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eppel <strong>Land</strong><br />
(Incorporated in the Republic of Singapore)<br />
230 Victoria Street #15-05 Bugis Junction Towers Singapore 188024 Tel: 6338 8111 Website: http://www.keppelland.com.sg<br />
<strong>Keppel</strong> <strong>Land</strong> Limited Report to Shareholders 2001<br />
<strong>Keppel</strong> <strong>Land</strong> Limited REPORT TO SHAREHOLDERS<br />
2001
Contnents<br />
Contents<br />
2 Corporate Profile<br />
4 Milestones 2001<br />
9 Chairman’s Message<br />
16 Board of Directors<br />
The Group at a Glance<br />
20 Financial Highlights<br />
21 Simplified Balance Sheet<br />
22 Half-Yearly Results<br />
23 Five-Year Financial Profile<br />
People Count<br />
24 At the Helm<br />
28 Key Personnel<br />
29 Organisational Structure<br />
30 Human Resources and Community Relations<br />
38 Investor Relations<br />
41 In Harmony with the Environment<br />
Focus : Market and Prospects<br />
45 Asian Economic and Property Round-Up<br />
50 Change and Impact<br />
51 In Retrospect... and Prospects<br />
The Year in Review<br />
55 Market and Operations<br />
82 Sedona Hotels International<br />
84 Feature -<br />
- Positioning for China<br />
93 Finance<br />
Analyses<br />
96 Segmental Reporting<br />
100 Value Added and Productivity<br />
101 Value Added by Segment<br />
102 Value Added Statement<br />
104 Property Portfolio Analysis<br />
119 Gearing Structure<br />
Statutory Report and Accounts<br />
122 Directors’ Report<br />
130 Statement by the Directors<br />
131 Auditors’ Report<br />
132 Profit and Loss Accounts<br />
133 Balance Sheets<br />
134 Group Statement of Changes in Equity<br />
136 Company Statement of Changes in Equity<br />
138 Consolidated Cash Flow Statement<br />
140 Summary of Significant Accounting Policies<br />
146 Notes to the Accounts<br />
168 Subsidiary and Associated Companies<br />
Corporate Governance<br />
175 Corporate Governance<br />
Corporate Information<br />
181 Corporate Information<br />
182 Corporate Structure<br />
184 Calendar of Financial Events<br />
Shareholder Information<br />
185 Statistics of Shareholdings<br />
186 Notice of Annual General Meeting<br />
188 Share Transaction Statistics
The strategic goal for <strong>Keppel</strong> <strong>Land</strong> is to transform itself from a property company<br />
holding significant investments assets to a developer of outstanding trading<br />
properties and manager of property funds. Going forward, <strong>Keppel</strong> <strong>Land</strong> will take<br />
an asset-light approach and focus on the two core businesses of property<br />
development for sale and fund management to achieve higher returns.<br />
<strong>Keppel</strong> <strong>Land</strong> intends to grow its overseas investment from 20% to 30% of the<br />
Company’s total assets, with emphasis on shorter-term trading projects and<br />
strategic acquisitions of property development companies.<br />
For the immediate term, the geographical focus will be centred on North Asia,<br />
3<br />
Profile<br />
Corporate<br />
especially China. Elsewhere in the region, the Company will also focus on local<br />
housing in countries where home ownership is growing.<br />
eppel<br />
<strong>Land</strong>
Milestones 2001<br />
Milestones<br />
4<br />
January<br />
• <strong>Keppel</strong> <strong>Land</strong> clinched the Grand Award, which is given to a company whose annual report takes the best award<br />
for the third consecutive year, at the 27th Annual Report Awards Competition.<br />
• Botanic Cove residential development in Sydney, Australia recorded good sales with Phase One sold out, and<br />
Phase Two selling well.<br />
• The Magnolia, the second collection of resort homes at Spring City Golf and Lake Resort in Kunming, China<br />
was handed over to the proud owners.<br />
February<br />
• The Company chalked up record profits, exceeding the profit target for year 2000.<br />
• <strong>Keppel</strong> <strong>Land</strong> unveiled its unique marketing concept for the Cluny Hill good-class bungalow plots.<br />
• Spring City Golf and Lake Resort in Kunming, China was named Best Course in China and first runner-up for<br />
Best Course in Asia at the Asian Golf Monthly Awards 2000.<br />
• Ria Bintan Resort was awarded Best Course in Indonesia, Best Par 4 in Asian categories and first runner-up in<br />
Best Golf Resort in Asia at the Asian Golf Monthly Awards 2000.<br />
March<br />
• <strong>Keppel</strong> <strong>Land</strong>, together with Hong Kong developers Cheung Kong and Hongkong <strong>Land</strong>, successfully tendered<br />
for the 1.14-ha Marina Boulevard “white” site.<br />
• <strong>Keppel</strong> <strong>Land</strong> acquired a strategic 24.9% stake in Dragon <strong>Land</strong>, a Singapore-listed company with strong focus<br />
on China.<br />
• The Company was invited to share its insights on doing business in Vietnam, at a conference held by the<br />
country’s Ministry of Planning & Investment.<br />
• <strong>Keppel</strong> <strong>Land</strong>’s overseas and local management staff converged in Singapore for an Annual Regional Conference.<br />
April<br />
• The Company signed a new Collective Agreement with <strong>Keppel</strong> Services Staff Union.<br />
May<br />
• A topping-out ceremony was held for Ocean Towers, a Grade A office building in Shanghai.<br />
• Capital Square and Bugis Junction emerged finalists under the Office/Industrial and Retail categories<br />
respectively in the prestigious FIABCI Prix d’Excellence 2001 Competition.<br />
• <strong>Keppel</strong> <strong>Land</strong> hosted a visit by officials from Suzhou Industrial Park on a “software transfer” programme on<br />
human resource management.<br />
June<br />
• Having secured the winning bid for the first Marina “white” site, <strong>Keppel</strong> <strong>Land</strong> and the consortium partners<br />
sealed the deal with URA in a Building Agreement Signing Ceremony.<br />
• Spring City’s Lake Course was voted Best Course in China by Golf Digest.
Milestones<br />
July<br />
• Despite the soft market conditions, the soft launch of Cluny Hill good-class bungalow plots saw five plots sold<br />
in the first half of the year.<br />
• Spring City Golf and Lake Resort played host to the Board of Governors’ 3rd Annual Meeting.<br />
• The Australian Victorian Government visited Caribbean at <strong>Keppel</strong> Bay condominium development during its<br />
study tour of waterfront properties in Singapore.<br />
August<br />
• <strong>Keppel</strong> <strong>Land</strong> reports a profit of $52.6 million at its interim results announcement.<br />
• The Company hosted a visit by officials from Suzhou Industrial Park on a “software transfer” training<br />
programme on corporate governance, financial reporting and investor relations.<br />
• <strong>Keppel</strong> <strong>Land</strong> received the FIABCI Prix d’Excellence certificate of recognition for Capital Square and Bugis<br />
Junction at the FIABCI ceremony held on 3 August.<br />
September<br />
• The Securities Investors Association (Singapore) awarded the Company the runner-up prize in the properties’<br />
category for Most Transparent Company Award.<br />
• <strong>Keppel</strong> <strong>Land</strong> hosted a visit by China’s Shenzhen Construction Investment Holding Corporation on an exchange<br />
programme on human resource management.<br />
October<br />
• Bugis Junction won the top prize at the Fire Safety Excellence Awards once again and was subsequently<br />
conferred the highest award, the Special Mention Award, for winning the award from 1999 to 2001.<br />
5<br />
November<br />
• <strong>Keppel</strong> <strong>Land</strong> announced its intention to launch Singapore’s first prime office listed property trust.<br />
• In line with the divestment strategy, <strong>Keppel</strong> <strong>Land</strong> sold its Australand Holdings stake for $38.4 million.<br />
• The Company announced the write-down of the residential landbank by $455 million.<br />
• <strong>Keppel</strong> <strong>Land</strong> appointed Mr Lim Ho Kee and Associate Professor (Dr) Tsui Kai Chong as Directors to its Board.<br />
• The “edge>”, a new retail concept targeted at the young, was launched on the third level of Parco Bugis Junction.<br />
December<br />
• Continuing its divestment strategy, <strong>Keppel</strong> <strong>Land</strong> divested :<br />
- Bayswater Village in Sydney, Australia for $22 million;<br />
- Nana Tai Mansion in Bangkok, Thailand for $6.2 million.<br />
• Overwhelming success was seen at the launch of The Edgewater condominium, with all units sold.<br />
• Amaranda Gardens condominium saw equally good response at its launch, with 98% of the units sold.<br />
• <strong>Keppel</strong> <strong>Land</strong> broke ground at One Park Avenue, the largest upmarket residential development by a foreign<br />
developer, in Jingan, Shanghai.<br />
• <strong>Keppel</strong> <strong>Land</strong> signed a Memorandum of Understanding with Yiliang Yang Zong Hai Tourist Resort Development<br />
Holding Co. to develop a residential project on a 380-ha site in Kunming, China.<br />
• Parco Bugis Junction won the Singapore Tourist Board’s Best Decorated Building for Christmas Award for the<br />
second consecutive year.
Chairman’s<br />
Message
“ The strategic goal for <strong>Keppel</strong> <strong>Land</strong> is to transform<br />
itself from a landlord and property owner to<br />
a focused developer of outstanding properties<br />
for sale and manager of property funds.<br />
“
Chairman’s Message<br />
On behalf of the Board, I present the <strong>Keppel</strong> <strong>Land</strong><br />
Group report for the year ended 31 December 2001.<br />
Financial Performance<br />
2001 was a difficult year for the Group, worsened by<br />
the September 11 attacks in the US.<br />
The rapid deterioration of the US economy quickly<br />
spiralled into a global downturn, tripping the fragile<br />
recovery of Asian economies. With most of its major<br />
markets affected, Singapore slipped into its worst<br />
recession in four decades.<br />
Like many companies, <strong>Keppel</strong> <strong>Land</strong> was hit by the<br />
weaker economic prospects in Singapore and the<br />
region. With lower contribution from property trading<br />
due to fewer residential sales, revenue fell 40% to<br />
$300.5 million. Higher profit contribution from<br />
property investment from the mostly fully-occupied<br />
office buildings could not offset the shortfall from<br />
property trading.<br />
Chairman Lim Chee Onn<br />
buildings by $239 million, after taking into account<br />
minority interests’ share and a surplus of $51 million<br />
not taken up in 2000. This revaluation deficit was<br />
charged against the previous years’ surpluses of<br />
$898 million accumulated under capital reserves in<br />
the balance sheet.<br />
Chairman’s Message<br />
9<br />
Against a soft residential market in Singapore, the<br />
Company made provisions for a write-down of<br />
$455.1 million in respect of its landbank. As a result,<br />
the Group incurred a loss of $366.5 million after tax<br />
and minority interests. This is in contrast with a profit<br />
of $122.1 million in 2000. Had it not been for the<br />
provisions, the Group’s profit for 2001 would have<br />
been $88.6 million.<br />
As capital values of Singapore office buildings fell, the<br />
Company wrote down the value of its investment<br />
With the provisions and revaluation adjustments<br />
made, shareholders’ funds declined from $2.24 billion<br />
to $1.62 billion at the end of 2001. Consequently, the<br />
Company’s net tangible asset per share fell to $2.28<br />
from $3.16 a year ago. The Group’s debt-equity ratio<br />
including minority interests rose to 1.28 from 0.83<br />
the year before.<br />
The effective tax rate for the Group before provisions<br />
was 24.5% in 2001, unchanged from the previous<br />
year.
Chairman’s Message<br />
continued<br />
Proposed Dividend<br />
Going Asset-Light<br />
The Board is recommending a final gross dividend of<br />
6% or 3 cents per share less tax, amounting to<br />
$16.1 million for approval at the Annual General<br />
Meeting on 16 May 2002. If approved, this dividend<br />
will be paid on 6 June 2002.<br />
Despite the difficult year, the dividend rate has been<br />
maintained at the same level as for the previous year.<br />
Going forward, <strong>Keppel</strong> <strong>Land</strong> will adopt an asset-light<br />
approach in the real estate business. There will be less<br />
emphasis on property investment as it requires heavy<br />
capital and produces low returns.<br />
<strong>Keppel</strong> <strong>Land</strong> will divest its investment assets through<br />
various means such as a listed property trust, asset<br />
securitisation and direct sale.<br />
Chairman’s Message<br />
10<br />
Future Directions for the Company<br />
2001 was also a year of change for the <strong>Keppel</strong> Group.<br />
During the year, <strong>Keppel</strong> Corporation divested its<br />
banking and financial services business, and privatised<br />
the offshore and marine, and infrastructure businesses.<br />
<strong>Keppel</strong> Corporation will now focus on growing three<br />
key businesses – offshore and marine, infrastructure,<br />
and property – into regional and possibly global<br />
businesses.<br />
The strategic goal for <strong>Keppel</strong> <strong>Land</strong> is to transform<br />
itself from a landlord and property owner to a focused<br />
developer of outstanding properties for sale and<br />
manager of property funds. <strong>Keppel</strong> <strong>Land</strong> as the<br />
property arm will complement the other two core<br />
businesses of the <strong>Keppel</strong> Group, which will be able to<br />
enjoy the counter-cyclical advantages of the property<br />
‘<br />
business vis-a-vis the offshore and marine sector<br />
without having to suffer the huge swings in values due<br />
to property cycles.<br />
With an investment building portfolio worth about<br />
$2.1 billion in Singapore, the divestment will<br />
enable the Company to re-deploy resources into<br />
better-yielding development assets as well as grow its<br />
new property-fund business.<br />
During the year, the Company divested non-core<br />
assets overseas and in Singapore. It divested a 5%<br />
stake in Australand Holdings, a property developer<br />
listed on the Australian Stock Exchange, a 70-suite<br />
hotel-cum-retail complex called Bayswater Village in<br />
Sydney, a serviced apartment called Nana Tai Mansion<br />
in Bangkok, and several shop units at The Arcade in<br />
Singapore. The total sales proceeds amounted to<br />
$70.5 million.<br />
Other Major Developments<br />
Singapore<br />
Residential<br />
Despite the soft market, <strong>Keppel</strong> <strong>Land</strong> sold six exclusive<br />
plots in the good class bungalow enclave in Cluny Hill.
At an average size of at least 15,000 sf each, the six<br />
plots generated a total net profit of $44.6 million,<br />
demonstrating the resilience of the very top tier of the<br />
residential market.<br />
Interest in the residential market revived towards the<br />
end of the year. Residential take-up rose to 2,839 new<br />
units in the fourth quarter with developers offering the<br />
deferred payment scheme, lower prices and banks<br />
giving attractive mortgage rates. The demand in the<br />
mass and mid-market segments rose, pushing the full<br />
year take-up to surge by 28% to 6,917 units.<br />
The short-term outlook for the office market will<br />
continue to be affected by economic uncertainties.<br />
However, the medium-term prospects are positive on<br />
hopes of a US-led recovery in 2002, and the limited<br />
new supply of prime office space in the next few years.<br />
Overseas<br />
<strong>Keppel</strong> <strong>Land</strong>’s goal of growing its overseas investments<br />
from 20% to 30% remains unchanged as the rationale<br />
is to diversify out of the Singapore market to achieve<br />
sustainable earnings growth.<br />
<strong>Keppel</strong> <strong>Land</strong> sold 450 units from three projects in less<br />
than three months. Launched in November 2001,<br />
The Edgewater achieved 100% sales while Amaranda<br />
Gardens achieved 98% sales. Another development in<br />
Tanjong Katong, Butterworth 8 which was launched in<br />
January 2002, has also achieved 100% sales.<br />
With the successful sales, the Company will embark on<br />
the securitisation of the sales proceeds of $380 million<br />
to bring forward the cashflow.<br />
Office<br />
After a sterling year in 2000 when pent-up demand hit<br />
a record high of 4.22 million sf, office take-up shrank<br />
significantly in 2001. With the shake-up in the IT<br />
industry and the consolidation in the financial services<br />
sector, office occupancy slipped to 1.12 million sf.<br />
Despite the softer market, <strong>Keppel</strong> <strong>Land</strong>’s well-managed<br />
and well-located office buildings enjoyed full or<br />
close-to-full occupancies, achieving higher rentals and<br />
take-up than the market.<br />
It will continue with its strategy of direct acquisition of<br />
trading development projects, and strategic acquisition<br />
of property development companies.<br />
Among the various segments in the property market in<br />
Asia, it has identified local housing development as a<br />
promising niche as it is supported by strong aspirations<br />
of home ownership, especially among people in the<br />
middle-income group.<br />
For the immediate term, the geographical focus will be<br />
centred on North Asia, especially China. Elsewhere in<br />
the region, the Company will also focus on local<br />
housing in countries where home ownership is<br />
growing.<br />
China<br />
With China’s entry into the World Trade Organisation<br />
and its successful bid to host the 2008 Olympics,<br />
foreign direct investment is expected to increase, and<br />
this is expected to have a multiplier effect on the<br />
economy.<br />
Chairman’s Message<br />
11
Chairman’s Message<br />
continued<br />
Government’s reforms, such as easy access to<br />
mortgages and tax incentives, have caused a structural<br />
shift in local housing demand from state-provided<br />
homes to private homes. Residential property sales<br />
continues to be strong at more than 30% in 2001<br />
although there has been moderation from the<br />
phenomenal growth of 47% achieved in 2000. The<br />
merging of the foreign and local property markets in<br />
Shanghai in late 2001 has also enlarged the pool of<br />
potential buyers.<br />
Other Countries<br />
Elsewhere in the region, the property markets’<br />
performance was uneven, with only select niches<br />
performing well. In Philippines, capitalising on the<br />
resilient retail market, listed subsidiary <strong>Keppel</strong><br />
Philippines Properties (KPP) with partner SM Group<br />
completed the construction of the five-storey retail<br />
podium at SM-KL Towers in Ortigas, Metro Manila in<br />
2001.<br />
Chairman’s Message<br />
12<br />
<strong>Keppel</strong> <strong>Land</strong>’s first residential project in China, One<br />
Park Avenue will be launched for sale in the second half<br />
of 2002. Located in Central Puxi, the 1,100-unit<br />
condominium development is conveniently located in<br />
Shanghai’s fashionable shopping and entertainment<br />
belt. It is close to the international hotels Portman Ritz<br />
Carlton and JC Mandarin, and retail malls like Plaza 66,<br />
Kerry Centre and Westgate Mall.<br />
One Park Avenue is phase one of a large 3,200-unit<br />
development hailed as the largest upmarket residential<br />
project undertaken by a foreign developer in the prime<br />
Jingan district of Shanghai.<br />
Also located in Shanghai is Ocean Towers, a 25-storey<br />
office building located in the prime commercial district<br />
of Huangpu, which was completed in December 2001.<br />
The Grade A building, in which <strong>Keppel</strong> <strong>Land</strong> has a<br />
29%-stake, has an estimated net floor area of 388,000<br />
sf. Leasing activities have attracted multinational<br />
companies among its tenants. The eventual intention is<br />
to sell the office building by strata-title or in its entirety.<br />
Known as The Podium, the well-planned modern<br />
shopping mall has 186,390 sf of net floor area, and is<br />
targeted at the young urban professionals and residents<br />
of the neighbouring upmarket homes. Soft-launched in<br />
December 2001, the mall is about 90% committed in<br />
tenancy.<br />
In the local residential sector, KPP through its subsidiary<br />
Buena Homes, tapped on the potential of the<br />
middle-income segment which is supported by strong<br />
fundamentals. It soft-launched its first condominium<br />
Palmdale Heights in Metro Manila in 2001. Palmdale<br />
Heights’ strategic location between Makati and Ortigas<br />
Central Business Districts makes it attractive to those who<br />
work in the two business districts. Despite the soft market,<br />
almost one block comprising 138 units has been sold.<br />
When completed, Palmdale Heights will comprise<br />
29 residential blocks consisting of 4,000 condominium<br />
units with two commercial centres, parking facilities,<br />
a two storey clubhouse, swimming pools, parks and<br />
playgrounds.
In Thailand, listed subsidiary Five Stars Property Public<br />
Company sold its 157-unit serviced apartment Nana<br />
Tai, and will pursue local residential development in<br />
Bangkok.<br />
In Australia, the Company sold its hotel-cum-retail<br />
complex Crescent on Bayswater which is located in the<br />
tourist area of Kings Cross in Sydney for $22 million.<br />
Meanwhile, owners of 117 units under phase one of<br />
Botanic Cove, a residential development in Sydney,<br />
have settled into their homes. Phase two, comprising<br />
118 apartments and townhouses, is presently under<br />
construction and over 80% have been sold.<br />
Looking Ahead<br />
Singapore<br />
Residential Launches<br />
Buying interest has spilled into the higher-end segment<br />
with the mass and mid-market segments continuing to<br />
rally in early 2002. Recovery in the residential sector is<br />
expected to take place in tandem with the anticipated<br />
Singapore economic rebound in 2002.<br />
Riding on a more positive market sentiment, <strong>Keppel</strong><br />
<strong>Land</strong> will selectively launch and re-launch several<br />
residential projects in 2002. With a landbank totalling<br />
2.3 million sf of attributable gross floor area in the<br />
popular and prime districts, the Company is<br />
well-placed to ride on the anticipated recovery.<br />
New Offices<br />
In Marina South, <strong>Keppel</strong> <strong>Land</strong> is developing for sale<br />
and lease a new large-scale office development with<br />
the proposed name of One Raffles Quay which<br />
comprises two office towers - one 50-storey and one<br />
29-storey. Situated along Singapore’s historic waterfront,<br />
the development will become a new landmark with its<br />
supporting infrastructure such as an underground retail<br />
mall linked to the Raffles Place Mass Rapid Transit<br />
station, a hub car park and a district cooling plant.<br />
The 1.14 ha gateway site was awarded to <strong>Keppel</strong> <strong>Land</strong><br />
and its consortium partners Cheung Kong and<br />
Hongkong <strong>Land</strong> in March 2001. Piling and main<br />
contract works are scheduled to begin in June 2002.<br />
Completion of the 1.3 million sf development is<br />
expected in 2005.<br />
Coming on stream sooner is the Harbourfront Office<br />
Park comprising 18-storey twin office towers over a<br />
podium, and the retrofitted former cable car tower<br />
offering a total lettable area of 922,208 sf. The<br />
buildings are expected to be ready by late 2002.<br />
<strong>Keppel</strong> Corporations’ headquarters will relocate to<br />
one tower named <strong>Keppel</strong> Bay Tower, which the<br />
<strong>Keppel</strong> Group will eventually hold a 70% stake, while<br />
ExxonMobil will have the naming rights for the second<br />
tower as anchor tenant occupying more than 40% of<br />
its space. The <strong>Keppel</strong> Group will hold a 39% stake in<br />
the second tower and the former cable car tower.<br />
Chairman’s Message<br />
13
Chairman’s Message<br />
continued<br />
Located in the heart of the HarbourFront<br />
entertainment hub, the office park is jointly developed<br />
by the <strong>Keppel</strong> Group, Temasek Holdings and PSA<br />
Corporation. It is located in the heart of the area<br />
designated for development into a sprawling<br />
entertainment and recreational hub, as well as next<br />
to <strong>Keppel</strong> Bay, the prime waterfront residential district<br />
at the former <strong>Keppel</strong> Shipyard site.<br />
Overseas<br />
recreational facilities to cater to the residents of San Jose<br />
del Monte in Bulacan, Quezon City, Caloocan City, and<br />
provinces north of Metro Manila.<br />
In Bangkok, another listed subsidiary Five Stars Property<br />
Public Company is actively seeking sites for landed residential<br />
housing to tap on the demand for single detached<br />
housing in Thailand. Similarly, the Company is<br />
exploring residential developments in Ho Chi Minh<br />
City, Vietnam.<br />
Chairman’s Message<br />
14<br />
Leveraging on its property expertise and network in the<br />
region, <strong>Keppel</strong> <strong>Land</strong> will continue to selectively pursue<br />
local housing development which has been resilient<br />
despite the economic downturn.<br />
Apart from China, prospects are promising in<br />
Philippines, Thailand and Vietnam due to governments’<br />
efforts to promote home ownership among the local<br />
population. Selectively, <strong>Keppel</strong> <strong>Land</strong> has moved into<br />
niches in the domestic housing market and aims to<br />
position itself as a provider of good quality homes for<br />
locals, especially the growing middle-income group.<br />
In Philippines, KPP will continue to build on the<br />
brand name of Buena Homes as a choice developer<br />
of affordable quality homes. If market conditions are<br />
conducive, KPP will also make further strides in the<br />
Metro North Township, the proposed 600-ha joint<br />
venture development in San Jose del Monte City,<br />
north of Quezon City, which KPP has an option<br />
agreement with Araneta Properties to develop. The<br />
masterplanned township includes residential and<br />
Corporate Governance and Investor Relations<br />
For its corporate disclosure and investor relations<br />
efforts, <strong>Keppel</strong> <strong>Land</strong> won the Grand Award at the<br />
Annual Report Award competition for the second<br />
consecutive year.<br />
The coveted award is given to a company whose<br />
annual report takes the best award for three consecutive<br />
years. Effectively, this means that the Company has<br />
won the best annual report for the last four years.<br />
Recognition also came from the Securities Investors<br />
Association (Singapore) which awarded the Company<br />
the runner-up prize in the properties’ category for<br />
Most Transparent Company Award, also for the second<br />
year in running.<br />
<strong>Keppel</strong> <strong>Land</strong> also made it to the top 10 league in the<br />
Business Times Corporate Transparency Index which<br />
measures the level of transparency of companies during<br />
their announcement of financial results.
Enhancing Value for Shareholders<br />
In line with the <strong>Keppel</strong> Group’s direction, <strong>Keppel</strong> <strong>Land</strong><br />
will strive to achieve higher return on equity as the<br />
Company transforms itself to become more<br />
development-based with less emphasis in investment<br />
property holdings. The Company will also focus on<br />
structuring asset-light deals which produce good<br />
earnings without the commitment of heavy capital.<br />
The Economic Value Added (EVA) approach has been<br />
adopted, and is one of the financial performance<br />
indicators tracked regularly. Eventually, EVA targets<br />
will be incorporated into the staff’s performance<br />
management system to align their interests with those<br />
of the Company.<br />
The Company will continue to enhance shareholder<br />
value by leveraging on the intangible assets that are<br />
not captured in the balance sheet, but which the<br />
Group has grown over the decades, namely the<br />
Company’s brand name, management expertise,<br />
networks and regional presence. These strengths are<br />
currently being leveraged on to grow the property<br />
fund business.<br />
I would like to thank our staff for their willingness and<br />
understanding in making sacrifices during this difficult<br />
time. Since January 2002, management has taken a<br />
pay-cut of 7-10% and wages have been frozen across<br />
the board.<br />
I would also like to welcome two new directors,<br />
Mr Lim Ho Kee and Associate Professor (Dr) Tsui Kai Chong,<br />
to the Board. With their valuable experience, I am<br />
confident they will contribute to the re-making<br />
of <strong>Keppel</strong> <strong>Land</strong>.<br />
Finally, I would like to take this opportunity to thank<br />
shareholders, business partners and customers for<br />
their support. Prospects ahead are challenging as the<br />
markets in which <strong>Keppel</strong> <strong>Land</strong> operates in continue to<br />
undergo political and economic change. However,<br />
with the support of all stakeholders, <strong>Keppel</strong> <strong>Land</strong> is<br />
cautiously optimistic that it will stage a turnaround in<br />
2002, barring unforeseen circumstances.<br />
Chairman’s Message<br />
15<br />
Acknowledgements<br />
As the Singapore economy heads for a re-making,<br />
there will be implications for the real estate business.<br />
I encourage staff to continue to change their mindsets<br />
and acquire new skills to be adept at the asset-light<br />
approach that the Company has embraced.<br />
Lim Chee Onn<br />
Chairman<br />
Singapore, 22 March 2002
Lim Chee Onn, 57<br />
Chairman since January 1997. Executive Chairman of <strong>Keppel</strong><br />
Corporation Limited. Chairman of MobileOne (Asia) Pte Ltd.<br />
Director of Temasek Holdings (Pte) Ltd, NatSteel Limited,<br />
Singapore Airlines Limited and k1 Ventures Limited. Chairman<br />
and Chairman ExCo of Singapore-Suzhou Township Development<br />
Co Ltd. Co-Chairman of Philippines-Singapore Business Council.<br />
Chairman of National Heritage Board. Deputy Chairman of<br />
Seoul International Business Advisory Council, Member of<br />
Singapore-US Business Council and Suzhou Industrial Park (SIP)<br />
Development Advisory Council. Consultant of the Advisory<br />
Mission for Economic & Social Development of the People’s<br />
Government, Yunnan Province, PRC. Senior Member of<br />
The Conference Board, Global Counselor of The Conference<br />
Board’s Global Advisory Council on Economic Issues, and<br />
Member of INSEAD International Council. Bachelor of Science<br />
(1 st Class Hons), University of Glasgow, Master in Public<br />
Administration, Kennedy School of Government, Harvard University,<br />
and Member of Wharton Society of Fellows, University of Pennsylvania.<br />
Board of<br />
Directors<br />
Kevin Wong Kingcheung, 46<br />
Managing Director since January 2000. Director of Asia<br />
Real Estate Fund Management Limited and SAFE Enterprises<br />
Pte Ltd. Chairman of <strong>Keppel</strong> Philippines Properties Inc.,<br />
Philippines and Five Stars Property Public Company Limited,<br />
Thailand. Vice-Chairman of Dragon <strong>Land</strong> Limited.<br />
Council Member of Real Estate Developers Association of<br />
Singapore. Graduate of Imperial College, University of<br />
London and Massachusetts Institute of Technology.
Lim Leong Geok, 70<br />
Director since February 1997. Principal Consultant to<br />
SBS Transit Limited. Graduate of the University of<br />
Adelaide and University of London. A chartered engineer<br />
and a Fellow of several professional institutes in Singapore<br />
and UK.<br />
Thai Chee Ken, 63<br />
Director since June 1997. Chairman of Inchcape<br />
Motors Limited. Deputy Chairman of Dynasty<br />
Corporation (S) Pte Ltd. Director of <strong>Keppel</strong> Hitachi<br />
Zosen Limited, Natsteel Limited, United Engineers<br />
Limited, Lindeteves-Jacoberg Ltd, Tuan Sing Holdings<br />
Limited, Prudential Assurance Company Singapore<br />
(Pte) Ltd and Schroder Investment Management<br />
(Singapore) Ltd. A member of Board of Inland<br />
Revenue Authority of Singapore. Chairman of Board<br />
of Governors of Nanyang Polytechnic. A Certified<br />
Public Accountant.<br />
17<br />
Directors<br />
of<br />
Board<br />
Khor Poh Hwa,52<br />
Director since April 1998. President and Chief Executive<br />
Officer of PWD Corporation Pte Ltd. A member of the<br />
Board of the China-Singapore Suzhou Industrial Park<br />
Development Co Ltd and Singapore-Shandong Business<br />
Council. A civil engineering graduate with a master degree<br />
from the National University of Singapore.
Lim Ho Kee, 56<br />
Director since November 2001. Director of Cycle & Carriage<br />
Limited, Singapore Post Pte Ltd, Cypress Woods Pte Ltd and<br />
Kenrich Partners Pte Ltd. Bachelor of Science (Economics)<br />
from the London School of Economics.<br />
Board of<br />
Directors<br />
Tsui Kai Chong, 46<br />
Director since November 2001. Vice Provost, Singapore<br />
Management University (SMU). Dean, School of Business.<br />
Associate Professor of Finance. A PhD graduate from<br />
New York University. A Chartered Financial Analyst.
Loh Wing Siew, 67<br />
Director since August 1983. Director of <strong>Keppel</strong> Corporation<br />
Limited. Director of Singapore Power International Pte Ltd<br />
and United Power Corporation (Singapore) Pte Ltd,<br />
Member of Preservation of Monuments Board. A chartered<br />
engineer and a member of various professional institutes in<br />
Singapore and overseas.<br />
Choo Chiau Beng, 54<br />
Director since January 1985. Executive Director of<br />
<strong>Keppel</strong> Corporation Limited. Chairman of Singapore<br />
Petroleum Company Limited, and Singapore Refining<br />
Company Pte Ltd. Director of k1 Ventures Limited.<br />
Alternate Director of MobileOne (Asia) Pte Ltd.<br />
Chairman of Ngee Ann Polytechnic Council.<br />
Graduate in naval architecture from the University of<br />
Newcastle-upon-Tyne and PMD, Harvard Business<br />
School. A chartered engineer and a member of several<br />
institutes of naval architects and marine engineers.<br />
19<br />
Directors<br />
of<br />
Board<br />
Teo Soon Hoe, 52<br />
Director since May 1991. Executive Director and Group<br />
Finance Director of <strong>Keppel</strong> Corporation Limited. Chairman<br />
of <strong>Keppel</strong> Telecommunications & Transportation Limited<br />
and <strong>Keppel</strong> Philippines Holdings Inc. Director of k1 Ventures<br />
Limited, Singapore Petroleum Company Limited,<br />
MobileOne (Asia) Pte Ltd and <strong>Keppel</strong> Philippines Marine Inc.<br />
Chairman of <strong>Keppel</strong> Insurance Pte Ltd. and <strong>Keppel</strong> Bank of<br />
Philippines Inc. Graduate of the University of Singapore.
Corporate Profile<br />
<strong>Keppel</strong> <strong>Land</strong> Limited is the property arm of the <strong>Keppel</strong> Group, one of Singapore’s<br />
largest multinational groups with core businesses in offshore and marine,<br />
infrastructure, and property.<br />
<strong>Keppel</strong> <strong>Land</strong> is one of the largest property groups listed on the Singapore<br />
Exchange Securities Trading Limited. The Company’s vision is to be a premier<br />
property multi-national corporation with listed and sizeable local companies in<br />
Asia.<br />
Corporate Profile<br />
2<br />
The Company’s portfolio of premier properties includes residential properties,<br />
townships, office towers, serviced apartments, hotels and resorts, retail complexes<br />
and industrial buildings. It is presently in nine Asian countries including Singapore<br />
and Australia. This diversified portfolio is developed with <strong>Keppel</strong> <strong>Land</strong>’s guiding<br />
philosophy that properties should harmonise with and improve the environment<br />
as well as enhance the quality of life of the people who use them.
Financial Highlights<br />
2001 2000 % Increase/<br />
$’000 $’000 (Decrease)<br />
The Group at a Glance<br />
20<br />
FOR THE YEAR<br />
Sales - excluding associated companies 300,537 500,492 (40.0)<br />
- including associated companies 539,190 826,160 (34.7)<br />
Profit / (Loss)<br />
Operating 123,874 171,220 (27.7)<br />
Before tax<br />
Before exceptional items 112,180 161,600 (30.6)<br />
After exceptional items (371,514) 161,600 (329.9)<br />
After tax and minority interests (366,463) 122,114 (400.1)<br />
Funds generated from operations 82,301 216,545 (62.0)<br />
Development expenditure incurred 223,726 512,768 (56.4)<br />
Capital expenditure 17,545 102,453 (82.9)<br />
Dividends paid and proposed 16,049 16,045 -<br />
Value added from operations (299,400) 207,500 (244.3)<br />
AT YEAR-END<br />
Share capital 354,287 354,190 -<br />
Shareholders’ funds 1,617,408 2,252,660 (28.2)<br />
Minority interests 277,904 363,719 (23.6)<br />
Short and long-term borrowings 2,638,067 2,328,951 13.3<br />
Total funds invested 4,533,379 4,945,330 (8.3)<br />
Debt-equity ratio (%)<br />
Excluding minority interests 149 96 55.2<br />
Including minority interests 127 83 53.0<br />
PER SHARE<br />
Profit / (loss) before tax (cents) (54.3) 21.1 (357.3)<br />
Profit / (loss) after tax and minority interests (cents) (51.7) 17.3 (398.8)<br />
Dividends - less tax (cents) 2.3 2.3 -<br />
- gross equivalent (cents) 3.0 3.0 -<br />
- cover (22.8) 7.6 (400.0)<br />
Net tangible assets $2.28 $3.18 (28.3)<br />
RETURN ON SHAREHOLDERS’ EQUITY (%)<br />
Before tax but after exceptional items (19.9) 6.8 (392.6)<br />
After tax and exceptional items (18.9) 5.5 (443.6)<br />
EMPLOYEES (including property associates)<br />
Number 4,565 4,485 1.8<br />
Wages and salaries ($’000) 98,860 88,556 11.6<br />
Pre-tax profit per employee ($’000) N.A. 40.9 -
Simplified Balance Sheet<br />
TOTAL ASSETS OWNED<br />
TOTAL LIABILITIES OWED<br />
AND CAPITAL INVESTED<br />
What<br />
We Owned<br />
What<br />
Shareholders<br />
Invested<br />
Fixed Assets<br />
Shareholders'<br />
Funds<br />
Properties<br />
Held for<br />
Development<br />
Minority<br />
Interests<br />
Investments<br />
What We<br />
Owed<br />
1,617 (32%)<br />
2,253 (40%)<br />
21<br />
a Glance<br />
The Group<br />
at<br />
2,972 (53%)<br />
2,622 (52%)<br />
Properties<br />
Held for<br />
Sale<br />
Trade Creditors<br />
278 (5%)<br />
20 (-%)<br />
364 (7%)<br />
156 (3%)<br />
168 (3%)<br />
Trade Debtors<br />
Other Liabilities<br />
504 (10%)<br />
28 (1%)<br />
613 (11%)<br />
683 (12%)<br />
809 (16%)<br />
Cash and<br />
Bank Balances<br />
Long-term<br />
External<br />
Borrowings<br />
2,509 (50%)<br />
1,367 (24%)<br />
1,423 (26%)<br />
1,042 (21%)<br />
22 (- %)<br />
62 (1%)<br />
269 (5%)<br />
65 (1%)<br />
121 (2%)<br />
230 (5%)<br />
Other Assets<br />
Short-term<br />
External<br />
Borrowings<br />
129 (3%)<br />
962 (17%)<br />
$5,587 m<br />
(100%)<br />
$5,057 m<br />
(100%)<br />
$5,057 m<br />
(100%)<br />
$5,587 m<br />
(100%)<br />
2000<br />
2001<br />
2001<br />
2000
Half-Yearly Results<br />
1st Half 2nd Half Total<br />
$’000 % $’000 % $’000 %<br />
Sales<br />
2001 137,122 46 163,415 54 300,537 100<br />
2000 350,964 70 149,528 30 500,492 100<br />
Operating profit / (loss)<br />
2001 71,884 58 51,990 42 123,874 100<br />
2000 84,443 49 86,777 51 171,220 100<br />
The Group at a Glance<br />
22<br />
Profit / (loss) before taxation<br />
Before exceptional items<br />
2001 59,838 53 52,342 47 112,180 100<br />
2000 74,170 46 87,430 54 161,600 100<br />
After exceptional items<br />
2001 59,838 (16) (431,352) 116 (371,514) 100<br />
2000 74,170 46 87,430 54 161,600 100<br />
Profit / (loss) attributable to shareholders<br />
2001 52,561 (14) (419,024) 114 (366,463) 100<br />
2000 59,763 49 62,351 51 122,114 100<br />
Earnings per share, before tax but<br />
after minority interests and<br />
exceptional items (cents)<br />
2001 8.1 (15) (62.4) 115 (54.3) 100<br />
2000 10.3 49 10.8 51 21.1 100
Five-Year Financial Profile<br />
1997 1998 1999 2000 2001<br />
Income Statement ($’000)<br />
Sales 621,160 317,914 995,981 500,492 300,537<br />
Operating profit 170,977 88,519 157,114 171,220 123,874<br />
Profit / (loss) before taxation<br />
Before exceptional items 209,663 84,051 141,263 161,600 112,180<br />
After exceptional items 209,663 (354,149) 141,263 161,600 (371,514)<br />
Profit / (loss) after taxation 144,731 (378,604) 101,865 132,238 (383,781)<br />
Profit/ (loss) attributable to shareholders 104,663 (350,564) 152,263 122,114 (366,463)<br />
Balance Sheet ($’000)<br />
Fixed assets 2,565,530 2,857,693 2,784,299 2,972,897 2,622,603<br />
Investments 799,838 761,841 571,563 683,366 808,882<br />
Properties held for development 750,605 172,943 262,277 156,143 168,061<br />
Net current assets/(liabilities)(Note 1) 872,802 448,040 1,058,548 1,132,924 933,833<br />
Assets employed 4,988,775 4,240,517 4,676,687 4,945,330 4,533,379<br />
Shareholders’ funds 2,829,935 1,833,809 2,150,552 2,252,660 1,617,408<br />
Minority interests 556,394 365,000 397,600 363,719 277,904<br />
Short and long-term borrowings 1,602,446 2,041,708 2,128,535 2,328,951 2,638,067<br />
Total funds invested 4,988,775 4,240,517 4,676,687 4,945,330 4,533,379<br />
Per Share<br />
Earnings(cents) (Note 2)<br />
Before tax but after exceptional items 24.8 (50.4) 16.8 21.1 (54.3)<br />
After tax and exceptional items 16.7 (53.5) 22.7 17.3 (51.7)<br />
Dividends<br />
Less tax (cents) 3.0 2.2 2.2 2.3 2.3<br />
Gross equivalent (cents) 4.0 3.0 3.0 3.0 3.0<br />
Cover 5.0 (24.1) 5.0 7.6 (22.8)<br />
Net tangible assets $4.32 $2.80 $3.04 $3.18 $2.28<br />
a Glance<br />
23<br />
The Group<br />
at<br />
Financial Ratios<br />
Return on shareholders’ equity (%) (Note 3)<br />
Before tax but after exceptional items 5.5 (14.2) 5.6 6.8 (19.9)<br />
After tax and exceptional items 3.7 (15.0) 7.6 5.5 (18.9)<br />
Interest cover 3.2 (2.9) 2.0 1.9 (3.5)<br />
Debt-equity ratio (%) 76 114 100 96 149<br />
Employees (Including Property Associates)<br />
Number 3,166 3,260 3,591 4,485 4,565<br />
Wages and salaries ($’000) 94,006 78,539 82,095 88,556 98,860<br />
Pre-tax profit per employee($’000)(Note 4) 63 N.A. 43 41 N.A.<br />
Notes:<br />
1. In arriving at net current assets, short-term borrowings have been excluded.<br />
2. Earnings per share are calculated by reference to the weighted average of shares in issue during the year.<br />
3. In calculating returns on shareholders’ equity, the simple average basis has been used.<br />
4. In the calculation of pre-tax profit per employee, the profit before tax of associated companies includes partner’s share of pre-tax profit.
