017 Freehold retail mall, The Podium, City Keppel Land in Ortigas CBD
Palmdale Heights (Phases 1 & 2) a residential Pasig City Buena 35.0% 22,978 47,063 828 2004 Freehold development Homes residential (Sandoval) units
United Kingdom
75 King William Street a nine-storey London First King 100% 1,947 11,935 11,731 1989 Freehold office building Properties
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 Hanoi Vietcombank 6.0% 1,986 30,239 20,000 2001 40 years office development at Tower 198 lease Tran Quang Khai Street
Saigon Centre (Phase 1) a 25-storey office, retail Ho Chi Minh Keppel 61.3% 2,730 34,143 10,626 1996 50 years cum serviced apartment City Land (office), and lease development at 65 Le Loi Watco I 89 serviced Boulevard in District 1 apartments
Riviera Cove a gated villa development Ho Chi Minh Riviera Cove 100% 97,000 34,711 96 villas 2012 50 years in District 9 City Joint Venture lease
PetroVietnam Towers a 10-storey Vung Tau Petro Tower 12.9% 6,191 17,026 12,465 1997 40 years office development lease
57 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
Australia
311 Spencer Street (a) a Grade A office Melbourne Keppel REIT 21.9% 5,136 65,648 2019 Freehold building located in CBD
China
Park Avenue Central an office and Shanghai Shanghai 99.0% 28,488 115,900 ** 2022 40 years retail development Floraville lease (retail) in Park Avenue Land 50 years precinct lease (office)
Sheshan Riviera a 217-unit Shanghai Shanghai 99.4% 175,191 83,174 112 2018 70 years landed development Jinju landed (Phase 1) lease in Sheshan Real homes Estate (Phase 1) Development
Hill Crest Villas a 274-unit landed Chengdu Chengdu 100% 249,330 163,147 45 landed 2020 70 years development Hilltop homes (Phase 2) lease in Xinjin County Development (Phase 2)
Serenity Villas a 573-unit landed Chengdu Chengdu 100% 286,667 233,862 97 landed 2020 70 years development Shengshi homes (Phase 2) lease in Xinjin County Jingwei (Phase 2) Real Estate Investment
V City a 5,399-unit Chengdu Chengdu 35.0% 167,000 557,962 1,495 2018 70 years residential Taixin residential (Phases lease development with Real Estate units 2 & 3 ) (residential) retail facilities Development (Phase 2) 2019 40 years 1,298 (Phase 4) lease residential (commercial) units (Phase 3) 1,172 residential units (Phase 4)
Spring City Golf & Lake Resort an integrated Kunming Spring 68.8% 2,419,701 16,819 97 2020 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)
58 Keppel Land Limited | Report to Stakeholders 2017
Group Properties (Overseas) (continued)
Description Location Held by % Owned Site Area Estimated Estimated Expected Tenure (sm) Gross Floor Net Lettable Year of Area (sm) Area (sm) Completion (Commercial)/ No. of Units (Residential)
Properties Under Development (continued)
Waterfront Residences a 1,481-unit Wuxi Keppel 100% 215,230 306,962 236 2018 70 years residential Lakefront residential (Phases lease development (Wuxi) units 2 & 3A) (residential) with commercial Property (Phase 2) 40 years and SOHO Development 83 landed lease facilities in homes (commercial) Binhu District (Phase 3A)
Park Avenue Heights a mixed-use Wuxi Keppel 100% 66,010 171,593 328 2018 70 years development with Heights residential (Phases lease 1,291 residential units (Wuxi) units 1 & 2) (residential) and commercial Property (Phase 1) 40 years facilities in Development 348 lease Liangxi District residential (commercial) units (Phase 2)
Seasons Residences a 2,755-unit Wuxi Keppel 100% 180,258 360,500 *** *** 70 years residential development Seasons lease in Xinwu District Residences (residential) with integrated Property 40 years facilities Development lease (Wuxi) (commercial)
The Seasons (Remaining Phases) a 2,794-unit Shenyang Keppel 100% 348,312 *** *** *** 50 years residential township with Township lease integrated facilities in Development (residential) Shenbei New District (Shenyang) 40 years lease (commercial)