At the<br />
Helm
25<br />
Count<br />
People<br />
From left:<br />
Tan Swee Yiow, Ang Wee Gee, Lui Seng Fatt , Kevin Wong, Choo Chin Teck, Lim Seng Bin
At the Helm
27<br />
Count<br />
People<br />
From left:<br />
Lim Tow Fok, Lim Boon Kwee, Yeo Kah Tiang, Tong Kok Wing, Augustine Tan, Quah Kim Boon, Young Lok Kuan
Key Personnel<br />
<strong>Keppel</strong> <strong>Land</strong> Limited<br />
Lim Chee Onn<br />
Chairman<br />
Kevin Wong Kingcheung<br />
Managing Director<br />
Christopher Ho Kam Pouy<br />
Assistant General Manager<br />
Property Management<br />
Tong Kok Wing<br />
General Manager<br />
Retail Management<br />
People Count<br />
28<br />
Property Investment, Development and Management<br />
<strong>Keppel</strong> <strong>Land</strong> International Limited<br />
Choo Chin Teck<br />
Director, Corporate Services and<br />
Group Company Secretary<br />
Tan Swee Yiow<br />
General Manager<br />
Singapore<br />
Goh Han Kee<br />
Assistant General Manager (Projects)<br />
Singapore<br />
Ang Wee Gee<br />
General Manager<br />
Head, Regional Investments<br />
Lim Seng Bin<br />
General Manager<br />
Indonesia and Malaysia<br />
Chae Yoon-Byung<br />
General Manager<br />
Korea<br />
Yip Wan Toh<br />
General Manager<br />
Australia<br />
Steven Shum Wing On<br />
Deputy General Manager<br />
Malaysia Operation<br />
Arthur Yeo Hui Kong<br />
Deputy General Manager (Projects)<br />
China (Kunming)<br />
Ho Mun Piew<br />
Financial Controller<br />
Group Finance and Accounts<br />
Yeo Kah Tiang (Mrs)<br />
General Manager<br />
Finance and Administration<br />
Serena Toh Lai Siong (Ms)<br />
Assistant General Manager<br />
Investor Relations and Research<br />
Brenda Chang Hui Ping (Ms)<br />
Manager<br />
Human Resources<br />
Wee Lay Lian (Ms)<br />
Manager<br />
Group Internal Audit<br />
Lui Seng Fatt<br />
Senior General Manager<br />
Corporate Development<br />
Goh York Lin<br />
Senior Manager<br />
Corporate Planning<br />
Young Lok Kuan<br />
General Manager<br />
Fund Management<br />
Five Stars Property Public Co Ltd, Thailand<br />
Pisit Vilaivongse<br />
Executive Director<br />
<strong>Keppel</strong> Philippines Properties Inc, Philippines<br />
Yeoh Hai Yeoh<br />
Assistant General Manager<br />
China Investments<br />
John Lim Hui Min<br />
Assistant General Manager<br />
China (Shanghai)<br />
John Tan Chee Kiong<br />
Assistant General Manager<br />
Equity Funding<br />
Lawrence Peh Yeow Beng<br />
Executive Vice President<br />
Hotel, Serviced Apartment and Resort Management<br />
Sedona Hotels International Pte Ltd<br />
Lim Boon Kwee<br />
Senior Vice President<br />
Information Technology<br />
KeplandeHub Limited<br />
Augustine Tan Wee Kiong<br />
General Manager<br />
Marketing<br />
Albert Foo Cheur Wee<br />
Assistant General Manager<br />
Marketing<br />
Kwok Yan Hoe<br />
Assistant General Manager<br />
<strong>Keppel</strong> Digihub Limited<br />
Dave Ng Chun Sun<br />
Chief Executive Officer<br />
Lim Tow Fok<br />
General Manager<br />
Property Management<br />
<strong>Keppel</strong> Services Staff Union<br />
Quah Kim Boon<br />
President
Organisational Structure<br />
Board of Directors<br />
Chairman<br />
Audit Committee<br />
Managing Director<br />
Group Company<br />
Secretary/Director,<br />
Corporate Services<br />
Finance and Tax<br />
Treasury and Administration<br />
Human Resources<br />
Manager,<br />
Group Internal Audit<br />
29<br />
Count<br />
People<br />
Corporate Secretariat<br />
Investor Relations<br />
Property Investment<br />
and Development<br />
Property Services<br />
Hospitality<br />
Fund Management<br />
Singapore Investments<br />
Regional Investments<br />
Corporate Planning<br />
and Development<br />
Asset Planning<br />
Development Management<br />
Property Marketing<br />
Property Management<br />
Retail Management<br />
Hotel, Club, Resort, and<br />
Serviced Apartment<br />
Management<br />
Property Fund Management<br />
Asset Management<br />
Investor Relations<br />
and Research<br />
Information Technology<br />
Technology Infrastructure
Human Resources and Community Relations<br />
Qualification of Management and Executive Staff<br />
HUMAN RESOURCES<br />
3%<br />
4%<br />
Cultivating the Asset-light Approach<br />
11%<br />
The chaIlenge ahead is to encourage staff to change<br />
their mindsets and acquire new skills to be adept at<br />
27%<br />
56%<br />
1st Degree<br />
Postgraduate Degree<br />
the asset-light approach that the Company has<br />
embraced. To this end, human resource management<br />
Diploma/GCE "A" Level<br />
Secondary<br />
Others<br />
will focus on attracting suitable individuals,<br />
developing the necessary skills, and implementing a<br />
performance management system which provides<br />
incentives for individuals who excel well in this new<br />
operating environment.<br />
Qualification of Non-Executive Staff<br />
Human resource management will support the<br />
strategic goal for <strong>Keppel</strong> <strong>Land</strong> to transform itself from<br />
People Count<br />
30<br />
19%<br />
1%<br />
10%<br />
a property landlord holding investment assets to a<br />
developer of outstanding trading properties, and<br />
manager of property funds. Henceforth, attracting<br />
and developing the right talent who are able to<br />
17%<br />
execute the asset-light approach will be the focus of<br />
53%<br />
Primary<br />
Secondary<br />
human resource management.<br />
Diploma/GCE "A" Level<br />
Industrial Certificate<br />
Others<br />
New Performance-based Management System<br />
The sudden deterioration in the business-operating<br />
environment in 2001, especially after the September 11<br />
Training Expenditure Distribution<br />
events in the US, required rationalisation of staff<br />
benefits and rewards to help the Company to ride out<br />
this difficult period. Plans to introduce a flexible<br />
2%<br />
9%<br />
benefits system, the <strong>Keppel</strong> <strong>Land</strong> Flex Plan, have been<br />
put on hold. Cost-saving measures were also<br />
2%<br />
9%<br />
undertaken with senior management taking a pay cut<br />
of 7% to 10%, and the implementation of a wage<br />
78%<br />
Seminars, Conferences and Workshops<br />
freeze across the board.<br />
Skills Redevelopment Program (SRP)<br />
Information Technology<br />
Diploma/Degree<br />
Certificate
Nevertheless, existing procedures and policies will<br />
continue to be reviewed and streamlined to keep pace<br />
with the increasingly competitive marketplace for new<br />
skill sets. Currently, the Company is looking into a<br />
performance measurement system. The new system<br />
aims to recognise and reward capabilities which will<br />
help the Company transform from landlord and<br />
property investor to property developer of quality<br />
properties. Under the new system, rewards will be<br />
linked directly to employees’ contribution, responsibility<br />
and accountability. In addition, it seeks to improve<br />
existing procedures for greater consistency and<br />
transparency in performance evaluation as well as<br />
inculcate a performance-based reward culture.<br />
The review of the performance measurement system,<br />
together with the review of the remuneration structure,<br />
and management development, is part of a wider effort<br />
to develop <strong>Keppel</strong> <strong>Land</strong> into an employer of choice.<br />
Training and Development<br />
The Company remains committed to developing<br />
employees’ potential through continuous training<br />
and development. The asset-light approach requires<br />
staff to be creative in their thinking and approach. Staff<br />
must explore ways to structure deals with<br />
attractive profit margins without over-reliance on<br />
heavy capital investment.<br />
Training programs were designed and provided to<br />
key executives tasked to spearhead the asset-light<br />
strategy. Some of these programs include asset<br />
securitisation and property fund management.<br />
The change in <strong>Keppel</strong> <strong>Land</strong>’s business strategy has<br />
presented opportunities for timely training and<br />
development which reflect the close relationship<br />
between <strong>Keppel</strong> <strong>Land</strong>’s business objectives and human<br />
resource initiatives.<br />
In 2001, several property management employees<br />
were re-designated to reflect their greater job<br />
responsibilities after they completed a course specially<br />
customised by Temasek Polytechnic, and proved their<br />
suitability in their new roles.<br />
With its commitment to harness IT to upgrade<br />
productivity, <strong>Keppel</strong> <strong>Land</strong> was among the pioneer<br />
batch of companies that participated in the National<br />
IT Literacy Program, a nationwide initiative<br />
spearheaded by the Ministry of Manpower and the<br />
Infocomm Development Authority of Singapore, to<br />
impart basic computer knowledge and internet skills.<br />
Close to 70 staff have attended the 14-hour course.<br />
31<br />
Count<br />
People
Human Resources and Community Relations<br />
continued<br />
Manpower at end-2001<br />
Business-to-Employee Portal<br />
166<br />
216<br />
The Company has developed in-house a<br />
Business-to-Employee (B2E) portal for staff. The B2E<br />
portal replaces the existing intranet which is already<br />
home to general announcements, and human resource<br />
policies and practices.<br />
People Count<br />
32<br />
Manpower at end-2000<br />
167<br />
194<br />
Regional Manpower Distribution<br />
3<br />
35<br />
94 56<br />
Executive<br />
Non-Executive<br />
Executive<br />
Non-Executive<br />
The B2E portal is rich in features such as the<br />
Employee Leave Management System, Facilities<br />
Booking, Telephone Directory, etc. The online Leave<br />
Management System will allow staff to view their past<br />
records and outstanding leave, as well as apply for<br />
leave. This feature eliminates paper processes and the<br />
transit time between individuals who process the<br />
application.<br />
Employees can also access company-related<br />
information, self-manage administrative tasks such as<br />
update personal particulars, and book company<br />
resources such as meeting rooms and IT equipment<br />
including notebooks and projectors.<br />
Plans to roll out employee self-service functions are in<br />
the pipeline, and will be implemented in phases. This<br />
will reduce the traditional HR-related administrative<br />
paperwork.<br />
A company-wide training program on the B2E portal<br />
has been conducted for all 350 staff. Spearheaded by<br />
the IT and HR departments, 25 two-hourly training<br />
sessions, comprising demonstration, with additional<br />
hands-on training for department secretaries were<br />
584<br />
942<br />
China<br />
Indonesia<br />
Vietnam<br />
Thailand<br />
The Philippines<br />
Australia
conducted. Administrative efficiency and staff<br />
productivity have been enhanced. Apart from staff<br />
at Bugis Junction headquarters, training has also<br />
been extended to staff stationed at <strong>Keppel</strong> <strong>Land</strong>’s<br />
commercial buildings who will access the B2E portal<br />
through a secured Virtual Private Network.<br />
Strengthening Regional Synergies and Network<br />
year. The annual regional conference also provides a<br />
forum for exchange of information and experience.<br />
Held in March 2001, the four-day meeting was packed<br />
with presentations, training sessions, workshops and<br />
site visits. The event was well-attended by regional<br />
participants who also looked forward to the<br />
opportunity to meet, share ideas and foster<br />
camaraderie with their Singapore counterparts.<br />
While IT has transformed the workplace, it cannot<br />
totally replace the synergies generated from<br />
face-to-face interaction. This is true for the overseas<br />
staff of <strong>Keppel</strong> <strong>Land</strong> who are spread over nine<br />
countries in Asia. To facilitate effective communication<br />
of corporate directions and to provide an update of<br />
the business performance and outlook in each country,<br />
the Group’s overseas staff meet in Singapore once a<br />
Apart from organising the annual regional conference<br />
for <strong>Keppel</strong> <strong>Land</strong>’s regional staff, the Company also<br />
played host to overseas companies as part of its<br />
efforts to strengthen regional network and foster<br />
friendly ties. During the year, <strong>Keppel</strong> <strong>Land</strong> hosted visits<br />
from senior officials from Suzhou Industrial Park (SIP)<br />
and Shenzhen Construction Investment Holding<br />
Corporation. The visits also served as a platform for<br />
exchange of experiences and helped develop<br />
relationships for future business opportunities.<br />
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<strong>Keppel</strong> <strong>Land</strong>’s annual regional conference provides a forum for exchange<br />
of information and experience.<br />
Facilitated by the Economic Development Board<br />
as part of the ongoing “software transfer” between<br />
Singapore and SIP, senior SIP officials visited<br />
<strong>Keppel</strong> <strong>Land</strong> on two separate visits in 2001. During<br />
the first visit, senior HR officials were introduced to<br />
the talent management and development programs<br />
in <strong>Keppel</strong> <strong>Land</strong>. The second visit involved senior<br />
corporate officials who were introduced to issues such<br />
as corporate governance, shareholder accountability,<br />
financial reporting and investor relations. The Shenzhen<br />
delegation, comprising 28 senior HR practitioners,<br />
was interested in <strong>Keppel</strong> <strong>Land</strong>’s human resource<br />
programmes.
Human Resources and Community Relations<br />
continued<br />
Harmonious Labour Union Relations<br />
at <strong>Keppel</strong> <strong>Land</strong>, <strong>Keppel</strong> Telecommunications and<br />
Transportation and Bugis City Holdings. Applications<br />
Reinforcing harmonious labour-management relations<br />
for the study award are open to staff’s children who are<br />
has been an integral part of <strong>Keppel</strong> <strong>Land</strong>’s continuing<br />
presently pursuing studies from primary to university<br />
success in staff union relations. Through the years,<br />
levels. Selection is based on needs and merit, with<br />
the Company has worked closely with <strong>Keppel</strong> Services<br />
awards given out on an annual basis. In 2001, a total<br />
Staff Union (KSSU). On 18 April 2001, <strong>Keppel</strong> <strong>Land</strong><br />
of 40 awards exceeding $14,000 in value were<br />
signed a new collective agreement with KSSU. The new<br />
presented.<br />
agreement, covering three years from 1 January 2001<br />
through 31 December 2003, has been fine-tuned to<br />
COMMUNITY RELATIONS<br />
avoid ambiguities and reflect the improvements in<br />
staff benefits.<br />
Striving to be a Good Corporate Citizen<br />
Non-executive staff who are members of KSSU enjoy<br />
Apart from investors and stakeholders, corporations<br />
financial support in the form of study awards<br />
must also be socially responsible to the wider<br />
People Count<br />
34<br />
presented to their children. The study assistance<br />
scheme is available to all union members employed<br />
community in which they operate. In striving to be a<br />
committed and responsible corporate citizen,<br />
<strong>Keppel</strong> <strong>Land</strong> is amongst the new generation of<br />
corporations that are making a difference to society.<br />
<strong>Keppel</strong> <strong>Land</strong> has always played an active role in<br />
support of the community, the arts and the education.<br />
Every year, the Company and staff contribute<br />
significantly in the areas of financial assistance,<br />
volunteer work and management support.<br />
Despite the difficult economic environment, efforts to<br />
fulfil social responsibilities were kept up. <strong>Keppel</strong> <strong>Land</strong><br />
continued to participate actively in the <strong>Keppel</strong><br />
Volunteers movement, providing staff volunteer<br />
support and financial aid to the programme’s four<br />
adopted educational institutions under the<br />
Association for Persons with Special Needs (APSN).<br />
Plans are being made to extend the programme to<br />
two other schools.<br />
Chairman Lim Chee Onn and then-Minister Abdullah Tarmugi presented<br />
awards to Outstanding Volunteers, of which <strong>Keppel</strong> <strong>Land</strong> was well<br />
represented.
Staff are strongly encouraged to involve themselves<br />
in voluntary community work with management<br />
support in the form of time-off. To date, more than<br />
40 <strong>Keppel</strong> <strong>Land</strong> staff volunteer their services: helping<br />
out at major events at excursions and outdoor trips,<br />
spending time with children at their extra-curricular<br />
activities on a weekly basis and providing after-school<br />
tutoring. Besides contributing to the social and<br />
education aspects, <strong>Keppel</strong> <strong>Land</strong> was also involved in<br />
various fund-raising exercises such as the sale of<br />
Christmas cards to raise funds for the refurbishment<br />
of the new APSN Centre for Adults.<br />
Keeping Up Community Efforts<br />
In Singapore, <strong>Keppel</strong> <strong>Land</strong> places Wishing Trees at<br />
the lobbies of its office buildings every Christmas to<br />
spread the spirit of sharing and caring. Staff and<br />
tenants then fulfil the wishes from the APSN schools,<br />
the Canossaville Children’s Home, the Henderson<br />
Aged Reach-Out Centre and the Henderson Senior<br />
Citizens’ Home that were hung on the Wishing Trees.<br />
Through Parco Bugis Junction, the Company also<br />
jointly organised a charity ornamental fish exhibition<br />
to help raise funds for Chong Pang Community<br />
Centre Building Fund, Down Syndrome Association of<br />
Singapore, Kidney Dialysis Foundation and Sunshine<br />
Welfare Action Mission (SWAMI) Home.<br />
Efforts to contribute to the community were not<br />
limited to Singapore. Through Sedona Hotels<br />
International, <strong>Keppel</strong> <strong>Land</strong> is actively involved in<br />
several local community service projects in the region.<br />
In Makassar, Indonesia, Hotel Sedona’s ‘Sedona Care’<br />
programme raised a total of Rp.18,000,000 in 2001<br />
for various orphanages. Children from orphanages<br />
were invited to a Christmas party organised by the<br />
hotel’s staff union.<br />
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In Yangon, Sedona Hotel made visits and organised<br />
special meals for children from orphanages and<br />
homes for handicapped children. In Hanoi, residents<br />
at Sedona Suites put up a “Charity Art Show” in<br />
December 2001, and donated the proceeds from<br />
the show to Peace Village, a home which houses<br />
handicapped children. In addition, the residents also<br />
brought much joy and warmth to the children with<br />
Christmas gifts.<br />
Office tenants contribute generously each year to ensure <strong>Keppel</strong> <strong>Land</strong>’s<br />
Wishing Trees programme meets its objectives.
Human Resources and Community Relations<br />
continued<br />
The hugely popular shopping destination was also<br />
comprising the Nanyang Academy of Fine Arts,<br />
the venue sponsor for the “Glowing in The Dark”<br />
the Singapore Art Museum, the Singapore History<br />
Charity Fair organised by Sembawang-Hong Kah<br />
Museum, as well as the future National Library and<br />
Community Development Council and Nanyang<br />
the Singapore Management University.<br />
Technological University. Funds raised from the fair,<br />
featuring a wide range of merchandise with many<br />
Notably, the shopping mall celebrated its 6th<br />
handicrafts made by the disabled, will be donated<br />
anniversary in conjunction with MuseumFest 2001,<br />
to 16 charity organisations. In holding the charity<br />
a celebration to commemorate International Museum<br />
events, the Company was able to fulfil its community<br />
Day. Eleven Singapore museums and institutions<br />
responsibility as well as promote the shopping centre.<br />
converged in Parco Bugis Junction for this memorable<br />
event to offer the public the rare opportunity to<br />
In Support of the Arts and Education<br />
rediscover history, arts, culture and our shared<br />
heritage.<br />
Located close to the future civic district, Parco Bugis<br />
Junction also organised several arts exhibitions and<br />
Sharing the same philosophy, associate company<br />
dance and music performances, which integrate<br />
Bugis City Holdings is also mindful of its social<br />
People Count<br />
36<br />
with and complement its cultural neighbourhood<br />
responsibilities to the community, and keenly<br />
supportive of the arts and education. Bugis City<br />
Holdings sponsored $10,000 worth of artworks to<br />
be painted on the hoarding surrounding the new<br />
National Library site which is right across from<br />
Hotel Inter-Continental. While the commissioning<br />
of the artworks is an important milestone for the<br />
new National Library building, the artworks also<br />
provide graphic relief for guests and visitors of the<br />
hotel. The hoarding will be displayed until the library<br />
opens in 2004.<br />
Bugis Junction Holdings gave a $10,000 sponsorship for Temasek<br />
Polytechnic Students to paint murals on the hoardings surrounding<br />
the site. Seen here is Dr Tan Chin Nam, (fourth from the right),<br />
Chairman of the NLB.
Promoting a Healthy Lifestyle<br />
To educate the public on the importance of healthy<br />
living in preventing stroke, a “Stroke Prevention”<br />
exhibition was held in Bugis Junction. Organised by<br />
the Health Promotion Board, the exhibition was one<br />
of the first activities to kick off the National Healthy<br />
Lifestyle Campaign 2001.<br />
At <strong>Keppel</strong> <strong>Land</strong>, staff are also encouraged to lead a<br />
well-balanced and healthy lifestyle. The Company<br />
affirmed its commitment to employees’ health and<br />
well-being by renewing its corporate membership with<br />
Clark Hatch Fitness Centre at Hotel Inter-Continental.<br />
The fitness centre with its convenient and accessible<br />
location within Bugis Junction is very popular with staff.<br />
It provides a venue for staff to unwind and work out at<br />
the gym, swimming pool and jacuzzis. The facilities<br />
enjoy heavy usage as staff have the flexibility of using<br />
the gym facilities either during lunch breaks or after<br />
work on weekdays as well as weekends.<br />
the innovative Dinner and Dance committee took up<br />
the challenge of organising the event and thus saved<br />
substantial event management fees. The event was a<br />
huge success and a showcase of the in-house talents of<br />
<strong>Keppel</strong> <strong>Land</strong>.<br />
As part of the cost-cutting measures, the 2002<br />
Dinner and Dance has been cancelled. In place of<br />
the Dinner and Dance, the annual Christmas party in<br />
December 2001 was given a bigger budget. To spice<br />
up the festivity, a Christmas decoration competition<br />
was organised in the run-up to the Christmas<br />
party-cum-lunch. In addition to the festivities, against<br />
the uncertain economic backdrop, management also<br />
emphasised the new asset-light strategy and the<br />
Company’s change in directions from being a<br />
property investor to developer.<br />
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People<br />
Building Esprit De Corp<br />
Among staff activities that were organised to build<br />
esprit de corp and encourage creativity, the annual<br />
Dinner and Dance is one of the much-anticipated<br />
events. It is also a time for staff bonding when<br />
colleagues meet and interact with one another in a<br />
more relaxed environment. Held in March, the 2001<br />
Dinner and Dance was a departure from the previous<br />
years’. Instead of turning to a professional event<br />
manager to come up with a theme and run the show,<br />
The Company looks into employees’ health and well-being through<br />
a corporate membership at Clark Hatch Fitness Centre.
Investor Relations<br />
Maintaining High Standards of<br />
Corporate Governance<br />
In the wake of the Enron debacle and the exit of the<br />
California Public Employees’ Retirement System<br />
(Calpers) from several countries in the region citing<br />
reasons including lack of transparency, there have<br />
been calls for higher standards of corporate disclosure<br />
and governance to protect shareholders.<br />
As one of the largest Singapore-listed property<br />
companies, and a component stock on the Morgan<br />
Stanley Capital Index Singapore Free and the<br />
Straits Times Index (STI), <strong>Keppel</strong> <strong>Land</strong> is mindful of its<br />
responsibilities to its shareholders, which include<br />
Singapore and overseas investors.<br />
People Count<br />
38<br />
As part of the STI, <strong>Keppel</strong> <strong>Land</strong> also became a<br />
component stock of the STI tracker fund or exchangetraded<br />
fund called streetTracks which started trading<br />
on the Singapore Exchange in April 2002.<br />
Apart from holding interim and full year results briefings,<br />
top management adopts an open door policy and<br />
meets up with analysts and fund managers regularly.<br />
In addition, management has presented updates on<br />
the Company’s strategy at investor conferences and<br />
meetings overseas. In 2001, management met with<br />
fund managers and shareholders in the Netherlands<br />
and Hong Kong.<br />
Director, Corporate Services, Choo Chin Teck, receives the Grand Award<br />
from Senior Minister of State Tharman Shanmugaratnam.<br />
Recognition for Efforts<br />
The Company’s efforts at corporate disclosure have<br />
been recognised by several reputable organisations. In<br />
January 2002, <strong>Keppel</strong> <strong>Land</strong> took the Grand Award for<br />
the second year in running at the Annual Report Award<br />
competition which judges the standards of voluntary<br />
disclosure, among other criteria. The Grand Award is<br />
given to a company whose annual report wins the best<br />
award for the third consecutive year.<br />
This is the eighth time that the Company has won the<br />
Grand Award in the 28 years that the competition has<br />
been held. The competition, which aims to raise<br />
standards of timely and high standards of disclosure<br />
and presentation, is organised by the Institute of<br />
Certified Public Accountants of Singapore, the<br />
Singapore Institute of Management, the Singapore
Exchange Securities Trading Ltd, the Singapore Institute<br />
of Directors and The Business Times.<br />
With the two new Directors, the Company is able to<br />
fill the committees with the appropriate members.<br />
Recognition also came from the Securities Investors<br />
Association (Singapore) (SIAS), the organisation<br />
safeguarding minority shareholders’ interests. SIAS<br />
awarded the Company the runner-up prize in the<br />
properties’ category for Most Transparent Company<br />
Award for two years in running in 2001 and 2000.<br />
Of the ten Directors on the Board, five are independent<br />
non-executive directors, which exceeds the one-third<br />
requirement. They have a diverse wealth of knowledge<br />
in the fields of real estate, accounting and general<br />
management as well as finance and investment, which<br />
will help to guide the Company.<br />
<strong>Keppel</strong> <strong>Land</strong> has also received a substantial upgrade<br />
in its corporate governance score from European<br />
broking house CLSA which regularly conducts corporate<br />
governance rating exercises on listed companies. As at<br />
February 2002, its score was to 72.8%, which is<br />
among the best scores for listed property companies<br />
in Singapore.<br />
It has also made it to the top 10 league in the Business<br />
Times Corporate Transparency Index, which measures<br />
the level of transparency of companies during their<br />
announcements of financial results.<br />
New Code of Corporate Governance<br />
Responsibility to Shareholders<br />
Timeliness and transparency are what <strong>Keppel</strong> <strong>Land</strong><br />
have strived for in its disclosure to shareholders and<br />
relations with investors. <strong>Keppel</strong> <strong>Land</strong> was among the<br />
first property companies to hold press and analysts’<br />
briefings for the interim results in addition to the full<br />
year annual results.<br />
Furthermore, the Company also holds additional<br />
briefings under exceptional circumstances such as<br />
during the Asian financial crisis of 1998, which severely<br />
affected the property business in the region and<br />
required the making of provisions and write-downs.<br />
39<br />
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People<br />
The Code of Corporate Governance for all Singaporelisted<br />
companies, which comes into effect on<br />
January 2003, addresses four areas : Board Matters,<br />
Remuneration Matters, Accountability and Audit, and<br />
Communication with Shareholders.<br />
The Company already has in place an Audit Committee<br />
and a Share Option Scheme Committee, which are<br />
considered important organisation structures for the<br />
practice of corporate governance. In addition, <strong>Keppel</strong><br />
<strong>Land</strong> will be establishing two other committees - the<br />
Nominating Committee and the Remuneration Committees.<br />
In 2001, <strong>Keppel</strong> <strong>Land</strong> also held a similar briefing in<br />
late November to announce that it would make<br />
provisions for the write-down in its landbank value, due<br />
to weaker economic prospects in Singapore and the<br />
global market place as result of the September 11<br />
events.
Investor Relations<br />
continued<br />
The Company announced its 2001 results on<br />
28 January 2002, well within the requirement for it<br />
to be announced 60 and 45 days after the close of<br />
the financial year for 2003 and 2004 respectively.<br />
Furthermore, the Company’s 2001 annual report is<br />
despatched to shareholders within 120 days of the<br />
close of the financial year.<br />
Ahead of the deadline of 2003, the Company has<br />
commenced with quarterly reporting of results in<br />
as the hard copy is despatched to shareholders.<br />
This allows overseas shareholders to access the<br />
annual report at the same time as Singapore<br />
shareholders. In 2001, the web annual report was<br />
made more interactive with the addition of a search<br />
capability. Increasingly, the financial community,<br />
has been using <strong>Keppel</strong> <strong>Land</strong>’s website<br />
(http://www.keppelland.com.sg) to access information<br />
about the Company.<br />
2002. As part of its results disclosure, <strong>Keppel</strong> <strong>Land</strong><br />
provides cashflow statements, segmental information<br />
on turnover and profit, by business segment as well as<br />
by geographical location.<br />
The online information provided on the website<br />
includes the Company’s results, financial ratios and<br />
share prices over the past ten years. In addition, the<br />
Company’s top 20 shareholders, its residential landbank<br />
and office portfolio are also available. The investing<br />
People Count<br />
40<br />
It provides a review of the Company’s performance as<br />
well as a commentary on the prospects and strategies<br />
ahead.<br />
public is able to request for more information or<br />
clarification online. Requests for hard copies of the<br />
annual report can also be made over the web.<br />
Communicating Online<br />
<strong>Keppel</strong> <strong>Land</strong> recognises the importance of good<br />
corporate governance in its activities and is committed<br />
<strong>Keppel</strong> <strong>Land</strong>’s past four years’ award-winning annual<br />
reports are available on its corporate website. The web<br />
version of the annual report is available simultaneously<br />
to ensure that high standards of disclosure is practised.<br />
Going forward, it will continue to strive towards greater<br />
transparency.
In Harmony with the Environment<br />
Building Green<br />
As <strong>Keppel</strong> <strong>Land</strong> extends its presence across the region,<br />
the Company remains focused on its guiding principle<br />
of thoughtful consideration for the environment.<br />
<strong>Keppel</strong> <strong>Land</strong> believes in building to ensure that economic<br />
goals and environmental viability strike a balance.<br />
Whether in the city or resorts, the health of the environment<br />
and of the life it supports is taken into account.<br />
In building green, <strong>Keppel</strong> <strong>Land</strong> crafts each<br />
development to ensure minimal encroachment into<br />
natural reserves. Concerted efforts have also been<br />
made to cater to the needs of tenants without<br />
compromising the quality or preservation of natural<br />
resources.<br />
Green Living in the City<br />
The landscaped park adjacent to Prudential Tower<br />
office building also provides a green haven to the<br />
bustling Raffles Place business district.<br />
In the same vein, lush landscaping and cascading<br />
water lend a refreshing touch to the modern<br />
environment at the twin office towers at HarbourFront,<br />
a quality development at Singapore’s newest business<br />
hub at <strong>Keppel</strong> Bay.<br />
Bugis Junction also features Singapore’s first interactive<br />
fountain, entertaining shoppers with its multi-faceted<br />
water sprays.<br />
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As one of Singapore’s major office landlords in the<br />
central business district, <strong>Keppel</strong> <strong>Land</strong> takes care in<br />
the design and architecture of both the working<br />
environment and the vicinity.<br />
Ensuring relief within slate and stone, extensive use of<br />
landscaping and water features are key features in each<br />
of <strong>Keppel</strong> <strong>Land</strong>’s developments in the city.<br />
These include a waterfall wall curtain which graces<br />
the award-winning Capital Square office development,<br />
providing a soothing visual relief to visitors and tenants<br />
alike.<br />
Water features like this fountain at Bugis Junction ensures relief within<br />
slate and stone.
In Harmony with the Environment<br />
continued<br />
Recycling Efforts<br />
Global Greening<br />
Concerns for planet earth are brought home at even<br />
<strong>Keppel</strong> <strong>Land</strong>’s own offices. Recycling is an initiative that<br />
is encouraged and practised with full support.<br />
Preserving and conserving the natural habitat is also a<br />
key responsibility that <strong>Keppel</strong> <strong>Land</strong> undertakes in each<br />
city or country that it operates in.<br />
People Count<br />
42<br />
The principle of ‘recycle, re-use, refill’ are brought to<br />
bear, as staff are constantly encouraged recycle and<br />
reuse. An average of ten cartons of old newspapers and<br />
used papers are sold to a recycling agency each month,<br />
and the proceeds are in turn donated to charity.<br />
Hotel Inter-Continental Singapore has also<br />
ceaselessly championed the cause of going green.<br />
Its energy-saving, recycling and water conservation<br />
programmes include using cleaning products that are<br />
bio-degradable and environmentally sensitive, having a<br />
linen programme which minimizes daily linen changes<br />
and installing timer switches so that lights are turned<br />
off when not needed. Where possible, the hotel has<br />
switched to energy-saving fluorescent bulbs.<br />
At the residential development named Botanic Cove<br />
in Sydney, special care is taken to preserve the<br />
heritage-listed trees and about 130 species of flora<br />
through a dedicated planting programme.<br />
In keeping with the surroundings, names of trees and<br />
plants native to the locality such as Beechwood,<br />
Rosewood, Sandalwood and Tulipwood are used to<br />
name the apartment blocks.<br />
The hotel also has an active recycling programme<br />
which involves recycling paper, plastic, newsprint and<br />
glass as well as placing recycling bins at all paper work<br />
stations. At the same time, staff and personnel are<br />
provided with training on good environment practices.<br />
For its relentless efforts in protecting the environment,<br />
Hotel Inter-Continental has won numerous<br />
environmental awards since its opening in 1995.
Residents who have moved into their homes enjoy<br />
the priviledge of living next to nature reserves with<br />
magnificant river and creek views and flora -<br />
Angophora Gully to the northeast and Tarban Creek to<br />
the north of Botanic Cove. Angophora Gully, a reserve<br />
with various species of native and heritage-listed<br />
vegetation was conserved and improved.<br />
<strong>Keppel</strong> <strong>Land</strong> also worked closely with the Hunters Hill<br />
Council on the conservation of the Tarban Creek.<br />
These include the design of the sedimentation basin<br />
which stops direct flow of silt from the stormwater<br />
drainage into the creek, and prevents erosion and<br />
subsequent pollution of the creek. This will facilitate the<br />
reversal of the long-term degradation of the creek.<br />
In the island resort of Ria Bintan, the award-winning<br />
golf resort takes an environmentally-friendly stance<br />
towards the maintenance of the greens. Hillslopes<br />
affected by natural erosion have been re-forested with<br />
indigenous trees. Similarly, barren turfs have also been<br />
re-planted with indigenous cover.<br />
Pristine lakes and majestic mountain ranges frame the<br />
picturesque world-class golf course. The natural and<br />
indigenous flora at this resort which is situated 2,000<br />
metres above sea-level have been carefully preserved<br />
during the construction stage, and thereafter.<br />
Original eucalyptus trees and wildflowers have been<br />
relocated and replanted as the greens were carved<br />
out of the hills. Natural habitats of local fauna were<br />
painstakingly recreated to ensure that the ecosystem<br />
remains balanced and intact.<br />
Given the natural biodiversity, golfers are now able to<br />
enjoy glimpses of wild rabbits and squirrels, flitting<br />
butterflies and even kingfishers skimming the glistening<br />
surface of the lakes.<br />
43<br />
Count<br />
People<br />
To preserve the air quality, open-burning to clear land<br />
parcels is strictly prohibited. As part of its recycling<br />
efforts, fallen trees are used to build staircases ensuring<br />
minimal impact on the natural forestation.<br />
In the highlands of Yunnan, the Spring City Golf and<br />
Lake Resort in Kunming is another exemplary model of<br />
<strong>Keppel</strong> <strong>Land</strong>’s eco-efforts.<br />
In Spring City, Kunming, properties are developed to harmonise with<br />
and improve the environment.
In Harmony with the Environment<br />
continued<br />
Concerted efforts to preserve the natural assets in<br />
the environmentally sensitive acreage are<br />
demonstrated in Spring City’s course fertilisation<br />
and become the heritage for future generations.<br />
Existing farmlands will be maintained and enhanced,<br />
integrating the traditional farm areas with modern<br />
programme. The extensive use of homogenous slow<br />
release fertilisers on all the golf courses ensures that<br />
water pollution is minimised.<br />
lifestyles.<br />
Efforts will be made to ensure that natural resources<br />
will not be over-burdened with infrastructure. While<br />
Lakes surrounding the golf courses in Spring City are<br />
constantly subject to close scrutiny to ensure there is<br />
shorelines bordering the lakefront will be transformed<br />
into waterfront homes, the encroachment of<br />
no impairment of water quality.<br />
Similarly stringent standards will be used during<br />
population into nature will be controlled through<br />
design of low-rise and low-density residential estates.<br />
the development of <strong>Keppel</strong> <strong>Land</strong>’s newest residential<br />
development on a 380 ha site adjacent to the<br />
Spring City Golf and Lake Resort.<br />
Sedona Hotels also continued to undertake efforts to<br />
help preserve the environment. At Sedona Suites<br />
Royal Park in Hanoi, water-based, non-hazardous and<br />
environmentally-friendly cleaning chemicals are used.<br />
People Count<br />
44<br />
The site is part of a larger area adjoining Yang Zong<br />
Hai, which has been ear-marked for residential and<br />
resort development by the local government<br />
authorities. Here, <strong>Keppel</strong> <strong>Land</strong> will play an integral<br />
part in rejuvenating the area into a vibrant waterfront<br />
The sewage water is also treated at the property before<br />
disposal, thus preventing pollution to the West Lake.<br />
Hotel Sedona Makassar in Indonesia also makes a<br />
conscious effort to reduce the use of resources made<br />
of plastic and uses environmentally-friendly supplies<br />
town with world-class facilities and residential estates.<br />
It will seek to marry the residential development’s<br />
modern design and amenities with the province’s<br />
instead.<br />
In essence, <strong>Keppel</strong> <strong>Land</strong> remains focused in its<br />
natural beauty and rich cultural heritage.<br />
In developing the project, special efforts will be made<br />
eco-efforts and is committed to the credo that<br />
properties should be developed to harmonise with<br />
and improve the environment as well as enhance<br />
to preserve the region’s architecture. Vegetation will<br />
be brought back to the land in a re-greening effort<br />
the quality of life of the people who use them, in<br />
Singapore and overseas.
Asian Economic and Property Round-up<br />
Global and Asian Economies 2001<br />
2001 was a watershed year as the world economy<br />
experienced its weakest growth in a decade. The global<br />
economy slowed from 4.7% in 2000 to a mere 2.4% in<br />
2001, the most severe deceleration since the 1974 oil<br />
shock. The US economy went into recession in March<br />
2001, bringing its unprecedented 10-year growth to a<br />
halt. Japan’s economy slipped into recession for the<br />
fourth time in a decade, contracting by 0.5% in 2001<br />
as business spending plunged. The International<br />
Monetary Fund (IMF) also expressed fears that the Euro<br />
zone slump could be more prolonged than expected.<br />
The September 11 events in the US exacerbated an<br />
already difficult situation in the global economy.<br />
2001 and 2000 Economic Growth Rates<br />
In its bid to bolster the US economy, the US Federal<br />
Reserve reduced key interest rates 11 times to a<br />
40-year low of 1.75% as at end-2001. The US<br />
economy brightened towards the end of 2001, as it<br />
unexpectedly expanded 1.7% in 4Q2001 on the<br />
surge in consumer and government spending,<br />
reversing a decline of 1.3% in 3Q2001. This brings<br />
2001 full-year GDP growth to 1.2%.<br />
In Asia, export-dependent countries such as Korea,<br />
Hong Kong, Singapore, Indonesia, Malaysia, Philippines<br />
and Thailand were adversely affected by<br />
the economic fallout in the US and Japan. The Korean<br />
economy slowed but still registered positive growth of<br />
3.0% in 2001, a decline from 9.3% in 2000. Consumer<br />
spending remained resilient as fiscal pump-priming<br />
Prospects<br />
45<br />
and<br />
Focus: Market<br />
12<br />
10<br />
8<br />
6<br />
Per Cent<br />
4<br />
2<br />
0<br />
-2<br />
-4<br />
US<br />
Japan<br />
European Union<br />
HongKong SAR<br />
South Korea<br />
Taiwan<br />
Indonesia<br />
Malaysia<br />
Thailand<br />
Philippines<br />
Vietnam<br />
China<br />
Singapore<br />
2001<br />
2000<br />
Source: Ministry of Trade & Industry and Various Official Sources
Asian Economic and Property Round-up<br />
continued<br />
Focus: Market and Prospects<br />
46<br />
measures and low interest rates helped to cushion the in December 2001 is expected to increase investments<br />
economic slowdown. Dragged down by the global from the US as well as other countries.<br />
economic downturn, Hong Kong’s economy grew<br />
0.1% in 2001, versus a 10.5% growth the previous Almost alone among Asia’s major economies,<br />
year. Singapore’s economy shrank 2.0%, compared China appeared least affected by the global slowdown.<br />
with a robust 10.3% a year ago. The Indonesian<br />
Its huge and vibrant domestic market was able to<br />
economy expanded 3.3% in 2001, compared with sustain a GDP growth rate of 7.3%, making China<br />
4.8% growth the year before. The Malaysian economy the fastest growing economy in the world. Growth<br />
avoided a full-year recession, showing only 0.5% in retail sales, already a strong 9.9% in 2000,<br />
decline in the last quarter of 2001, thereby bringing accelerated to 10.1% in 2001. Retail sales have been<br />
full-year GDP growth to 0.4%. Philippines’ GDP grew fuelled by strong wage growth in non-state owned<br />
3.4% in 2001, helped by consumption spending. enterprises and civil servants’ pay rise. Apart from<br />
Thailand’s economy grew 1.8% in 2001, partly fuelled private consumption, strong economic growth in the<br />
by consumption spending on housing and cars. In second half of the year was sustained through the<br />
Vietnam, growth is estimated at 7.1% in 2001. The government’s fiscal stimulus and increased foreign<br />
Bilateral Trade Agreement between Vietnam and US investment.<br />
The Singapore Economy - Sectorial Growth Rates<br />
20<br />
15<br />
10<br />
Per Cent<br />
5<br />
0<br />
-5<br />
-10<br />
-15<br />
Overall<br />
Manufacturing<br />
Construction<br />
Wholesale &<br />
Retail Trade<br />
Hotels &<br />
Restaurants<br />
Transport &<br />
Communications<br />
Financial<br />
Services<br />
Business<br />
Services<br />
2001<br />
2000<br />
Source: Ministry of Trade & Industry
The Australian economy fared better than the other<br />
economies in the world. Australia’s economy recorded<br />
growth of 4.1% for 2001, up from 3.1% in 2000.<br />
Growth was broad-based on solid rises in consumption,<br />
business investment and housing.<br />
Singapore Economy 2001<br />
With the US and Japanese economies mired in<br />
recession and the economic slowdown in Europe,<br />
Singapore, which is heavily dependent on these<br />
export markets, experienced a sharp downturn as<br />
well. All sectors were affected with manufacturing<br />
being the worst hit. Amid recessionary pressures,<br />
the manufacturing and financial services sectors<br />
were forced to undertake massive job cuts and<br />
retrenchments during the year. In the face of its<br />
worst recession since independence in 1965, the<br />
unemployment rate reached a 15-year high of 4.7%<br />
in December 2001 which was higher than the 4.4%<br />
recorded during the Asian financial crisis in 1998, but<br />
lower than the peak of 6% in March 1986.<br />
Asian Property Markets 2001<br />
Weak demand as a result of a worsening global<br />
economic climate continued to drive office rentals<br />
and capital values down, and vacancies up in most<br />
Asia-Pacific cities. Market sentiment and business<br />
confidence worsened following the September 11<br />
attacks in the US. An increase in supply from<br />
sub-lease and surrendered spaces has also created<br />
downward pressure on the rental in most of the<br />
markets.<br />
Australia and China continued to experience robust<br />
growth in the office market. With the entry of China<br />
Prospects<br />
47<br />
and<br />
Focus: Market<br />
For the whole of 2001, the Singapore economy<br />
shrank by 2%, a sharp contrast to the robust 10%<br />
growth in the previous year. This sharp reversal in<br />
growth was primarily due to the slump in external<br />
demand although weak household consumption<br />
and business investments also contributed to the<br />
contraction. The economy saw an improvement in<br />
the fourth quarter of 2001, with a growth of 5.6%<br />
on an annualised quarter-on-quarter basis. This has<br />
prompted the government to revise its 2002 GDP<br />
target to 1-3%, on the back of an anticipated rebound<br />
in the US economy.<br />
The Singapore economy grew 5.6% in fourth quarter 2001.
Asian Economic and Property Round-up<br />
continued<br />
Focus: Market and Prospects<br />
48<br />
to the World Trade Organisation (WTO), the demand<br />
for prime office space, especially in Shanghai, is expected<br />
to grow. Vacancy in Shanghai Puxi fell 7.3%<br />
while rental rose an impressive 23.7%.<br />
Most residential markets in Asia were also not spared<br />
by the global economic slowdown. Capital values for<br />
the luxury residential segment in Hong Kong Island<br />
(1.2%), Makati CBD (7.5%), and Kuala Lumpur (2.6%)<br />
fell. Nevertheless, there were some relatively bright<br />
niches in the Asian residential markets. Prospect for<br />
middle-income residential housing remain sound in<br />
Philippines, especially around the major business<br />
districts. In Bangkok, sale of landed houses increased<br />
with strong end-user demand. Shanghai’s residential<br />
market remained buoyant, supported by the sharp rise<br />
in foreign investments coupled with favourable<br />
property policies and promising economic outlook.<br />
The sales market also remained strong, with the<br />
average capital value rising by about 9%. In 2001, the<br />
Sydney residential property market continued to defy<br />
predictions of impending downturns. Demand has<br />
been fuelled by interest rate cuts, an extension of the<br />
First Home Owner’s Grant and a general under-supply<br />
of stock.<br />
The government also removed almost all of the<br />
anti-speculation measures implemented in 1996<br />
including capital gains tax for property sold within<br />
three years of purchase. Foreigners are allowed to<br />
take Singapore dollar loans for residential properties.<br />
Asian Economic and Property Outlook 2002<br />
Prospects for 2002 will depend largely on the timing<br />
and magnitude of a recovery in the US economy.<br />
Economists forecast that the US economy will recover<br />
in the second half of 2002. Recent economic data in<br />
the US suggests that the upturn is coming on more<br />
powerfully at the start of 2002. The first quarter<br />
growth in 2002 has been estimated at 4.2%, the<br />
fastest in almost two years.<br />
The Singapore office market reversed in 2001, after<br />
a bumper year in 2000. Take-up fell to 1.12 million sf<br />
in 2001 from 4.22 million sf in the previous year.<br />
In Singapore, demand for private residential<br />
properties, especially those in the mid- and low-end<br />
segments, surged in the last quarter of 2001, in<br />
response to price cuts, deferred payment schemes<br />
offered by developers, and attractive mortgage rates.
China’s official growth forecast for 2002 stands at<br />
7.3%, with minimum growth of 7% expected from<br />
2002-2005. Elsewhere, Vietnam is also poised to<br />
benefit from the US recovery in 2002 as the new<br />
Bilateral Trade Agreement with US is expected to<br />
increase exports to the US. Australia is expected to<br />
outperform other developed economies over<br />
2001-2002 due to the strength of its housing activity<br />
and consumer spending.<br />
Singapore’s economic outlook for 2002 will depend<br />
on external developments, especially the US economy,<br />
the global electronics industry and the war against<br />
terrorism. Singapore may be on the road to recovery<br />
as early as the second half of 2002. The current<br />
downturn faced by Singapore is not just a cyclical<br />
phenomenon, but also structural in nature. With<br />
competition from China following its entry into the<br />
WTO, Singapore’s economy will have to undertake<br />
structural changes to ensure long-term economic<br />
growth. The Government has thus set up the Economic<br />
Review Committee to “remake” Singapore by<br />
identifying new engines of growth for the economy.<br />
Buoyed by its relatively strong economy, China’s<br />
property markets are expected to remain strong in<br />
2002. In Shanghai, future residential land will be<br />
released through public tender or auction. Continuing<br />
urban renewal will support demand for new housing.<br />
For the Shanghai office market, supply is estimated to<br />
be 2.1 million sm in 2001-2005 but absorption is<br />
forecast to be 2.78 million sm.<br />
In other Asian cities, the recovery of the property<br />
market will be closely tied to economic rebound.<br />
The forecast turnaround of the US economy in<br />
the second half of 2002 should fuel the recovery of<br />
Asian property markets.<br />
Prospects<br />
49<br />
and<br />
Focus: Market<br />
For the Singapore office market, the limited new<br />
supply will help support prime office rentals when<br />
the market recovers in tandem with the anticipated<br />
economic rebound in the second half of 2002.<br />
Stronger-than-expected demand for private residential<br />
properties, in the wake of price cuts and the deferred<br />
payment scheme suggests that the residential market<br />
is on the road to recovery.<br />
Shanghai’s residential and office sectors continue to show strong growth.
Change and Impact<br />
Investment Properties<br />
Trading Properties<br />
Focus: Market and Prospects<br />
50<br />
The Group’s principal investment properties are Ocean<br />
Building, Ocean Towers, <strong>Keppel</strong> Towers, GE Tower,<br />
Capital Square and Prudential Tower in Singapore,<br />
Saigon Centre and International Centre in Vietnam and<br />
Wisma BCA in Indonesia. The rental income from these<br />
properties is sensitive to changes in their occupancies and<br />
the rental rates for lease renewals.<br />
Assuming that average rental rates are maintained, a<br />
full year’s impact on rental income for every 1%<br />
change in the occupancies of the above mentioned<br />
properties is approximately $1.0 million.<br />
In respect of committed leases and lease renewals, a<br />
full year’s impact on rental income for every 10%<br />
change in average rental rates resulting from the new<br />
rates negotiated is about $11.9 million.<br />
The Group’s profits from property trading is sensitive<br />
to actual sales achieved and the percentage of physical<br />
completion recognised during the year.<br />
Based on the actual sales contracts signed as at<br />
31 December 2001, the incremental impact on<br />
Group pre-tax profit for every 5% of physical<br />
completion is about $0.6 million.<br />
For every additional 1% of sales achieved for<br />
projects which have been launched, the additional<br />
contribution to Group pre-tax profit is an estimated<br />
$2.1 million. This is based on physical completion<br />
projected and sales projected for the year, and the<br />
completed properties available for sale which the<br />
Group had at end-2001.<br />
Change in Rental Income<br />
Resulting from:<br />
$ million<br />
1% change in occupancies (a) 1.0<br />
10% change in average rental rates (b) 11.9<br />
(a) Assuming current average rentals are maintained.<br />
(b) Based on committed leases and leases for renewal in 2002.<br />
Incremental Impact on Group Pre-tax Profit<br />
Resulting from:<br />
$ million<br />
For every 5% of physical completion (c) 0.6<br />
For every 1% of additional sales (d) 2.1<br />
(c) Based on actual sales contracts at 31 December 2001.<br />
(d) Based on physical completion projected and sales projected for the year, and completed properties available for sale<br />
at end-2001.
In Retrospect ... and Prospects<br />
Looking Back at 2001 Results and Initiatives<br />
Looking Ahead at 2002 Objectives and Outlook<br />
• Group attributable loss of $366.5 million due to<br />
provisions made for trading projects and landbank.<br />
• Focus on property development for sale and<br />
on-fee based property fund management.<br />
• Reduction in value of $239 million recognised for<br />
the Group’s investment properties in Singapore<br />
and overseas.<br />
• Launch of Butterworth 8 and other residential<br />
projects in Singapore, depending on market<br />
conditions.<br />
• Sale of six Cluny Hill land plots achieved at good<br />
profit margins.<br />
• Launch of One Park Avenue, Shanghai in second<br />
half-year.<br />
• 100% sale achieved for The Edgewater and 98%<br />
for Amaranda Gardens condominium projects.<br />
• Commenced construction of One Park Avenue<br />
residential development in Shanghai.<br />
• Sold entire 5% stake in Australand Holdings<br />
Limited in line with divestment strategy.<br />
• Further sales of Cluny Hill land plots.<br />
• Unlocking of value in the Group’s office portfolio<br />
through securitisation, REIT, etc.<br />
• Completion of sale of Bayswater Village in Sydney.<br />
Prospects<br />
51<br />
and<br />
Focus: Market<br />
• Acquired, with two consortium partners, the<br />
1.14-ha Marina Boulevard site for a new office<br />
development.<br />
• Completed acquisition of 24.9% stake in Dragon<br />
<strong>Land</strong> Limited.<br />
• Established US$800 million multi-currency<br />
Medium Term Note programme to finance<br />
existing borrowings and fund working capital.
Year in<br />
Review
“ The Company will continue to enhance<br />
shareholder value by leveraging on<br />
the intangible assets that are not captured<br />
in the balance sheet.<br />
“
Review<br />
Market and Operations<br />
REVIEW OF OPERATIONS<br />
SINGAPORE<br />
RESIDENTIAL<br />
New Launches<br />
Cluny Hill<br />
As part of the Company’s direction to unlock value,<br />
<strong>Keppel</strong> <strong>Land</strong> launched for sale the bungalow plots in the<br />
exclusive good class bungalow enclave at Cluny Hill in<br />
2001. The 303,697 sf (28,214 sm) site, when redeveloped,<br />
will yield a net saleable land area of 249,790 sf.<br />
The freehold site provides the most prestigious address<br />
in prime District 10. Perched on a hilltop overlooking<br />
magnificent greenery of the Botanic Gardens, it is close to<br />
the embassy row and the Orchard Road shopping belt.<br />
Buyers are able to purchase plots with land area ranging<br />
from 15,070 sf to more than 30,000 sf to build their own<br />
dream homes. <strong>Keppel</strong> <strong>Land</strong> will also provide architectural<br />
design and project management services for the entire<br />
process from conceptualisation to completion for buyers<br />
who prefer to have pre-designed homes and wish to<br />
avoid the hassle of having to project-manage the<br />
construction. For those who wish to engage design<br />
services, three experienced architects specialising in good<br />
class bungalows have been commissioned.<br />
The 16 proposed bungalows would be architecturally<br />
unique and also exude grandeur as well as elegance.<br />
Each of the bungalows will have a plot size of at least<br />
15,070 sf and a gross floor area of about 8,500 sf.<br />
To date, six of the 16 plots have been sold, generating<br />
$44.6 million net profit.<br />
Overwhelming response at Amaranda Gardens’ launch resulted in<br />
almost all units sold.<br />
Amaranda Gardens<br />
Located along Serangoon Avenue 3, this 189-unit<br />
condominium development comprises of 2-, 3-, 4-bedroom<br />
apartment units and penthouses. Unit sizes range from<br />
990 to 3,864 sf. Amaranda Gardens is near the upcoming<br />
Serangoon Central Mass Rapid Transit (MRT) station and<br />
renowned schools like St Gabriel’s Primary School, Rosyth<br />
School, Nanyang Junior College and the future Australian<br />
International School.<br />
Facilities include tennis courts, a basketball practice<br />
court, a free-form swimming pool, barbecue pits and<br />
jogging paths. It also boasts an adventure park complete<br />
with a tree-house, rope pyramid platform, slide tower,<br />
net walkway and monkey bridge.<br />
To date, all units have been sold save for a few<br />
penthouses.<br />
55<br />
Review<br />
in<br />
Year<br />
The
M A R K E T R E V I E W<br />
RESIDENTIAL<br />
Market Subdued by Economic Downturn but Demand Picked up Towards Year End<br />
The Singapore residential property market was relatively subdued in 2001, due mainly to the economic downturn which<br />
was exacerbated by the September 11 attacks in the US. The Singapore economy contracted by 2% in 2001, after<br />
achieving 10% growth in 2000.<br />
Based on the URA residential property price index, prices of residential properties fell by 11.7% in 2001.<br />
In view of the economic downturn, the Government had, in the second off-budget measures in October 2001,<br />
announced a series of land/property-related measures which include:<br />
The Year<br />
in Review<br />
56<br />
• Suspension of land sales for the rest of 2001 and 2002. Instead, unsold parcels are put in a reserve list to be activated if<br />
there is interest.<br />
• Removal of capital gains tax on property sales within 3 years of purchase.<br />
• Lifting of restrictions on foreigners obtaining housing loans in Singapore dollars.<br />
• Exemption of property tax for land under development till October 2003.<br />
In November 2001, there was further relaxation of the 20% cash downpayment ruling, allowing developers to defer<br />
half of the downpayment i.e.10% till the issue of the Temporary Occupation Permit (TOP). This helped to spur buying<br />
interest as witnessed by the successful launches of The Edgewater and Amaranda Gardens by <strong>Keppel</strong> <strong>Land</strong> in late<br />
November and early December 2001, for which the deferred payment scheme was implemented. Several other projects<br />
launched around the same period were also well received by the market. A total of 2,839 new private homes were sold in<br />
the primary market in 4Q 2001, nearly double the sales volume in 3Q 2001.<br />
Going forward, the residential market is expected to improve in 2002, with pick-up in demand and signs of economic<br />
recovery. The Ministry of Trade & Industry has in February 2002 revised Singapore’s 2002 growth forecast to 1-3%,<br />
up from the previous forecast of -2 to +2%, made in October 2001.<br />
REVIEW OF OPERATIONS<br />
The Edgewater<br />
The Edgewater is a 53-unit condominium comprising<br />
2- and 3-bedroom apartment units. Unit sizes range from<br />
926 to 2,357sf. Located along Jalan Loyang Besar, it is<br />
within walking distance to Pasir Ris Beach Park and the<br />
NTUC Lifestyle World Downtown East. It also enjoys close<br />
proximity to White Sands Shopping Centre, schools and<br />
other amenities.<br />
Facilities include four swimming pools spanning the length<br />
of the development, with majority of ground floor units<br />
perched above the pool surface. There is also a<br />
gymnasium, a children’s playground and barbecue pits.<br />
Some units come with the much sought-after roof<br />
terraces. All units have been sold.<br />
Butterworth 8<br />
Butterworth 8 is a 216-unit condominium development<br />
located in the Tanjong Katong vicinity. It is within walking<br />
distance to the Paya Lebar MRT station and close to<br />
reputable schools like Tao Nan, Tanjong Katong Girls’,<br />
Kong Hwa and Chung Cheng High. Equipped with
6 Mar Thoma Road and 22-26 Mar Thoma Road<br />
<strong>Keppel</strong> <strong>Land</strong> has two proposed apartment developments<br />
at Mar Thoma Road with 40 and 87 units respectively.<br />
Located off Serangoon Road, the developments are just a<br />
short drive away from town and are readily accessible via<br />
Pan Island and Central Expressways. They are also near to<br />
the future Boon Keng and Potong Pasir MRT stations, and<br />
close to schools like St. Andrew’s Junior, St. Andrew’s<br />
Secondary, Cedar Girls’ Secondary and Victoria School.<br />
Facilities include a swimming pool, a clubhouse and a<br />
basement carpark.<br />
Duchess Park Redevelopment<br />
Butterworth 8, a 216-unit condominium development in<br />
Tanjong Katong, is fully sold.<br />
REVIEW OF OPERATIONS<br />
This is an exclusive 62-unit condominium development<br />
located off Bukit Timah Road. Nestled in a quiet residential<br />
neighbourhood, it is also close to many good schools like<br />
Raffles Girls’ Primary, Nanyang Primary, Nanyang Girls’<br />
High, The Chinese High, Hwa Chong and National<br />
Junior College. Its facilities include a swimming pool,<br />
a gymnasium, a clubhouse and a basement carpark.<br />
57<br />
Review<br />
in<br />
Year<br />
The<br />
modern features like broadband Internet access and<br />
pre-wired data and telephone points, residents would be<br />
able to enjoy convenient connectivity.<br />
Launched in January 2002, the development is 100%<br />
sold.<br />
Upcoming Launches<br />
Freesia Woods<br />
Freesia Woods is a 129-unit freehold condominium<br />
located in the quiet and tranquil Sunset Way private<br />
housing estate. It is shielded from the hustle and bustle<br />
of the city, yet conveniently accessible to the city via<br />
various thoroughfares such as the Bukit Timah Road,<br />
Pan Island Expressway and Ayer Rajah Expressway.<br />
For 2002, <strong>Keppel</strong> <strong>Land</strong> intends to launch several projects<br />
including, two projects at Mar Thoma Road and Duchess<br />
Park in Bukit Timah. As the positive sentiment appears to<br />
have spilled over from the mass and mid market segments<br />
into the higher end segments, <strong>Keppel</strong> <strong>Land</strong> is reviewing<br />
its landbank and may launch other projects in popular<br />
districts. Freesia Woods and Caribbean at <strong>Keppel</strong> Bay may<br />
also be re-launched if market conditions are conducive.<br />
The predominantly landed residential enclave is<br />
surrounded by well-established Holland Village, Bukit<br />
Timah and Clementi housing estates, all of which are just<br />
minutes’ drive away.<br />
The development offers 1- to 4-bedroom apartment<br />
units, with floor sizes ranging from 1,023 to 2,680 sf.<br />
Apartment units are designed with efficient layouts,
REVIEW OF OPERATIONS<br />
private lift lobbies, floor to ceiling windows and smart<br />
home features to cater to modern living.<br />
Freesia Woods is also close to prestigious schools and<br />
institutions such as Henry Park Primary School, Pei Hwa<br />
Presbyterian Primary School, Methodist Girls’ Primary<br />
School, Singapore and Ngee Ann Polytechnics, Australian<br />
International School, Singapore Institute of Managment<br />
and National University of Singapore.<br />
Close to half of the 50 units were sold during the soft<br />
launch in November 2000.<br />
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Caribbean at <strong>Keppel</strong> Bay<br />
<strong>Keppel</strong> Bay is the first and only truly waterfront district,<br />
designed for total fusion with the seas with its<br />
breathtaking sea views, a grand marina and spectacular<br />
waterways right up to the homes.<br />
The first residential project being developed in this prestigious<br />
waterfront district is Caribbean at <strong>Keppel</strong> Bay, with<br />
969 luxurious apartments right by the water’s edge.<br />
The development offers two- to four-bedroom apartment<br />
units as well as penthouses with floor areas ranging from<br />
840 sf to 6,135 sf.<br />
Units will enjoy spectacular views, be it of the sea,<br />
water channels or the panorama of the lush greenery of<br />
Mount Faber and <strong>Keppel</strong> Golf Club. Sitting on a former<br />
shipyard site, with the natural deep harbour waters and<br />
a 1,200-metre long shoreline, the development will<br />
redefine waterfront living in Singapore. Residents will<br />
be able to enjoy the water literally at their doorstep.<br />
The development enjoys easy access to major expressways<br />
and is ten minutes’ drive to Raffles Place, the heart of the<br />
financial district. The new HarbourFront MRT station,<br />
which is scheduled for completion in 2002, is also within<br />
walking distance and only three MRT stations from the<br />
Raffles Place Interchange.<br />
Singapore’s first and only truly waterfront district - <strong>Keppel</strong> Bay.<br />
Apartment units are provided with private lift lobbies,<br />
quality finishes, full height glass windows and smart home<br />
features such as broadband internet access, local area<br />
network, home automation and condominium portal.<br />
The project achieved good sales when it was first<br />
launched in September 2000. So far, 310 out of<br />
430 apartments launched have been sold.<br />
<strong>Keppel</strong> <strong>Land</strong> holds 30% equity of the entire waterfront<br />
project and is also the development manager. <strong>Keppel</strong><br />
Corporation holds the remaining 70%.<br />
Exisiting Residential Properties<br />
Nassim Woods<br />
Nassim Woods, a luxury-end condominium located in the<br />
prime residential area of Nassim Hill, is currently available<br />
for lease.<br />
The exclusive development enjoys the tranquillity<br />
provided by its Balinese-style landscaping, while being<br />
close to the Orchard Road shopping and entertainment<br />
belt as well as the financial district at Raffles Place.
REVIEW OF OPERATIONS<br />
Its prestigious address is further enhanced by its<br />
neighbourhood of foreign embassies, country clubs, lush<br />
Botanic Gardens and international hotels.<br />
Nassim Woods offers 35 units of 3- to 4-bedroom<br />
apartment types and penthouses, with sizes ranging<br />
from 2,000 sf to 6,400 sf. The penthouses feature roof<br />
terrace gardens which come complete with a spa,<br />
a barbeque corner, trellis and lush planting areas.<br />
Besides the private lift, which provides residents the<br />
privacy and convenience of stepping out of the lift and<br />
directly into their own private lift lobby, each unit is<br />
luxuriously furnished with quality finishes. Tenants<br />
have the option of leasing the units fully or partially<br />
furnished.<br />
The development continues to enjoy high occupancy.<br />
Tenants include expatriates from Europe and the US.<br />
Pebble Bay<br />
Hotel Inter-Continental Singapore, has continued to<br />
outperform competitors despite the tougher environment.<br />
The hotel has been able to achieve an average occupancy<br />
rate of about 70%.<br />
Enjoying the convenience of being located above the<br />
Bugis MRT station, the office tower and retail space are<br />
fully leased.<br />
Parco Bugis Junction offers a unique shopping experience<br />
within air-conditioned streets and has consistently<br />
received many awards since its opening in 1995. It won<br />
the Singapore Tourism Board Award for “Best Shopping<br />
Experience - Shopping Centre Award” for 1996 and 1997<br />
for its novel approach to retail. It has also taken the top<br />
prize for the Best Decorated Building Competition,<br />
organised by the Singapore Tourism Board for two years<br />
running for 2000 and 2001.<br />
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Pebble Bay, one of Singapore’s first waterfront<br />
condominium developments located in the prime<br />
Tanjong Rhu area, obtained its (Temporary Occupation<br />
Permit (TOP) in October 1997.<br />
The project offers 510 units of luxurious apartments with<br />
20 different designs in sizes ranging from 850 sf to<br />
6,114 sf. Outstanding amenities and recreational facilities,<br />
lush tropical landscaping and panoramic views form an<br />
integral part of the development.<br />
Pebble Bay has been 98% sold with the remaining<br />
12 units leased.<br />
MIXED DEVELOPMENT<br />
Bugis Junction, an integrated development comprising<br />
an office tower, large-scale retail space and the five-star<br />
OFFICE<br />
Demand Fell in 2001 but Outlook Remains Positive<br />
in the Medium Term<br />
Following the strong economic performance and<br />
pent-up demand in 2000, there was a sharp drop in<br />
demand in 2001 due to the economic recession and<br />
the fallout in the technology sector. Demand for office<br />
space dropped from a record high of 4.22 million sf<br />
(392,051 sm) in 2000 to 1.12 million sf in 2001.<br />
Prime office rents have consolidated by about 16% since<br />
end-2000. As at end-2001, average prime rentals have<br />
fallen to $6.60 psf per month.<br />
However, the medium-term outlook remains positive on<br />
hopes of a US-led recovery in 2002 and the limited new<br />
supply of prime office space especially in Raffles Place.<br />
The gradual emergence of Singapore as an important<br />
hub for financial and other service industries will boost<br />
demand for office space, especially those in the prime<br />
location.
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Taking advantage of the successful youth-focused<br />
retail formula at Parco Bugis Junction, a fashion concept<br />
theme called “edge>” was adopted for part of the retail<br />
space on the third storey of the shophouses. Launched<br />
on 16 November, the edge> aims to become the leader<br />
of the local retail scene with cutting edge styles targeted<br />
at the young and trendy. Offering the funkiest of<br />
clothes, accessories, gadgets and wacky novelties, the<br />
edge> brings to Singapore the hottest brands from<br />
Tokyo, Europe, Korea and elsewhere. The entire retail<br />
space of about 10,000sf at the edge> has been fully<br />
leased.<br />
In 2001, Hotel Inter-Continental Singapore won one Star,<br />
three Gold and 19 Silver awards at the Excellent Service<br />
Awards organised by Singapore Productivity & Standards<br />
Board.<br />
In addition, one of the hotel’s employees won the Model<br />
Workers Award presented by the Ministry of Trade &<br />
Industry and the National Trade Union Congress.<br />
OFFICE<br />
One Raffles Quay<br />
Located at the junction of Marina Boulevard and<br />
Raffles Quay, the 1.14-ha site is gateway to the<br />
New Downtown, Singapore’s new business and financial<br />
district, and adjacent to the heart of the existing CBD<br />
at Raffles Place.<br />
The landmark development will showcase several key<br />
elements of infrastructure for Singapore’s New Downtown<br />
including a hub carpark, an underground retail mall<br />
leading to Raffles Place MRT, a District Cooling System<br />
plant and an elevated travellator system. This travellator<br />
system, envisioned to extend throughout the new CBD,<br />
will link some of the major developments in the centre<br />
of the city. The development will become a critical link in<br />
central Singapore’s pedestrian network.<br />
Comprising two office towers linked by a podium, the<br />
large-scale development commands a total of about<br />
1.32 milion sf (123,013 sm) of space. Tower One is a<br />
50-storey building with 756,520 sf of office space. At<br />
ground level, the pedestrian plaza faces Raffles Place.<br />
As one of the largest prime office landlords, <strong>Keppel</strong> <strong>Land</strong>’s<br />
quality portfolio of investment properties include Ocean<br />
Building, Ocean Towers, Prudential Tower, Capital Square<br />
and The Exchange in Raffles Place. Within the CBD area,<br />
the Company also owns <strong>Keppel</strong> Towers, GE Tower and<br />
Bugis Junction Towers. Despite the softer market in 2001,<br />
<strong>Keppel</strong> <strong>Land</strong>’s well managed and well located office<br />
buildings enjoyed full or close to full occupancies,<br />
achieving higher rentals and take-up than the market.<br />
Adding to <strong>Keppel</strong> <strong>Land</strong>’s quality portfolio is the Marina<br />
Boulevard site, which was awarded by the Urban<br />
Redevelopment Authority to a consortium of three -<br />
<strong>Keppel</strong> <strong>Land</strong> and its two renowned Hong Kong partners,<br />
Cheung Kong and Hongkong <strong>Land</strong> in March 2001. The<br />
proposed name for the project is One Raffles Quay.<br />
Linked by a parking podium is Tower Two, a 29-storey<br />
building offering 563,076 sf of column-free space which is<br />
popular among financial institutions.<br />
The project is destined to make a major impact in both<br />
the city’s skyline and it’s pedestrian experience. Piling and<br />
main contract works are scheduled to begin in June 2002.<br />
The development is expected to complete in 2005.<br />
The HarbourFront Office Park<br />
The HarbourFront Office Park is located next to the<br />
proposed World Trade Centre MRT Station. The<br />
development comprises 18-storey twin office towers and<br />
a retrofitted Cable Car Tower with a total lettable area of<br />
around 922,208 sf (85,676 sm).
Both towers are expected to complete in late-2002. As for<br />
the Cable Car Tower, the retrofitting works are scheduled<br />
to complete in early-2003.<br />
INDUSTRIAL<br />
<strong>Keppel</strong> <strong>Land</strong> has two industrial buildings in the<br />
MacPherson and Paya Lebar Industrial Estates.<br />
Located at Aljunied Link, Quartz Industrial Building is a<br />
freehold industrial building within the MacPherson<br />
Industrial Estate. To date, 70% of the eight-storey<br />
freehold property have been sold, while 14 of the<br />
remaining 16 units have been leased.<br />
One Raffles Quay will be the gateway to Singapore’s New Downtown,<br />
the proposed new business and financial district.<br />
Situated at the Paya Lebar Road thoroughfare, Orion<br />
Industrial Building is a good quality industrial building<br />
which is 60% sold. Out of the remaining 29 units,<br />
25 units have been leased.<br />
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The office park is jointly developed by <strong>Keppel</strong> Point , a<br />
joint venture between <strong>Keppel</strong> Corporation (70%) and<br />
<strong>Keppel</strong> <strong>Land</strong> (30%), and The HarbourFront, a joint<br />
venture between Temasek Holdings (80%) and PSA<br />
Corporation (20%). The HarbourFront, with a 61%<br />
stake, is the majority shareholder. <strong>Keppel</strong> Point holds<br />
the remaining 39% stake.<br />
<strong>Keppel</strong> Corporation has purchased another 31% stake<br />
in Tower One, bringing the <strong>Keppel</strong> Group’s interest in<br />
Tower One to 70% when it is completed. <strong>Keppel</strong><br />
Corporation’s headquarters will relocate to Tower One,<br />
which has been named <strong>Keppel</strong> Bay Tower.<br />
Marketing for the office park has commenced and<br />
ExxonMobil has signed up as the major tenant of Tower<br />
Two in December 2001. ExxonMobil will occupy more<br />
than 40% of its space and will have the naming rights for<br />
this tower.<br />
INDUSTRIAL<br />
M A R K E T R E V I E W<br />
Market Performance Hinges on the Recovery in the<br />
Manufacturing Sector<br />
With the downturn in the manufacturing sector, demand<br />
in the industrial market fell in 2001. The manufacturing<br />
sector contracted by 12% in 2001 after a sterling 15%<br />
expansion in 2000. The weakness in the market was<br />
compounded by oversupply of industrial space, which<br />
resulted in the Government suspending the sale of some<br />
7 ha of industrial land.<br />
Going forward, the performance of the industrial market<br />
will depend on the recovery in the manufacturing sector<br />
and the global electronics industry, which are expected<br />
to turn around in 2002.
REVIEW OF OPERATIONS<br />
LISTED PROPERTY TRUSTS & FUND MANAGEMENT<br />
With an investment building portfolio worth about<br />
$2.1 billion, <strong>Keppel</strong> <strong>Land</strong> is looking into divesting its<br />
investment assets through various means such as listed<br />
property trust, asset securitisation and direct sale.<br />
The divestment will enable the Company to re-deploy<br />
resources into better yielding development assets as<br />
well as grow its new property fund business.<br />
Asia Real Estate Fund Management, a joint-venture<br />
between, <strong>Keppel</strong> <strong>Land</strong> and AMP-Henderson Global<br />
Investors is in the process of setting up Asia No. 1<br />
Property Fund. The fund, which is targeted at institutional<br />
investors in the US, Europe, Australia and Asia, will<br />
selectively invest in low-to-medium risk property assets in<br />
Singapore and Asia. The first close is targeted for second<br />
half of 2002. The total size of the fund is expected to be<br />
US$300 million.<br />
Meanwhile, <strong>Keppel</strong> <strong>Land</strong>’s wholly-owned in-house fund<br />
management company, <strong>Keppel</strong> <strong>Land</strong> Fund Management,<br />
is working on setting up a private equity fund to invest in<br />
real estate opportunities in China .<br />
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M A R K E T R E V I E W<br />
The Year<br />
Listed Property Trusts & Fund Management<br />
Listed Property Trusts (LPTs) or Real Estate Investment Trusts (REITs) as they are also known are investment vehicles<br />
through which investors - both individuals and institutional - can own stakes in an income-generating portfolio of real<br />
estate, be it office, retail or even industrial property. In turn, investors collect dividends from rental income and may also<br />
enjoy the benefit of capital appreciation.<br />
Although they have existed in the US since the 1960s, LPTs were launched in Australia in the 1980s where they have<br />
been fairly successful and popular. In Asia, two office LPTs were launched in Japan in 2001, followed by a third retail LPT<br />
in 2002, also in Japan.<br />
A retail mall LPT was launched at the end of 2001 in Singapore. However, the IPO was deferred due to poor response.<br />
Some observers have attributed the failure to the unfavourable market conditions and investors’ unfamiliarity with the<br />
new instrument.<br />
As market conditions improve and with the Government’s efforts to make Singapore a leading financial centre as well as<br />
a ready pool of capital from Central Provident Fund (CPF) savings, the potential for LPTs is promising. Several developers<br />
are expected to launch their office and retail LPTs or REITs in 2002 if conditions are favourable.<br />
Along with the anticipated growth of LPTs or REITs in Singapore, property fund management is expected to develop<br />
into an exciting new business segment for the real estate industry. Leveraging on their development and management<br />
expertise, property developers and managers will be presented with business opportunities to manage the property<br />
trusts that will be set up.<br />
The Government’s liberalisation on the use of CPF to invest in professionally managed funds and its efforts to develop<br />
the financial and capital markets, coupled with the ageing population’s demand for investments providing higher yields<br />
will help to drive the development of the fund management business.
REVIEW OF OPERATIONS<br />
KEPLANDHUB<br />
Data Centres<br />
Capitalising on <strong>Keppel</strong> <strong>Land</strong>’s experience in the real<br />
estate development and facility management, <strong>Keppel</strong><br />
Digihub, a subsidiary of the <strong>Keppel</strong> <strong>Land</strong>’s e-business’s<br />
vehicle KeplandeHub, will build and operate data<br />
centres in Singapore.<br />
venture company, Tenantworld, to develop and deliver<br />
telecommunications, business applications,<br />
e-procurement solutions and other online services to office<br />
tenants, property managers and owners. Tenantworld is<br />
the first industry-led office e-hub in Singapore.<br />
Through Tenantworld’s web portal, <strong>Keppel</strong> <strong>Land</strong> will be<br />
among the first landlords connecting its commencial<br />
buildings tenants in an online community.<br />
<strong>Keppel</strong> Digihub has retrofitted one floor of the <strong>Keppel</strong><br />
Digihub building at Serangoon North into a 25,000 sf<br />
(2,323 sm) data centre. The data centre started operations<br />
in July 2001.<br />
Tenants will be able to reserve building facilities, interact<br />
with other tenants, shop online, request for services,<br />
access the latest news, use accounting and human<br />
resource applications and other online services.<br />
Tenantworld - Connected Offices<br />
KeplandeHub, together with subsidiaries of three other<br />
major commercial property landlords, Capita<strong>Land</strong>,<br />
City Developments and Singapore <strong>Land</strong>, formed a joint<br />
The portal is expected to be launched in 2002 for two<br />
of <strong>Keppel</strong> <strong>Land</strong>’s buildings, Capital Square and Ocean<br />
Towers. Tenantworld is targeting eight to ten buildings<br />
in the CBD for its initial service rollout, with services<br />
available to 20 buildings by year-end.<br />
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Data Centres<br />
The slowdown in the technology sector and an over supply of data centre space contributed to a challenging<br />
environment for data centre operators in Singapore and the region. There is considerable consolidation among existing<br />
players. Going forward, it is expected that the demand for data centre services will continue to grow in line with the<br />
increasing demand for IT outsourcing services. Analysts predict annual growth rate for Singapore’s data centre market of<br />
as much as 30% between now and 2005.
REVIEW OF OPERATIONS<br />
AUSTRALIA<br />
Sydney, Botanic Cove<br />
Botanic Cove consists of a total of 235 apartments/<br />
townhouses. Overlooking Hunters Hill in Sydney, the<br />
development is located in a district renowned for its<br />
magnificent river and creek views and heritage-listed<br />
trees and flora. The tranquil and natural retreat, which<br />
has access to 11 hectares of recreational area by the<br />
waterfront, is also only 15 minutes’ drive from the<br />
Sydney CBD.<br />
Owners of the 117 units under Phase 1 of Botanic Cove<br />
have settled into their homes. Phase 2, comprising<br />
118 apartments and townhouses, is presently under<br />
construction and over 80% of the units have been sold.<br />
Sydney, Bayswater Village<br />
Bayswater Village, a 70-suite hotel-cum-retail<br />
development, was sold in December 2001 as part of the<br />
Botanic Cove overlooks the famed Hunters Hill in Sydney, an area<br />
renowned for its rich heritage-listed trees and flora.<br />
Company’s effort to divest non-core assets and rechannel<br />
resources into investments with higher returns. The<br />
complex is located in the tourist district of Kings Cross in<br />
Sydney. The 70-suite hotel, known as The Crescent on<br />
Bayswater enjoys healthy occupancy rates of 75%. The<br />
retail space is also fully leased.<br />
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Australia<br />
Economic Growth to Remain Steady<br />
The Australian economy recorded vibrant growth of 4.1% in 2001, despite the uncertain economic outlook around the<br />
world. Growth was broad-based with solid rises in consumption, business investment and housing.<br />
The economy was underpinned by a resurgent housing sector and buoyant domestic consumer spending. Marginally<br />
slower GDP growth of 3.7% is expected in 2002/2003. Overall, the outlook for Australia is still good with the<br />
Australian dollar expected to be weak against major currencies, continued steady job growth, low interest rates and<br />
relatively low inflation rates.<br />
Tourism and Convention Sectors Affected by September 11 Events<br />
The tourism and convention sectors were adversely affected by the September 11 events and the collapse of Ansett<br />
Australia airlines. However, the weak Australian dollar and strong marketing of the country are expected to attract visitors,<br />
albeit at lower levels.<br />
Sydney Residential Markets Peaked in 2001<br />
The Sydney residential property market continued to defy predictions of impending downturn. Demand has been fuelled<br />
by interest rate cuts, an extension of the First Home Owner’s Grant and a general under-supply of stock. However, signs<br />
of a market slowdown started emerging from the last two months of 2001.<br />
The outlook for the sector remains strong although expectations are for a slowdown in 2002 and a recovery in 2003/2004.
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CHINA<br />
Shanghai - One Park Avenue<br />
On 10 December 2001, <strong>Keppel</strong> <strong>Land</strong> held its official<br />
groundbreaking ceremony for One Park Avenue,<br />
<strong>Keppel</strong> <strong>Land</strong>’s maiden residential project in Shanghai.<br />
One Park Avenue is the first of three phases of <strong>Keppel</strong><br />
<strong>Land</strong>’s 3,200-unit upmarket condominium development<br />
in Jingan district, Shanghai. The entire development sits<br />
on a 96,000 sm site and has been hailed as the largest<br />
upmarket residential development undertaken by a<br />
foreign developer in Jingan.<br />
The site is strategically located at the heart of the city,<br />
within walking distance to the Jingan Si MTR subway<br />
station. A new subway line along the western boundary<br />
of the site is also in the works. In addition, the Yanan and<br />
Chengdu Expressways further facilitate accessibility.<br />
The development is also conveniently situated close to<br />
Shanghai’s shopping and entertainment belt in Nanjing<br />
West Road which houses premier shopping malls like<br />
Plaza 66, Citic Square and Westgate Mall. International<br />
hotels like the Portman Ritz Carlton, the JC Mandarin and<br />
the Hilton Hotel are also close-by. Moreover, the Shanghai<br />
Exhibition Centre, the Shanghai Children Hospital as well<br />
as the Shanghai First Centre Primary School, one of the<br />
city’s top primary schools, are in the vicinity. Proximity to<br />
these services is highly valued in Shanghai.<br />
One Park Avenue has a site area of about 33,986 sm and<br />
will yield approximately 140,000 sm of gross floor area.<br />
It will comprise 1,100 exquisitely-designed one- to<br />
four- bedroom apartments, duplex and penthouses.<br />
A full range of facilities such as an Olympic-length heated<br />
swimming pool, tennis and squash courts, an aerobics room,<br />
a gymnasium, snooker and table tennis rooms as well as<br />
a children’s playroom will be housed in a sprawling<br />
underground clubhouse. The development will also<br />
feature a large 12,000 sm landscaped garden. The<br />
project is scheduled to be completed by end-2004.<br />
Designed to cater to the growing middle and upper<br />
income markets in Shanghai, as well as expatriates,<br />
One Park Avenue will be launched in the second half of<br />
2002.<br />
Shanghai - Ocean Towers<br />
One Park Avenue is an upmarket condominium development designed<br />
to cater to the growing middle and upper income markets in Shanghai.<br />
Ocean Towers, a 25-storey Grade A office building in<br />
which <strong>Keppel</strong> <strong>Land</strong> has a 29% stake, was completed in<br />
December 2001. The building is strategically located at<br />
Yanan East Road in the prime commercial district of<br />
Huangpu. It is near the tunnel entrance at the Huangpu<br />
CBD leading to the Pudong Financial District. The<br />
building has a net floor area of 36,000 sm. Its grand<br />
facade and spacious interior with large column-free areas<br />
have attracted multinational corporations among its<br />
tenants.
REVIEW OF OPERATIONS<br />
Stake in Dragon <strong>Land</strong><br />
<strong>Keppel</strong> <strong>Land</strong> has a 24.9% stake in China-focused Dragon<br />
<strong>Land</strong>. Dragon <strong>Land</strong>’s real-estate developments, which<br />
cover an area of more than 2,000 ha in the provincial cities<br />
of Qingdao, Shenyang, Changzhou and Anxi, will strengthen<br />
<strong>Keppel</strong> <strong>Land</strong>’s move into the local housing market in China.<br />
Kunming - Residential Project<br />
The Group plans to develop a residential development<br />
on a 380-ha site in Kunming, China. In December 2001,<br />
<strong>Keppel</strong> <strong>Land</strong> signed a Memorandum of Understanding<br />
with joint venture partner Yiliang Yang Zong Hai Tourist<br />
Resort Development Holding Co. on a 80-20%<br />
stakeholding basis respectively. The land will be injected<br />
by Yiliang Yang Zong Hai as its 20% equity.<br />
Official approval from the Provincial <strong>Land</strong> Bureau in<br />
Kunming to reserve the land for the proposed<br />
development has been obtained on 5 December 2001.<br />
The site for development is adjacent to <strong>Keppel</strong> <strong>Land</strong>’s<br />
existing Spring City Golf and Lake Resort, which has two<br />
M A R K E T R E V I E W<br />
China<br />
Residential<br />
China’s Domestic Demand for Housing is Enormous<br />
The residential sector in China continued to exhibit strong growth in sales value and volume in 2001. The availability of<br />
home mortgages from banks, as well as the Chinese government’s support for home-ownership, as seen in its housing<br />
sector reforms such as monetised housing benefits, tax rebates and other preferential policies, has bolstered sales across<br />
the country. Residential prices rose 9% year-on-year to an average RMB2,100 (US$254) psm in 2001, after a 7% rise in<br />
the previous year.<br />
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Moreover, since August 2001, foreigners have been able to invest in properties in Shanghai on the same terms as locals,<br />
without having to pay a premium and being restricted in access to local funding. Other cities are likely to follow suit in<br />
the merger of the local and foreign markets, generating strong demand for residential properties.<br />
With a huge population base of 1.3 billion, the impact of China’s rising domestic demand for housing is enormous. As<br />
such, foreign developers, especially those from Hong Kong, Singapore and Taiwan have entered the market in force.<br />
China’s entry into the WTO in 2001 also signals the influx of more foreign companies. This will swell the ranks of the<br />
middle-income class, which will in turn channel more disposable household income into property. Residential demand is<br />
also likely to rise on the back of an increasing number of expatriates in the cities who want international standard of living.<br />
Office<br />
Demand for Grade A Office Space in Shanghai Growing Significantly<br />
The influx of foreign investments and growth of domestic firms in the financial, insurance and telecommunication sectors<br />
have fuelled demand for quality office space, particularly in major cities like Shanghai and Beijing. Foreign companies<br />
opened or expanded representative offices and several multinational companies have even relocated their regional<br />
headquarters from elsewhere in China to Shanghai.<br />
The occupancy rate for prime Grade A office space in Shanghai reached a high of 98% by end-2001. Take-up was strong<br />
in prime areas in Central Puxi such as Nanjing Road, Huaihai Road and People’s Square, as well as Lujiazui in Pudong. With<br />
China’s entry into the WTO and Shanghai being a popular destination for FDI flows, office demand in this city is likely to<br />
remain strong.