Hunnan Township Development a residential township Shenyang Keppel Bay 99.8% *** *** *** *** 50 years with integrated facilities Property lease in Hunnan Development (residential) New District (Shenyang) 40 years lease (commercial)
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)
59 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)
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)
Development in Sino-Singapore Tianjin Eco-City a 4,297-unit Tianjin Keppel 100% 313,265 462,616 356 2019 70 years residential Hong Da residential (Seasons lease development with (Tianjin units Garden (residential) retail space Eco-City) (Seasons Plot 9, 40 years Property Garden Seasons lease Development Plot 9) Residences (commercial) 354 Phase 3A) residential 2020 units (Seasons (Seasons Garden Garden Plot 8, Plot 8) Seasons 572 Heights) residential units (Seasons Residences Phase 3A) 372 residential units (Seasons Heights)
Seasons City in Sino-Singapore Tianjin Eco-City commercial sub-centre Tianjin Keppel Hong 100% 40,451 161,800 56,229 2020 40 years comprising three office towers Yuan (Tianjin (Seasons City (Seasons City lease and a retail complex Eco-City) Phase 1) Phase 1) (commercial) Property Development
Keppel Hong Tai (Tianjin Eco-City) Property Development
Keppel Hong Teng (Tianjin Eco-City) Property Development
Stamford City a 1,470-unit Jiangyin Jiangyin 99.4% 82,987 309,322 345 2021 70 years residential Evergro residential (Phase 3D) lease development with Properties units (residential) commercial and (Phase 3D) 40 years SOHO facilities lease (commercial)
60 Keppel Land Limited | Report to Stakeholders 2017
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)
Commercial Development an office and Beijing Beijing 51.0% 26,081 104,800 89,000 2020 40 years/ retail development Aether 50 years in Chaoyang District Property lease Development
India
Provident Park Square a 2,082-unit residential Bangalore Keppel 51.0% 79,927 167,517 2,082 2021 Freehold development Puravankara residential off Kanakapura Road units
Indonesia
West Vista at Puri a 2,855-residential Jakarta PT 100% 28,851 153,464 1,404 2018 30 years development Harapan residential (Phase 1) lease with with ancillary Global units 2022 option for shophouses Niaga (Phase 1) (Phase 2) another in West Jakarta 1,451 20 years residential units (Phase 2)
The Riviera at Puri a 493-unit landed Greater PT 50.0% 120,568 71,241 164 landed 2019 30 years housing development Jakarta Sukses houses (Phase 1) lease with located within the Manis (Phase 1) 2021 option for Metland Puri township Indonesia 329 landed (Phases another houses 2 & 3) 20years (Phases 2 & 3)
Future Residential Development a 4,523-unit Jakarta PT Puri 100% 46,291 226,800 4,523 2026 30 years residential development Land residential lease with in West Jakarta Development units option for another 20 years
Pasadenia Garden a residential Jakarta PT 25.0% 77,100 83,723 160 2018/2019 30 years development within Pulomas residential lease with Pulomas Gemala units option for residential district Misori (Phase 1C) 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
61 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)
Future Residential Development a 408-unit residential Jakarta PT 100% 7,721 36,113 408 2022 20 years development located Sukses residential lease with adjacent to the Manis units option for International Financial Tangguh another Centre Jakarta 20 years
Malaysia
Taman Sutera and Taman Sutera Utama a township comprising Johor Tanah 18.0% 2,018,390 - - - Freehold residential units, Bahru Sutera commercial space Development and recreational facilities in Skudai
Myanmar
Junction City (Phase 2) within a mixed-use Yangon City 40.0% 26,406 50,000 ** 2021 50 years development Square (for entire in CBD and Tower mixed-use opposite the development) famous Bogyoke Market
The Philippines