REVIEW OF OPERATIONS<br />
world-class golf courses and resort homes. It is also part of<br />
a larger area adjoining Yang Zong Hai, which has been<br />
ear-marked for residential and resort development by the<br />
local government authorities.<br />
This residential development is <strong>Keppel</strong> <strong>Land</strong>’s second foray<br />
into Kunming, the first being the renowned Spring City<br />
Golf and Lake Resort, which is a joint venture with Yiliang<br />
Yang Zong Hai and other foreign partners. Spring City’s<br />
luxury resort homes have seen encouraging sales, and<br />
this has provided the impetus for <strong>Keppel</strong> <strong>Land</strong> to further<br />
participate in the development of the Yang Zong Hai<br />
area.<br />
<strong>Keppel</strong> <strong>Land</strong>’s new development in Kunming with<br />
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supporting amenities, will be modelled after the modern<br />
residential estates of the West, and will comprise homes<br />
for the local middle to upper income market.<br />
Spring City Golf and Lake Resort has clinched numerous accolades for<br />
its championship courses.<br />
When the new six-lane highway, currently under<br />
construction, is completed in 2004, travelling time<br />
between the development and Kunming City proper will<br />
only be about 25 minutes by car.<br />
When completed, the new residential development,<br />
together with Spring City, will help inject economic<br />
activity in Yunnan, draw visitor arrivals, and pave the<br />
way for Kunming to become one of China’s gateway<br />
cities and major tourist resorts.<br />
Kunming - Spring City Resort<br />
Spring City Golf and Lake Resort is the premier integrated<br />
golf resort in Kunming, with luxury villas nestled within<br />
the resort. It has two championship golf courses - the<br />
Mountain Course designed by Jack Nicklaus and the<br />
Lake Course by Robert Trend Jones Jr. Both courses have<br />
garnered numerous international accolades since they<br />
were completed in 1998.<br />
In 2001, the Lake Course won another two awards -<br />
‘Best Course in China’ and first runner-up for<br />
‘Best Course in Asia’ - at the Asian Golf Monthly Awards<br />
2000. Organised by Asia’s most well-read golf magazine,<br />
Asian Golf Monthly, the awards were held in conjunction<br />
with the Professional Golfers Association Show of Asia,<br />
and were part of the Singapore International Golf Festival<br />
which ran from 22 to 25 February 2001. Results were<br />
based on a region-wide survey of thousands of respondents<br />
on golf courses spanning countries such as China,<br />
Hong Kong, India, Indonesia, Malaysia, the Philippines,<br />
Korea, Taiwan and Thailand. The winners were also<br />
honoured in a special edition of the Golf Vacations<br />
magazine entitled ‘The Best of Choice Resorts’, which<br />
pays tribute to Asia’s finest golf courses, facilities and<br />
resort destinations.<br />
Another magazine, the Golf Digest, also voted the<br />
Lake Course the ‘Best Course in China’ out of all the<br />
top golf courses across 100 nations, in June 2001.
REVIEW OF OPERATIONS<br />
Equally outstanding, the Mountain Course at Spring City<br />
was nominated the ‘Best Golf Course in China and<br />
Hong Kong for 2001’ by the US Golf Digest.<br />
Two other publications, China Golf Digest and China<br />
Golf Magazine, voted the Spring City resort ‘The Most<br />
Favourite Golf Club in China’ and ‘My Favourite Golf Club<br />
2001’ respectively.<br />
With its temperate climate, stunning views of Yang Zong<br />
Hai Lake and a mountainous backdrop, Spring City Golf<br />
and Lake Resort was host to several major tournaments<br />
during the year. These include the China British American<br />
Tobacco Golf Circuit, inter-port golf tournaments with<br />
Shanghai SunIsland, the Board of Governors’ Cup, the<br />
Spring City Cup as well as the 2nd National Golf Resorts<br />
& Clubs’ General Managers’ Conference.<br />
The resort homes in the Spring City Golf and Lake Resort<br />
have also been very well-received. The first two collections<br />
of resort homes, The Primrose and The Magnolia, have<br />
been fully sold and completed. The Primrose comprises<br />
50 resort homes. The Magnolia, with 82 units of luxurious<br />
villas, was completed in mid-2001. Sales for the third<br />
phase, Azalea I, have also been encouraging. To date,<br />
more than 50% of the 63 apartments and villas launched<br />
have been sold. They are expected to be completed by<br />
June 2003.<br />
HONG KONG<br />
<strong>Keppel</strong> <strong>Land</strong> is part of a consortium which developed a<br />
large scale 1,288 unit condominium project above the<br />
Kowloon MTR Station along the MTR Airport Line.<br />
Other members in the Wing Tai-led consortium include<br />
Temasek Holdings, Singapore <strong>Land</strong> and Hong Kong’s<br />
Lai Sun Development, Worldwide Investment and USI<br />
Holdings.<br />
To date, some 65% of the units have been sold. One of<br />
the six blocks is currently held for investment and will be<br />
released for sale when prices rebound.<br />
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M A R K E T R E V I E W<br />
Hong Kong<br />
Residential Demand Picking Up<br />
The residential market started bottoming out in end-2001, after a series of interest rate cuts, changes to the government<br />
housing policies and developers’ attractive packages. Prime rates have fallen to 5.25%, making it cheaper to buy than to<br />
rent. Developers have also put in extra sweeteners such as cash rebates and second mortgages. The latter gives the buyer<br />
the option to take up a loan from the developer amounting to around 25% of the property’s price, on top of the 70% loan<br />
from the banks.<br />
Interest in the mass market continued into 2002 due to flexible instalment packages. Purchasers only need to pay a minimal<br />
monthly installment in the first two to three years and defer all payments to later years of the mortgage. This serves to<br />
lower the entry barrier for first time homebuyers, resulting in strong sales at newly launched projects in West Kowloon and<br />
Tseung Kwan O. The number of transactions in the luxury end market in 1Q2002 also increased by more than 50% over<br />
4Q2001.<br />
Outlook for 2002<br />
In February 2002, the government lowered the income ceiling for public housing from HK$25,000 to HK$21,000 per<br />
month. As a result, an estimated 21,000 families will no longer be eligible for government flats. This move will boost the<br />
private residential property market, with take-up for 2002 forecast to rise by 10% to 15% from last year’s 21,300 units.<br />
The outlook for prices, however, is mixed, with forecasts ranging from a 10% rise to a 10% drop due to oversupply and a<br />
still fragile HK economy.
REVIEW OF OPERATIONS<br />
Indonesia<br />
Jakarta - Wisma BCA<br />
Wisma BCA comprises two office towers located in the<br />
heart of the financial and business district along Jalan<br />
Jenderal Sudirman. It is within close proximity to five-star<br />
hotels, embassies and other prime office buildings. This<br />
property was acquired by <strong>Keppel</strong> <strong>Land</strong> from PT Holdiko<br />
Perkasa in December 2000 as part of the asset disposal<br />
programme by the Indonesian Bank Restructuring Agency.<br />
As of December 2001, Wisma BCA is fully tenanted.<br />
Jakarta - Pasadenia Garden<br />
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Taman Pasadenia is a low-density development on an<br />
8-ha site within the upper-middle class Pulomas residential<br />
estate. This is <strong>Keppel</strong> <strong>Land</strong>’s first residential project in<br />
Indonesia. The first phase, which comprises two blocks of<br />
8-storey strata-titled condominium units, two blocks of<br />
4-storey rental apartments and a clubhouse, was<br />
completed in late-1996. Due to the present difficult<br />
situation in Indonesia, Phase Two of the development is<br />
currently put on hold. As an interim measure, the land<br />
has been leased out to another investor who is operating<br />
a temporary 40-bay golf driving range.<br />
The fully-tenanted Wisma BCA is located in the heart of the financial<br />
and business district of Jakarta.<br />
Yogyakarta - Melia Purosani Hotel<br />
due to the September 11 attacks in the US.<br />
The hotel’s performance has been affected by the<br />
reduction in international arrivals and domestic travel<br />
Strategically located at the heart of the city, it is poised to<br />
improve its performance once travel volumes pick up.<br />
M A R K E T R E V I E W<br />
Indonesia<br />
Despite the global economic downturn, Indonesia’s GDP grew by 3.3% in 2001. GDP growth for 2002 is now projected to<br />
be 4%.<br />
The Indonesian Bank Restructuring Agency reported that it had raised a total of Rp 27.98 trillion (about US$ 2.7 billion) in cash<br />
and Rp 10.6 trillion worth of recapitalised bonds, slightly exceeding its target for 2001’s state budget.
M A R K E T R E V I E W<br />
Jakarta<br />
Residential<br />
Apartment Rentals and Condominium Demand Showed Gradual Improvement in 2001<br />
As of end-2001, the overall supply of residential units available for rent is 14,699 units. The average occupancy is 59.8%,<br />
which is a slight improvement over last year’s 57.2%. Monthly average gross rental achieved is Rp146,000 psm for<br />
apartments in the prime residential area. Average rental is likely to remain stable due to limited new supply.<br />
In the condominium market, the total stock of strata titled units is 26,313 units as of December 2001. The estimated sales<br />
rate is 77.1%. Average prices achieved are Rp13.1 million psm for units located within the CBD and Rp 7.6 million psm for<br />
prime residential areas.<br />
As compared to a year ago, the sales rate has improved by 31.3%. Average prices achieved have also improved by 23.7%<br />
for the CBD area and 21% for prime residential areas.<br />
Office<br />
Office Demand Expected to Improve in the Medium Term<br />
As of end-2001, the total office supply in Jakarta CBD is 2.93 million sm with offices achieving an average occupancy of 77.3%.<br />
The average monthly gross rentals achieved is Rp 99,900 psm for CBD offices. This represents an increase of 6% year-on-year.<br />
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The September 11 attacks in the US have adversely affected the leasing activities of the Jakarta office market. In the short<br />
term, many foreign companies have put off their expansion plans. However, in the medium term, overall office demand is<br />
likely to improve in tandem with the anticipated global economic recovery.<br />
REVIEW OF OPERATIONS<br />
Bintan - Ria Bintan<br />
Ria Bintan is a premier integrated resort within the Bintan<br />
Beach International Resort. The 447-ha development,<br />
comprising Club Med Resort, hotels, resort homes and<br />
golf courses, will be developed over four phases. Club<br />
Med Ria Bintan, a beachfront resort with 302 rooms and<br />
completed in 1997, continues to attract international<br />
visitors with average annual occupancy above 60%.<br />
Ria Bintan Golf Club is a 36-hole championship golf<br />
course designed by golf legend, Gary Player. The 18-hole<br />
Ocean Course and the first nine holes of the 18-hole<br />
Forest Course opened for play in October 1998 and<br />
December 2000 respectively.<br />
For the second year running, Ria Bintan Golf Club has<br />
made it to the Top Courses in 100 Nations by the Golf<br />
Digest magazine. Ria Bintan Golf Club is ranked No. 2<br />
after Nirwana Bali Golf Club from among the 295 golf<br />
courses in Indonesia.<br />
In February 2001, Ria Bintan Golf Club clinched the first<br />
runner-up position in the Asian Golf Monthly Awards 2000<br />
for Best Golf Resort in Asia, Best Course in Indonesia and<br />
Best Par 4 in Asia. In May 2001, Ria Bintan Golf Club<br />
obtained the official course ratings from the Indonesia<br />
Golf Association and hosted the Singapore qualifier for<br />
the World Corporate Golf Challenge. In December 2001,<br />
Ria Bintan Golf Club was voted Best Golf Course and<br />
Best Club 2001 by Golf Asia for golf clubs in the region.
REVIEW OF OPERATIONS<br />
The remaining nine holes of the Forest Course will be<br />
completed in later phases of the development. The first<br />
500 waterfront resort homes have been planned on a<br />
22-ha site adjacent to the Club Med Resort. The<br />
development of Phase One, comprising 64 resort homes,<br />
is subject to market conditions.<br />
Surabaya - Galleria Tunjungan<br />
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<strong>Keppel</strong> <strong>Land</strong> has an 80% stake in a joint venture to develop<br />
a retail and office complex on a prime 23,384 sm site in the<br />
heart of Surabaya CBD. Named Galleria Tunjungan, the<br />
first phase of the project will comprise about 76,000 sm of<br />
retail space.<br />
Surabaya - Wijaya Centre site<br />
<strong>Keppel</strong> <strong>Land</strong> holds an 80% stake in a mixed-use<br />
retail-cum-commercial complex which is being planned<br />
on a 26,000 sm site in Surabaya CBD.<br />
Manado - Hotel Sedona Manado<br />
Hotel Sedona Manado is a resort hotel located at Tateli,<br />
12 km from Manado, the capital of North Sulawesi.<br />
When completed, it will have 247 rooms and suites with<br />
recreational facilities like a private swimming lagoon, a<br />
swimming pool, a tennis court, a fitness club and other<br />
Ria Bintan Golf Club is ranked number two among 295 golf courses in<br />
Indonesia.<br />
sea-sports facilities. It will also offer easy access to the diving<br />
sites in the area. The opening is subject to market conditions.<br />
Bali - Tanah Lot Beach Resort<br />
Tanah Lot Resort is an integrated resort development<br />
located along the southwestern coastline of Bali,<br />
overlooking the Indian Ocean. International-class hotels<br />
and resort homes have been included in the master<br />
plan of this 108 ha site. <strong>Land</strong> acquisition activities to<br />
consolidate the site are in the final stages.<br />
M A R K E T R E V I E W<br />
Surabaya<br />
Retail<br />
Positive Demand for Surabaya Retail Space due to Limited New Supply<br />
As at end-December 2001, the cumulative supply of retail space increased by 32,500 sm to 246,900 sm. The increase<br />
came from a new retail centre, Tunjungan Plaza IV, which opened in December 2001. With limited new retail space,<br />
average occupancy level remained high at 93% with quality centres achieving almost full occupancy. For prime ground<br />
floor space, the average monthly rental also improved by 25.4% to Rp 191,300 psm.<br />
With increase in demand and limited available space, the average rentals are likely to increase further in 2002.
REVIEW OF OPERATIONS<br />
MALAYSIA<br />
Johor - Taman Sutera<br />
Taman Sutera is a 500-ha township project in Johor<br />
strategically located close to the city centre of Johor Baru,<br />
Senai International Airport, the North-South Highway and<br />
the second causeway between Malaysia and Singapore.<br />
<strong>Keppel</strong> <strong>Land</strong>, together with joint-venture partners, is<br />
developing this township over two main development<br />
zones which will have residential and commercial space as<br />
well as recreational facilities. A bridge across Skudai River has<br />
been constructed and opened to traffic since 1 July 2001,<br />
offering direct access to the Skudai Expressway.<br />
The sales take-up rate has continually improved especially<br />
for the completed units as buyers took advantage of the<br />
stamp duty waiver. In the wake of the September 11<br />
attacks in US, the market started to slow down as buyers<br />
postponed their buying decisions. As at December 2001,<br />
85% of the 1,544 units launched have been sold.<br />
Penang - Taman Jernih<br />
<strong>Keppel</strong> <strong>Land</strong> is currently developing a 14.4 ha freehold<br />
site in Bukit Mertajam, Penang for residential and<br />
commercial use. The development, known as Taman Jernih,<br />
85% of the 1,544 units at Taman Sutera have already been sold.<br />
is a joint venture with the Malaysian Boustead Group. To<br />
be developed over four phases, the entire development<br />
will have a total of 515 residential units comprising<br />
352 terraced houses, 28 semi-detached houses, 120 cluster<br />
houses, 15 units of shophouses, and 2 bungalow plots.<br />
Phases 1, 1A, 2, 2C and 3A comprising a total of 382 units<br />
have recorded 94% sales. Phase 3B, comprising 67 units<br />
of terraced and semi-detached houses, is expected to be<br />
launched in 2002.<br />
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Malaysia<br />
Government Pump Priming Expected to Shore Up Economy<br />
The Malaysian economy avoided a full-year recession, showing only 0.5% decline in the last quarter of 2001, thereby<br />
bringing full-year GDP growth to 0.4%.<br />
Given that the government has stepped up pump priming, as reflected in the rising pace of project awards, visibly stronger<br />
growth is expected in the construction sector within these two years. In recognising the need to attract foreign capital to<br />
boost the domestic economy, the government has further relaxed restrictions on acquisition of properties by foreigners.<br />
The Malaysian Central Bank projects economic growth of about 3.5% in 2002, while private sector economists anticipate<br />
growth ranging from 2% to 5%. Domestic pump priming, coupled with a recovery in external demand anticipated in<br />
2002, is expected to spur growth.
M A R K E T R E V I E W<br />
Malaysia<br />
Residential<br />
Consolidation in the property market is continuing with no clear sign of a broad-based revival. With ongoing projects still<br />
adding to stock, and investors remaining cautious on growth prospects, recovery is expected to be slow.<br />
The uncertain economic outlook and overbuilt commercial property market continue to restrain purchase and investment<br />
decisions. With increasing unemployment rate and decreasing values and rents, the market’s cautious outlook is likely to<br />
remain in the short to medium term.<br />
Gradual Recovery Expected in Johor Baru<br />
In Johor, a number of housing projects was launched in 2001 with a large proportion being lower-end landed houses. In<br />
the first half of 2001, the value and number of transactions in Johor were up 9% and 12% year-on-year, respectively, but<br />
in the second half of 2001, property sales slowed down due to economic downturn.<br />
The stimulation measures introduced by the government in 2001 played an important role in sustaining the demand for<br />
houses in Johor Baru. Apart from incentives offered by the government such as stamp duty waiver, attractive financing<br />
packages offered by the financial institutions have made purchasing of houses more affordable. Recovery is expected to<br />
be gradual in the light of a projected slower economic growth.<br />
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Demand Likely to Soften in Penang in Short to Medium Term<br />
The overhang of residential property in Penang has been reduced tremendously over the past year. With the improvement<br />
in the supply situation, a more stable market is expected in the short term. The average sales rate achieved for units<br />
launched in 2001 was about 57%. The relatively good sales achieved was due to attractive housing loan packages offered<br />
by banks and developers, the Home Ownership Campaign which offered higher discounts on property prices, free legal<br />
fees and stamp duties, and the government’s efforts in providing assistance and incentives such as the withdrawal of EPF<br />
savings for the purchase of a second house. However, with the weaker global economic outlook, the demand for housing<br />
is likely to be softer in the short to medium term.<br />
REVIEW OF OPERATIONS<br />
MYANMAR<br />
Sedona Hotel Yangon<br />
Sedona Hotel Yangon has gained the reputation of being<br />
one of the best business hotels in Myanmar. With its<br />
location just by the famous Kabe Aye Pagoda Road and its<br />
close proximity to the airport, the city centre, and the<br />
Shwedagon Pagoda and Inya Lake, Sedona Hotel Yangon<br />
has been the hotel of choice of business travellers.<br />
Although the on-going trade embargo and the aftermath<br />
of the September 11 attacks have affected the business<br />
environment, the average occupancy rate for the<br />
175 rooms in operation has improved to about 58% as<br />
compared to 44% last year.<br />
Sedona Hotel Yangon - hotel of choice among business travellers<br />
to Myanmar.
REVIEW OF OPERATIONS<br />
Sedona Hotel Mandalay<br />
As the only premier hotel in Mandalay, Sedona Hotel<br />
Mandalay has managed to maintain full occupancy for<br />
the 56 rooms in operation.<br />
With its excellent location opposite the Mandalay Palace<br />
and the high level of service synonymous with the Sedona<br />
brand name, Sedona Hotel Mandalay has also been the<br />
preferred hotel of many business and leisure travellers.<br />
With the strategic business alliances formed with airlines<br />
and travel agents, cross-selling between the two hotels<br />
in Myanmar, and active promotions through Sedona<br />
Hotel International’s website, occupancy rates for the<br />
two hotels are expected to improve further in 2002.<br />
Sedona Hotel Mandalay enjoys good occupancy despite the challenging<br />
economic environment.<br />
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Myanmar<br />
Myanmar continues to be hampered by economic problems such as declining foreign direct investments, weak industrial<br />
growth as well as depressed conditions in the construction and property sectors. GDP growth for 2001 is estimated at<br />
about 3% and is anticipated to remain within this range in the near term.<br />
With the on-going trade embargo and the aftermath of the September 11 attacks in the US, tourist arrivals have slumped<br />
to almost 50%. However, with the government actively promoting Myanmar as an exotic destination, there may be a<br />
modest increase in tourist arrivals in 2002 as Asian travellers seek vacation spots closer to home.
REVIEW OF OPERATIONS<br />
PHILIPPINES<br />
<strong>Keppel</strong> Philippines Properties focuses on resilient<br />
market niches<br />
The delayed recovery of the property market has<br />
compelled <strong>Keppel</strong> Philippines Properties (KPP) to remain<br />
focused on sectors with relatively sound fundamentals,<br />
namely in the middle-income residential and retail<br />
markets.<br />
Metro Manila - Palmdale Heights<br />
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This is KPP’s first residential development under the Buena<br />
Homes brand name, which is being promoted as a choice<br />
developer of affordable quality homes. Palmdale Heights’<br />
strategic location between Makati and Ortigas CBDs<br />
makes it an ideal choice for employees working in the<br />
two business districts. A 4,000-unit condominium<br />
development spread over 29 blocks, Palmdale Heights will<br />
also have two commercial centres, a two-storey club-<br />
<strong>Keppel</strong> Philippines Properties will continue to leverage on its reputation<br />
as a choice developer of affordable quality homes.<br />
house, swimming pools, parks and playgrounds to<br />
enhance family and community life. Sales commenced in<br />
July 2001. Despite the soft market, almost one block<br />
comprising 138 units has been sold.<br />
M A R K E T R E V I E W<br />
Philippines<br />
Peaceful Transition of Power Reinforced Resilience of Domestic Economy<br />
The government’s pro-business stance has supported the economy. Despite heightened global economic uncertainty<br />
following the September 11 attacks, the economy grew 3.4% in 2001 on the back of strong consumer spending,<br />
prudent fiscal and monetary policies and improving investor confidence. Forecast economic growth in 2002 is about<br />
4.5%.<br />
Residential<br />
Middle-income Residential Prospects Still Sound but Luxury Market Remains Subdued<br />
Despite generally weak market sentiments in the property market, prospects for middle-income residential housing remains<br />
sound especially around the major business districts. Buyers are focused on affordability, the availability of flexible in-house<br />
financing schemes, the developer’s track record and preference for substantially completed projects. In contrast, the luxury<br />
residential sector remains in the doldrums given the soft market conditions.
REVIEW OF OPERATIONS<br />
Metro Manila - SM-KL Towers<br />
Manila - Metro North Township<br />
SM-KL Towers, a tri-tower project linked by a five-level<br />
retail podium, is envisioned to be a prime office, residential<br />
and shopping hub in the Ortigas CBD. In view of the<br />
unfavourable market conditions, the office and residential<br />
components have been deferred. However, the resilient<br />
retail sector has encouraged the development of Phase<br />
One of the retail podium, which was soft-launched in<br />
December 2001. Known as The Podium, the mall targets<br />
young urban professionals and residents of neighbouring<br />
upmarket homes. The curved full-height glass shop front<br />
inside the atrium is a first in the Philippines. The Podium<br />
provides the latest in fashion, merchandise and F&B<br />
concepts. The mall is about 90% occupied, with<br />
well-known retailers such as Lacoste, Calvin Klein,<br />
The Body Shop, Nike CMG, Speedo, Swatch, Rockport,<br />
and Braun Buffel.<br />
Benguet Center, an existing six-storey office building on<br />
the development site, continues to enjoy full occupancy<br />
and above-average rental rates despite the oversupply in<br />
Ortigas.<br />
KPP has an option with Araneta Properties to jointly<br />
develop a residential township called the Metro North<br />
Township. Located in a 600-ha site in San Jose del Monte,<br />
north of the Ortigas CBD, the development incorporates<br />
residential, commercial, and recreational components to<br />
cater to the residents in Bulacan, Quezon City, Caloocan<br />
City, and provinces directly north of Metro Manila.<br />
Preparation of the township’s master plan is in its final<br />
stages.<br />
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SM-KL Towers’ retail podium mall targets young urban professionals<br />
and residents of neighbouring upmarket homes.
M A R K E T R E V I E W<br />
Philippines<br />
Office<br />
Office Market Likely to also Remain Subdued<br />
The office sector remains subdued due to oversupply. The average vacancy rates at end-2001 were about 17% in Makati<br />
and 23% in Ortigas, but are expected to improve to about 14% and 21% respectively in 2002. The office market appears<br />
to have bottomed out in 2001 as rents and capital values have remained unchanged over the last three quarters of 2001.<br />
Grade A monthly rents and capital values are 580 pesos psm and 65,000 psm for Makati CBD, and 345 pesos psm and<br />
40,000 pesos psm for Ortigas CBD. These are expected to remain unchanged in 2002.<br />
Retail<br />
Healthy Consumer Spending Continues to Propel Retail Sector<br />
in Review<br />
78<br />
In view of the continued resilience of the consumer sector, mall development activities remain active. In Metro Manila<br />
alone, supply of leasable retail space is about 3.3 million sm by end-2001, up from 3.15 million sm in the previous year.<br />
Established and well-located malls continue to enjoy full or near-full occupancies. Effective retail rents in both the Makati<br />
and Ortigas CBDs have increased by an average of 8% year-on-year to about 950 pesos psm per month, and 9% to<br />
755 pesos psm respectively in 2001.<br />
The Year<br />
REVIEW OF OPERATIONS<br />
THAILAND<br />
Five Stars Property<br />
<strong>Keppel</strong> <strong>Land</strong> made its first foray into Thailand in early<br />
2000, taking a 45.45% stake in Five Stars Property, a listed<br />
company on the Stock Exchange of Thailand. Five Stars<br />
Property is now a debt-free company following the<br />
enlargement of its share capital and restructuring of its<br />
borrowings.<br />
Properties currently under its portfolio include Jewellery<br />
Centre, a 34-storey commercial tower within the CBD in<br />
Surawong, and strata units in Sukhaphiban 3 Mansion.<br />
Nana Tai Mansion, a serviced apartment development<br />
at Sukhumvit 4 in Bangkok, was divested as part of the<br />
Group’s drive towards unlocking asset value and<br />
re-channelling resources to seek higher returns.<br />
The Jewellery Centre is one of the commercial centres under<br />
Five Stars Property’s portfolio.
REVIEW OF OPERATIONS<br />
Five Stars Property will focus on the development of<br />
trading properties, particularly local detached housing.<br />
Such a move is taken in the light of improved market<br />
conditions, lowest mortgage rates in decades, strong<br />
demand on limited supply of new homes and the<br />
government’s measures to encourage home ownership.<br />
The company is actively seeking sites for landed residential<br />
housing to tap on the demand for single detached<br />
housing in Thailand.<br />
Subject to its shareholders’ approval, the company is<br />
proposing to change its name to <strong>Keppel</strong> Thai Properties<br />
Public Company Limited.<br />
The proposed change if approved, will enable the<br />
company to capitalise on <strong>Keppel</strong> <strong>Land</strong>’s reputation as<br />
an established regional property player and enjoy<br />
marketing advantage.<br />
M A R K E T R E V I E W<br />
Thailand<br />
Gradual Economic Recovery with Opportunities Within Certain Property Market Segments<br />
Despite poor sentiments in the global economy, Thailand’s GDP grew by 1.8% in 2001. For 2002, a GDP growth of<br />
between 2.0% to 3.0 % is projected.<br />
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Interest rates remain low and are expected to trend even lower in 2002, with mortgage rates at 4%. Together with<br />
government initiatives, certain segments of the property market, in particular, the middle and upper-end residential<br />
markets are expected to grow in 2002.<br />
Residential<br />
<strong>Land</strong>ed Housing Sector is the Most Active Property Segment<br />
Sales of landed properties have increased with strong end-user demand, especially for developer-built homes. In Bangkok,<br />
the take-up increased by 11% in 2001, compared to a year ago. Housing prices have also gone up by about the same<br />
percentage. Demand is further driven by competitive mortgage rates, tight supply and consumer confidence. Market sales<br />
growth has been forecast at 20%, and the average prices may rise another 8%.
REVIEW OF OPERATIONS<br />
VIETNAM<br />
Ho Chi Minh City - Saigon Centre<br />
Located in the CBD of Ho Chi Minh City and fronting Le Loi<br />
Boulevard, the city’s main thoroughfare, Saigon Centre is a<br />
mixed commercial landmark development on a 2-ha site.<br />
To be developed in phases, Saigon Centre will comprise<br />
international-standard office buildings, serviced apartments<br />
and a hotel interlinked by a retail podium when fully<br />
completed. <strong>Keppel</strong> <strong>Land</strong> owns 68% of Saigon Centre.<br />
The Year<br />
in Review<br />
80<br />
Phase One, a 25-storey building comprising 3-level<br />
basement carpark, 3-level retail podium, 11 levels of offices<br />
and 89 units of serviced apartments was completed in 1996<br />
and to date, has won several awards for its high level of<br />
services and management as well as the quality of the<br />
building. Despite stiff competition, all the components<br />
of Phase One have managed to achieve an average<br />
occupancy of more than 95% and Saigon Centre has<br />
maintained its position as the market leader in terms of<br />
occupancy and rental rates in Ho Chi Minh City.<br />
Ho Chi Minh City - Tamarind Park<br />
Tamarind Park, a proposed 20-storey apartment tower,<br />
is designed to meet the high expectations of expatriates.<br />
Located in the prime District 1, it is within walking<br />
Saigon Centre remains the market leader in terms of occupancy<br />
and rental rates in Ho Chi Minh City.<br />
distance to the commercial and shopping areas in the city<br />
centre. As it is located in a cul-de-sac, the development<br />
will provide a private and exclusive area for the residents.<br />
Hanoi - International Centre<br />
International Centre, located in the city centre, is the first<br />
international standard office building in Hanoi. It has<br />
consistently achieved an occupancy level above 85% and<br />
boasts of an international tenant profile comprising<br />
MNCs, legal and financial institutions, and airlines.<br />
<strong>Keppel</strong> <strong>Land</strong> holds a 41% stake in this Grade A building<br />
offering more than 7,585 sm of prime office space.<br />
M A R K E T R E V I E W<br />
Vietnam<br />
Foreign Direct Investments Rise Despite Worsening Global Economy<br />
The Bilateral Trade Agreement between Vietnam and US was ratified by Vietnam’s National Assembly in December 2001.<br />
It is expected to pave the way for an open economic relationship between the two countries and will create new market<br />
access for agricultural, industrial and services for US companies. This will spur investors from other countries to explore<br />
either similar or supporting business opportunities in Vietnam as well.<br />
In spite of the worsening global economy, the general statistics office has reported that foreign direct investments surged<br />
to US$3 billion in 2001, an increase of 26% compared to the previous year. While other economies may have gone into<br />
recession, Vietnam’s GDP growth for 2001 is 7.1%. The government anticipates GDP growth to be 7.3% for 2002.
REVIEW OF OPERATIONS<br />
Hanoi - Royal Park<br />
Located adjacent to the picturesque Ho Tay Lake, Sedona<br />
Suites Hanoi has remained the preferred residential address<br />
of the diplomatic corps, businessmen and expatriates.<br />
Comprising 175 serviced apartments and villas and a<br />
clubhouse with a comprehensive range of facilities such<br />
as a free form swimming pool, tennis and squash courts, a<br />
jacuzzi and a private jetty, Sedona Suites Hanoi has enjoyed<br />
an occupancy of more than 90% and is the market leader<br />
in terms of occupancy and rental rates in Hanoi.<br />
Hanoi - Vietcombank Tower<br />
Opened in July 2001, Vietcombank Towers is the latest<br />
international standard office building in Hanoi. Soaring 22<br />
M A R K E T R E V I E W<br />
storeys high and comprising 19,263 sm of prime office<br />
space, Vietcombank Towers offers its tenants a panoramic<br />
view of the city centre of Hanoi and beyond. Only in its<br />
first year of operation, Vietcombank Towers has achieved<br />
occupancy of above 75% with Vietcombank as the<br />
anchor tenant. <strong>Keppel</strong> <strong>Land</strong> has a 6% stake in Vietcombank<br />
Towers.<br />
Vung Tau - Petro Vietnam Towers<br />
<strong>Keppel</strong> <strong>Land</strong> holds a 12.9% stake in Petro Vietnam Towers,<br />
the first and only international standard commercial<br />
building in Vung Tau.<br />
Completed in mid-1997 with 12,465 sm of prime office<br />
space, it has attracted tenants from the oil and gas,<br />
petrochemical and financial industries.<br />
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VIETNAM<br />
Office Sector<br />
The sector has been affected by the downsizing of some IT related companies and the closure of some airline companies.<br />
However, this is offset by the opening of the insurance industry to foreign companies, resulting in take-up of large office space.<br />
Grade A offices located in the city centre of Hanoi and Ho Chi Minh City (HCMC) still command good occupancy levels of<br />
between 80% and 90% and average rental rates of US$15 - US$20 psm per month. Rental rates also seemed to have<br />
bottomed out and are likely to improve in 2002.<br />
Residential Sector<br />
Serviced Apartments<br />
Well-managed apartments with recreational facilities still enjoy good occupancy levels of 80 - 90% in Hanoi and 85 - 95%<br />
in HCMC. Rental rates have remained steady at US$20 - US$25psm per month in Hanoi and US$25 - US$30 psm per<br />
month in HCMC and are expected to improve in 2002.<br />
Local Housing<br />
The recent amendments to the land law and the decrees issued by the Vietnamese Government allowing overseas Vietnamese to<br />
purchase and own houses or apartments have stimulated the local housing market especially in HCMC. Coupled with<br />
steady economic growth and rising affluence, more local Vietnamese are aspiring to live in a well-planned residential area<br />
with higher quality finishes and amenities compared with the existing housing projects.
REVIEW OF OPERATIONS<br />
The Year<br />
in Review<br />
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SEDONA HOTELS INTERNATIONAL<br />
Sedona Hotels International continues to build on its<br />
motto “Experience Sedona, where welcome is not just a<br />
word, it’s our philosophy”, delivering the utmost in guest<br />
satisfaction and Asian hospitality in the region.<br />
In 2001, Sedona Suites in Hanoi and Ho Chi Minh City<br />
enjoyed healthy occupancies of 90% and 95%<br />
respectively. In fact, Sedona Suites Ho Chi Minh City has<br />
bucked the industry trend of falling occupancies despite<br />
the fierce competition in the executive residences market<br />
and the temporary decline in short-term business<br />
travellers, especially from the US in the aftermath of the<br />
September 11 incidents.<br />
The ongoing trade sanctions against Myanmar, the<br />
slowdown in the global economy and the continued<br />
concern over flying after September 11 have not deterred<br />
the Group’s hotels in Myanmar from delivering higher<br />
occupancies than the previous year. Sedona Hotel Yangon<br />
increased its room occupancy to 58% from 44% last<br />
year for the 175 rooms in operation. This increase was<br />
attributed to the aggressive sales and marketing strategies<br />
that generated more demand from the government and<br />
corporate market segments. Sedona Hotel Mandalay<br />
maintained full occupancy with the 56 rooms in<br />
operation. The two hotels are currently market leaders<br />
in Yangon and Mandalay.<br />
In Australia, the tourism industry was dampened with<br />
the fall of Ansett Australia airlines. Occupancies and<br />
average room rates fell for the bigger hotels in the city.<br />
However, the Crescent on Bayswater in Sydney was only<br />
affected minimally, achieving occupancy of 75%, a slight<br />
decline from 77% in 2000. The hotel and retail complex<br />
has since been divested as part of the Group’s direction to<br />
focus on trading development projects.<br />
Marketing Initiatives<br />
Internet<br />
Sedona’s corporate website www.sedonahotels.com.sg<br />
was revamped in July 2001. The revamped website offers<br />
real-time online booking and instant confirmation services.<br />
Online customers from around the world can choose to<br />
receive regular promotional updates from Sedona via the<br />
Sedona Email Club. Holiday planners are able to access<br />
travel information on any of the Sedona hotels. The<br />
website also features destination guides as well as<br />
breaking news and special hotel deals.<br />
Sedona Hotels International continues to deliver the utmost in guest<br />
satisfaction and Asian hospitality.<br />
According to the World Tourism Organisation Business<br />
Council, the Internet will account for one in every four<br />
travel purchases in the main generating markets within<br />
the next five years. Tapping the growth potential in<br />
online travel sales, Sedona has carved exposure in various<br />
popular travel websites such as travelocity.com,
M A R K E T R E V I E W<br />
Signs of Recovery<br />
The September 11 incidents have had a negative impact on the worldwide travel and tourism industry. Consumer confidence<br />
in flying was deeply shaken and the weak global economy has hit business travel more severely than leisure travel.<br />
In the first quarter of 2002, the situation has gradually improved. Reservations worldwide are picking up and renewed<br />
growth is expected for 2002, barring unforeseen circumstances.<br />
In Vietnam, the ratification of the Bilateral Trade Agreement with the US is expected to improve the business climate and<br />
attract more US companies to invest in this emerging market. This will in turn lead to greater demand for short and longterm<br />
accommodation in both Ho Chi Minh City and Hanoi.<br />
In Myanmar, an increase in arrivals in leisure travellers from the ASEAN region is expected due to the close proximity and<br />
the vigorous sales and marketing efforts undertaken to promote the country as an exotic tourist destination. The long haul<br />
leisure market from Europe is expected to recover in 2002 when the European economies recover and the confidence in air<br />
travel returns.<br />
REVIEW OF OPERATIONS<br />
travelweb.com, asiahotels.com, holidaycity.com,<br />
asiatravel.com and placestostay.com.<br />
Advertising<br />
and also explored joint promotion opportunities with<br />
companies and associations that have a huge membership<br />
base, such as Singapore Telecommunications and the<br />
NUS Alumnus.<br />
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Sedona’s advertising campaign for 2001 positions<br />
Sedona Hotels as the preferred choice for both discerning<br />
business and leisure travellers. The lifestyle print<br />
advertisement is featured in inflight, travel and business<br />
magazines for maximum exposure and a sound presence<br />
amongst the travel trade and consumers.<br />
Trade Shows<br />
Sedona Hotels International participated in several major<br />
trade shows in 2001, including the Asean Tourism Forum<br />
in Brunei, Travel Indonesia Mart and Exhibition in Jakarta<br />
and the International Tourism Exchange in Berlin.<br />
Strategic Alliances<br />
Business alliances were forged with travel partners such<br />
as airlines and travel agencies. Sedona had been active in<br />
seeking alliances with major credit card companies,<br />
Click here, stay there - Sedona Hotels’ new cyber-experience has<br />
been revamped.
Positioning for China<br />
The Year<br />
in Review<br />
84<br />
With the global economy in the doldrums and major<br />
economies floundering in the aftermath of the<br />
September 11 attacks on the US, China, with its robust<br />
economic growth, looms like a beacon for foreign<br />
investors.<br />
The Chinese economy grew 7.3% in 2001, driven<br />
mainly by domestic consumption and investment.<br />
Despite the sharp decline in external demand caused<br />
by the global slowdown in the second half of the<br />
year, strong economic growth was sustained via the<br />
government’s fiscal stimulus, increased foreign<br />
investments and policies that encourage domestic<br />
consumption and private investment.<br />
Foreign direct investments (FDI) reached US$46 billion<br />
in 2001, outperforming the previous year’s<br />
US$40.7 billion. China approved more than 26,000<br />
new foreign-invested enterprises, 16% more than the<br />
previous year. This brings the total number of foreign<br />
firms in China now to close to 400,000. China’s<br />
successful entry into the World Trade Organisation (WTO)<br />
will attract a flood of fresh investments into the country,<br />
creating more jobs and increasing household incomes<br />
which will in turn result in aspirations for better housing.<br />
local housing demand from state-owned homes to<br />
private homes.<br />
In a move to end the state allocation housing system,<br />
government entities and state-owned enterprises are<br />
banned from engaging in property development.<br />
Instead, employees receive tax-exempt cash subsidies<br />
which can be used to finance the purchase of a home.<br />
To privatise the state-owned units, as well as to<br />
introduce a market mechanism to encourage individual<br />
purchasing and the creation of a secondary market,<br />
existing state-owned housing is being sold at a<br />
significant discount ranging from 20% to 40% below<br />
market price.<br />
While families can continue to rent staff quarters from<br />
state-owned enterprises, rental rates are high and are set<br />
to rise to commercial market levels. In Shanghai, rental<br />
rates for most public housing rose by 40% to 50% after<br />
September 1998. This provides the impetus for more<br />
people to give up their public housing units and<br />
purchase private homes.<br />
Real estate has become one of the driving forces of<br />
the Chinese economy. In 2001, property investment<br />
accounted for 6.6% of GDP, up from 5.5% in 2000. The<br />
government has thus identified the property sector as<br />
one of the main pillars of the country’s economic growth.<br />
Housing Reforms<br />
The current demand for private housing stems from<br />
the government’s vigorous thrust to promote home<br />
ownership since 1999, allowing citizens to realise<br />
long-term capital gains. Government reforms, such as<br />
abolition of welfare housing, easy access to mortgages<br />
and tax incentives, have caused a structural shift in
Liberalisation of Housing Loan Market<br />
To help the locals finance their home purchases,<br />
banking sector reforms were undertaken. All<br />
commercial banks are now allowed to provide<br />
individual home mortgage lending, a vital move for<br />
the development of the property sector. The ceiling on<br />
housing loans has been lifted from 70% to 80% of the<br />
value of the property, while mortgage terms have been<br />
extended from 20 years to 30 years.<br />
Moreover, China cut interest rates on February 21<br />
2002 for the first time in more than two-and-a-half<br />
years. Mortgage rates fell by an average of 50 bps to<br />
5.04 - 5.76%, while deposit rates dropped by 25 bps.<br />
With bank deposits yielding an unattractive rate of<br />
merely 0.72% per annum for current account deposits<br />
and 1.98% for one-year fixed-term deposits, more<br />
people are drawn to invest in property which may give<br />
them a better return in the long term. Housing loans,<br />
which currently accounts for more than 90% of all<br />
consumer lending in China, is forecast to grow at<br />
about 30% per annum over the next five years.<br />
Besides commercial mortgages, employees also have<br />
access to the Housing Provident Fund, from which they<br />
can withdraw their fund contributions to make the<br />
downpayment on the purchase of a home. Established<br />
in 1996, both employers and employees contribute<br />
6% to 8% of wages to the fund. The fund provides low<br />
interest mortgages at about 1% below the normal<br />
mortgage rate when a contributing employee decides<br />
to purchase a flat.<br />
the pool of potential buyers and at the same time<br />
injected greater liquidity into the market and provided<br />
buyers with a wider choice.<br />
Impact on Real Estate Market<br />
The Chinese government’s preferential policies are<br />
bringing local buyers out in strong numbers.<br />
Residential property sales rose by more than 30% in<br />
2001, after a 47% surge in 2000. Prices also jumped<br />
9% year-on-year to an average RMB2,100 (US$254)<br />
per sm in 2001, surpassing the 7% rise in 2000. In<br />
Shanghai and Beijing, average prices have gone up by<br />
10 - 25% to as high as RMB4,738 (US$573) and<br />
RMB4,600 (US$556) per sm respectively.<br />
The residential market in the major cities is booming as<br />
seen in the steady increase in demand for housing over<br />
the last three years. According to property consultants,<br />
the absorption ratio of new supply in 2001 is generally<br />
above 80%, but cities like Shanghai, Dalian and Tianjin<br />
record higher rates of above 90%. The take-up rate<br />
in Shenzhen was close to 100%, reflecting robust<br />
demand. The real estate sector in these major cities<br />
contributes significantly to their respective GDP,<br />
averaging 4% in Beijing and Guangzhou, and 5% in<br />
Shanghai, Shenzhen and Dalian.<br />
Individual housing purchases accounted for 94% of the<br />
total purchases in 2001, compared to 75% in 1998. The<br />
locals form the bulk of the buyers, a trend reflecting<br />
the fast-growing incomes of the local population<br />
bolstered by the influx of FDIs and creation of jobs.<br />
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In Shanghai, the city government has also introduced<br />
preferential policies to boost the residential market. These<br />
include tax rebates which allow purchasers to offset the<br />
full cost of their home purchase against their personal<br />
income tax bill. The merger of the domestic and<br />
foreign housing markets in Shanghai has also enlarged<br />
Encouraged by the rise in domestic confidence<br />
resulting from the strong economy, China’s entry into<br />
the WTO and China hosting the 2008 Olympics<br />
Games, real estate investment rose 30% year-on-year<br />
to RMB737.8 billion (US$89.1 billion) in 2001. In view<br />
of the fast-growing property market, the number of
Positioning for China (continued)<br />
The Year<br />
in Review<br />
86<br />
developers grew to close to 30,000 by 2001, most of<br />
which are small-scale developers.<br />
On the other hand, the rise in supply as a result of<br />
the sharp increase in investment and developers has<br />
generated fears of a repeat of the bursting of the<br />
property market bubble in the mid-1990s. As a result,<br />
various reforms were recently introduced at both the<br />
local and national levels to curtail runaway property<br />
prices and an oversupply situation.<br />
These include allowing bank mortgage lending and<br />
issuing presale permits for high-rise developments<br />
only when construction is two-thirds completed and<br />
when the building structure is completed for low-rise<br />
projects. This effectively raises the capital commitment<br />
required for property development, giving large-scale<br />
developers with greater financial strength and<br />
economies of scale an advantage over the small-scale<br />
developers.<br />
Real estate transaction fees, such as deed and<br />
registration costs, are also being standardised and<br />
reduced to ensure that illegal fees often imposed by<br />
local authorities are eliminated. Authorities in cities<br />
such as Shanghai, Shenzhen and Guangzhou have also<br />
introduced regulations stipulating that land-use rights<br />
for all residential property developments be sold by<br />
auction or tender. This practice is likely to spill over to<br />
other Chinese cities.<br />
Emerging Trends<br />
Going forward, several trends are emerging which will<br />
have a positive impact on the property market in China.<br />
Amongst these is an increasing demand by Hongkongers<br />
for apartments in China. It is estimated that nearly one<br />
in four properties bought by Hongkongers in 2001 was<br />
on the mainland. Most are just across the border in<br />
Shenzhen, where prices are 30% to 40% below those<br />
in Hong Kong districts, and serve either as primary<br />
homes or holiday homes. Around 50,000 Hongkongers<br />
already live in the Pearl River Delta, while another<br />
40,000 have secondary properties in that area. As<br />
restrictions on border crossing eases further, more<br />
Hongkongers will consider buying properties in<br />
Shenzhen and other parts of the mainland.<br />
At the same time, China is in the process of<br />
urbanisation, with more people migrating from rural<br />
areas to the city. The rate of urbanisation is forecast to<br />
increase from around 34% currently, to 45% by 2010.<br />
This will translate into huge demand for residential<br />
space in the cities, with an estimated 300 million sm<br />
of residential space required annually.<br />
China also plans to increase the per capita living area<br />
of its urban households from 13.6 sm as of end-2000<br />
to 22 sm by the end of 2005. To achieve this, the<br />
central government plans to increase civil servants’
pay by another 30% to propel urban income growth.<br />
This will help boost housing demand as increased<br />
affordability enables more people to buy homes for<br />
larger living spaces and better living conditions.<br />
With a huge population base of 1.3 billion, robust<br />
economic growth and rapid urbanisation, the impact<br />
of China’s rising domestic demand for housing is<br />
enormous. The growing affluence of the Chinese<br />
people will fuel the propensity to upgrade to better<br />
quality housing and will be a major driving force<br />
behind aspirations for home ownership. Investment<br />
demand is also expected to surge with individual<br />
rental income tax rate cut from 21% to 5% and growth<br />
of expatriates in the big cities. A March 2002 report by<br />
Political and Economic Risk Consultancy (PERC) revealed<br />
that China jumped from seventh to third place among<br />
12 countries in Asia offering the best quality of life for<br />
expatriates. This will attract more expatriates to China<br />
and further boost housing demand.<br />
The Chinese government thus projects an average 8%<br />
annual growth in the property sector.<br />
Seizing Opportunities<br />
Recognising its market potential, <strong>Keppel</strong> <strong>Land</strong> has<br />
seized opportunities to move into the China market.<br />
It has entered the local housing market and aims to<br />
position itself as a provider of good quality residences<br />
for the locals. This participation in the local residential<br />
market is in line with the Group’s emphasis on trading<br />
projects which provide quicker returns compared with<br />
longer-term investment projects.<br />
The development of One Park Avenue, its maiden<br />
residential project in Shanghai, underscores the<br />
Group’s strategy to increase its reach and range in this<br />
economically vibrant country.<br />
This is the first phase of a larger 3,200-unit upmarket<br />
condominium development which has been hailed as<br />
the largest upmarket residential project undertaken by<br />
a foreign developer in the prime Jingan district in<br />
Central Puxi. The locals have shown a preference for<br />
projects by foreign developers as they generally offer<br />
better facilities and quality finishes. <strong>Keppel</strong> <strong>Land</strong> has a<br />
99% stake in the development, whilst the Shanghai<br />
Jingan District <strong>Land</strong> Development Holding Company,<br />
a company wholly owned by Jingan District, holds the<br />
remaining 1%.<br />
The entire development, which sits on a 95,906 sm site,<br />
will form an integral part of the Jingan District Office’s<br />
master plan to revitalise Jingan into a prime residential<br />
area with close proximity to the city-centre of Shanghai.<br />
Strategically located in the heart of the city, the<br />
project is within walking distance to Shanghai’s major<br />
shopping and entertainment belt in Nanjing West Road<br />
where international hotels like Portman Ritz Carlton,<br />
JC Mandarin, and retail malls such as Plaza 66, Kerry<br />
Centre and Westgate Mall are located.<br />
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in Review<br />
88<br />
One Park Avenue alone has a site area of 33,986 sm<br />
and will comprise a total of 1,100 1- to 4- bedroom<br />
apartments, duplexes and penthouses. A comprehensive<br />
range of facilities including an Olympic-length<br />
swimming pool, will be housed in an underground<br />
clubhouse. Designed to cater to the growing middle<br />
and upper income groups in Shanghai, as well as<br />
expatriates, units will be launched for sale in the<br />
second half of 2002.<br />
With <strong>Keppel</strong> <strong>Land</strong>’s track record in developing<br />
quality homes with innovative features, this residential<br />
development in Jingan is well-timed to meet the<br />
growing demand of China’s discerning home-buyers.<br />
The development will also provide the Group with<br />
the necessary foundation to ride on the boom in<br />
Shanghai’s residential housing market.<br />
Kunming Residential Project<br />
<strong>Keppel</strong> <strong>Land</strong>’s strategy of focusing on trading projects<br />
in China has also extended to other cities.<br />
In December 2001, the Group announced plans to<br />
develop a residential development on a 380-ha site in<br />
Kunming, Yunnan. This marks <strong>Keppel</strong> <strong>Land</strong>’s second<br />
foray into Kunming, where it has developed good<br />
business networks as well as an amiable relationship<br />
with the authorities. The Group has also built a<br />
reputable name for itself through the internationally<br />
acclaimed Spring City Golf and Lake Resort which has<br />
generated a lot of goodwill that it is now able to<br />
capitalise on.<br />
A Memorandum of Understanding was signed between<br />
<strong>Keppel</strong> <strong>Land</strong> and joint venture partner Yiliang Yang<br />
Zong Hai Tourist Resort Development Holding Co on a<br />
80-20% stakeholding basis respectively. The latter will<br />
inject the land as its 20% equity, while <strong>Keppel</strong> <strong>Land</strong> will<br />
hold the remaining stake in the project.<br />
Located just next to the Spring City Golf and Lake<br />
Resort, which is also developed by <strong>Keppel</strong> <strong>Land</strong> and<br />
Yiliang Yang Zong Hai together with other foreign<br />
partners, the site is part of a larger area that has been<br />
earmarked for residential and resort development by<br />
the local government authorities.<br />
Targeted at the local middle to upper income market,<br />
<strong>Keppel</strong> <strong>Land</strong>’s residential development in Kunming will<br />
be modelled after the modern residential estates of the<br />
West. The Group aims to rejuvenate the area into a<br />
vibrant waterfront town with world-class facilities,<br />
top-notch residential estates and respectable<br />
educational institutions.<br />
Gaining Foothold<br />
In its quest to seek more investment opportunities in<br />
China, <strong>Keppel</strong> <strong>Land</strong> set up two more representative<br />
offices in the country. These offices in Beijing and<br />
Chengdu, coupled with those in Shanghai and<br />
Kunming, will enable the Group to better identify and<br />
capture opportunities in these cities. <strong>Keppel</strong> <strong>Land</strong> also<br />
plans to acquire Chinese companies engaged in<br />
property development in China to further expand its<br />
operations in the Chinese market.<br />
At the same time, <strong>Keppel</strong> <strong>Land</strong> will leverage on its<br />
experience and expertise in developing high-end<br />
residential housing and lifestyle concepts to compete<br />
effectively against the local developers and strengthen<br />
its foothold on the residential market.<br />
Dragon <strong>Land</strong><br />
In March 2001, <strong>Keppel</strong> <strong>Land</strong> acquired a 24.9% stake in<br />
Dragon <strong>Land</strong>. The latter is a Singapore-listed company<br />
whose real estate development interests in China cover<br />
an area of more than 2,000 ha in the provincial cities of<br />
Qingdao, Shenyang, Changzhou and Anxi.
to sell the office building by strata-title or in its entirety.<br />
This is in line with its strategy of de-emphasising<br />
property investment and re-channelling resources to<br />
focus on property development for trading.<br />
Despite the growth in rentals to an average of US$20<br />
per sm per month for prime office space by end-2001,<br />
Shanghai is still competitive and is among the less<br />
expensive cities to set up office. A survey by the Far<br />
Eastern Economic Review in July 2001 also revealed<br />
that top businessmen rated Shanghai as the Number One<br />
city they would choose to site a new subsidiary office.<br />
Low labour costs and the lure of the world’s largest<br />
consumer market were key factors influencing their<br />
choice.<br />
As <strong>Keppel</strong> <strong>Land</strong> expands its focus beyond the major<br />
gateway cities to include other growing cities, its<br />
strategic stake in Dragon <strong>Land</strong> will serve as an additional<br />
platform to tap on the growing demand for local<br />
housing especially in the promising secondary cities.<br />
Office Property Development<br />
Ocean Towers is<br />
a Grade A office<br />
building in the<br />
prime Huangpu<br />
commerical district.<br />
Besides residential projects, <strong>Keppel</strong> <strong>Land</strong> has also<br />
developed Ocean Towers in Shanghai together with<br />
joint venture partners. This Grade A office building<br />
with a net floor area of about 36,000 sm in the prime<br />
Huangpu commercial district, was completed in<br />
December 2001. Its large, column-free floor plates<br />
have attracted multinational corporations among its<br />
tenants.<br />
Given that the current demand for Grade A office space<br />
in Shanghai is growing significantly, the Group intends<br />
Looking Ahead<br />
China boasts a strong and promising economy, with<br />
real estate playing an increasingly significant role in the<br />
economy. Official growth forecast for 2002 stands at<br />
7.3% and a minimum growth rate of 7% per annum is<br />
expected from 2002-2005. Growth will continue to be<br />
driven by low interest rates, domestic consumption and<br />
impetus from the 2008 Olympics and WTO.<br />
WTO entry will fuel foreign investment flows into the<br />
country, generating demand for office space as well<br />
as housing demand from a growing middle-income<br />
class.<br />
<strong>Keppel</strong> <strong>Land</strong> already has a head-start in China,<br />
where it has developed good business networks and<br />
an amiable relationship with the local authorities. It<br />
has also built a reputable name for itself through the<br />
internationally acclaimed Spring City Golf and Lake<br />
Resort as well as being one of the pioneer investors in the<br />
Suzhou Industrial Park. The Group will continue to<br />
leverage on these attributes to expand its operations<br />
in China.<br />
89<br />
Review<br />
in<br />
Year<br />
The
Financial<br />
Report
“<br />
The Company will also focus on structuring<br />
asset-light deals which produce good earnings<br />
without the commitment of heavy capital.<br />
”
FINANCE<br />
Total Sales<br />
($ million)<br />
Overall Financial Performance<br />
For 2001, Group attributable loss amounted to<br />
$366.5 million. This loss was arrived at after accounting<br />
for provisions of $455.1 million (net of minority interests)<br />
made for the Group’s trading projects and landbank.<br />
Excluding the provisions, Group attributable profit for<br />
the year was $88.6 million.<br />
Loss per share was 51.7 cents, compared with earnings<br />
per share of 17.3 cents in 2000.<br />
1,600<br />
1,400<br />
1,200<br />
1,000<br />
800<br />
600<br />
400<br />
200<br />
0<br />
1,501.5<br />
621.2<br />
1,163.2<br />
317.9<br />
1,326.1<br />
996<br />
826.2<br />
500.5<br />
539.2<br />
300.5<br />
Proposed dividend per share was 3.0 cents, same as that<br />
for the previous year’s and despite the loss for the year.<br />
Group<br />
1997 1998<br />
Associates<br />
1999 2000 2001<br />
At end-2001, shareholders’ funds decreased by<br />
28.2% to $1,617 million. This was due to the abovementioned<br />
provisions and the revaluation adjustments<br />
made for the Group’s investment properties.<br />
Return on shareholders’ funds was negative, compared<br />
with 5.5% in 2000.<br />
Sales<br />
Consolidated sales (i.e. sales excluding associated<br />
companies) were $300.5 million versus $500.5 million<br />
for the previous year. Revenue from Property<br />
Investment rose by 10.3% on account of higher<br />
occupancies of the Group’s office buildings. Property<br />
Trading sales, from principally the sale of six Cluny Hill<br />
bungalow plots, declined by 66.3% because poor<br />
market conditions in the Singapore residential market<br />
delayed the planned launches of several projects.<br />
Hospitality and Property Services showed an increase of<br />
30.1% in sales due mainly to higher revenues achieved<br />
by the Group’s hotels and marketing commissions.<br />
Earnings<br />
After the provisions of $483.7 million (before minority<br />
interests), operating loss was $359.8 million, compared<br />
with an operating profit of $171.2 million for 2000.<br />
300<br />
200<br />
100<br />
0<br />
-100<br />
-400<br />
30<br />
20<br />
10<br />
0<br />
Group Profit<br />
($ million)<br />
209.7<br />
171.0<br />
104.7<br />
-354.1<br />
1997 1998 1999 2000<br />
Profit before Tax<br />
Attributable Profit<br />
Operating Profit<br />
Earnings and Dividend Per Share<br />
(cents)<br />
16.7<br />
24.8<br />
4.0<br />
157.1 171.2<br />
141.3<br />
152.3 161.6 122.1<br />
-349.7<br />
-359.8<br />
-350.6 -371.5 -383.8<br />
3.0<br />
16.8<br />
3.0<br />
11.8<br />
21.1<br />
17.3<br />
3.0<br />
2001<br />
3.0<br />
93<br />
Review<br />
in<br />
Year<br />
The<br />
The Group’s share of associated companies’ profit was<br />
$8.4 million compared with $10.4 million in 2000.<br />
-10<br />
-60<br />
-50.4<br />
-53.5<br />
-54.3<br />
-51.7<br />
Group loss before tax was $371.5 million, compared<br />
with a profit of $161.6 million in 2000.<br />
1997 1998 1999 2000<br />
Earnings before Tax<br />
Earnings after Tax but before Extraordinary Items<br />
2001<br />
Gross Dividend
Taxation for the year was $12.3 million, equivalent to 10.9%<br />
of Group pre-tax profit before provisions. The effective<br />
taxation rate was lower because the gain from the sale<br />
of the Cluny Hill bungalow plots is not subject to tax.<br />
After accounting for minority interests, Group<br />
attributable result for the year was a profit of $88.6 million<br />
before provisions and a loss $366.5 million after<br />
provisions, compared with a profit of $122.1 million in<br />
the previous year. The higher profit contribution from<br />
the Group’s mostly full office buildings could not offset<br />
the shortfall from Property Trading.<br />
10<br />
5<br />
0<br />
-10<br />
-20<br />
Return on Shareholders' Equity<br />
(%)<br />
3.7<br />
5.5<br />
-15.0<br />
-14.2<br />
5.6<br />
4.0<br />
5.5<br />
6.8<br />
-19.9<br />
-18.9<br />
The Year<br />
in Review<br />
94<br />
Cash Flows<br />
During 2001, the Group incurred $223.7 million in<br />
development expenditure. Purchases of fixed assets<br />
and additional investment in associated companies<br />
amounted to $224.5 million and repurchase of Floating<br />
Rate Notes was $28.5 million. A further $60.1 million<br />
was dividends to shareholders of the Company and<br />
minority shareholders of subsidiary companies .<br />
Net cash generated from operating activities amounted<br />
to $30.2 million. Proceeds from progress billings and<br />
sale of fixed assets and investments were $257.3 million,<br />
and the net loan drawdown was $304.6 million.<br />
25<br />
20<br />
15<br />
10<br />
1997 1998 1999<br />
Return before Tax (%)<br />
2000<br />
Return before Extraordinary Items (%)<br />
Dividend Payout<br />
Total Dividend Paid Dividend Per Share<br />
($ million)<br />
(Cents)<br />
20.7<br />
14.6<br />
15.7<br />
16.0<br />
2001<br />
16.0<br />
25<br />
20<br />
15<br />
10<br />
The overall net cash inflow was $57.2 million,<br />
represented mainly by increase of short-term deposits.<br />
In 2000, there was a net cash inflow of $200.7 million.<br />
5<br />
0<br />
4.0<br />
3.0 3.0 3.0<br />
1997 1998 1999 2000<br />
3.0<br />
2001<br />
5<br />
0<br />
Dividend<br />
A final dividend of 6% (3.0 cents per share) less tax at<br />
24.5% amounting to $16 million on the existing issued<br />
share capital, has been proposed for the financial year<br />
ended 31 December 2001. For 2000, a dividend of 6%<br />
(3.0 per cents per share) less tax of $16 million was<br />
declared and paid.<br />
Financial Condition at End-2001<br />
At 31 December 2001, share capital and reserves<br />
totalled $1.6 billion, which was 28.2% lower than<br />
that at end-2000. As mentioned earlier, this decline<br />
was primarily due to to the property provisions and<br />
downward revaluation adjustments made during the<br />
year. Net borrowings at $2.4 billion represented<br />
128% of total shareholders’ funds (including minority<br />
interests). The corresponding proportion was 83% a<br />
year ago.<br />
6,000<br />
5,000<br />
4,000<br />
3,000<br />
2,000<br />
1,000<br />
0<br />
Total Dividend Paid Dividend Per Share (Gross)<br />
Sources of Finance<br />
($ million)<br />
4,988.7<br />
4,945.3<br />
4,676.7<br />
4,240.5<br />
4,533.4<br />
2,829.9<br />
1,833.8<br />
2,150.6<br />
2,252.6<br />
1,617.4<br />
1997 1998 1999 2000 2001<br />
Shareholders' Equity<br />
Long-term Borrowings<br />
Minority Interests<br />
Short-term Borrowings
The Company’s paid-up share capital was increased by<br />
$0.1 million from the issue of new shares arising from<br />
the exercise of share options, and total reserves fell by<br />
$635.3 million on account of the above-mentioned<br />
provisions and adjustments.<br />
As a result, net tangible assets backing per share was<br />
$2.28, a decrease of 28.3% from the previous year’s<br />
figure of $3.18.<br />
Net borrowings at end-2000 amounted to $2.1 billion.<br />
The increase of $0.3 billion during the year was the<br />
result of the cash flows explained above.<br />
6,000<br />
5,000<br />
4,000<br />
3,000<br />
2,000<br />
1,000<br />
0<br />
Assets Employed<br />
($ million)<br />
4,988.7 4,676.7<br />
4,240.5<br />
4,945.3<br />
4,533.4<br />
Five-Year Profit Record<br />
For 1997, whilst Group’s profit before tax showed a<br />
decline, attributable profit improved by 3% over<br />
1996 to $104.7 million. These results included the<br />
partial sale of Prudential Tower, the disposal of 30%<br />
shareholding in a property subsidiary and shop units<br />
at Heritage Court and Bukit Timah Plaza.<br />
1997 1998 1999 2000<br />
Fixed Assets<br />
Investments<br />
Development Properties<br />
Net Current Assets<br />
2001<br />
In 1998, the Group reported an attributable loss of<br />
$350.6 million. Profit contributions from continuing<br />
businesses, partial sale of Prudential Tower and the sale<br />
of an office building in Australia were insufficient to<br />
cover the provisions made for two leasehold residential<br />
developments and the Group’s freehold landbank.<br />
5.00<br />
4.00<br />
3.00<br />
Net Tangible Asset Per Share<br />
($)<br />
4.32<br />
3.04<br />
3.18<br />
95<br />
Review<br />
in<br />
Year<br />
The<br />
The Group made a turnaround in 1999 and recorded<br />
a profit before extraordinary items of $78.7 million.<br />
This result included the initial profit from the Villa Verde<br />
project and a further profit contribution from Pebble<br />
Bay. Attributable profit was $152.3 million after<br />
including extraordinary gains of $73.6 million from the<br />
unwinding of the Group’s investments in three related<br />
companies.<br />
2.00<br />
1.00<br />
0<br />
2.80<br />
1997 1998 1999<br />
Net Tangible Asset Per Share<br />
2000<br />
2001<br />
2.28<br />
Further progress was made in 2000. Group’s pre-tax<br />
profit reached $158.9 million, and attributable profit<br />
was $120.6 million. These results included the profit<br />
from Villa Verde and Pebble Bay, the maiden profit<br />
contributions from Caribbean at <strong>Keppel</strong> Bay and<br />
Freesia Woods condominium projects.<br />
In 2001, the Group incurred an attributable loss of<br />
$366.5 million. High earnings from Group’s office<br />
buildings and profit from the sale of Cluny Hill<br />
bungalow plots were insufficient to cover the<br />
provisions made for trading projects and landbank.
Segmental Reporting<br />
Sales Mix<br />
($ million)<br />
Property Investment<br />
600<br />
500<br />
400<br />
300<br />
48.8 ( 16.2%)<br />
37.5 (7.5%)<br />
338.2 (67.6%)<br />
For 2001, sales from Property Investment were<br />
$138 million or 46% of total Group sales ( excluding<br />
associated companies). This was 10.3% higher than<br />
the previous year’s amount of $125 million which<br />
accounted for 25% of total Group sales for that year.<br />
200<br />
100<br />
0<br />
114.1 (38.0%)<br />
137.6 (45.8%)<br />
Property Investment<br />
Property Trading<br />
2001<br />
124.8 (24.9%)<br />
2000<br />
Hospitality and Services<br />
The Group’s office buildings in Singapore, comprising<br />
Ocean Building, Ocean Towers, Capital Square,<br />
Prudential Towers, The Exchange, <strong>Keppel</strong> Towers<br />
and GE Tower, continued to enjoy healthy occupancies<br />
in 2001 while the contributions from its integrated<br />
development Bugis Junction, comprising offices,<br />
large-scale retail space and the Hotel Inter-Continental<br />
Singapore, were at levels similar to the previous year’s.<br />
Analyses<br />
96<br />
2,500<br />
2,000<br />
1,500<br />
Profit and Equity Employed by Segment<br />
($ million)<br />
2,435.0<br />
Overseas contributions from Saigon Centre’s office<br />
tower in Ho Chi Minh City, International Centre in<br />
Hanoi and Royal Park Sedona Suites in Hanoi were<br />
maintained on the back of healthy occupancies. This<br />
was further boosted by maiden full-year contributions<br />
from Wisma BCA in Jakarta.<br />
1,000<br />
818.6<br />
500<br />
0<br />
(500)<br />
(1,000)<br />
(1,500)<br />
72.7<br />
(440.2)<br />
(4.9)<br />
(1,378.1)<br />
0.9<br />
19.8<br />
At the pre-tax level, Property Investment’s contribution<br />
was $72.7 million compared with $63.8 million for the<br />
previous year. The improvement was achieved largely<br />
due to continued good occupancies, the benign<br />
interest rate environment which prevailed in 2001<br />
and the maiden profit from Wisma BCA.<br />
Property<br />
Investment<br />
Property<br />
Trading<br />
Hospitality<br />
and Services<br />
Non-<br />
Property<br />
Pre-tax Profit<br />
Equity Employed
Analyses<br />
Property Trading<br />
Sales by Segment<br />
$ ‘000<br />
Sales from Property Trading were $114 million or<br />
38% of total Group revenue. This was $224 million<br />
lower than the previous year’s sales.<br />
160,000<br />
140,000<br />
120,000<br />
137,642<br />
114,079<br />
During the year, the main contributors to profit were<br />
100,000<br />
from the sales of Freesia Woods and Cluny Hill<br />
bungalow plots. The year’s operating loss was due to<br />
provisions of $455.1 million made for the write-down<br />
of the Group’s trading projects and landbank. In the<br />
previous year, the contribution was from Villa Verde,<br />
Pebble Bay, Caribbean at <strong>Keppel</strong> Bay and Freesia<br />
Woods, and adjustments of costs for the projects<br />
completed in that year.<br />
80,000<br />
60,000<br />
40,000<br />
20,000<br />
0<br />
Property<br />
Investment<br />
Property<br />
Trading<br />
48,816<br />
Hospitality<br />
and Services<br />
Hospitality and Services<br />
This is the hotel operations and the fee-based segment<br />
of the Group’s business. Activities include marketing,<br />
project management, property and hotel/ serviced<br />
apartment management services and their related<br />
technical consultancy services.<br />
100,000<br />
Pre-tax Profit<br />
$ ‘000<br />
72,702<br />
97<br />
Hospitality and Services incurred a pre-tax loss of<br />
$4.9 million from sales of $48.8 million( or 16% of<br />
total Group revenue in 2001). In 2000, sales and<br />
pre-tax profit for this segment were $37.5 million<br />
and $20.5 million respectively. The profit included<br />
the release of certain provisions no longer required.<br />
(440,230)<br />
0<br />
-500,000<br />
(4,903)<br />
917<br />
Property<br />
Investment<br />
Property<br />
Trading<br />
Hospitality<br />
and Services<br />
Non-<br />
Property
Segmental Reporting<br />
continued<br />
Attributable Profit<br />
$ ‘000<br />
Non-Property<br />
100,000<br />
The pre-tax profit of $0.9 million was contributed<br />
by an associated company.<br />
53,301<br />
Equity Employed<br />
Analyses<br />
98<br />
0<br />
-500,000<br />
Property<br />
Investment<br />
(412,127)<br />
Property<br />
Trading<br />
(8,206)<br />
Hospitality<br />
and Services<br />
569<br />
Non-<br />
Property<br />
At 31 December 2001, the Group’s equity employed<br />
amounted to $1.9 billion, and this was 27% lower than<br />
in 2000 due mainly to the provisions made against<br />
the Group’s trading projects and landbank and the<br />
downward revaluation adjustments for the Group’s<br />
investment properties. This came from funds<br />
provided by the Company’s shareholders and<br />
minority shareholders in certain subsidiary companies.<br />
The greater part of these funds was utilised by<br />
Property Investment ($2.4 billion), Property Trading<br />
($ 818.6 million), Hospitality and Services( negative<br />
$1.38 billion) and Non-Property $ 19.8 million.
Analyses<br />
Sales and Profits by Segment<br />
Attributable<br />
Sales Pre-tax profit Profit<br />
2001 2000 2001 2000 2001 2000<br />
$’000 $’000 $’000 $’000 $’000 $’000<br />
Property<br />
Investment 137,642 124,762 72,702 63,830 53,301 44,470<br />
Trading 114,079 338,189 (440,230) 78,429 (412,127) 64,882<br />
Hospitality and Services 48,816 37,541 (4,903) 20,565 (8,206) 14,051<br />
300,537 500,492 (372,431) 162,824 (367,032) 123,403<br />
Non-property - - 917 (1,224) 569 (1,289)<br />
300,537 500,492 (371,514) 161,600 (366,463) 122,114<br />
99<br />
Group 300,537 500,492 (379,962) 151,164 (372,280) 116,267<br />
Associates - - 8,448 10,436 5,817 5,847<br />
300,537 500,492 (371,514) 161,600 (366,463) 122,114
Value Added and Productivity<br />
In 2001, the “value added” by the Group was a negative $270.7 million due mainly to the write-down of the<br />
Group’s trading projects and landbank by $455.1 million. In terms of segmental contribution, this figure can be<br />
analysed as follows:<br />
$ million<br />
Property<br />
Investment 106.7<br />
Trading (409.3)<br />
Hospitality and Services 31.1<br />
(271.5)<br />
Non-property 0.8<br />
(270.7)<br />
The value added by the Group for the previous year was $238.4 million.<br />
Analyses<br />
100<br />
Income from the Group’s investments was $28.7 million. Excluding this investment income, the Group’s “value<br />
added” from operations (after adjusting for the property write-down mentioned above) was absorbed by employees<br />
in salaries and staff benefits of $33.7 million, governments in taxation of $12.3 million, and providers of capital<br />
in interest and dividends totalling $109.6 million.<br />
Value Added<br />
($ million)<br />
300<br />
200<br />
208.0<br />
(382.8)<br />
219.2<br />
207.5<br />
(299.3)<br />
100<br />
0<br />
-100<br />
-200<br />
-600<br />
1997 1998 1999<br />
2000<br />
2001<br />
Wages, Salaries & Benefits<br />
Taxation<br />
Interest Expense & Dividends<br />
Depreciation & Retained Profit
Analyses<br />
Value-Added by Segment<br />
Property Property Hospitality Non-<br />
Investment Trading and Services Property Group<br />
$ million $ million $ million $ million $ million<br />
Total value added<br />
2001 106.7 (409.3) 31.1 0.8 (270.7)<br />
2000 111.4 66.2 62.1 (1.3) 238.4<br />
Distributed as follows:<br />
Employees in salaries and staff benefits<br />
2001 5.7 - 28.0 - 33.7<br />
2000 5.5 - 22.5 - 28.0<br />
Government in taxes<br />
2001 5.8 2.8 3.4 0.3 12.3<br />
2000 6.2 11.9 11.2 - 29.3<br />
Providers of capital in dividends and interest<br />
2001 38.0 34.1 37.5 - 109.6<br />
2000 42.0 49.7 28.1 - 119.8<br />
Retained for reinvestment and asset replacements<br />
2001 57.2 (446.2) (37.8) 0.5 (426.3)<br />
2000 57.7 4.6 0.3 (1.3) 61.3<br />
101<br />
Total distribution<br />
2001 106.7 (409.3) 31.1 0.8 (270.7)<br />
2000 111.4 66.2 62.1 (1.3) 238.4<br />
Total Value Added by Segment<br />
($ million)<br />
300<br />
200<br />
100<br />
0<br />
-500<br />
2001 2000 2001 2000 2001 2000 2001 2000 2001 2000<br />
Group Property Investment Property Trading Hospitality and Services Non-Property<br />
Distribution of Total Value Added<br />
Employees<br />
Providers of Capital<br />
Governments<br />
Retained/Reinvested in Group's Business
Value Added Statement<br />
Analyses<br />
102<br />
1997 1998 1999 2000 2001<br />
$ million $ million $ million $ million $ million<br />
Our sales of goods and services to<br />
non-Group customers totalled 621.2 317.9 996.0 500.5 300.5<br />
Whereas<br />
our purchase of raw materials, supplies and<br />
services from non-Group sources amounted to (424.6) (695.0) (797.5) (303.4) (608.3)<br />
so that<br />
the value added from operations was 196.6 (377.1) 198.5 197.1 (307.8)<br />
In addition:<br />
our share of profits earned by<br />
associated companies was 11.4 (5.7) 20.7 10.4 8.4<br />
income from our investments was 14.7 16.4 14.0 30.9 28.7<br />
extraordinary items were - - 73.5 - -<br />
222.7 (366.4) 306.7 238.4 (270.7)<br />
Excluding investment income and<br />
extraordinary items, total value added<br />
for the Group was distributed as follows:<br />
to employees in wages, salaries, and<br />
benefits 34.7 24.2 24.5 28.0 33.7<br />
to governments in taxation 64.9 24.5 39.4 29.3 12.3<br />
to providers of capital in:<br />
interest paid on borrowings 35.5 41.7 50.5 51.0 48.8<br />
dividends in minority shareholders<br />
in subsidiary companies 16.6 19.9 28.3 52.8 44.8<br />
dividends to shareholders of the<br />
Company 19.4 14.6 15.8 16.0 16.0<br />
71.5 76.2 94.6 119.8 109.6<br />
The balance was reinvested in or ploughed<br />
back from business in:<br />
depreciation 9.4 9.2 6.7 16.7 18.5<br />
minorities’ share of subsidiary previous years’<br />
profits ploughed back by subsidiaries 8.5 (62.4) (1.6) (43.9) (58.4)<br />
profit for the year retained or<br />
previous years’ profits ploughed 19.0 (454.5) 55.6 57.6 (415.1)<br />
back by the Company<br />
36.9 (507.7) 60.7 30.4 (455.0)<br />
208.0 (382.8) 219.2 207.5 (299.4)<br />
And non-operating costs and income were:<br />
investment income 14.7 16.4 14.0 30.9 28.7<br />
extraordinary items - - 73.5 - -<br />
14.7 16.4 87.5 30.9 28.7<br />
222.7 (366.4) 306.7 238.4 (270.7)
Analyses<br />
Productivity Data<br />
(Excluding Associated Companies)<br />
1997 1998 1999 2000 2001<br />
Sales per employee:<br />
- excluding associated companies ($’000) 478.2 251.5 800.0 249.3 163.3<br />
Value added per employee:<br />
- gross value added basis ($’000) 151.3 (298.3) 159.4 98.2 (167.30)<br />
- net value added basis ($’000) 144.1 (305.6) 154.1 89.8 (177.30)<br />
Value added per dollar employment cost:<br />
- gross value added basis ($) 5.67 (15.58) 8.10 7.04 (9.13)<br />
- net value added basis ($) 5.39 (15.96) 7.83 6.44 (9.68)<br />
Value added per dollar investment in fixed assets<br />
and investment properties (before depreciation):<br />
- gross value added basis ($) 0.08 (0.15) 0.07 0.07 (0.12)<br />
- net value added basis ($) 0.07 (0.15) 0.07 0.06 (0.12)<br />
103<br />
300<br />
200<br />
100<br />
Value Added Per Employee<br />
Value Added Per Dollar Employment Cost<br />
($'000) ($)<br />
10.0<br />
8.10<br />
7.04<br />
5.0<br />
5.39 5.67 7.83<br />
6.44<br />
151.3 144.1 159.4 154.1<br />
0.5<br />
98.2 89.8<br />
(15.58)<br />
(15.96)<br />
0<br />
0<br />
-0.5<br />
(100)<br />
-5.0<br />
(200)<br />
(167.3) (177.3)<br />
-10.0<br />
(9.13)<br />
(9.68)<br />
(300)<br />
(298.3) (305.8)<br />
-15.0<br />
(400)<br />
-20.0<br />
1997<br />
1998<br />
1999<br />
2000<br />
2001<br />
1997 1998 1999 2000 2001<br />
Gross Value Added Basis<br />
Net Value Added Basis<br />
Value Added Per Dollar Employment Cost<br />
Gross Value Added Basis<br />
Net Value Added Basis
Property Portfolio Analysis<br />
Analysis by Tenure<br />
The Group’s diversified property portfolio, comprising<br />
office buildings, residential properties, hotels and<br />
resorts, serviced apartments, shophouses and retail<br />
1,582 (43.4%)<br />
1,332 (36.3%)<br />
745 (20.3%)<br />
$ million %<br />
Freehold 1,332 36.3<br />
outlets, and industrial buildings, is owned through<br />
subsidiaries and associated companies. Details of the<br />
Group’s property portfolio is covered in the next few<br />
pages. The following analysis as at 31 December 2001<br />
includes only the Company’s effective interests.<br />
999-year Lease 745 20.3<br />
99-year Lease and Others 1,582 43.4<br />
3,669 100.0<br />
Singapore Properties<br />
(a) Analysis by Tenure<br />
Analysis by Development Stage<br />
Freehold properties constituted 36.3% of the<br />
Group’s properties, while 999-year leases and<br />
Analyses<br />
104<br />
780 (21.3%)<br />
625 (17.0%)<br />
2,264 (61.7%)<br />
99-year leases made up the balance of 20.3%<br />
and 43.4% respectively.<br />
(b) Analysis by Development Stage<br />
$ million %<br />
Completed 2,264 61.7<br />
Under Development 625 17.0<br />
Awaiting Development 780 21.3<br />
3,669 100.0<br />
About 61.7% of the Group’s portfolio was made up<br />
of completed properties. Another 17% was under<br />
development, and this included Freesia Woods and<br />
Caribbean at <strong>Keppel</strong> Bay. The remaining 21.3% of<br />
Analysis by Sector<br />
the Group’s properties was landbank awaiting<br />
development.<br />
65 (1.8%)<br />
155 (4.2%)<br />
47 (1.3%)<br />
1,320 (36.0%)<br />
2,082 (56.7%)<br />
$ million %<br />
Office 2,082 56.7<br />
Residential 1,320 36.0<br />
Hotel 47 1.3<br />
Retail 155 4.2<br />
Industrial 65 1.8<br />
3,669 100.0
Analyses<br />
(c) Analysis by Sector<br />
Analysis by Estimated Building Area<br />
29 (4.3%)<br />
Office buildings formed 56.8% of the Group’s<br />
property portfolio. These included Ocean Building,<br />
15 (2.2%)<br />
12 (1.8%)<br />
256 (38.2%)<br />
Ocean Towers, The Exchange, Capital Square,<br />
Prudential Tower, <strong>Keppel</strong> Towers, GE Tower,<br />
Bugis Junction Towers and Wisma BCA. The<br />
359 (53.5%)<br />
proportion of residential properties was 36%.<br />
Hotel, retail and industrial properties made up the<br />
remaining 1.3%, 4.2% and 1.8% respectively.<br />
sq m %<br />
Office 256 38.2<br />
Residential 359 53.5<br />
Hotel 12 1.8<br />
(d) Analysis by Estimated Building Floor Area<br />
Retail 15 2.2<br />
The total building floor area of the Group’s<br />
property portfolio was 671,000 sm. Office buildings<br />
and residential properties formed 38.2% and<br />
Industrial 29 4.3<br />
671 100.0<br />
Analysis by Location - Completed Projects<br />
53.5% respectively of the total building area. The<br />
balance comprised 1.8% for hotel, 2.2% for retail<br />
and 4.3% for industrial buildings.<br />
2,264 (86%)<br />
370 (14%)<br />