SM-KL Project (Phase 2) - Office an office development, Mandaluyong SM 27.4% 12,932 110,123 89,279 2019 Freehold The Podium West Tower, City Keppel Land located above the retail extension of The Podium in Ortigas CBD
Thailand
SHAA ASOKE Luxury condominium Bangkok KPN-Keppel 49.0% 1,600 14,500 140 2022 Freehold project along Alliance residential Sukhumvit Road, (SK19) units soi 19 in central Bangkok
Future Residential Development Luxury condominium Bangkok KPN-Keppel 49.0% 3,200 30,000 265 2022 Freehold project along Alliance residential Sukhumvit Road, (SK28) units soi 28 in central Bangkok
62 Keppel Land Limited | Report to Stakeholders 2017
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)
United States
The Residences at 200 East 59 a residential and New York MIP 82.6% 636 18,170 68 2018 Freehold retail development 59th and residential at Upper East Side Third units in Manhattan Development
Vietnam
Saigon Centre (Phases 2 & 3) a prime office, retail Ho Chi Minh Keppel 61.3% 8,355 100,274 37,600 sm 2016 50 years cum serviced apartment City Land (Phases (retail) lease development at Watco 1 & 2 retail) 2017 67 Le Loi Boulevard II & III 34,000 sm (office) in District 1 (office) 2018 and 195 (serviced serviced apartment) apartments
Saigon Centre (Phases 4 & 5) a prime office, Ho Chi Minh Keppel 84.0% 8,623 103,477 82,744 2023 50 years retail cum City Land lease hotel development Watco at 92-94 Nam Ky IV & V Khoi Nghia Street in District 1
Tamarind Park a 20-storey Ho Chi Minh Keppel 60.0% 2,808 26,181 173 *** 45 years apartment with City Land residential lease recreational Agtex untis facilities in District 1
Saigon Sports City a township with about Ho Chi Minh Saigon 90.0% 640,477 724,000 1,233 2022 50 years 4,300 apartments, City Sports residential (Phase 1) lease commercial complexes City units and public sports (Phase 1, facilities in District 2 Velona)
Estella Heights a 872-unit Ho Chi Minh Estella 98.0% 25,393 160,785 496 2017 50 years residential City Joint residential (Phase 1) lease development with Venture units 2018 commercial space (Phase 1) (Phase 2) in An Phu Ward, 376 District 2 residential units (Phase 2)
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 (continued)
Palm City a residential Ho Chi Minh South 42.0% 289,365 521,416 135 landed 2017 50 years township with about City Rach Chiec homes (Phase 1, lease 3,670 units and (Phase 1, Palm commercial space at Palm Residence) South Rach Chiec Residence) 2019 in District 2 816 (Phase 1, apartments Palm (Phase 1, Heights) Palm Heights)
Empire City a residential Ho Chi Minh Empire 40.0% 146,000 661,000 510 2020 50 years development with City City LLC residential (Phases lease about 3,000 units units 1 & 2) and commercial space (Phase 1, at Thu Thiem New Linden Urban Area in District 2 Residences) 472 residential units (Phase 2, Tilia Residences)
Prime 4.8 hectare site a residential Ho Chi Minh Quoc 45.0% 48,000 415,000 625 2020 50 years development with City Loc Phat residential (Phase 1) lease about 1,550 units JSC units and commercial space (Phase 1) at Thu Thiem New Urban Area in District 2
Riviera Point a 2,400-unit Ho Chi Minh Riviera 75.0% 89,727 437,944 549 2014 50 years residential City Point residential (Phase 1A) lease development with units 2019 commercial space (Phase 1A) (Phase 1B) in District 7 518 residential units (Phase 1B, The View)
Dong Nai Waterfront City a 7,850-unit Dong Dong 50.0% 3,667,127 2,100,000 300 2023 50 years residential Nai Nai landed (Phase 1) lease township with Province Waterfront houses commercial space City (Phase 1) in Long Thanh District
(a) Assets owned by Keppel REIT in which the Group has a 43.8% stake. (b) For entire site which includes International Financial Centre Jakarta Towers 1 and 2. ** Under planning stage *** Plans are under review in accordance to market conditions
64 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
Co Reg No: 189000001G