105<br />
Overseas Properties<br />
86% of the Group’s completed properties was in<br />
Singapore. The remaining 14% was located overseas.<br />
Taking into account projects currently under<br />
$ million %<br />
Local 2,264 86.0<br />
Overseas 370 14.0<br />
2,634 100.0<br />
development, Singapore and overseas properties<br />
constituted 82% and 18% respectively of the Group’s<br />
portfolio. The Group’s property portfolio amounted to<br />
Analysis by Location - All Projects<br />
$4.476 billion.<br />
807 (18.0%)<br />
3,669 (82.0%)<br />
$ million %<br />
Local 3,669 82.0<br />
Overseas 807 18.0<br />
4,476 100.0
Property Portfolio<br />
continued<br />
SINGAPORE<br />
Office<br />
1. Ocean Building<br />
2. Ocean Towers<br />
3. <strong>Keppel</strong> Towers<br />
4. GE Tower<br />
5. Prudential Tower<br />
6. Capital Square<br />
7. One Raffles Quay<br />
8. The HarbourFront Office Park<br />
Residential<br />
9. Pebble Bay<br />
10. Nassim Woods<br />
11. Cluny Hill Redevelopment<br />
12. Avenue Park<br />
13. Pinnacles @ Wee Nam<br />
14. Freesia Woods<br />
15. The Linc<br />
16. The Edgewater<br />
17. Viewpoint Condominium<br />
18. Amaranda Gardens<br />
19. Norfolk Garden<br />
20. Duchess Park & 24 Duchess Road<br />
21. Butterworth 8<br />
22. Chen Yuan/Dragon Pearl/River Valley View<br />
23. Naga Court<br />
24. <strong>Keppel</strong> Bay<br />
25. 283–283G Pasir Panjang Road<br />
26. 6 Mar Thoma Road<br />
27. 22-26 Mar Thoma Road & 40 St Michael’s Road<br />
28. The Crest @ Cairnhill<br />
29. Parc Devon<br />
Mixed Development<br />
30. Bugis Junction*<br />
31. Heritage Court<br />
32. Joo Chiat Shophouses<br />
33. 449A & 451A Geylang Road<br />
Industrial<br />
34. Quartz Industrial Building<br />
35. Orion Industrial Building<br />
Data Centre<br />
36. <strong>Keppel</strong> Digihub<br />
Analyses<br />
106<br />
........<br />
Mass Rapid Transit Lines<br />
Pan Island Expressway<br />
Proposed MRT North-East Line<br />
Expressway<br />
14<br />
Ayer Rajah Expressway<br />
Office<br />
Residential<br />
SINGAPORE<br />
25<br />
12<br />
20<br />
11<br />
10<br />
24<br />
8<br />
29<br />
22<br />
31<br />
3 4<br />
2<br />
6<br />
1<br />
5 7<br />
Central Expressway<br />
36<br />
18<br />
Pan Island Expressway<br />
26<br />
27<br />
23<br />
15 19 33 21<br />
28 13<br />
32<br />
30<br />
17<br />
9<br />
34 35<br />
16<br />
East Coast Parkway<br />
Mixed Development<br />
Industrial<br />
OVERSEAS<br />
Data Centre<br />
Australia<br />
37. Botanic Cove, Sydney<br />
Indonesia<br />
38. Galleria Tunjungan, Surabaya<br />
39. Wijaya Centre Site, Surabaya<br />
40. Pasadenia Garden, Jakarta<br />
41. Wisma BCA, Jakarta<br />
Vietnam<br />
42. International Centre, Hanoi<br />
43. Saigon Centre, Ho Chi Minh City<br />
44. Tamarind Park, Ho Chi Minh City<br />
Malaysia<br />
45. Taman Sutera, Johor<br />
46. Taman Jernih, Penang<br />
China/Hong Kong<br />
47. Ocean Towers, Shanghai<br />
48. Residential Site in Shanghai<br />
49. The Waterfront at the Kowloon Station, Hong Kong<br />
Philippines<br />
50. SM-KL Towers, Metro Manila<br />
51. Palmdale Heights, Metro Manila<br />
52. Metro North Township, Quezon City^<br />
53. <strong>Land</strong>bank in Cebu<br />
54. Sampaguita Ville, Cebu<br />
Thailand<br />
55. Jewellery Centre, Bangkok<br />
56. Sukhaphiban 3 Mansion, Bangkok<br />
57. Residential <strong>Land</strong>bank at Highway 332 in Sattahip<br />
United States of America<br />
58. TCB Building<br />
HOTELS<br />
Indonesia<br />
59. Hotel Sedona Bintan Lagoon<br />
60. Hotel Sedona Manado<br />
61. Melia Purosani Hotel<br />
Myanmar<br />
62. Sedona Hotel Yangon<br />
63. Sedonal Hotel Mandalay<br />
Vietnam<br />
64. Sedona Suites Royal Park, Hanoi<br />
65. Sedona Suites Saigon Centre, Ho Chi Minh City<br />
RESORTS<br />
China<br />
66. Spring City Golf & Lake Resort<br />
Indonesia<br />
67. Ria Bintan<br />
68. Bintan Lagoon Resort<br />
69. Nongsa Point Marina<br />
70. Tanah Lot Resort<br />
* includes Hotel Inter-Continental Singapore,<br />
Parco Bugis Juction and Bugis Junction Towers<br />
^ under acquisition
Analyses<br />
CHINA<br />
Shanghai<br />
48<br />
47<br />
66<br />
Kunming<br />
Hong Kong<br />
49<br />
USA<br />
Texas<br />
58<br />
63 Mandalay<br />
MYANMAR<br />
42<br />
Hanoi<br />
64<br />
62 Yangon<br />
THAILAND<br />
Bangkok<br />
56<br />
55<br />
57<br />
VIETNAM<br />
65<br />
43 44<br />
Ho Chi Minh City<br />
PHILIPPINES<br />
51<br />
52<br />
50<br />
54<br />
53<br />
46<br />
MALAYSIA<br />
45<br />
Batam<br />
SINGAPORE<br />
69 67 68 70<br />
59 Bintan<br />
Manado<br />
60<br />
107<br />
SUMATRA<br />
41<br />
40<br />
Jakarta<br />
INDONESIA<br />
Yogyakarta<br />
61 39<br />
38 Surabaya<br />
Bali<br />
AUSTRALIA<br />
Property<br />
Hotels / Serviced Apartments<br />
Resorts Sydney<br />
37
Property Portfolio<br />
continued<br />
Analyses<br />
108<br />
GROUP PROPERTIES (SINGAPORE)<br />
Description Held by % Owned Site Area Estimated Estimated Year of Tenure<br />
(sm) Building Gross Completion<br />
Floor Lettable<br />
Area (sm) Area (sm)<br />
Completed Properties<br />
Ocean Building<br />
a 29-storey office building located at the Ocean 76% 6,109 50,143 39,255 1974 999-year<br />
Collyer Quay corner of Raffles Place Properties leasehold<br />
Ocean Towers<br />
a 27-storey office tower located in Ocean 76%<br />
#<br />
2,781 32,881 22,990 1992 999-year<br />
Raffles Place Properties leasehold<br />
Capital Square<br />
a 16-storey office building and 19 units Capital 70% 11,102 41,347 37,854 1998 99-year<br />
of shophouses at Church Street Square leasehold<br />
Prudential Tower<br />
a 30-storey office building located at the <strong>Keppel</strong> <strong>Land</strong> 100% 1,998 27,700 10,250 1998 99-year<br />
junction of Church Street and Cecil Street (Tower D) (Retained leasehold<br />
interest)<br />
<strong>Keppel</strong> Towers<br />
a 27-storey office development Mansfield 100% 7,760 43,629 34,909 1991 Freehold<br />
located at Hoe Chiang Road<br />
Realty<br />
GE Tower<br />
a 13-storey office development Mansfield 100% 1,367 9,317 7,378 1993 Freehold<br />
located at Hoe Chiang Road<br />
Realty<br />
Singapore Exchange<br />
a 28-storey office building DL 35% 2,345 31,538 23,962 1992 99-year<br />
located in Raffles Place Properties leasehold<br />
Bugis Junction<br />
an integrated development comprising Bugis City 31% 25,704 119,221 Office 23,201 1995 99-year<br />
a 5-star hotel, office tower and large-scale Holdings Retail 40,389 leasehold<br />
retail space featuring a departmental<br />
store, a supermarket and specialty shops<br />
Heritage Court<br />
eight units of conservation shophouses Glenville 100% 1,150 4,144 534 1996 99-year<br />
located at Peck Seah Street near Estate leasehold<br />
the Tanjong Pagar MRT station.<br />
Investment<br />
Seven units have been sold and<br />
one unit leased.<br />
Joo Chiat Shophouses<br />
four units of conservation shophouses <strong>Keppel</strong> <strong>Land</strong> 100% 784 1,436 1,232 1996 Freehold<br />
located in the Joo Chiat area.<br />
Realty<br />
One unit has been sold and two-thirds of<br />
remaining space leased.<br />
Nassim Woods<br />
a 35-unit luxurious condominium development Parksville 50% 5,775 9,255 8,301 1998 99-year<br />
in an exclusive residential district Development leasehold
Analyses<br />
GROUP PROPERTIES (SINGAPORE)<br />
Description Held by % Owned Site Area Estimated Estimated Year of Tenure<br />
(sm) Building Gross Completion<br />
Floor Lettable<br />
Area (sm) Area (sm)<br />
Completed Properties<br />
Pebble Bay<br />
a 510-unit luxurious condominium development Waterfront 50% 32,300 110,881 3,209 1997 99-year<br />
at Tanjong Rhu. 498 units have been sold Properties leasehold<br />
449A & 451A Geylang Road Acresvale 100% 201 - 306 - Freehold<br />
2 adjoining units of 2-storey intermediate Investment<br />
terrace buildings<br />
283 - 283G Pasir Panjang Road Tat Chuan 100% 693 777 - - Freehold<br />
8 units of 3 storey semi-detached houses Development<br />
Five units have been sold<br />
Quartz Industrial Building<br />
a modern 8-storey industrial Harvestland 100% 5,657 14,143 3,569 1997 Freehold<br />
building at 5 Upper Aljunied Link.<br />
Development<br />
37 out of 53 units have been sold.<br />
Orion Industrial Building<br />
a modern 8-storey industrial Acresvale 100% 5,790 14,475 4,723 1997 Freehold<br />
building at Paya Lebar.<br />
Investment<br />
43 out of 72 units have been sold.<br />
<strong>Keppel</strong> Digihub <strong>Keppel</strong> 100% 7,333 18,345 - 1997 30-year<br />
a modern 6-storey industrial building at Digihub leasehold<br />
Serangoon North Ave 5.<br />
with<br />
option for<br />
another<br />
30 years<br />
109<br />
#<br />
Part of Ocean Building site area
Property Portfolio<br />
continued<br />
GROUP PROPERTIES (SINGAPORE)<br />
Description Held by % Owned Site Area Estimated Estimated Year of Tenure<br />
(sm) Building Gross Completion<br />
Floor Lettable<br />
Area (sm) Area (sm)<br />
Properties under Development<br />
The HarbourFront Office Park<br />
18-storey twin office towers HarbourFront One & 11.7% 32,340 100,932 85,676 2003 99-year<br />
development and Cable Car Tower HarbourFront Two leasehold<br />
located next to World Trade Centre<br />
One Raffles Quay<br />
two office towers located at the One Marina 33.33% 11,367 152,003 123,013 2005 99-year<br />
New Downtown at Marina South Boulevard leasehold<br />
Cluny Hill Redevelopment<br />
redevelopment of Cluny Hill site into Straits Properties 100% 28,214 - - 2003^ Freehold<br />
good-class bungalows with customised<br />
design and build options<br />
Caribbean at <strong>Keppel</strong> Bay<br />
a 969-unit waterfront condominium <strong>Keppel</strong> Bay 30% 97,534 132,780 - 2005 99-year<br />
development at <strong>Keppel</strong> Bay of which<br />
310 units have been sold leasehold<br />
nalyses<br />
A110<br />
Freesia Woods<br />
a 129-unit condominium development <strong>Keppel</strong> <strong>Land</strong> 100% 12,536 17,550 - 2004 Freehold<br />
at Sunset Way of which 23 units<br />
Realty<br />
have been sold<br />
The Linc<br />
a 51-unit apartment development <strong>Keppel</strong> <strong>Land</strong> 100% 2,369 6,631 - 2004 Freehold<br />
at Lincoln Road<br />
Realty<br />
Butterworth 8<br />
a 216-unit condominium development <strong>Keppel</strong> <strong>Land</strong> 100% 10,082 28,230 - 2004 Freehold<br />
at Butterworth / Ipoh Lane which is<br />
Realty<br />
fully-sold<br />
The Edgewater <strong>Keppel</strong> <strong>Land</strong> 100% 4,332 6,065 - 2004 Freehold<br />
a 53-unit condominium development Realty<br />
at Jalan Loyang Besar which is<br />
fully-sold<br />
Amaranda Gardens Sherwood 100% 11,182 23,482 - 2005 Freehold<br />
a 189-unit condominium development Development<br />
at Serangoon Avenue 3 of which<br />
186 units have been sold
Analyses<br />
GROUP PROPERTIES (SINGAPORE)<br />
Description Held by % Owned Site Area Estimated Estimated Year of Tenure<br />
(sm) Building Gross Completion<br />
Floor Lettable<br />
Area (sm) Area (sm)<br />
<strong>Land</strong>bank<br />
Cockpit Hotel Redevelopment Dovedale 10% 14,018 42,838 - - Freehold<br />
a commercial / residential<br />
Development<br />
mixed development at Penang Road<br />
Avenue Park Mansfield 52% 16,056 22,478 - - Freehold<br />
a condominium development at<br />
Development<br />
Sixth Avenue<br />
Pinnacles @ Wee Nam <strong>Keppel</strong> <strong>Land</strong> 100% 13,220 37,017 - - Freehold<br />
a condominium development<br />
Realty<br />
at Wee Nam / Keng Lee Road<br />
Viewpoint Condo Sherwood 100% 7,552 21,145 - - Freehold<br />
a condominium development<br />
Development<br />
at Meyer Road<br />
Norfolk Garden Sherwood 100% 2,909 8,145 - - Freehold<br />
an apartment development<br />
Development<br />
at Norfolk Road<br />
Duchess Park & 24 Duchess Road <strong>Keppel</strong> <strong>Land</strong> 100% 7,478 10,468 - - 999-year<br />
a condominium development Realty leasehold<br />
at Duchess Road<br />
111<br />
Chen Yuan/Dragon Pearl/ Sherwood 100% 5,638 15,787 - - Freehold<br />
River Valley View<br />
Development<br />
a condominium development<br />
at River Valley Road<br />
Naga Court <strong>Keppel</strong> <strong>Land</strong> 100% 4,568 9,593 - - Freehold<br />
a condominium development<br />
Realty<br />
at Bukit Timah Road<br />
<strong>Keppel</strong> Bay Plots 1, 3, 5 and 6 <strong>Keppel</strong> Bay 30% 178,973 264,780 - - 99-year<br />
waterfront condominium<br />
leasehold<br />
developments at <strong>Keppel</strong> Bay
Property Portfolio<br />
continued<br />
GROUP PROPERTIES (SINGAPORE)<br />
Description Held by % Owned Site Area Estimated Estimated Year of Tenure<br />
(sm) Building Gross Completion<br />
Floor Lettable<br />
Area (sm) Area (sm)<br />
<strong>Land</strong>bank<br />
HarbourFront Avenue HarbourFront Three 11.7% 29,245 32,000 - - 99-year<br />
a waterfront condominium<br />
leasehold<br />
development at<br />
HarbourFront Avenue<br />
6 Mar Thoma Road Bukit Timah Hill 100% 1,589 4,448 - - 999-year<br />
an apartment development Development leasehold<br />
at 6 Mar Thoma Road<br />
22-26 Mar Thoma Road & Evansville 100% 3,608 10,102 - - 999-year<br />
40 St Michael’s Road Investment leasehold<br />
an apartment development at 22-26<br />
Mar Thoma Road / 40 St Michael’s Road<br />
The Crest @ Cairnhill Tat Chuan 60% 1,039 2,909 - - Freehold<br />
an apartment development<br />
Development<br />
at Cairnhill Circle<br />
nalyses<br />
A112<br />
Parc Devon Evansville 70% 1,280 3,589 - - Freehold<br />
an apartment development<br />
Investment<br />
at Devonshire Road<br />
* Expected year of completion<br />
^ Subject to buyers’ design / schedule
Analyses<br />
GROUP PROPERTIES (OVERSEAS)<br />
Description Location Held by % Owned Site Area Estimated Estimated Year of Tenure<br />
(sm) Building Gross Completion<br />
Floor Lettable<br />
Area (sm) Area (sm)<br />
Completed Properties<br />
Australia<br />
Botanic Cove (Phase 1)<br />
a residential development in Sydney, <strong>Keppel</strong> <strong>Land</strong> 100% 35,460 - Mixed 2000/2001 Freehold<br />
Tarban, Hunters Hill municipality Australia Devt townhouses/<br />
about 7 km north-west of<br />
apartments with<br />
Sydney CBD<br />
full facilities.<br />
117 units (Phase 1)<br />
China<br />
Ocean Towers<br />
a 25-storey office tower on Shanghai, Shanghai Sing 29% 4,807 47,923 36,098 2001 50 years<br />
Yan An Road East China Straits <strong>Land</strong> Co lease<br />
Spring City Golf & Lake Resort<br />
an integrated resort comprising Kunming, Kunming 40% 2,670,000 - Two 18-hole 1999 50 years<br />
golf courses, a Club Med resort, China Yinxin golf courses,<br />
resort homes and resort facilities Tourist a club house<br />
Devt Co 132 resort homes, 1999/2001 70 years<br />
82 resort homes 2001<br />
50 resort homes 2002<br />
Hong Kong<br />
The Waterfront<br />
at the Kowloon Station along Kowloon, Union 7% 16,969 147,639 1,288 residential 2000 51 years<br />
the new airport MTRC line Hong Kong Charm units lease<br />
Development<br />
Indonesia<br />
Club Med Ria Bintan<br />
a beachfront hotel at Ria Bintan, PT Straits - 39% 202,000 - 302-room hotel 1997 30 years<br />
Bintan Resort Indonesia CM Village lease with<br />
option for<br />
another<br />
50 years<br />
Ria Bintan (Phase 1) Bintan, PT Ria Bintan 45.9% 1,465,000 - A 27-hole 1998 30 years<br />
a 27-hole golf course Indonesia golf course lease with<br />
with club house<br />
option for<br />
another<br />
50 years<br />
Bintan Lagoon Resort<br />
an integrated resort with Bintan, SAFE 21% 2,400,000 - A 416-room 1996 30 years<br />
a hotel, bungalows/villas Indonesia Bintan hotel with 100 lease with<br />
and golf courses Resort bungalows/villas option for<br />
another<br />
50 years<br />
Melia Purosani Hotel<br />
a 5-star hotel with retail Yogyakarta, PT Purosani 20% 18,189 26,398 A 296-room 1994 20 years<br />
outlets in Yogyakarta Indonesia Sri Persada hotel lease with<br />
option for<br />
another<br />
20 years<br />
113
Property Portfolio<br />
continued<br />
Analyses<br />
114<br />
GROUP PROPERTIES (OVERSEAS)<br />
Description Location Held by % Owned Site Area Estimated Estimated Year of Tenure<br />
(sm) Building Gross Completion<br />
Floor Lettable<br />
Area (sm) Area (sm)<br />
Completed Properties<br />
Nongsa Point Marina<br />
a waterfront resort with a Batam, PT Nongsa 17% 100,000 - 192 rooms/ 1995 30 years<br />
marina and hotel-style Indonesia Point Marina chalets and lease with<br />
chalets 178 berths option for<br />
another<br />
50 years<br />
Pasadenia Garden (Phase 1)<br />
a residential development Jakarta, PT Pulomas 25% 32,586 32,490 147 units of 1996 30 years<br />
in Pulomas, a fast growing Indonesia Gemala strata-titled lease with<br />
residential district in Jakarta. Misori condominiums, option for<br />
73 units of strata-titled 50 units of rental another<br />
condominiums have been sold. apartments and 20 years<br />
a 2-storey<br />
clubhouse<br />
Wisma BCA<br />
a prime office development Jakarta, PT Kepland 100% 10,444 48,267 37,534 1985 20 years<br />
located in Jakarta CBD Indonesia Investama lease with<br />
option for<br />
another<br />
20 years<br />
Malaysia<br />
Taman Sutera, Skudai<br />
a residential / commercial / retail Johor, Tanah 18% 678,724 - 1,260 residential 2001 Freehold<br />
development Malaysia Sutera units<br />
Development<br />
103 shop offices<br />
Taman Jernih, Bukit Mertajam<br />
(Phases 1, 1A, 2 & 2C)<br />
a residential development Penang, Jernih 49% 93,616 41,287 341 residential 1999/2001 Freehold<br />
Malaysia Rezeki units<br />
Myanmar<br />
Sedona Hotel Yangon<br />
a 5-star hotel fronting Yangon, Straits 100% 31,889 53,489 334 rooms, 1997 30 years<br />
Yangon’s famous Inya Lake Myanmar Greenfield 32 serviced BOT with<br />
apartments and<br />
option for<br />
30 office suites another<br />
three 5-year<br />
extensions<br />
Sedona Hotel Mandalay<br />
an international class hotel Mandalay, Wiseland 100% 16,467 19,835 220 rooms and 1998 30 years<br />
opposite the famous Myanmar Investment 27 serviced BOT<br />
ancient Mandalay Palace (Myanmar) apartments<br />
Philippines<br />
Sampaguita Ville<br />
12 units of linked houses Cebu, Opon Realty 20.2% 5,498 960 - 1996 Freehold<br />
Philippines and<br />
Devt. Corp.
GROUP PROPERTIES (OVERSEAS)<br />
Description Location Held by % Owned Site Area Estimated Estimated Year of Tenure<br />
(sm) Building Gross Completion<br />
Floor Lettable<br />
Area (sm) Area (sm)<br />
Completed Properties<br />
Thailand^^<br />
Jewellery Centre<br />
a 34-storey strata-titled Bangkok, Five Stars 45.45% 5,866 42,834 12,975 1993 Freehold<br />
commercial building Thailand Property (Retained interest)<br />
at Nares Road.<br />
Retained interest in 19 strata units.<br />
Sukhaphiban 3 Mansion<br />
a 19-storey strata residential Bangkok, Gold Star 45.45% 4,440 70,000 11,448 1994 Freehold<br />
apartment at Sukhaphiban 3 Road. Thailand Propery (Retained interest)<br />
Retained interest in 259 strata units.<br />
Vietnam<br />
International Centre<br />
an 8-storey office development Hanoi, Centre for 41% 1,450 9,064 7,585 1995 45 years<br />
at 17 Ngo Quyen Street Vietnam International lease<br />
Transactions<br />
Royal Park Complex<br />
a serviced apartment development Hanoi, Quang Ba 59% 28,400 23,130 155 units of 1998 50 years<br />
at Quang Ba Vietnam Royal Park serviced lease<br />
JV Co<br />
apartments<br />
and 20 villas<br />
115<br />
Analyses<br />
Saigon Centre (Phase 1 Tower)<br />
a 25-storey office, retail-cum- Ho Chi <strong>Keppel</strong> <strong>Land</strong> 68% 2,730 32,499 10,263 sm office, 1996 50 years<br />
serviced apartment development Minh City, Watco Co 6,265 sm retail lease<br />
at Le Loi Boulevard Vietnam and 89 units of<br />
serviced apartments<br />
Petro Vietnam Towers<br />
a 10-storey office development Vung Tau, Petro Tower 12.9% 6,191 17,026 12,465 1997 40 years<br />
Vietnam<br />
lease<br />
Vietcombank Towers<br />
a 22-storey office development Hanoi, Vietcombank 6% 1,986 30,900 19,263 2001 40 years<br />
Vietnam Tower lease<br />
USA<br />
TCB Building<br />
a 12-storey office building Houston, <strong>Keppel</strong> 30% 13,015 27,323 26,858 1982 Freehold<br />
located in the prestigious Texas, Houston<br />
Galleria area of Houston USA Group<br />
Partnership<br />
^^ Assets owned by Five Stars Property Public Company Ltd in which the Group has a 45.45% stake.
Property Portfolio<br />
continued<br />
GROUP PROPERTIES (OVERSEAS)<br />
Description Location Held by % Owned Site Area Estimated Estimated Year of Tenure<br />
(sm) Building Gross Completion<br />
Floor Lettable<br />
Area (sm) Area (sm)<br />
Properties Under Development<br />
Australia<br />
Botanic Cove (Phase 2)<br />
a residential development Sydney, <strong>Keppel</strong> <strong>Land</strong> 100% 35,460 - Mixed *2002/2003 Freehold<br />
in Tarban, Hunters Hill Australia Devt townhouses<br />
municipality about 7 km<br />
apartments<br />
north-west of Sydney CBD<br />
full facilities.<br />
kiosk (Phase 2)<br />
118 unis with<br />
1 retail<br />
China<br />
Spring City Golf & Lake Resort<br />
an integrated resort comprising Kunming, Kunming 40% 5,000,000 - Resort *2004 70 years<br />
golf courses, resort homes and China Yunxin homes lease<br />
resort facilities<br />
Tourist<br />
Devt Co<br />
nalyses<br />
A116<br />
Residential Development<br />
a 3,200-unit residential Shanghai, Shanghai 99% 95,906 407,601 3,200 *2004 70 years<br />
development complete China Merryfield lease<br />
with recreational facilities<br />
<strong>Land</strong> Co<br />
(Plot A)<br />
Shanghai<br />
Pasir Panjang<br />
<strong>Land</strong> Co<br />
(Plot B)<br />
Shanghai<br />
Floraville<br />
<strong>Land</strong> Co<br />
(Plot C)<br />
Indonesia<br />
Hotel Sedona Manado<br />
a 4-star international class Manado, PT Pantai 50% 243,083 - 247-room hotel *2003 30 years<br />
hotel Indonesia Indah Tateli (Phase 1) lease with<br />
option for<br />
another<br />
20 years<br />
Ria Bintan Resort<br />
(Phase 2 onwards)<br />
an integrated resort project Bintan, PT Ria-Bintan 45.9% 2,803,000 - 64 resort homes *2004/2005 30 years<br />
with golf courses and a Indonesia (Phase 2a) (Phase 2a) lease with<br />
Club Med Village and ** option for<br />
resort homes<br />
another<br />
50 years<br />
Pasadenia Garden (Phase 2)<br />
a residential development Jakarta, PT Pulomas 25% 48,332 - Residential *2005 30 years<br />
in Pulomas Indonesia Gemala apartment (Phase 2) lease with<br />
Misori blocks ** option for<br />
another<br />
20 years
Analyses<br />
GROUP PROPERTIES (OVERSEAS)<br />
Description Location Held by % Owned Site Area Estimated Estimated Year of Tenure<br />
(sm) Building Gross Completion<br />
Floor Lettable<br />
Area (sm) Area (sm)<br />
Properties Under Development<br />
Galleria Tunjungan<br />
a retail/commercial complex Surabaya, PT Sentral 80% 23,384 - 76,000 sqm retail *2005 30 years<br />
in Surabaya Indonesia Tunjungan (Phase 1) (Phase 1) lease with<br />
Perkasa<br />
option<br />
for<br />
another<br />
20 years<br />
Wijaya Centre Site<br />
a proposed retail/commercial Surabaya PT Sentral 80% 26,000 - Retail *2004/2005 30 years<br />
in Surabaya Indonesia Supel (Phase 1) lease with<br />
Perkasa<br />
option<br />
for<br />
another<br />
20 years<br />
Tanah Lot Resort<br />
an integrated resort project Bali, PT Purimas 26% 910,020 - Resort *2004/2005 30 years<br />
incorporating resort bungalows, Indonesia Straits Resort bungalows (Phase 1) lease with<br />
spa village and recreational facilities (Phase 1) ** option for<br />
** another<br />
20 years<br />
Malaysia<br />
Taman Sutera, Skudai<br />
a residential / commercial Johor, Tanah 18% 4,201,214 - 158 residential *2002 Freehold<br />
development Malaysia Sutera units<br />
Development (Phase I,<br />
Stage 5-6)<br />
46 residential<br />
units<br />
(Phase II,<br />
Stage 2)<br />
Taman Jernih, Bukit Mertajam<br />
a residential development Penang, Jernih 49% 50,476 27,979 174 residential *2003/4 Freehold<br />
Malaysia Rezeki and commercial<br />
units<br />
Philippines<br />
SM-KL Towers, Ortigas<br />
two 55-storey office towers and Manila, SM <strong>Keppel</strong> 24.15% 20,000 13,630 9,859 1985 Freehold<br />
a 70-storey residential tower, Philippines <strong>Land</strong> (Existing) (Existing) (Existing)<br />
interlinked by a 5-storey retail 26,687 17,316 2001<br />
podium called The Podium. (Phase 1- (Phase 1- (Phase 1-<br />
To be developed in phases. The Podium) The Podium) The Podium)<br />
Vacant <strong>Land</strong><br />
at Caragay Road Cebu, Opon 20.2% 7,803 - - - Freehold<br />
Philippines Realty and<br />
Development<br />
Corp.<br />
117
Property Portfolio<br />
continued<br />
Analyses<br />
118<br />
GROUP PROPERTIES (OVERSEAS)<br />
Description Location Held by % Owned Site Area Estimated Estimated Year of Tenure<br />
(sm) Building Gross Completion<br />
Floor Lettable<br />
Area (sm) Area (sm)<br />
Properties Under Development<br />
Palmdale Heights Pasig City, Buena Homes 30.88% 76,156 229,416 174,653 *2003 Freehold<br />
a 29-block residential Philippines (Sandoval) (Residential) (Residential) (Phase 1<br />
development with 5,749 3,031 comprising<br />
4,000 apartment units, (Commercial) (Commercial) 6 residential<br />
3 parking buildings and 19,137 820 slots blocks and<br />
and 2 commercial (Parking) (Parking) 1 building)<br />
buildings<br />
Metro North Township San Jose KFP and 35.34% 6,000,000 ** ** ** Freehold<br />
an option with Araneta Properties del Monta, Opon-KE<br />
to jointly develop a residential Bulacan Properties<br />
township on a 600-ha site.<br />
To be developed in phases<br />
(north of<br />
Ortigas CBD),<br />
Philippines<br />
Thailand^^<br />
Vacant <strong>Land</strong><br />
for residential development Chonburi, Five Stars 45.45% 355,996 - - - Freehold<br />
at Highway 332 in Sattahip Thailand Property<br />
Vietnam<br />
Saigon Centre<br />
(Phase 2 onwards)<br />
a 25-storey office, retail cum Ho Chi <strong>Keppel</strong> <strong>Land</strong> 68% 2,886 - 212 units *2004 50 years<br />
serviced apartments Minh City, Watco Co (Phase 2) of serviced (Phase 2) lease<br />
at Le Loi Boulevard Vietnam 14,090 apartments with<br />
(subsequent<br />
retail podium<br />
phases) (Phase 2)<br />
Tamarind Park<br />
a 20-storey apartment tower Ho Chi <strong>Keppel</strong> <strong>Land</strong> 60% 2,808 - 173 units of *2004 45 years<br />
with swimming pool and Minh City, Agtex furnished lease<br />
recreational facilities located Vietnam apartments<br />
in prime District 1<br />
* Expected year of completion<br />
^^ Assets owned by Five Stars Property Public Company Ltd in which the Group has a 45.45% stake.<br />
** Plans are in the process of being finalised
Analyses<br />
Gearing Structure<br />
as at 31 December 2001<br />
At end-2001, the credit facilities available to the<br />
Group for drawdown totalled $2.9 billion. As 90%<br />
2.5<br />
Credit Facilities<br />
($ billion)<br />
was utilised, the unutilised balance was 10% or<br />
$289 million. This did not include cash in hand and<br />
on deposit of $238 million. Of the credit facilities that<br />
were drawndown, 27% was in fixed rate borrowings<br />
and 73% in floating rate borrowings.<br />
2.0<br />
1.5<br />
1.0<br />
2.2<br />
1.9<br />
0.7 0.7<br />
1.8<br />
0.8<br />
1.6<br />
0.8<br />
During the year, funds were raised by way of increased<br />
0.5<br />
borrowings from banks and from related companies.<br />
For 2001, the Group’s interest cover was 1.3 times<br />
before provisions for write-down in the values of the<br />
Group’s landbank compared with 1.9 times for the<br />
previous year. The effective cost of borrowing was<br />
4.4% compared with 4.5% in 2000. Net interest<br />
cost expensed and capitalised totalled $100.5 million,<br />
whilst average net borrowings amounted to<br />
$2,291 million.<br />
0.0<br />
200<br />
180<br />
160<br />
140<br />
120<br />
100<br />
Available<br />
2001<br />
Floating Rate Borrowings<br />
Interest Cover<br />
($ million) (Number of Times)<br />
134.6<br />
Utilised<br />
2001<br />
1.9<br />
100.5 96.5<br />
1.3<br />
Available<br />
2000<br />
Fixed Rate Borrowings<br />
184.5<br />
Utilised<br />
2000<br />
2.5<br />
2.0<br />
1.5<br />
119<br />
80<br />
1.0<br />
Secured borrowings as a percentage of total<br />
borrowings at 31 December 2001 amounted to<br />
15.3%, an increase from 11.4% in 2000.<br />
60<br />
40<br />
20<br />
0<br />
0.5<br />
0.0<br />
2001<br />
2000<br />
With total borrowings of $2.6 billion at<br />
Net Interest<br />
Profit<br />
Cover<br />
31 December 2001, the Group’s debt-equity ratio<br />
(including minority interests) was 140%. Taking cash<br />
in hand and on deposit into account, the ratio was<br />
128%. At the previous year-end, the Group’s<br />
4,000<br />
3,500<br />
Debt-equity Ratio<br />
($ million) (Debt-equity Ratio) %<br />
1.49<br />
1.6<br />
1.4<br />
debt-equity ratios were lower at 92% and 83%<br />
3,000<br />
1.2<br />
respectively. The higher gearing at end-2001 was due<br />
to an increase in borrowings and a decrease in the<br />
Group’s shareholders’ funds.<br />
2,500<br />
2,000<br />
1,500<br />
2,416<br />
1,617<br />
0.96<br />
2,166 2,253<br />
1<br />
0.8<br />
0.6<br />
1,000<br />
0.4<br />
500<br />
0.2<br />
0<br />
0<br />
2001<br />
2000<br />
Debt Equity Debt-equity Ratio (%)
Gearing Structure<br />
continued<br />
Fixed Rate Floating Rate<br />
Borrowings Borrowings Total<br />
$’000 % $’000 % $’000 %<br />
Facilities available for drawdown 726,000 100 2,218,009 100 2,944,009 100<br />
Amount utilised 712,913 98 1,942,320 88 2,655,233 90<br />
Balance unutilised 13,087 2 275,689 12 288,776 10<br />
Cash in hand and on deposit 238,807<br />
527,583<br />
2001 2000<br />
Interest cover<br />
Profit before interest and tax 134,618 184,515<br />
Net interest cost expensed and capitalised ($’000) 100,500 96,515<br />
Interest cover 1.3 1.9<br />
nalyses<br />
A120<br />
Effective cost of borrowings<br />
Net interest cost expensed and capitalised ($’000) 100,500 96,515<br />
Average net borrowings ($’000) 2,291,028 2,164,725<br />
Effective cost of borrowings (%) 4.4 4.5<br />
Secured borrowings ratio<br />
Total secured borrowings ($’000) 405,458 272,741<br />
Percentage of total borrowings (%) 15.3 11.4<br />
Debt-equity ratio<br />
Total borrowings:<br />
Gross ($’000) 2,655,233 2,401,873<br />
Net of cash ($’000) 2,416,426 2,165,630<br />
Total equity (excluding minority interests) ($’000) 1,617,408 2,252,660<br />
Debt-equity ratio (excluding minority interests) :<br />
Gross (%) 164 107<br />
Net of cash (%) 149 96<br />
Total equity (excluding minority interests) ($’000) 1,895,312 2,616,379<br />
Net debt-equity ratio (including minority interests) (%) 128 83
<strong>Keppel</strong> <strong>Land</strong> Limited<br />
Statutory Report121<br />
and Accounts
<strong>Keppel</strong> <strong>Land</strong> Limited<br />
Directors’ Report<br />
The Directors submit their report together with the audited accounts of the Company and of the Group for the year ended<br />
31 December 2001.<br />
1 Principal Activities<br />
The principal activities of the Group consist of property investment, development and management, and property-related<br />
services.<br />
The principal activity of the Company is that of a holding, management and investment company.<br />
2 Results<br />
Group Company<br />
$’000 $’000<br />
Profit / (loss) after taxation and minority interests attributable to (366,463) 112,850<br />
shareholders, transferred to revenue reserves<br />
The following amounts have been credited/(debited) to:<br />
Statutory Report and Accounts<br />
122<br />
Capital reserves:<br />
Net deficit on revaluation of subsidiary and associated companies - (666,246)<br />
Net surplus / (deficit) on revaluation of investment properties (202,653) 11,800<br />
Transfer to revenue reserves (4,166) (4,057)<br />
Transfer to profit and loss account (46,476) (50,451)<br />
Foreign currency translation account:<br />
Exchange differences arising on consolidation 23,545 -<br />
Exchange differences on foreign currency borrowings (27,409) (27,409)<br />
Revenue reserves:<br />
Transfer from capital reserves 4,166 4,057<br />
There were no material transfers to or from provisions during the year except for amounts set aside for such items as<br />
depreciation, provisions for doubtful debts, provisions for write-down in values of landbank and income tax as disclosed in<br />
the accounts.<br />
3 Dividends<br />
During the year, a final dividend of 6% (or 3.0 cents per share) less tax amounting to $16,045,000, in respect of the<br />
previous year as proposed in the Directors’ report for that year, was paid to shareholders.<br />
The Directors propose that a final dividend of 6% (or 3.0 cents per share) less tax, amounting to $16,049,000 on the<br />
existing issued share capital, be paid for the current financial year.
<strong>Keppel</strong> <strong>Land</strong> Limited<br />
4 Share Issues<br />
During the year, the Company issued the following shares of $0.50 each, fully paid:<br />
194,000 shares under the <strong>Keppel</strong> <strong>Land</strong> Share Option Scheme, comprising 27,000 shares at $1.58 per share, 67,000 shares<br />
at $0.56 per share and 100,000 share at $1.71 per share.<br />
Shares issued by subsidiary companies during the year were as follows:<br />
Name of Company Number of Shares Issued Purpose of Share Issue<br />
Keplandehub Limited 99,998 ordinary shares of $1 each at par, and To provide working capital<br />
4,000 redeemable, convertible preference shares To provide working capital<br />
of $1 each at $10,000 each<br />
Shanghai Merryfield <strong>Land</strong> Co., Ltd Paid up capital of US$31,000,000 To provide working capital<br />
Shanghai Floraville <strong>Land</strong> Co., Ltd Paid up capital of US$942,716 To provide working capital<br />
Shanghai Pasir Panjang <strong>Land</strong> Co., Ltd Paid up capital of US$1,486,860 To provide working capital<br />
Pembury Properties Ltd 916,000 shares of US$1 each at par To provide working capital<br />
5 Acquisition and Disposal of Shares in Subsidiaries<br />
Shares in the following subsidiary were acquired during the year:<br />
Name of Company % Ownership Attributable Net<br />
before<br />
Tangible Assets<br />
Acquisition % Acquired Consideration on Date of<br />
Acquisition<br />
$’000 $’000<br />
123<br />
and Accounts<br />
Report<br />
Statutory<br />
<strong>Keppel</strong> Philippines Properties, Inc 49.7 0.8 61 61
<strong>Keppel</strong> <strong>Land</strong> Limited<br />
Directors’ Report<br />
(continued)<br />
6 Directors<br />
The Directors in office at the date of this report are:<br />
Lim Chee Onn, Chairman<br />
Kevin Wong Kingcheung, Managing Director<br />
Lim Leong Geok<br />
Thai Chee Ken<br />
Khor Poh Hwa<br />
Lim Ho Kee (Appointed on 8 November 2001)<br />
Tsui Kai Chong (Appointed on 8 November 2001)<br />
Loh Wing Siew<br />
Choo Chiau Beng<br />
Teo Soon Hoe<br />
Mr Alan F.C. Choe and Dr Kwa Soon Bee retired as Directors of the Company on 22 May 2001.<br />
The Directors holding office at the end of the financial year and their interests in the share capital of the Company and<br />
related companies as recorded in the register of Directors’ shareholdings were as follows:<br />
Statutory Report and Accounts<br />
124<br />
At 1.1.01 or Date<br />
of Appointment At 31.12.01 At 21.1.02<br />
Interest in the Company<br />
(Shares of 50 cents each):<br />
Kevin Wong Kingcheung 157,400 157,400 157,400<br />
Interest in share options in the Company:<br />
Kevin Wong Kingcheung 633,000 763,000 763,000<br />
Interest in <strong>Keppel</strong> Corporation Limited (“KCL”)<br />
(Shares of $1 each up to 23 November 2001 and<br />
50 cents each thereafter):<br />
Lim Chee Onn 462,083 462,083 462,083<br />
Lim Leong Geok 30,000 30,000 30,000<br />
Loh Wing Siew 316,458 316,458 316,458<br />
Loh Wing Siew (Deemed interest) 100,000 100,000 100,000<br />
Choo Chiau Beng 239,583 239,583 239,583<br />
Teo Soon Hoe 629,166 629,166 629,166<br />
Interest in share options in KCL:<br />
Lim Chee Onn 751,250 1,018,750 1,018,750<br />
Loh Wing Siew 541,250 428,750 428,750<br />
Choo Chiau Beng 681,250 848,750 848,750<br />
Teo Soon Hoe 681,250 848,750 848,750
<strong>Keppel</strong> <strong>Land</strong> Limited<br />
At 1.1.01 or Date<br />
of Appointment At 31.12.01 At 21.1.02<br />
Interest in <strong>Keppel</strong> FELS Energy & Infrastructure Limited<br />
(Shares of 50 cents each):<br />
Lim Chee Onn 10,500 - -<br />
Loh Wing Siew 32,500 - -<br />
Choo Chiau Beng 127,875 - -<br />
Teo Soon Hoe 10,500 - -<br />
Interest in Singapore Petroleum Company Limited<br />
(Shares of 50 cents each):<br />
Choo Chiau Beng 50,000 50,000 50,000<br />
Interest in <strong>Keppel</strong> Telecommunications<br />
& Transportation Limited (“<strong>Keppel</strong> T & T”)<br />
(Shares of 20 cents each):<br />
Lim Chee Onn 23,000 23,000 23,000<br />
Choo Chiau Beng 26,000 26,000 26,000<br />
Teo Soon Hoe 28,000 28,000 28,000<br />
Interest in Warrants 2002 to subscribe<br />
for shares in <strong>Keppel</strong> T & T:<br />
Lim Chee Onn 4,500 4,500 4,500<br />
Choo Chiau Beng 4,000 4,000 4,000<br />
Teo Soon Hoe 5,000 5,000 5,000<br />
125<br />
and Accounts<br />
Report<br />
Statutory<br />
Interest in <strong>Keppel</strong> Capital Holdings Limited<br />
(Shares of $1 each):<br />
Lim Chee Onn 37,500 - -<br />
Lim Leong Geok 4,000 - -<br />
Loh Wing Siew 50,000 - -<br />
Choo Chiau Beng 50,000 - -<br />
Choo Chiau Beng (Deemed interest) 7,656 - -<br />
Teo Soon Hoe 56,250 - -<br />
Interest in <strong>Keppel</strong> TatLee Finance Limited (“KTLF”)<br />
(Shares of 50 cents each)<br />
Loh Wing Siew 31,808 - -<br />
Interest in Warrants 2001 to subscribe for shares in KTLF:<br />
Loh Wing Siew 8,000 - -
<strong>Keppel</strong> <strong>Land</strong> Limited<br />
Directors’ Report<br />
(continued)<br />
At 1.1.01 or Date<br />
of Appointment At 31.12.01 At 21.1.02<br />
Interest in <strong>Keppel</strong> Philippines Holdings Inc<br />
(“B” shares of 1 Peso each)<br />
Lim Chee Onn 2,000 2,000 2,000<br />
Loh Wing Siew 4,592 4,592 4,592<br />
Choo Chiau Beng 2,000 2,000 2,000<br />
Teo Soon Hoe 2,000 2,000 2,000<br />
Interest in <strong>Keppel</strong> Philippines Marine Inc<br />
(Shares of 1 Peso each)<br />
Lim Chee Onn 246,457 246,457 246,457<br />
Loh Wing Siew 495,170 495,170 495,170<br />
Choo Chiau Beng 283,611 283,611 283,611<br />
Teo Soon Hoe 302,830 302,830 302,830<br />
Statutory Report and Accounts<br />
126<br />
Interest in <strong>Keppel</strong> Philippines Properties Inc<br />
(Shares of 1 Peso each):<br />
Loh Wing Siew 20,000 20,000 20,000<br />
Teo Soon Hoe 2,916 2,916 2,916<br />
Since the end of the previous financial year, no Director has received or become entitled to receive benefits under<br />
contracts required to be disclosed by Section 201(8) of the Companies Act, Cap 50.<br />
Neither at the end of the financial year, nor at any time during the year, did there subsist any arrangements, to which the<br />
Company or any of its subsidiary companies is a party, whereby the Directors might acquire benefits by means of<br />
acquisition of shares in or debentures of the Company or any other body corporate other than the <strong>Keppel</strong> <strong>Land</strong> Share<br />
Option Scheme approved by shareholders at an Extraordinary General Meeting.<br />
In accordance with the Company’s Articles of Association, the following Directors retire, and being eligible, offers<br />
themselves for re-election:<br />
Lim Chee Onn<br />
Lim Ho Kee<br />
Tsui Kai Chong<br />
Choo Chiau Beng
<strong>Keppel</strong> <strong>Land</strong> Limited<br />
7 Audit Committee<br />
In relation to the accounts of the Company and the Group for the year ended 31 December 2001, the Audit Committee<br />
reviewed the audit plans and scope of the audit examination of the external auditors of the Company. The external and<br />
internal auditors’ findings on the internal controls of the companies within the Group, and management’s response to<br />
these findings were also discussed with the auditors and management. The Audit Committee’s activities included a<br />
review of the accounts of the Company and the Group for the year ended 31 December 2001, and the report of the<br />
external auditors thereon.<br />
The Audit Committee has recommended to the Board of Directors the re-appointment of Ernst & Young, Certified Public<br />
Accountants as external auditors of the Company at the forthcoming Annual General Meeting.<br />
The members of the Committee are:<br />
Thai Chee Ken, Chairman<br />
Lim Leong Geok<br />
Kevin Wong Kingcheung<br />
8 Options<br />
The particulars of share options of the Company are as follows:<br />
The <strong>Keppel</strong> <strong>Land</strong> Share Option Scheme which has been approved by the shareholders of the Company is administered by<br />
the Share Option Committee whose members are:<br />
Lim Chee Onn<br />
Thai Chee Ken<br />
Teo Soon Hoe<br />
127<br />
and Accounts<br />
Report<br />
Statutory<br />
Under the <strong>Keppel</strong> <strong>Land</strong> Share Option Scheme, an option may, except in certain special circumstances, be exercised at any<br />
time after two years but no later than the expiry date. The shares under option may be exercised in full or in respect of<br />
100 shares or a multiple thereof, on the payment of the subscription price.<br />
The subscription price is based on the average last business done price for the shares of the Company on the Singapore<br />
Exchange Securities Trading Limited for the three market days preceding the date of offer. The Share Option Committee<br />
may at its discretion fix the subscription price at a discount not exceeding 20 per cent to the above price. None of the<br />
options offered in the financial year was granted at a discount.<br />
The employees to whom the options have been granted do not have the right to participate by virtue of the options in a<br />
share issue of any other company.<br />
Options to take up 3,733,000 shares were granted during the financial year. 194,000 shares were issued by virtue of the<br />
exercise of options, and options to take up 1,196,000 shares were cancelled during the financial year. At the end of the<br />
financial year, there were 10,551,000 shares under option as follows:
<strong>Keppel</strong> <strong>Land</strong> Limited<br />
Directors’ Report<br />
(continued)<br />
Number of Share Options<br />
At 1.1.01<br />
Date of or Date Subscription<br />
Grant of Grant Exercised Cancelled 31.12.01 Price ($) Expiry Date<br />
21.3.96 375,000 - (375,000) - 4.53 20.3.01<br />
19.8.96 400,000 - (400,000) - 4.67 18.8.01<br />
21.4.97 781,000 - (53,000) 728,000 4.16 20.4.02<br />
5.9.97 795,000 - (56,000) 739,000 3.86 4.9.02<br />
12.3.98 361,000 (27,000) (4,000) 330,000 1.58 11.3.03<br />
7.9.98 547,000 (67,000) - 480,000 0.56 6.9.03<br />
5.3.99 541,000 (100,000) (14,000) 427,000 1.71 4.3.09<br />
20.8.99 1,290,000 - (82,000) 1,208,000 2.48 19.8.09<br />
6.4.00 1,341,000 - (83,000) 1,258,000 1.87 5.4.10<br />
29.11.00 1,777,000 - (114,000) 1,663,000 2.47 28.11.10<br />
8,208,000 (194,000) (1,181,000) 6,833,000<br />
11.10.01 3,733,000 - (15,000) 3,718,000 1.35 10.10.11<br />
11,941,000 (194,000) (1,196,000) 10,551,000<br />
Statutory Report and Accounts<br />
128<br />
Information on Directors of the Company participating in the Scheme is as follows:<br />
Aggregate Options Aggregate Options<br />
Granted since Exercised since Aggregate Options<br />
Options Granted Commencement of Commencement of Outstanding as at the<br />
Name of Director during the Financial the Scheme to the the Scheme to the End of the Financial<br />
Year End of the Financial Year End of the Financial Year Year<br />
Kevin Wong<br />
Kingcheung 200,000 1,202,360 227,400 763,000<br />
No employee has received 5 per cent or more of the total number of options available under the <strong>Keppel</strong> <strong>Land</strong> Share<br />
Option Scheme.<br />
9 Asset Values<br />
Before the accounts of the Company and of the Group were prepared, the Directors took reasonable steps:<br />
(a)<br />
(b)<br />
to ascertain that proper action had been taken in relation to writing off and providing for bad and doubtful debts,<br />
and satisfied themselves that all known bad debts had been written off and that adequate provision had been made<br />
for doubtful debts; and<br />
to ensure that any current assets which are unlikely to realise their book values in the ordinary course of business<br />
were written down to their estimated realisable values.
<strong>Keppel</strong> <strong>Land</strong> Limited<br />
Asset Values (continued)<br />
At the date of this report, the Directors are not aware of any circumstances which would render:<br />
(a)<br />
(b)<br />
the amount written off for bad debts or the amount of the provision for doubtful debts in the accounts of the<br />
Company and of the Group inadequate to any substantial extent; or<br />
the values attributed to current assets in the accounts of the Company and of the Group misleading.<br />
10 Contingent Liabilities<br />
As at the date of this report:<br />
(a)<br />
(b)<br />
there are no charges on the assets of the Company and of the Group which have arisen since the end of the<br />
financial year to secure the liabilities of any other person; and<br />
there are no contingent liabilities which have arisen since the end of the financial year.<br />
No contingent or other liability has become enforceable or is likely to become enforceable within the period of twelve<br />
months after the end of the financial year which, in the opinion of the Directors, will or may affect the ability of the<br />
Company and of the Group to meet their obligations as and when they fall due.<br />
11 Accounts<br />
At the date of this report, the Directors are not aware of any circumstances not otherwise dealt with in the accounts of the<br />
Company and of the Group which would render any amount stated in the accounts misleading.<br />
In the opinion of the Directors, the results of the operations of the Company and of the Group during the financial year<br />
have not been substantially affected by any item, transaction or event of a material and unusual nature, other than the<br />
items shown as direct movements in capital and revenue reserves.<br />
129<br />
and Accounts<br />
Report<br />
Statutory<br />
In the opinion of the Directors, the results of the Company and of the Group for the financial year in which this report is<br />
made are not likely to be substantially affected by any item, transaction or event of a material and unusual nature which<br />
has arisen in the interval between the end of the financial year and the date of this report.<br />
12 Auditors<br />
The auditors, Ernst & Young, Certified Public Accountants, have expressed their willingness to accept re-appointment as<br />
auditors.<br />
On Behalf of the Board<br />
LIM CHEE ONN<br />
CHAIRMAN<br />
KEVIN WONG KINGCHEUNG<br />
MANAGING DIRECTOR<br />
Singapore, 22 March 2002
<strong>Keppel</strong> <strong>Land</strong> Limited<br />
Statement by the Directors<br />
We, LIM CHEE ONN and KEVIN WONG KINGCHEUNG, being two of the Directors of <strong>Keppel</strong> <strong>Land</strong> Limited, do hereby state that,<br />
in the opinion of the Directors:<br />
(a)<br />
the balance sheets, profit and loss accounts, statements of changes in equity and consolidated cashflow statement,<br />
together with the notes thereon, set out on pages 132 to 174 are drawn up so as to exhibit a true and fair view of the state<br />
of affairs of the Company and of the Group as at 31 December 2001 and of the results and changes in equity of the<br />
Company and the Group, and cash flows of the Group for the year then ended; and<br />
(b)<br />
at the date of this statement, there are reasonable grounds to believe that the Company will be able to pay its debts as and<br />
when they fall due.<br />
On behalf of the Board<br />
Statutory Report and Accounts<br />
130<br />
LIM CHEE ONN<br />
CHAIRMAN<br />
KEVIN WONG KINGCHEUNG<br />
MANAGING DIRECTOR<br />
Singapore, 22 March 2002
<strong>Keppel</strong> <strong>Land</strong> Limited<br />
Auditors’ Report<br />
We have audited the financial statements of <strong>Keppel</strong> <strong>Land</strong> Limited and the consolidated financial statements of the Group as set<br />
out on pages 132 to 174, comprising the balance sheets of the Company and of the Group as at 31 December 2001, and the<br />
profit and loss accounts and the statements of changes in equity of the Company and of the Group and cashflow of the Group<br />
for the year ended 31 December 2001, and notes thereto. These financial statements are the responsibility of the Company’s<br />
Directors. Our responsibility is to express an opinion on these financial statements based on our audit.<br />
We conducted our audit in accordance with Singapore Standards on Auditing. Those Standards require that we plan and<br />
perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.<br />
An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements.<br />
An audit also includes assessing the accounting principles used and significant estimates made by the Directors, as well as<br />
evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.<br />
In our opinion,<br />
(a)<br />
the financial statements are properly drawn up in accordance with the provisions of the Companies Act (“Act”) and<br />
Statements of Accounting Standard and so as to give a true and fair view of :<br />
(i)<br />
the state of affairs of the Company and of the Group as at 31 December 2001, the results and changes in equity of<br />
the Company and of the Group and the cash flows of the Group for the year then ended; and<br />
(b)<br />
(ii) the other matters required by Section 201 of the Act to be dealt with in the financial statements and consolidated<br />
financial statements;<br />
the accounting and other records, and the registers required by the Act to be kept by the Company and by those<br />
subsidiaries incorporated in Singapore of which we are the auditors have been properly kept in accordance with the<br />
provisions of the Act.<br />
131<br />
and Accounts<br />
Report<br />
Statutory<br />
We have considered the financial statements and auditors’ reports of all subsidiaries of which we have not acted as auditors,<br />
being financial statements included in the consolidated financial statements. The names of those subsidiaries audited by our<br />
associated firms and those audited by other firms are stated in the notes to the accounts.<br />
We are satisfied that the financial statements of the subsidiaries that have been consolidated with the financial statements of<br />
the Company are in form and content appropriate and proper for the purposes of the preparation of the consolidated financial<br />
statements and we have received satisfactory information and explanations as required by us for those purposes.<br />
The auditors’ reports on the financial statements of the subsidiaries were not subject to any qualification and in respect of<br />
subsidiaries incorporated in Singapore did not include any comment made under Section 207(3) of the Act.<br />
ERNST & YOUNG<br />
Certified Public Accountants<br />
Singapore, 22 March 2002
<strong>Keppel</strong> <strong>Land</strong> Limited<br />
Profit and Loss Accounts<br />
for the Year ended 31 December 2001<br />
Group<br />
Company<br />
2001 2000 2001 2000<br />
Note $’000 $’000 $’000 $’000<br />
SALES 2 300,537 500,492 - -<br />
COST OF SALES (140,268) (317,278) - -<br />
GROSS PROFIT 160,269 183,214 - -<br />
Marketing expenses (2,378) (3,781) - -<br />
Administrative expenses (32,244) (24,917) - -<br />
Other operating income / (expenses) (1,773) 16,704 (3,553) (1,233)<br />
OPERATING PROFIT / (LOSS) 3 123,874 171,220 (3,553) (1,233)<br />
Interest and investment income 2 & 4 28,685 30,944 169,943 164,844<br />
Interest expense 5 (48,827) (51,000) (85,617) (73,811)<br />
Share of results of associated companies 17 8,448 10,436 - -<br />
PROFIT BEFORE EXCEPTIONAL ITEMS 112,180 161,600 80,773 89,800<br />
Exceptional items 6 (483,694) - 50,553 (2,852)<br />
Statutory Report and Accounts<br />
132<br />
PROFIT / (LOSS) BEFORE TAXATION (371,514) 161,600 131,326 86,948<br />
Taxation 7 (12,267) (29,362) (18,476) (24,070)<br />
PROFIT / (LOSS) AFTER TAXATION (383,781) 132,238 112,850 62,878<br />
Minority interests 17,318 (10,124) - -<br />
PROFIT / (LOSS) ATTRIBUTABLE<br />
TO SHAREHOLDERS (366,463) 122,114 112,850 62,878<br />
Basic earnings per share (cents) 9 (51.7) 17.3<br />
Diluted earnings per share (cents) 9 (51.6) 17.3<br />
The notes shown on pages 140 to 174 form an integral part of these financial statements.
<strong>Keppel</strong> <strong>Land</strong> Limited<br />
Balance Sheets<br />
as at 31 December 2001<br />
Group<br />
Company<br />
2001 2000 2001 2000<br />
Note $’000 $’000 $’000 $’000<br />
SHARE CAPITAL 10 354,287 354,190 354,287 354,190<br />
RESERVES 11 1,263,121 1,898,470 1,263,121 1,898,470<br />
SHARE CAPITAL AND RESERVES 1,617,408 2,252,660 1,617,408 2,252,660<br />
MINORITY INTERESTS 277,904 363,719 - -<br />
LONG-TERM BORROWINGS 12 2,508,996 1,367,469 1,826,198 1,093,623<br />
4,404,308 3,983,848 3,443,606 3,346,283<br />
Represented by:<br />
FIXED ASSETS 13 277,869 277,437 88 93<br />
INVESTMENT PROPERTIES 14 2,344,734 2,695,460 - 39,700<br />
PROPERTIES HELD FOR DEVELOPMENT 15 168,061 156,143 - -<br />
INVESTMENTS<br />
Subsidiary companies 16 - - 3,114,772 3,575,822<br />
Associated companies 17 736,285 522,786 356,303 370,523<br />
Other investments 18 72,597 160,580 4,120 4,120<br />
808,882 683,366 3,475,195 3,950,465<br />
CURRENT ASSETS<br />
Properties held for sale 19 1,042,210 1,423,284 - -<br />
Stocks 20 3,732 3,641 - -<br />
Trade debtors 21 64,706 22,032 - -<br />
Other debtors 22 84,580 113,365 1,674 3,402<br />
Amounts owing by holding<br />
and related companies 23 141,241 150,787 41,577 57,914<br />
Fixed deposits, bank balances and cash 24 120,886 61,943 20,677 2,262<br />
133<br />
and Accounts<br />
Report<br />
Statutory<br />
1,457,355 1,775,052 63,928 63,578<br />
Less:<br />
CURRENT LIABILITIES<br />
Trade creditors 20,359 28,375 - -<br />
Other creditors 25 456,295 544,578 8,505 64,363<br />
Net tax provision 26 46,868 69,175 3,600 10,735<br />
Short-term borrowings 27 129,071 961,482 83,500 632,455<br />
652,593 1,603,610 95,605 707,553<br />
NET CURRENT ASSETS / (LIABILITIES) 804,762 171,442 (31,677) (643,975)<br />
4,404,308 3,983,848 3,443,606 3,346,283<br />
The notes shown on pages 140 to 174 form an integral part of these financial statements.
<strong>Keppel</strong> <strong>Land</strong> Limited<br />
Group Statement of Changes in Equity<br />
for the Year ended 31 December 2001<br />
Property Foreign<br />
Revaluation and Currency<br />
Share Share Other Capital Translation Retained<br />
Capital Premium Reserves Account Profit/(Loss) Dividend Total<br />
$’000 $’000 $’000 $’000 $’000 $’000 $’000<br />
Balance at 1 January 2001<br />
As previously reported 354,190 811,932 906,704 (134,118) 301,388 - 2,240,096<br />
Adjustment for changes in<br />
accounting policies - - - - (3,481) 16,045 12,564<br />
As restated 354,190 811,932 906,704 (134,118) 297,907 16,045 2,252,660<br />
Net deficit on revaluation of<br />
investment proper properties - - (202,653) - - - (202,653)<br />
Exchange differences arising on - - - 23,545 - - 23,545<br />
consolidation<br />
Exchange differences on foreign - - - (27,409) - - (27,409)<br />
currency borrowings<br />
Statutory Report and Accounts<br />
134<br />
Net losses not recognised in - - (202,653) (3,864) - - (206,517)<br />
income statement<br />
Net loss for the year - - - - (366,463) - (366,463)<br />
Total recognised gains<br />
and losses for the year - - (202,653) (3,864) (366,463) - (572,980)<br />
Issue of shares under the <strong>Keppel</strong><br />
<strong>Land</strong> Share Option Scheme 97 154 - - - - 251<br />
Net revaluation deficit realised<br />
and transferred to<br />
profit and loss account - - (46,476) - - - (46,476)<br />
Transfers - - (4,166) - 4,166 - -<br />
Final dividend for the previous<br />
year , paid - - - - (2) (16,045) (16,047)<br />
Final dividend for the year,<br />
proposed - - - - (16,049) 16,049 -<br />
Balance at 31 December 2001 354,287 812,086 653,409 (137,982) (80,441) 16,049 1,617,408
<strong>Keppel</strong> <strong>Land</strong> Limited<br />
Property Foreign<br />
Revaluation and Currency<br />
Share Share Other Capital Translation Retained<br />
Capital Premium Reserves Account Profit Dividend Total<br />
$’000 $’000 $’000 $’000 $’000 $’000 $’000<br />
Balance at 1 January 2000<br />
As previously reported 353,267 810,903 830,793 (116,570) 272,159 - 2,150,552<br />
Adjustment for changes in<br />
accounting policies - - - - (4,977) 15,791 10,814<br />
As restated 353,267 810,903 830,793 (116,570) 267,182 15,791 2,161,366<br />
Net surplus on revaluation<br />
of investment properties - - 8,650 - - - 8,650<br />
Exchange differences arising on - - - (4,312) - - (4,312)<br />
consolidation<br />
Exchange differences on foreign - - - (13,162) - - (13,162)<br />
currency borrowings<br />
Net gains / (losses) not recognised<br />
in income statement - - 8,650 (17,474) - - (8,824)<br />
Net profit for the year<br />
As previously reported - - - - 120,618 - 120,618<br />
Adjustment for change in<br />
accounting policy - - - - 1,496 - 1,496<br />
As restated - - - - 122,114 - 122,114<br />
135<br />
and Accounts<br />
Report<br />
Statutory<br />
Total recognised gains<br />
and losses for the year - - 8,650 (17,474) 122,114 - 113,290<br />
Issue of shares under the <strong>Keppel</strong> <strong>Land</strong><br />
Share Option Scheme 923 1,029 - - - - 1,952<br />
Adjustment for changes in Group<br />
structure - - 204 (90) (4,237) - (4,123)<br />
Transfer of goodwill to retained<br />
earnings - - 71,086 - (71,086) - -<br />
Net revaluation surplus realised and<br />
transferred to profit and loss<br />
account - - (4,029) - - - (4,029)<br />
Transfers - - - 16 (16) - -<br />
Final dividend for the previous year,<br />
paid - - - - (5) (15,791) (15,796)<br />
Final dividend for the year, proposed - - - - (16,045) 16,045 -<br />
Balance at 31 December 2000 354,190 811,932 906,704 (134,118) 297,907 16,045 2,252,660
<strong>Keppel</strong> <strong>Land</strong> Limited<br />
Company Statement of Changes in Equity<br />
for the Year ended 31 December 2001<br />
Property Foreign<br />
Revaluation and Currency<br />
Share Share Other Capital Translation Retained<br />
Capital Premium Reserves Account Profit Dividend Total<br />
$’000 $’000 $’000 $’000 $’000 $’000 $’000<br />
Balance at 1 January 2001<br />
As previously reported 354,190 811,932 791,808 (55,128) 337,294 - 2,240,096<br />
Adjusments for changes in<br />
accounting policies - - (3,481) - - 16,045 12,564<br />
As restated 354,190 811,932 788,327 (55,128) 337,294 16,045 2,252,660<br />
Surplus on revaluation of<br />
investment property - - 11,800 - - - 11,800<br />
Net deficit on revaluation of (666,246) (666,246)<br />
subsidiary and<br />
associated companies<br />
Statutory Report and Accounts<br />
136<br />
Exchange differences on foreign - - - (27,409) - - (27,409)<br />
currency borrowings<br />
Net losses not recognised - - (654,446) (27,409) - - (681,855)<br />
in income statement<br />
Net profit for the year - - - - 112,850 - 112,850<br />
Total recognised gains and<br />
losses for the year - - (654,446) (27,409) 112,850 - (569,005)<br />
Issue of shares under the<br />
<strong>Keppel</strong> <strong>Land</strong> Share<br />
Option Scheme 97 154 - - - - 251<br />
Net revaluation surplus realised<br />
and transferred to profit and<br />
loss account - - (50,451) - - - (50,451)<br />
Transfers - - (4,057) - 4,057 - -<br />
Final dividend for the previous year,<br />
paid - - - - (2) (16,045) (16,047)<br />
Final dividend for the year,<br />
proposed - - - - (16,049) 16,049 -<br />
Balance at 31 December 2001 354,287 812,086 79,373 (82,537) 438,150 16,049 1,617,408
<strong>Keppel</strong> <strong>Land</strong> Limited<br />
Property Foreign<br />
Revaluation and Currency<br />
Share Share Other Capital Translation Retained<br />
Capital Premium Reserves Account Profit Dividend Total<br />
$’000 $’000 $’000 $’000 $’000 $’000 $’000<br />
Balance at 1 January 2000<br />
As previously reported 353,267 810,903 737,882 (41,966) 290,466 - 2,150,552<br />
Adjustments for changes in<br />
accounting policies - - (4,977) - - 15,791 10,814<br />
As restated 353,267 810,903 732,905 (41,966) 290,466 15,791 2,161,366<br />
Net surplus on revaluation<br />
of subsidiary<br />
and associated companies<br />
As previously restated - - 51,100 - - - 51,100<br />
Changes in accounting policies - - 1,496 - - - 1,496<br />
As restated - - 52,596 - - - 52,596<br />
Exchange differences on foreign - - - (13,162) - - (13,162)<br />
currency borrowings<br />
Net gains/(losses) not recognised<br />
in income statement - - 52,596 (13,162) - - 39,434<br />
137<br />
and Accounts<br />
Report<br />
Statutory<br />
Net profit for the year - - - - 62,878 - 62,878<br />
Total recognised gains and<br />
losses for the year - - 52,596 (13,162) 62,878 - 102,312<br />
Issue of shares under the<br />
<strong>Keppel</strong> <strong>Land</strong> Share<br />
Option Scheme 923 1,029 - - - 1,952<br />
Net revaluation surplus realised<br />
and transferred to profit and<br />
loss account - - 2,826 - - - 2,826<br />
Final dividend for the previous year,<br />
paid - - - - (5) (15,791) (15,796)<br />
Final dividend for the year,<br />
proposed - - - - (16,045) 16,045 -<br />
Balance at 31 December 2000 354,190 811,932 788,327 (55,128) 337,294 16,045 2,252,660
<strong>Keppel</strong> <strong>Land</strong> Limited<br />
Consolidated Cash Flow Statement<br />
for the Year ended 31 December 2001<br />
2001 2000<br />
$’000 $’000<br />
CASH FLOW FROM OPERATING ACTIVITIES:<br />
Operating profit before interest, exceptional items and taxation 123,874 171,220<br />
Adjustments for:<br />
Depreciation of fixed assets 18,512 16,735<br />
Write-back of provision for doubtful debts (3,161) -<br />
Provisions for write-down in value of investments 7,300 -<br />
Exchange difference on US$ bonds - 2,826<br />
Loss from disposal of fixed assets 337 51<br />
Profit from disposal of investment properties (1,338) -<br />
Profit from disposal of investments (2,390) -<br />
Operating income before reinvestment in working capital 143,134 190,832<br />
Increase in debtors (36,114) (21,197)<br />
Decrease in stocks and properties held for sale 38,374 20,314<br />
Increase / (decrease) in creditors (63,093) 26,596<br />
Cash generated from operations 82,301 216,545<br />
Statutory Report and Accounts<br />
138<br />
Income from investment received 2,296 2,859<br />
Interest received 20,435 21,588<br />
Income from interests in associated companies 5,954 6,497<br />
Interest paid (48,827) (51,000)<br />
Income taxes paid (31,943) (19,679)<br />
Net cash provided by operating activities 30,216 176,810<br />
CASH FLOW FROM INVESTING ACTIVITIES:<br />
Purchase of fixed assets and additions to investment properties (17,545) (102,453)<br />
Sale / (purchase) of marketable securities and other investments 83,167 (31,320)<br />
Additional investment in subsidiary and associated companies (36,135) (171,786)<br />
Development expenditure (223,726) (512,768)<br />
Proceeds from progress billings 164,428 668,866<br />
Proceeds from sale of investment properties and fixed assets 9,674 211<br />
Sale of shares in subsidiary and associated companies - 295<br />
Net cash used in investing activities (20,137) (148,955)<br />
CASH FLOW FROM FINANCING ACTIVITIES<br />
Net proceeds from issue of shares by the Company 251 1,952<br />
Net loan drawdown 304,635 124,228<br />
Proceeds from / (repurchase of) Floating Rate Notes (28,500) 55,750<br />
Advances from minority shareholders of certain companies 2,428 47,713<br />
Loans from / (to) related and associated companies, less dividends (170,803) 9,237<br />
Dividends paid to shareholders (16,047) (15,796)<br />
Dividends to, less contribution by minority shareholders of subsidiary companies (44,877) (50,189)<br />
Net cash provided by financing activities 47,087 172,895<br />
Net increase in cash and cash equivalents 57,166 200,750<br />
Cash and cash equivalents at beginning of year 163,321 (35,285)<br />
Exchange gain / (loss) 1,154 (2,144)<br />
Cash and cash equivalents at end of year 221,641 163,321
<strong>Keppel</strong> <strong>Land</strong> Limited<br />
2001 2000<br />
REPRESENTED BY: $’000 $’000<br />
CASH AND CASH EQUIVALENTS<br />
Fixed deposits, bank balances and cash 120,886 61,943<br />
Deposits with related companies 117,921 174,300<br />
Short-term borrowings from related companies (17,166) (72,922)<br />
221,641 163,321<br />
The acquisition and disposal of shares in subsidiary companies have been shown as separate items, and their effect on the<br />
individual assets and liabilities of the Group is not reflected in the above statement. The net assets of subsidiary company sold,<br />
acquired or reclassified as associated companies may be analysed as follows:<br />
2001 2000 2001 2000<br />
$’000 $’000 $’000 $’000<br />
Fixed assets 446 - Purchase<br />
Investment properties - 16,359 consideration 61 126,810<br />
Properties held for development - 88,080 Sale proceeds - (627)<br />
Investment in associated companies 25,777 -<br />
Other investments 94 22,219<br />
Stocks, debtors and creditors (8,035) 2,695<br />
Net bank balances, cash and deposits with,<br />
and deposits from related company 3,243 10,927<br />
Minority interests (10,707) (14,365)<br />
Reclassification of investments in<br />
associated companies (10,757) 268<br />
139<br />
and Accounts<br />
Report<br />
Statutory<br />
61 126,183 61 126,183
<strong>Keppel</strong> <strong>Land</strong> Limited<br />
Summary of Significant Accounting Policies<br />
The following summary explains the Group’s significant accounting policies which have been consistently applied, except<br />
where otherwise indicated:<br />
(a)<br />
Basis of Accounting<br />
The financial statements are prepared in accordance with the historical cost convention modified by revaluation of certain<br />
fixed assets, investment properties and investments in subsidiary and associated companies.<br />
The financial statements are prepared in accordance with Singapore Statements of Accounting Standard (“SAS”).<br />
The financial statements are expressed in Singapore dollars.<br />
(b)<br />
Basis of Consolidation<br />
The Group accounts consolidate the accounts of the Company and its subsidiary companies, all of which prepare audited<br />
accounts at 31 December. Subsidiary companies are those in which more than 50% of the issued share capital is held or<br />
in which the Group has Board control.<br />
Statutory Report and Accounts<br />
140<br />
(c)<br />
The accounts of subsidiary companies acquired or disposed of during the year are included in or excluded from Group<br />
figures from the effective dates of acquisition or disposal. Any excess of the cost of investments over the fair value of<br />
identifiable net assets acquired is shown as goodwill and is amortized over its estimated useful life of not more than<br />
20 years.<br />
Minority interests are recorded on the basis of their share of the post-acquisition values of the net assets of the non-wholly<br />
owned subsidiaries.<br />
Subsidiary Companies<br />
Investments in subsidiary companies are stated in the accounts of the Company at the attributable share of their<br />
combined net asset value. Any revaluation surplus or deficit arising each year is transferred direct to capital reserves.
<strong>Keppel</strong> <strong>Land</strong> Limited<br />
(d)<br />
Associated Companies<br />
Associated companies are those in which the Group has a long-term substantial equity interest and in whose commercial<br />
and financial policy decisions the Group actively participates. The Group’s share of profits less losses of associated<br />
companies, as shown in their audited accounts for the year ended 31 December (except for certain associated<br />
companies), is included in the Group’s results.<br />
The results of certain associated companies which do not prepare audited accounts at 31 December are based on their<br />
latest audited accounts and unaudited management accounts for the ensuing months up to 31 December.<br />
Investments in associated companies are stated in the Company’s and Group’s accounts at the attributable share of their<br />
combined net asset value as shown in their accounts. Any revaluation surplus or deficit arising each year is taken direct to<br />
capital reserves.<br />
(e)<br />
(f)<br />
Other Investments<br />
Investments held on a long-term basis are stated at average cost. Provision is made for any diminution in value which is<br />
considered to be permanent.<br />
Fixed Assets<br />
Fixed assets are stated at cost except for those which have been revalued. Surpluses arising on revaluation are credited<br />
direct to capital reserves. Revaluation deficits are taken to the profit and loss account in the absence of or to the extent<br />
that they exceed any surpluses held in reserves relating to previous revaluations.<br />
The carrying amounts in respect of both revalued assets and those measured at cost are reviewed at each balance sheet<br />
date to assess whether they are recorded in excess of their recoverable amounts. If carrying values exceed the recoverable<br />
amounts, the assets are written down accordingly.<br />
141<br />
and Accounts<br />
Report<br />
Statutory<br />
All fixed assets, except for freehold and long leasehold (i.e. with unexpired tenures of over 20 years) land, are depreciated<br />
evenly over their expected useful lives and residual values have also been taken into account where appropriate. The<br />
estimated useful lives of the Group’s fixed assets have been taken as follows:<br />
Buildings<br />
Short leasehold land and buildings<br />
Machinery and equipment<br />
Motor vehicles<br />
30 to 50 years<br />
Over period of lease (ranging from 2 to 20 years)<br />
3 to 7 years<br />
4 to 5 years<br />
Profits or losses on disposal of all fixed assets are included in the profit and loss account. Any surpluses held in capital<br />
reserves in respect of previous revaluations of fixed assets disposed of during the year are regarded as having become<br />
realised and are transferred to the revenue reserves.
<strong>Keppel</strong> <strong>Land</strong> Limited<br />
Summary of Significant Accounting Policies<br />
(continued)<br />
(g)<br />
Investment Properties<br />
Revaluation surpluses arising on annual valuations of the Group’s investment properties are credited direct to capital<br />
reserves. Revaluation deficits are taken to the profit and loss account in the absence of or to the extent that they exceed<br />
any surpluses held in reserves relating to previous revaluations.<br />
Profits or losses on disposal of all investment properties are included in the profit and loss account. Any surpluses held in<br />
capital reserves in respect of previous revaluations of investment properties disposed of during the year are regarded as<br />
having become realised and are transferred to the profit and loss account.<br />
(h)<br />
Properties Held for Development<br />
Properties held for development are stated at cost less impairment losses. Cost includes cost of land and construction,<br />
related overhead expenditure and financing charges and other net costs incurred during the period of development.<br />
They are considered completed and are transferred to investment properties or fixed assets when they are ready for their<br />
intended use as defined in SAS 19.<br />
Each property under development is accounted for as a separate project. Where a project comprises more than one<br />
component, each component is treated as a separate project, and interest and other net costs are apportioned<br />
accordingly.<br />
Statutory Report and Accounts<br />
142<br />
(i)<br />
Properties Held for Sale<br />
Development properties held for sale are stated at the lower of cost and net realisable value. Cost includes cost of land<br />
and construction, related overhead expenditure and financing charges and other net costs incurred during the period of<br />
development. Upon receipt of temporary occupation permits, they are transferred to completed properties held for sale.<br />
Profit recognised on partly completed projects which are held for sale is based on the percentage of completion method.<br />
The profit recognition upon the signing of sales contracts for Singapore trading properties under development is 20% of<br />
the total estimated profit attributable to the actual contracts signed. Subsequent recognition of profit is based on the<br />
stage of development completion.<br />
When losses are expected, full provision is made in the accounts after adequate allowance has been made for estimated<br />
costs to completion. Any expenditure incurred on abortive projects is written off in the profit and loss account for the<br />
year.<br />
Profit on partly completed projects which are held for sale less any provision to reduce cost to estimated realisable value<br />
as well as the profit or loss on sale of completed properties are included in the operating results for the year.<br />
Completed properties held for sale are stated at the lower of cost and net realisable value. Cost includes cost of land and<br />
construction, and interest incurred during the period of construction.
<strong>Keppel</strong> <strong>Land</strong> Limited<br />
(j)<br />
Stocks<br />
Stocks are valued at the lower of weighted average cost and net realisable value after adequate provision is made for<br />
damaged, obsolete or slow-moving stocks on an item by item basis. For finished goods and work-in-progress, cost<br />
comprises materials, direct labour and an appropriate proportion of fixed and variable overheads.<br />
Profits are not recognised on short-term contracts until the contracts are completed. In the case of partly completed<br />
long-term contracts, profits are recognised using the percentage of completion method based on the stage of physical<br />
completion. When losses are expected, full provision is established in the accounts after adequate allowance has been<br />
made for estimated costs to completion.<br />
Progress claims made against work-in-progress are offset against the cost of work-in-progress and the profits recognised<br />
on partly completed long-term contracts less any provision required to reduce cost to estimated realisable value.<br />
(k)<br />
Trade Debtors and Other Debtors<br />
Trade debtors are recognised and carried at original invoiced amounts less provisions for any uncollectible amounts.<br />
Receivables from related companies are recognised and carried at cost less provosions for any uncollectible amounts.<br />
Known bad debts are written off and specific provisions are made for any debts which are considered doubtful.<br />
(l)<br />
Trade and Other Creditors<br />
Trade and other creditors are carried at cost which is the fair value of the consideration to be paid in the future for goods<br />
and services received, whether or not billed to the Group. Payables to related companies are carried at cost.<br />
(m) Revenue Recognition<br />
Rental and related income from investment properties are recognised on an accrual basis.<br />
143<br />
and Accounts<br />
Report<br />
Statutory<br />
Revenue recognition from trading properties are set out in paragraph (i) above.<br />
Revenue from the rendering of services is recognised when the service is rendered.<br />
Dividend income is recognised in the accounts when it is declared to be payable by the investee companies.<br />
Interest income is recognised on an accrual basis.<br />
(n)<br />
Employee Benefits<br />
The Company has in place <strong>Keppel</strong> <strong>Land</strong> Share Option Scheme for the granting of options to eligible employees of the<br />
Group to subscribe for shares in the Company. Details of the scheme are disclosed in the Directors’ Report. Upon the<br />
grant or exercise of the options, there are no charges to the profit and loss account as the exercise price of each grant of<br />
options equals or approximates the market value of the shares at the time of grant.
<strong>Keppel</strong> <strong>Land</strong> Limited<br />
Summary of Significant Accounting Policies<br />
(continued)<br />
(o)<br />
Deferred Taxation<br />
Deferred taxation is provided for under the liability method at current rates of taxation on the excess of book values of<br />
fixed assets over their tax written down values, and timing differences on certain provisions or charges in the accounts for<br />
which tax relief is not immediately available.<br />
Future tax benefits arising from unutilised tax losses and capital allowances are recognised in the accounts only if there is<br />
reasonable assurance that they will be utilised against future taxable profits. These future tax benefits are offset against<br />
the deferred tax liability in the Group’s accounts.<br />
(p)<br />
Foreign Currencies<br />
Foreign currency monetary assets and liabilities are converted into Singapore dollars, the currency in which these<br />
accounts are stated, at the exchange rates ruling at the end of the year. Exchange differences arising from the conversion<br />
are dealt with through the profit and loss account, or in reserves when foreign equity investments are hedged by foreign<br />
currency borrowings.<br />
Transactions arising in foreign currencies during the year are converted at rates closely approximating those ruling on the<br />
transaction dates. Profits or losses arising from completed transactions are taken to the profit and loss account.<br />
Statutory Report and Accounts<br />
144<br />
For inclusion in Group accounts, all assets and liabilities of foreign subsidiaries and associated companies are translated<br />
into Singapore dollars at the exchange rates ruling at the end of the year. Exchange differences due to such currency<br />
translations as well as the exchange differences in respect of offsetting foreign currency loans or other hedging<br />
instruments are dealt with in reserves. The trading results of foreign subsidiaries and associated companies are translated<br />
into Singapore dollars at the average exchange rates for the year.
<strong>Keppel</strong> <strong>Land</strong> Limited<br />
(q)<br />
Changes in Accounting Policy<br />
In compliance with new SAS 8 on extraordinary items, SAS 34 on intangible assets and SAS 10 on events occurring after<br />
the balance sheet date, the Group made the following modifications to its accounting policies:<br />
(a)<br />
(b)<br />
(c)<br />
Items outside normal business activities are now treated as “exceptional” instead of “extraordinary” and are shown<br />
before determining profit before taxation;<br />
Deferred expenditures (mainly pre-operating expenses) are now written-off in the year in which they are incurred<br />
instead of being amortised over a few years; and<br />
Proposed dividend previously recognised as a liability at balance sheet date is now recognised only after the<br />
dividend has been declared payable. The final dividend proposed is presented as a separate component of<br />
shareholders’ equity.<br />
As a result of the abovementioned accounting changes, the comparative figures in the profit and loss accounts for the<br />
year ended 31 December 2000 had been restated accordingly. The Company’s profit before taxation was reduced by<br />
$2.8 million to $86.9 million, and Group attributable profit increased by $1.5 million to $122.1 million.<br />
In addition, deferred expenditure of $15.5 million as at 1 January 2001 was adjusted against revenue reserves and<br />
minority interests.<br />
Goodwill arising on the acquisition of businessess being any excess of the cost of investments over the fair value of<br />
identifiable net assets acquired is now amortised over its estimated useful life of not more than 20 years instead of<br />
showing as a direct movement against shareholders’ interests. There was no impact due to this change in 2001 and 2000<br />
as there were no additional goodwill amounts in both the years.<br />
145<br />
and Accounts<br />
Report<br />
Statutory
<strong>Keppel</strong> <strong>Land</strong> Limited<br />
Notes to the Accounts<br />
for the Year ended 31 December 2001<br />
1. Principal Activities<br />
The principal activity of the Company is that of a holding, management and investment company.<br />
The principal activities of the Company and its subsidiary companies (“the Group”) consist of property investment,<br />
development and management, and property-related services.<br />
2. Revenue<br />
Group<br />
Company<br />
2001 2000 2001 2000<br />
$’000 $’000 $’000 $’000<br />
Sale of trading properties 114,079 338,189 - -<br />
Rental income from investment properties 137,642 124,762 - -<br />
Revenue from hotels, serviced apartments,<br />
property services 48,816 37,541 - -<br />
Sales / operating revenue 300,537 500,492 - -<br />
Dividend income 2,296 2,859 71,721 67,362<br />
Interest income 26,389 28,085 98,222 97,482<br />
28,685 30,944 169,943 164,844<br />
Statutory Report and Accounts<br />
146<br />
Total revenue 329,222 531,436 169,943 164,844<br />
Sales represent the invoiced value of goods and services supplied. In respect of the Group, inter-company transactions<br />
and the sales of associated companies have been excluded.
<strong>Keppel</strong> <strong>Land</strong> Limited<br />
3. Operating Profit/(Loss)<br />
The following amounts have been charged/<br />
(credited) in arriving at the operating profit/ (loss):<br />
Group<br />
Company<br />
2001 2000 2001 2000<br />
$’000 $’000 $’000 $’000<br />
Depreciation of fixed assets:<br />
Freehold buildings 5 651 5 6<br />
Leasehold buildings 8,234 4,077 - -<br />
Machinery, equipment and vehicles 10,273 12,007 - -<br />
18,512 16,735 5 6<br />
Auditors’ remuneration:<br />
Auditors of the Company 401 341 90 90<br />
Other auditors 49 51 - -<br />
Directors’ remuneration:<br />
Directors of the Company<br />
Fees 147 160 147 160<br />
Other emoluments 1,029 955 - -<br />
Staff costs<br />
Salaries and wages 28,360 24,539 - -<br />
Employer’s contibution to defined contribution 2,553 1,472 - -<br />
plans including Central Provident Fund<br />
Other 2,789 1,998 - -<br />
33,702 28,009 - -<br />
147<br />
and Accounts<br />
Report<br />
Statutory<br />
Loss on sale of fixed assets 392 51 - -<br />
Profit on sale of investment properties (1,393) - - -<br />
Profit on sale of investment (2,390) - - -<br />
Write-back of provision for doubtful debts (3,161) (75) (5,161) -<br />
Provision for stock obsolescence - 822 - -<br />
Provision for diminution in value of other investments 7,300 - - -<br />
4. Investment and Interest Income<br />
Group<br />
Company<br />
2001 2000 2001 2000<br />
$’000 $’000 $’000 $’000<br />
Gross dividends from:<br />
Unquoted subsidiary companies - - 70,052 66,424<br />
Unquoted associated companies - - 1,669 938<br />
Quoted investments 2,296 2,859 - -<br />
Interest from deposits and short-term loans with:<br />
Banks 10,052 12,757 8,252 10,557<br />
Holding and related companies<br />
(See note below) 75,474 72,753 89,103 81,628<br />
Associated companies 5,954 6,497 551 4,788<br />
Other companies 6,589 2,780 316 509<br />
100,365 97,646 169,943 164,844<br />
Interest capitalised (71,680) (66,702) - -<br />
28,685 30,944 169,943 164,844
<strong>Keppel</strong> <strong>Land</strong> Limited<br />
Notes to the Accounts<br />
(continued)<br />
Included in interest income of the Group is $71,680,000 (2000: $66,702,000) of interest earned from loans to certain<br />
subsidiary companies which capitalised the interest as property development cost. Interest on deposits with related<br />
companies is earned at rates ranging between 0.38 % to 6.44 % (2000: 0.63% to 6.44%) per annum.<br />
5. Interest Expense<br />
Group<br />
Company<br />
2001 2000 2001 2000<br />
$’000 $’000 $’000 $’000<br />
On Bonds 2001 and Bonds 2005 (17,938) (23,428) (8,938) (16,549)<br />
On fixed term loans from banks (17,314) (14,801) (12,905) (7,450)<br />
On other term loans and overdrafts from:<br />
Related companies (62,007) (39,355) (54,700) (24,301)<br />
Banks (12,378) (22,181) (206) (10,733)<br />
Other companies (2,262) (3,291) (260) (132)<br />
On Floating Rate Notes (8,608) (11,820) (8,608) (11,820)<br />
Exchange on foreign currency borrowings - (2,826) - (2,826)<br />
(120,507) (117,702) (85,617) (73,811)<br />
Interest capitalised (see also Note 4) 71,680 66,702 - -<br />
(48,827) (51,000) (85,617) (73,811)<br />
Statutory Report and Accounts<br />
148<br />
Interest is charged by related companies at rates ranging from 1.41 % to 7.98 % (2000: 2.5% to 7.98%) per annum.<br />
6. Exceptional Items<br />
Group<br />
Company<br />
2001 2000 2001 2000<br />
$’000 $’000 $’000 $’000<br />
Profit from sale of investment property - - 50,556 -<br />
Loss from sales of shares in subsidiary companies - - (3) (2,852)<br />
Provision for the write-down in the value of landbank (483,694) - - -<br />
(483,694) - 50,553 (2,852)
<strong>Keppel</strong> <strong>Land</strong> Limited<br />
7. Taxation<br />
Group<br />
Company<br />
2001 2000 2001 2000<br />
$’000 $’000 $’000 $’000<br />
Provision for current taxation based on<br />
profit for the year:<br />
Singapore 13,996 26,177 18,476 24,070<br />
Other - - - -<br />
Provision on share of profits of<br />
associated companies 2,631 5,334 - -<br />
Overprovision in respect of prior years (4,360) (2,149) - -<br />
12,267 29,362 18,476 24,070<br />
The Company’s tax rate is lower than the statutory rate due to profit on sale of an investment property and offshore<br />
income which are not subject to tax.<br />
The taxation charge for the Group is lower than the statutory rate due to (a) the gain from the sale of Cluny Hill bungalow<br />
land plots which is not subject to tax, and (b) the utilisation of the tax losses and capital allowances by certain subsidiary<br />
companies.<br />
Tax losses and capital allowances relating to previous years of certain subsidiary and associated companies which were<br />
utilised against taxable profit during the current year had the effect of reducing the Group’s overall taxation charge by<br />
approximately $ 2,583,000 (2000: $3,876,000).<br />
8. Dividend<br />
Group<br />
Company<br />
2001 2000 2001 2000<br />
$’000 $’000 $’000 $’000<br />
149<br />
and Accounts<br />
Report<br />
Statutory<br />
Proposed dividend: 6 % (or 3 cents per share) less<br />
tax [2000: 6% (or 3 cents per share) less tax] 16,049 16,045 16,049 16,045<br />
Under-provision in respect of shares issued under<br />
the <strong>Keppel</strong> <strong>Land</strong> Share Option Scheme 2 5 2 5<br />
16,051 16,050 16,051 16,050
<strong>Keppel</strong> <strong>Land</strong> Limited<br />
Notes to the Accounts<br />
(continued)<br />
9. Earnings per Share<br />
Group<br />
2001 2000<br />
$’000 $’000<br />
(a) The calculation of basic earnings / (loss) per<br />
share is based on the following:<br />
Profit / (loss) after tax and minority interests<br />
but before extraordinary items (366,463) 122,114<br />
Weighted average number of shares (‘000) 708,506 706,896<br />
(b) The calculation of diluted earnings / (loss)<br />
per share is based on the following:<br />
The average fair value of one ordinary share ($) 1.87 2.28<br />
Statutory Report and Accounts<br />
150<br />
Weighted average number of shares<br />
(used in the calculation of basic earnings<br />
per share) (‘000) 708,506 706,896<br />
Number of unissued shares under<br />
option (‘000) 4,955 2,790<br />
Number of shares that would have been<br />
issued at fair value (‘000) (3,497) (1,890)<br />
Weighted average number of shares 709,964 707,796
<strong>Keppel</strong> <strong>Land</strong> Limited<br />
10. Share Capital<br />
Group and Company Company and Company<br />
2001 2000 2001 2000<br />
Shares Shares $’000 $’000<br />
$’000 $’000<br />
Authorised: 1,000,000,000 shares of 50 cents each with<br />
equal voting rights 1,000,000 1,000,000 500,000 500,000<br />
Issued and fully paid: 708,573,081 (2000: 708,379,081)<br />
shares of $0.50 each 708,573 708,379 354,287 354,190<br />
Issued and fully paid:<br />
At 1 January 708,379 706,534 354,190 353,267<br />
Shares issued under the <strong>Keppel</strong> <strong>Land</strong><br />
Share Option Scheme 194 1,780 97 890<br />
Shares issued upon exercise of <strong>Keppel</strong><br />
<strong>Land</strong> Warrants 2000 - 65 - 33<br />
At 31 December 708,573 708,379 354,287 354,190<br />
During the year, the Company issued 194,000 shares comprising 27,000 shares at $1.58 per share, 67,000 shares at<br />
$0.56 per share and 100,000 shares at $1.71 per share to certain full time employees on exercise of options under the<br />
<strong>Keppel</strong> <strong>Land</strong> Option Scheme.<br />
At 31 December 2001, there were options granted to certain employees to take up 10,551,000 unissued shares in the<br />
Company as follows:<br />
Subscription Price Number of<br />
$ Shares<br />
151<br />
and Accounts<br />
Report<br />
Statutory<br />
4.16 728,000<br />
3.86 739,000<br />
1.58 330,000<br />
0.56 480,000<br />
1.71 427,000<br />
2.48 1,208,000<br />
1.87 1,258,000<br />
2.47 1,663,000<br />
1.35 3,718,000<br />
10,551,000<br />
Except under certain circumstances, an option may be exercised after two years from the date of grant but not<br />
later than the expiry date. The shares under option may be exercised in full or in respect of 100 shares or a multiple<br />
thereof on the payment of the subscription price.<br />
The full-time employees to whom the options have been granted do not have the right to participate by virtue of the<br />
options in a share issue of any other company.<br />
Further information on the <strong>Keppel</strong> <strong>Land</strong> Share Option Scheme is disclosed in the Directors’ Report.
<strong>Keppel</strong> <strong>Land</strong> Limited<br />
Notes to the Accounts<br />
(continued)<br />
11. Reserves<br />
Group<br />
Company<br />
2001 2000 2001 2000<br />
$’000 $’000 $’000 $’000<br />
Share premium 812,086 811,932 812,086 811,932<br />
Capital reserves<br />
Capital redemption reserves 3,993 3,993 - -<br />
Bond premium - 4,057 - 4,057<br />
Asset revaluation and other reserves 649,416 898,654 79,373 784,270<br />
653,409 906,704 79,373 788,327<br />
Foreign currency translation account (137,982) (134,118) (82,537) (55,128)<br />
Revenue reserves<br />
Retained profit / (loss) (80,441) 297,907 438,150 337,294<br />
Dividend 16,049 16,045 16,049 16,045<br />
(64,392) 313,952 454,199 353,339<br />
Statutory Report and Accounts<br />
152<br />
1,263,121 1,898,470 1,263,121 1,898,470<br />
Revenue reserves retained in:<br />
Company 454,199 353,339 454,199 353,339<br />
Subsidiaries (521,473) (49,284) - -<br />
Associated companies 2,882 9,897 - -<br />
(64,392) 313,952 454,199 353,339<br />
Capital redemption reserves represent the amount by which the issued share capital of the subsidiaries are diminished on<br />
cancellation of shares bought-back.<br />
Asset revaluation reserves of the Group represent mainly the revaluation surplus from the Group’s investment buildings.<br />
Asset revaluation reserves of the Company represent mainly the revaluation surplus of its subsidiary and associated<br />
companies.<br />
None of the above capital reserves is free for distribution as dividends.<br />
The foreign currency translation account represents exchange differences arising from the translation of the financial<br />
statements of foreign subsidiaries and associated companies, and exchange differences in respect of offsetting foreign<br />
currency loans. The Group’s investments in Indonesia have been written down vide such year-end translation of foreign<br />
currencies, and the deficits have been included in this foreign currency translation account.<br />
Revenue reserves are retentions of distributable profits. However, based on estimated tax-exempt shipping profits and<br />
tax credits available in Singapore and Malaysia, and the prevailing tax rates applicable to dividends, reserves of the<br />
Company amounting to $212,010,000 (2000: $152,267,000) are available for distribution as dividends without incurring<br />
additional tax liability.
<strong>Keppel</strong> <strong>Land</strong> Limited<br />
12. Long-term Borrowings<br />
Group<br />
Company<br />
2001 2000 2001 2000<br />
$’000 $’000 $’000 $’000<br />
Bonds due 2005, secured 180,000 180,000 - -<br />
Floating Rate Notes, unsecured:<br />
Due 2002 (See Note 27) - 112,000 - 112,000<br />
Bank borrowings:<br />
Secured (see also Note 27) 405,458 - - -<br />
Unsecured 310,156 204,095 252,816 150,000<br />
715,614 204,095 252,816 150,000<br />
Loans from related companies, unsecured 1,613,382 871,374 1,573,382 831,623<br />
Total 2,508,996 1,367,469 1,826,198 1,093,623<br />
The Group’s secured bonds due 2005 bear interest at a fixed rate of 5% per annum. The security is a mortgage of<br />
property held by a subsidiary company.<br />
The Group’s secured bank borrowings bear interest at rates ranging from 2.53% to 2.81% (2000: 4.69% to 4.81%)<br />
per annum. The securities are mortgages of properties held by subsidiary companies.<br />
153<br />
and Accounts<br />
Report<br />
Statutory<br />
Interest on the Group’s unsecured bank borrowings is payable at rates ranging from 2.44% to 10% (2000: 4.5% to<br />
10%) per annum.<br />
The above long-term borrowings are repayable between two to five years. Borrowings repayable within one year are<br />
shown under current liabilities.<br />
Loans from related companies have no fixed terms of repayment and are not expected to be repaid over the next<br />
12 months. Interest is payable at rates ranging from 1.41% to 7.98% (2000: 2.5% to 7.98%) per annum.
<strong>Keppel</strong> <strong>Land</strong> Limited<br />
Notes to the Accounts<br />
(continued)<br />
13. Fixed Assets<br />
<strong>Land</strong> and Buildings Machinery,<br />
Long Equipment<br />
Freehold Lease & Vehicles Total<br />
$’000 $’000 $’000 $’000<br />
GROUP<br />
Cost or Valuation<br />
At 1 January 2001<br />
Valuation 2000 8,279 - - 8,279<br />
Cost 1,842 199,694 136,573 338,109<br />
10,121 199,694 136,573 346,388<br />
Additions - 6,777 881 7,658<br />
Disposals - (338) (4,630) (4,968)<br />
Assets of subsidiaries acquired - 480 55 535<br />
Reclassification (1,721) - 1,721 -<br />
Exchange differences arising on consolidation (52) 7,540 5,753 13,241<br />
At 31 December 2001 8,348 214,153 140,353 362,854<br />
Statutory Report and Accounts<br />
154<br />
Representing:<br />
Valuation 2000 6,506 - - 6,506<br />
Cost 1,842 214,153 140,353 356,348<br />
8,348 214,153 140,353 362,854<br />
<strong>Land</strong> and Buildings Machinery,<br />
Long Equipment<br />
Freehold Lease & Vehicles Total<br />
$’000 $’000 $’000 $’000<br />
Depreciation<br />
At 1 January 2001 677 4,089 64,185 68,951<br />
Depreciation for the year 5 8,234 10,273 18,512<br />
Disposals - (54) (4,555) (4,609)<br />
Asset of subsidiaries acquired - 74 15 89<br />
Reclassification (627) - 627 -<br />
Exchange differences arising on consolidation 13 361 1,668 2,042<br />
At 31 December 2001 68 12,704 72,213 84,985<br />
Depreciation for 2000 651 4,077 12,007 16,735<br />
Net Book Value<br />
At 31 December 2001 8,280 201,449 68,140 277,869<br />
At 1 January 2001 9,444 195,605 72,388 277,437<br />
As at 31 December 2001, the net book value of assets which had been revalued, if based on cost, would be $33,284,000<br />
(2000: $33,523,000).<br />
The freehold property stated at Directors’ valuation is based on the valuation (open market value basis) by Herron Todd<br />
White, an independent firm of professional valuers as at 31 December 2000. There is no valuation report as at<br />
31 December 2001 as a sale and purchase agreement has been entered into for the sale of the property before the<br />
balance sheet date, and the sale price is higher than the carrying value.
<strong>Keppel</strong> <strong>Land</strong> Limited<br />
Freehold<br />
<strong>Land</strong> and<br />
Buildings<br />
$’000<br />
COMPANY<br />
Cost<br />
At 1 January 2001 and at 31 December 2001 156<br />
Depreciation<br />
At 1 January 2001 63<br />
Depreciation for the year 5<br />
At 31 December 2001 68<br />
Depreciation for 2000 6<br />
Net Book Value<br />
At 31 December 2001 88<br />
At 1 January 2001 93<br />
14. Investment Properties<br />
Group<br />
<strong>Land</strong> and Buildings<br />
Company<br />
Freehold<br />
Long<br />
<strong>Land</strong> and<br />
Freehold Lease Total Building<br />
$’000 $’000 $’000 $’000<br />
At valuation<br />
At 1 January 2001 697,652 1,997,808 2,695,460 39,700<br />
Additions 70 3,855 3,925 -<br />
Disposals (4,940) (2,430) (7,370) -<br />
Transfer to a subsidiary company - - - (51,500)<br />
Revaluation surplus / (deficit) (46,486) (179,645) (226,131) 11,800<br />
Reclassification to properties held for sale (128,096) - (128,096) -<br />
Exchange differences arising on consolidation 60 6,886 6,946 -<br />
155<br />
and Accounts<br />
Report<br />
Statutory<br />
At 31 December 2001 518,260 1,826,474 2,344,734 -<br />
The Group’s investment properties (including integral plant and machinery) are stated at Directors’ valuation based on<br />
the following valuations (open market value basis) by independent firms of professional valuers as at 31 December 2001:<br />
(a) Colliers Jardine Consultancy & Valuation (Singapore) Pte Ltd for properties in Singapore;<br />
(b) F P D Savills (Singapore) Pte Ltd for properties in Vietnam.<br />
Based on these valuations, the Group’s share of net deficit over their book value amounted to $186,885,000 and has<br />
been taken direct to capital reserves. As at 31 December 2000, the Group’s share of net surplus over their book value<br />
amounted to 40,900,000 and had not been taken up in the accounts for that financial year.<br />
Included in the above item of ”Reclassification to properties held for sale” of $128,096,000 is the value of the ten<br />
bungalows located at Cluny Hill previously held as investment properties. During 2001, the bungalows were<br />
demolished and the land subdivided into 16 land plots. These land plots are intended for sale, and have been<br />
reclassified to “Properties held for sale” (Note 19).<br />
Properties amounting to $1,016,400,000 (2000: $1,140,000,000) in value and included in the above balances are jointly<br />
mortgaged to banks as securities for borrowings referred to in Note 12.
<strong>Keppel</strong> <strong>Land</strong> Limited<br />
Notes to the Accounts<br />
(continued)<br />
15. Properties Held for Development<br />
Group<br />
Company<br />
2001 2000 2001 2000<br />
$’000 $’000 $’000 $’000<br />
Properties held for development comprise:<br />
<strong>Land</strong> cost 96,062 92,666 - -<br />
Development cost incurred todate 71,999 63,477 - -<br />
168,061 156,143 - -<br />
Properties held for development are transferred to fixed assets or investment properties when the respective<br />
development is completed.<br />
16. Subsidiary Companies<br />
Company<br />
2001 2000<br />
$’000 $’000<br />
Statutory Report and Accounts<br />
156<br />
At Directors’ valuation<br />
Quoted shares 27,455 11,674<br />
(Market value $12,825,000; 2000 : $ 9,035,000)<br />
Unquoted shares 1,234,386 1,843,026<br />
1,261,841 1,854,700<br />
Advances to subsidiary companies (Non-trade) 1,858,611 1,913,805<br />
3,120,452 3,768,505<br />
Less: Advances from subsidiary companies (Non-trade) (5,680) (192,683)<br />
3,114,772 3,575,822<br />
The advances to and from subsidiary companies are unsecured and have no fixed terms of repayment. Interest-bearing<br />
advances to and from subsidiary companies are charged at rates ranging from 4.2% to 6% (2000: 4.5% to 8.75%)<br />
per annum.<br />
The Company’s investment in its subsidiary companies is stated at the attributable share of their combined net asset<br />
value. The revaluation deficit for the year amounting to $666,592,000 (2000: surplus of $31,063,000) is taken direct to<br />
capital reserves.
<strong>Keppel</strong> <strong>Land</strong> Limited<br />
17. Associated Companies<br />
Group<br />
Company<br />
2001 2000 2001 2000<br />
$’000 $’000 $’000 $’000<br />
At Directors’ valuation - - 306,376 312,043<br />
At cost 324,882 292,826 - -<br />
Share of post-acquisition retained revenue reserves<br />
(Distributable) 2,882 9,897 - -<br />
Capital and other reserves (Non-distributable) 60,871 60,411 - -<br />
Investment in associated companies<br />
(See note below) 388,635 363,134 306,376 312,043<br />
Advances to associated companies (Non-trade) 352,450 163,216 52,046 60,233<br />
Advances from associated companies (Non-trade) (4,800) (3,564) (2,119) (1,753)<br />
736,285 522,786 356,303 370,523<br />
Investment in associated companies is represented by:<br />
Quoted shares<br />
(Market value $18,352,000; 2000: $5,565,000) 26,071 33,443 26,071 33,443<br />
Unquoted shares 362,564 329,691 280,305 278,600<br />
388,635 363,134 306,376 312,043<br />
The advances to and from associated companies are unsecured, have no fixed terms of repayment and are not expected<br />
to be repaid during the next 12 months. Interest is charged at rates ranging from 1.63% to 3.13% (2000: 2.85% to<br />
3.73%) per annum on interest-bearing advances to associated companies.<br />
157<br />
and Accounts<br />
Report<br />
Statutory<br />
The Company’s and the Group’s investments in associated companies are stated at the attributable share of their<br />
combined net asset value. The revaluation surplus for the Company for the year of $346,000 (2000: $16,556,000) is<br />
taken direct to capital reserves.
<strong>Keppel</strong> <strong>Land</strong> Limited<br />
Notes to the Accounts<br />
(continued)<br />
Details of the Group’s share of the sales, profits less losses, and retained revenue reserves of associated companies are as<br />
follows:<br />
Group<br />
2001 2000<br />
$’000 $’000<br />
Sales 74,327 97,610<br />
Profit before taxation 8,448 10,436<br />
Taxation (2,631) (5,334)<br />
Profit after taxation 5,817 5,102<br />
Retained revenue reserves:<br />
At 1 January 9,897 13,989<br />
Profit for the year 5,817 5,102<br />
Dividends (3,443) (1,085)<br />
Adjustment arising from change in Group structure 5,628 -<br />
Transfer to capital reserves (15,017) (12,193)<br />
Prior year adjustment - 4,084<br />
At 31 December 2,882 9,897<br />
Statutory Report and Accounts<br />
158<br />
18. Other Investments<br />
Group<br />
Company<br />
2001 2000 2001 2000<br />
$’000 $’000 $’000 $’000<br />
Quoted shares in corporations, at cost 2,692 38,705 - -<br />
Unquoted shares in corporations, at cost 80,373 125,043 7,288 7,288<br />
Convertible loan stock, at cost 2,000 2,000 2,000 2,000<br />
85,065 165,748 9,288 9,288<br />
Provisions (12,468) (5,168) (5,168) (5,168)<br />
72,597 160,580 4,120 4,120<br />
Analysis of provisions:<br />
At 1 January (5,168) (5,168) (5,168) (5,168)<br />
Provision during the year (7,300) - - -<br />
At 31 December (12,468) (5,168) (5,168) (5,168)<br />
Market value of quoted investments 10,125 44,575 - -<br />
Unquoted shares in corporations, at cost represent mainly the Group’s interest in the underlying property development<br />
project undertaken by a Hong Kong corporation.
<strong>Keppel</strong> <strong>Land</strong> Limited<br />
19. Properties held for sale<br />
Group<br />
Company<br />
2001 2000 2001 2000<br />
$’000 $’000 $’000 $’000<br />
(a) Properties under development<br />
<strong>Land</strong> cost 1,489,180 1,394,891 - -<br />
Development cost incurred todate 76,286 182,792 - -<br />
Related overhead expenditure 241,526 157,310 - -<br />
Development profit / (loss) (18,729) 8,717 - -<br />
Progress billings received and receivable (48,410) (26,878) - -<br />
Provisions (810,050) (326,356) - -<br />
929,803 1,390,476 - -<br />
(b) Completed properties and land held for sale 112,407 32,808 - -<br />
Total 1,042,210 1,423,284 - -<br />
Analysis of provisions:<br />
At 1 January (326,356) (438,233) - -<br />
Provision during the year (483,694) - - -<br />
Provisions utilised - 142,974 - -<br />
New subsidiary companies - (31,097) - -<br />
At 31 December (810,050) (326,356) - -<br />
159<br />
and Accounts<br />
Report<br />
Statutory<br />
Interest capitalised during the year was $ 77,726,000 (2000 : $66,643,000) at rates ranging from 4.95% to 8.44%<br />
(2000 : 4.25% to 8.44%) per annum.<br />
In 2000, properties amounting $43,720,000 in value and included in the above balances are jointly mortgaged to banks<br />
as securities for borrowings referred to in Note 27.<br />
20. Stocks<br />
Group<br />
Company<br />
2001 2000 2001 2000<br />
$’000 $’000 $’000 $’000<br />
Spare parts and consumable stores 3,732 3,641 - -<br />
Analysis of provision for stocks:<br />
At 1 January 822 - - -<br />
Provision during the year - 822 - -<br />
Provisions utilised (616) - - -<br />
At 31 December 206 822 - -
<strong>Keppel</strong> <strong>Land</strong> Limited<br />
Notes to the Accounts<br />
(continued)<br />
21. Trade Debtors<br />
Group<br />
Company<br />
2001 2000 2001 2000<br />
$’000 $’000 $’000 $’000<br />
Trade debtors are stated after providing<br />
for doubtful debts of 1,532 1,532 - -<br />
Analysis of provision for doubtful debts:<br />
At 1 January 1,532 1,635 - -<br />
Provision during the year - - - -<br />
Provision written back - (75) - -<br />
Currency alignment - (28) - -<br />
At 31 December 1,532 1,532 - -<br />
22. Other Debtors<br />
Group<br />
Company<br />
2001 2000 2001 2000<br />
$’000 $’000 $’000 $’000<br />
Statutory Report and Accounts<br />
160<br />
Prepaid project costs and prepayments 7,050 2,471 682 644<br />
Deposits paid 1,067 1,322 - -<br />
Staff loans 1,170 1,035 - -<br />
Advances to corporations in which the<br />
Group has investment interests 34,808 39,969 1,608 6,769<br />
Advances to minority shareholders of<br />
subsidiary companies 11,601 47,241 - -<br />
Other debtor 13,911 13,637 - -<br />
Other recoverable amounts 18,739 14,617 1,092 2,858<br />
88,346 120,292 3,382 10,271<br />
Less: Provision (3,766) (6,927) (1,708) (6,869)<br />
84,580 113,365 1,674 3,402<br />
Analysis of provision:<br />
At 1 January (6,927) (6,927) (6,869) (6,869)<br />
Provision during the year (2,000) - - -<br />
Provision written back 5,161 - 5,161 -<br />
At 31 December (3,766) (6,927) (1,708) (6,869)<br />
Advances to corporations are unsecured and have no fixed terms of repayment. Interest is charged at rates ranging from<br />
3.31% to 7.94% (2000: 7.19% to 7.94%) per annum on interest-bearing advances. These advances represent mainly the<br />
Group’s interest in the underlying property development project undertaken by a Singapore corporation.<br />
Advances to minority shareholders are unsecured, have no fixed terms of repayment and are interest free.
<strong>Keppel</strong> <strong>Land</strong> Limited<br />
23. Amounts Owing by / (to) Holding and Related Companies<br />
Group<br />
Company<br />
2001 2000 2001 2000<br />
$’000 $’000 $’000 $’000<br />
Current account (non-trade):<br />
Amount owing by / (to) holding company 1,339 (397) (21) -<br />
Amount owing by / (to) related companies (2,412) (1,959) (3,028) (3,421)<br />
(1,073) (2,356) (3,049) (3,421)<br />
Deposits and short-term borrowings:<br />
Surplus cash deposited with related companies 117,921 174,300 38,273 48,055<br />
Advances to holding company 5,000 5,000 - -<br />
Advances to related companies 36,559 46,765 6,353 13,280<br />
Short-term borrowings from related<br />
companies, unsecured (17,166) (72,922) - -<br />
142,314 153,143 44,626 61,335<br />
Total 141,241 150,787 41,577 57,914<br />
Included in cash deposited with related companies<br />
are amounts held under Project Account Rules<br />
1985, withdrawals from which are restricted<br />
to payment for expenditures incurred on projects - 25,217 - -<br />
Borrowings from related companies are repayable within one year, and bear interest at rates ranging from 1.41% to<br />
7.98% (2000: 2.5% to 7.35%) per annum.<br />
161<br />
and Accounts<br />
Report<br />
Statutory<br />
The immediate and ultimate holding company is <strong>Keppel</strong> Corporation Limited, incorporated in Singapore.<br />
Related companies are subsidiary companies of <strong>Keppel</strong> Corporation Limited.<br />
24. Fixed Deposits, Bank Balances and Cash<br />
Group<br />
Company<br />
2001 2000 2001 2000<br />
$’000 $’000 $’000 $’000<br />
Amounts held under Project Account Rules<br />
1985 withdrawals from which are<br />
restricted to payment for expenditure<br />
incurred on projects 1,423 2,368 - -
<strong>Keppel</strong> <strong>Land</strong> Limited<br />
Notes to the Accounts<br />
(continued)<br />
25. Other Creditors<br />
Group<br />
Company<br />
2001 2000 2001 2000<br />
$’000 $’000 $’000 $’000<br />
Deposits received 27,038 28,113 - 75<br />
Loans from minority shareholders of<br />
certain subsidiary companies 200,394 233,606 - -<br />
Interest payable 28,104 48,915 2,468 6,707<br />
Retention monies 10,710 16,433 - -<br />
Payable on acquisition of subsidiaries - 54,176 - 54,176<br />
Accruals 190,049 163,335 6,037 3,405<br />
456,295 544,578 8,505 64,363<br />
The loans from the minority shareholders of certain subsidiary companies are unsecured and have no fixed terms of<br />
repayment. Interest is payable at rates ranging from 4.2% to 6% (2000: 4.5% to 6%) per annum.<br />
Statutory Report and Accounts<br />
162<br />
26. Net Tax Provision<br />
Group<br />
Company<br />
2001 2000 2001 2000<br />
$’000 $’000 $’000 $’000<br />
Provision for taxation 51,983 77,531 3,600 10,735<br />
Income tax refund receivable (5,115) (8,356) - -<br />
46,868 69,175 3,600 10,735<br />
Subject to Sections 23 and 37 of the Income Tax Act, Cap 134, the Group has certain unutilised tax losses of<br />
$392,259,000 (2000: $334,012,000) and capital allowances of $17,196,000 (2000: $25,728,000) at 31 December 2001<br />
for which related tax benefits totalling $100,318,000 (2000: $88,139,000) have not been included in the accounts.<br />
27. Short-term Borrowings<br />
Group<br />
Company<br />
2001 2000 2001 2000<br />
$’000 $’000 $’000 $’000<br />
Floating Rate Notes, due 2001 and due 2002,<br />
unsecured (see Note 12) 83,500 280,250 83,500 280,250<br />
Bonds 4 15/16 % due 2001, unsecured - 200,000 - 200,000<br />
Bank borrowings:<br />
Secured - 256,306 - -<br />
Unsecured 45,571 224,926 - 152,205<br />
45,571 481,232 - 152,205<br />
Total 129,071 961,482 83,500 632,455
<strong>Keppel</strong> <strong>Land</strong> Limited<br />
In 1996, the Company entered into a series of agreements relating to $300,000,000 Floating Rate Notes due 2001 and<br />
$200,000,000 Floating Rate Notes due 2002 (“Notes”). The Notes are unsecured and issued in tranches, and will mature<br />
five years from the respective dates of issue. Interest payable is based on money market rates ranging from 1.06% to<br />
4.75% (2000: 2.44% to 4.75%) per annum.<br />
On 26 November 1996, the Company issued $200,000,000 unsecured 4 15/16 % Bonds due 2001. The Bonds were fully<br />
redeemed at their principal amounts on 26 November 2001 and cancelled.<br />
Unsecured bank borrowings bear interest at rates ranging from 4.09 % to 9.06 % (2000: 4.11% to 8.44%) per annum,<br />
and are repayable within one year. In 2000, secured loans were secured by mortgages of properties held by two<br />
subsidiary companies.<br />
As at 31 December 2001, related companies had no holdings of Bonds and Floating Rate Notes. The amounts held as at<br />
31 December 2000 were:<br />
Bonds 4 15/16 % due 2001 $73,750,000<br />
Floating Rate Notes $2,000,000<br />
28. Sales, Profits and Assets Employed by Segment<br />
(a) By Industry – Segment<br />
The Group operates principally in the property sector.<br />
(b) By Geographical Location – 2001<br />
Far East and<br />
ASEAN<br />
other than Australia Consolidated<br />
Singapore Singapore and Others Total<br />
$’000 $’000 $’000 $’000<br />
163<br />
and Accounts<br />
Report<br />
Statutory<br />
Sales to third parties 207,408 67,601 25,528 300,537<br />
Operating profit 118,398 9,506 (4,030) 123,874<br />
Segment assets 3,225,977 826,745 47,326 4,100,048<br />
Capital expenditure 6,222 8,339 89 14,650<br />
Depreciation charge 463 17,905 144 18,512<br />
(c) By Geographical Location - 2000<br />
Far East and<br />
ASEAN<br />
other than Australia Consolidated<br />
Singapore Singapore and Others Total<br />
$’000 $’000 $’000 $’000<br />
Sales to third parties 398,611 49,846 52,035 500,492<br />
Operating profit 160,544 9,021 1,655 171,220<br />
Segment assets 4,022,486 789,765 91,456 4,903,707<br />
Capital expenditure 33,036 85,015 - 118,051<br />
Depreciation charge 1,658 14,946 131 16,735
<strong>Keppel</strong> <strong>Land</strong> Limited<br />
Notes to the Accounts<br />
(continued)<br />
29. Capital Commitments<br />
Group<br />
Company<br />
2001 2000 2001 2000<br />
$’000 $’000 $’000 $’000<br />
(a) Estimated development costs for<br />
investment properties :<br />
(i) Contracted for - 4,702 - -<br />
(ii) Not contracted for 4,600 69,356 - -<br />
(b) Estimated development costs for<br />
properties for sale:<br />
(i) Contracted for 228,948 204,610 - -<br />
(ii) Not contracted for 671,650 265,628 - -<br />
905,198 544,296 - -<br />
Less: Minority shareholders’ share (78,972) (15,208) - -<br />
826,226 529,088 - -<br />
Statutory Report and Accounts<br />
164<br />
(c) Estimated capital subscription in associated<br />
companies 227,243 69,004 67,535 69,004<br />
(d) Capital subscription in other corporations 45,900 43,450 45,900 43,450<br />
30. Contingent Liabilities, Unsecured<br />
Group<br />
Company<br />
2001 2000 2001 2000<br />
$’000 $’000 $’000 $’000<br />
Guarantees given to financial institutions in<br />
connection with:<br />
(a) Facilities given to subsidiary companies - - 68,596 50,919<br />
(b) Facilities given to associated companies 346,304 328,546 338,861 321,534<br />
(c) Facilities given to corporations in which<br />
the Group has long-term investments - 121,817 - 121,817<br />
No material losses under these unsecured guarantees are expected.
<strong>Keppel</strong> <strong>Land</strong> Limited<br />
31. Significant Related Party Transactions<br />
(a) The following are the significant inter-company transactions entered into by the Company with:<br />
2001 2001 2000 2000<br />
Holding<br />
Holding<br />
Company<br />
Company<br />
and Fellow Subsidiary and Fellow Subsidiary<br />
Subsidiaries Companies Subsidiaries Companies<br />
$’000 $’000 $’000 $’000<br />
Interest income 1,497 87,606 2,928 78,700<br />
Interest expense (54,700) - (24,301) -<br />
(b) Significant inter-company transactions entered into by the Group with the holding company, fellow subsidiaries and<br />
related parties are as follows:<br />
2001 2000<br />
$’000 $’000<br />
Interest income 3,794 6,051<br />
Interest expense (62,007) (39,355)<br />
Management fees paid (1,615) (1,324)<br />
Rental income 6,122 9,105<br />
Project management fees received 2,794 1,406<br />
Property management fees received 65 65<br />
Marketing commission received 88 3,059<br />
165<br />
and Accounts<br />
Report<br />
Statutory<br />
32. Information Required by Paragraph 7 of the Ninth Schedule of the Companies Act<br />
Amounts Payable<br />
Amount Payable<br />
by the Company<br />
to the Company<br />
2001 2000 2001 2000<br />
$’000 $’000 $’000 $’000<br />
Not later than two years 359,269 1,017,410 1,956,957 2,038,775<br />
Later than two years but not more than five years 1,573,382 981,623 - -<br />
Later than five years - - - -<br />
1,932,651 1,999,033 1,956,957 2,038,775
<strong>Keppel</strong> <strong>Land</strong> Limited<br />
Notes to the Accounts<br />
(continued)<br />
33. Financial Instruments<br />
Financial Risk Management Objectives and Policies<br />
The Group is exposed to a variety of market risks including the effects of changes in interest rate and foreign currency<br />
exchange rates.<br />
To manage the market risks the Group uses derivative financial instruments where appropriate, for example interest rate<br />
swaps, interest rate cap agreements and forward foreign exchange contracts. The Group does not issue or hold derivative<br />
financial instruments for trading purposes.<br />
The risk management policies are summarised as follows:<br />
Interest Rate Risk<br />
The Group’s exposure for changes in interest rates is in respect of deposits and debt obligations with related companies<br />
and external financial institutions.<br />
The interest rate management policy is aimed at optimising net interest cost and reducing volatility. The Group borrows<br />
a mix of fixed and variable rate debt with varying tenors. The Group also uses interest rate swaps to hedge the<br />
underlying debt obligations.<br />
Statutory Report and Accounts<br />
166<br />
Foreign currency risk<br />
The Group is exposed to foreign exchange movements on its net investment in foreign subsidiaries, which generate<br />
revenue and incur costs denominated in foreign currencies. Assets held in foreign currencies are, to a large extent,<br />
financed by borrowings in the same currencies. Where appropriate, the Group will also enter into forward foreign<br />
exchange contracts to hedge against its foreign exchange risk in anticipated purchase or sale transactions denominated in<br />
foreign currencies.<br />
Credit risk<br />
Credit risk arises in the event of the inability of a counterparty to meet the terms of the Group’s financial instrument<br />
contracts. It is generally limited to the amounts, if any, by which the counterparty’s obligations exceed the obligations of<br />
the Group. It is also the Group’s policy to enter into financial instrument contracts with a diversity of prime financial<br />
institutions.
<strong>Keppel</strong> <strong>Land</strong> Limited<br />
34. Fair Value of Financial Assets and Liabilities<br />
The carrying amounts of the following financial assets and liabilities of the Group and Company approximate their fair<br />
values : bank and cash balances, debtors, creditors and short-term borrowings.<br />
The fair values of the long-term borrowings as at 31 December 2001 are as stated below. They are estimated using<br />
discounted cash flow analysis based on current rates for similar types of borrowing arrangements.<br />
Group<br />
Company<br />
Carrying Fair Carrying Fair<br />
Amount Value Amount Value<br />
$’000 $’000 $’000 $’000<br />
Long-term borrowings 2,508,996 2,517,231 1,826,198 1,828,848<br />
35. Comparative Figures<br />
Certain comparative figures have been reclassified to conform with this year’s presentation, and with the revised<br />
accounting policies arising from changes in the Singapore SASs as set out in paragraph (q) of the Summary of Significant<br />
Accounting Policies.<br />
36. Post Balance Sheet Date Events<br />
On 7 January 2002, the Company announced the establishment of a US$800 million Multicurrency Medium Term Note<br />
Programme (“MTN Programme”). Under this MTN Programme, the Company can issue notes in series or tranches and<br />
may be denominated in Singapore dollars, US dollars or other currency deemed appropriate at the time. The net proceeds<br />
from the issuance of the notes will be used for the purposes of refinancing existing borrowings, providing for working<br />
capital requirements or for such other purposes as may be agreed between the Company and the dealers.<br />
167<br />
and Accounts<br />
Report<br />
Statutory<br />
37. Group Companies<br />
Information relating to the subsidiary companies consolidated in these accounts and to the associated companies whose<br />
results are included in the accounts is given on pages 168 to 174.<br />
The accounts of the Company and the consolidated accounts of the Group are expressed in Singapore dollars.<br />
38. Corporate Information<br />
The Company is incorporated in Singapore and is listed on the Singapore Exchange Securities Trading Limited. The<br />
address of its registered office is 230 Victoria Street #15-05, Bugis Junction Towers, Singapore 188024.<br />
The financial statements of <strong>Keppel</strong> <strong>Land</strong> Limited for the year ended 31 December 2001 were authorised for issue in<br />
accordance with a resolution of the Directors on 22 March 2002.<br />
The number of employees as at 31 December 2001 was 1,840 (2000 : 1,848 employees).
<strong>Keppel</strong> <strong>Land</strong> Limited<br />
Subsidiary and Associated Companies<br />
Statutory Report and Accounts<br />
168<br />
Country of<br />
Effective<br />
Incorporation/<br />
Equity Interest Cost of Investment Place of<br />
PROPERTY 2001 2000 2001 2000 Business Principal Activities<br />
% % $’000 $’000<br />
Subsidiaries<br />
Acresvale Investment Pte Ltd 100 100 1 1 Singapore Property development<br />
and investment<br />
Bintan Bay Resort Pte Ltd* 90 90 1,607 1,607 Singapore Investment holding<br />
Boulevard Development Pte Ltd * 100 100 1 1 Singapore Investment holding<br />
(Formerly known as Yang Zong Hai<br />
Development Pte Ltd)<br />
Bugis Junction Asset 57 57 11 11 Singapore Investment holding<br />
Management Pte Ltd *<br />
Bukit Timah Hill Development Pte Ltd Singapore Property development<br />
Ordinary Shares 100 100 15,381 15,381<br />
Preference Shares 100 100 25,000 25,000<br />
Capital Square Pte Ltd * 70 70 101,500 101,500 Singapore Property investment<br />
Daysville Development Pte Ltd * 46 46 1 1 Singapore Investment holding<br />
Denton Investment Pte Ltd 100 100 - - Singapore Investment holding<br />
Dovesdale Development Pte Ltd 100 100 1 1 Singapore Investment holding<br />
Earnwell Pte Ltd 100 100 4 4 Singapore Property investment<br />
Evansville Investment Pte Ltd 100 100 41,938 41,938 Singapore Property development<br />
Experre Pte Ltd Singapore Investment holding<br />
Ordinary Shares 100 100 104 104<br />
Preference Shares 100 100 12,500 12,500<br />
Fernland Investment Pte Ltd 55 55 1,651 1,651 Singapore Investment holding<br />
Flanningan Investment Pte Ltd Singapore Investment holding<br />
Ordinary Shares 100 100 10 10<br />
Preference Shares 100 100 8,500 8,500<br />
Glenville Estate Investment Pte Ltd 100 100 1 1 Singapore Investment holding<br />
Goodways Investment Pte Ltd 60 60 1,261 1,261 Singapore Investment holding<br />
Grandsdale Investment Pte Ltd 100 100 1 1 Singapore Investment holding<br />
Greenfield Development Pte Ltd Singapore Investment holding<br />
Ordinary Shares 100 100 101 101<br />
Preference Shares 100 100 125,400 125,400<br />
Harvestland Development Pte Ltd 100 100 1 1 Singapore Property development<br />
and investment<br />
Health Services Investment of 100 100 1,350 1,350 Singapore Investment holding<br />
Singapore Pte Ltd *<br />
Health Services Management of 100 100 45 45 Singapore Health services<br />
Singapore Pte Ltd *<br />
management<br />
High Point Development Pte Ltd 100 100 121 121 Singapore Investment holding<br />
Hillsvale Resort Pte Ltd 100 100 1 1 Singapore/China Property investment<br />
Hospitality Sales Pte Ltd 100 100 1 1 Singapore Hotel and resort<br />
management
<strong>Keppel</strong> <strong>Land</strong> Limited<br />
Country of<br />
Effective<br />
Incorporation/<br />
Equity Interest Cost of Investment Place of<br />
PROPERTY 2001 2000 2001 2000 Business Principal Activities<br />
% % $’000 $’000<br />
Subsidiaries<br />
Hotel Procurement Pte Ltd 100 100 11 11 Singapore Hotel services<br />
KeplandeHub Limited Singapore Investment holding<br />
Ordinary Shares 100 100 100 100<br />
Preference Shares 100 100 40,000 40,000<br />
<strong>Keppel</strong> Digihub Holdings Pte Ltd * 100 100 1 1 Singapore Investment,<br />
management and<br />
holding company<br />
<strong>Keppel</strong> Digihub Ltd* 100 100 1,000 1,000 Singapore Property investment<br />
<strong>Keppel</strong> <strong>Land</strong> China Holdings Pte Ltd 100 100 1 1 Singapore Investment holding<br />
(Formerly known as<br />
Aldrich Investment Pte Ltd)<br />
<strong>Keppel</strong> <strong>Land</strong> Construction Management 100 100 101 101 Singapore Management services<br />
Pte Ltd<br />
<strong>Keppel</strong> <strong>Land</strong> Estate Pte Ltd 100 100 1 1 Singapore Investment holding<br />
<strong>Keppel</strong> <strong>Land</strong> International Limited Singapore Property services<br />
Ordinary Shares 100 100 28 28<br />
Preference Shares 100 100 30,000 30,000<br />
<strong>Keppel</strong> <strong>Land</strong> Investment Pte Ltd 100 100 1 1 Singapore Investment holding<br />
<strong>Keppel</strong> <strong>Land</strong> Properties Pte Ltd Singapore Investment holding<br />
Ordinary Shares 100 100 5,509 5,509<br />
Preference Shares 100 100 200,000 200,000<br />
<strong>Keppel</strong> <strong>Land</strong> Realty Pte Ltd 100 100 1,006 1,006 Singapore Property development<br />
and investment<br />
<strong>Keppel</strong> <strong>Land</strong> (Mayfair) Pte Ltd * 100 100 1,000 1,000 Singapore Property development<br />
<strong>Keppel</strong> <strong>Land</strong> (Palm Gardens) Pte Ltd * 100 100 1,000 1,000 Singapore Property development<br />
<strong>Keppel</strong> <strong>Land</strong> (Villa Verde) Pte Ltd * 100 100 1,000 1,000 Singapore Property development<br />
<strong>Keppel</strong> <strong>Land</strong> (Tower D) Pte Ltd * 100 100 139,000 139,000 Singapore Property development<br />
and investment<br />
<strong>Keppel</strong> <strong>Land</strong> (Indonesia) Pte Ltd 100 100 1 1 Singapore Investment,<br />
management and<br />
holding company<br />
<strong>Keppel</strong> <strong>Land</strong> (Philippines) Pte Ltd 100 100 1 1 Singapore Investment,<br />
management and<br />
holding company<br />
<strong>Keppel</strong> <strong>Land</strong> Fund Management Ltd 100 - 6 - Singapore Fund management<br />
(Incorporated on 16.6.2001)<br />
Kingsley Investment Pte Ltd 100 100 - - Singapore Investment holding<br />
Le Vision Pte Ltd<br />
(Incorporated on 6.7.2001) 100 - 2 - Singapore Investment holding<br />
Mansfield Developments Pte Ltd 100 100 2,336 2,336 Singapore Property development<br />
Mansfield Realty Limited 100 100 1,198 1,198 Singapore Property investment<br />
Meadowsville Investment Pte Ltd Singapore Investment holding<br />
Ordinary Shares 100 100 1 1<br />
Preference Shares 100 100 54,000 54,000<br />
Merryfield Investment Pte Ltd* 100 100 1 1 Singapore Investment holding<br />
169<br />
and Accounts<br />
Report<br />
Statutory
<strong>Keppel</strong> <strong>Land</strong> Limited<br />
Subsidiary and Associated Companies<br />
(continued)<br />
Statutory Report and Accounts<br />
170<br />
Country of<br />
Effective<br />
Incorporation/<br />
Equity Interest Cost of Investment Place of<br />
PROPERTY 2001 2000 2001 2000 Business Principal Activities<br />
% % $’000 $’000<br />
Subsidiaries<br />
Montfort Development Pte Ltd Singapore Investment holding<br />
Ordinary Shares 100 100 101 101<br />
Preference Shares 100 100 28,000 28,000<br />
Ocean & Capital Properties Pte Ltd 85 85 18,037 18,037 Singapore Property development<br />
Ocean Properties Pte Ltd * 76 76 406,780 406,780 Singapore Property investment<br />
Oceandale Investment Pte Ltd 100 100 1 1 Singapore Management and<br />
consultancy services<br />
OIL (Asia) Pte Ltd Singapore Financial services<br />
Ordinary Shares 100 100 9,931 9,931<br />
Preference Shares 100 100 80,000 80,000<br />
Palmsville Investment Pte Ltd 84 84 85 85 Singapore Investment holding<br />
Pasir Panjang Realty Pte Ltd 100 100 9,170 9,170 Singapore Property investment<br />
Prestige <strong>Land</strong>mark Pte Ltd 51 51 510 510 Singapore Investment holding<br />
Rosedale Properties Pte Ltd 70 70 1,051 1,051 Singapore Investment holding<br />
Saigon Centre Holdings Pte Ltd Singapore Investment holding<br />
Ordinary Shares 100 100 101 101<br />
Preference Shares 100 100 63,000 63,000<br />
Sedona Clubs and Resorts International 100 100 1 1 Singapore Club management<br />
Pte Ltd<br />
Sedona Hotels International Pte Ltd 100 100 101 101 Singapore Hotel and resort<br />
management<br />
Semtec Construction Pte Ltd 63 63 316 316 Singapore Building retrofitting<br />
and construction<br />
Sherwood Development Pte Ltd 100 100 1,505 1,505 Singapore Property development<br />
Silkland Investment Pte Ltd Singapore Investment holding<br />
Ordinary Shares 100 100 100 100<br />
Preference Shares 100 100 10,800 10,800<br />
Spring City Resort Pte Ltd Singapore Investment holding<br />
Ordinary Shares 100 100 101 101<br />
Preference Shares 100 100 39,000 39,000<br />
Starville Investment Pte Ltd * 70 70 1,000 1,000 Singapore/ Property investment<br />
Australia<br />
Steadfast Development Pte Ltd* 36 36 2,110 2,110 Singapore Property development<br />
Straits Mansfield Property Marketing Pte Ltd 100 100 12 12 Singapore Provision of<br />
marketing services<br />
Straits Properties Limited 100 100 74,492 74,492 Singapore Investment, holding<br />
and property<br />
management<br />
Straits Property Investments Pte Ltd 100 100 200,136 200,136 Singapore Investment holding<br />
Straits Property Management Pte Ltd 100 100 28 28 Singapore Property management<br />
and estate agency<br />
services
<strong>Keppel</strong> <strong>Land</strong> Limited<br />
Country of<br />
Effective<br />
Incorporation/<br />
Equity Interest Cost of Investment Place of<br />
PROPERTY 2001 2000 2001 2000 Business Principal Activities<br />
% % $’000 $’000<br />
Subsidiaries<br />
Straits Steamship Retail Management Pte Ltd 100 100 101 101 Singapore Management of retail<br />
centres<br />
Straits-CM Village Hotel Pte Ltd * 39 39 2 2 Singapore Property investment<br />
Straits-KMP Resort Development Pte Ltd * 46 46 1,786 1,786 Singapore Investment holding<br />
Sunlake Development Pte Ltd Singapore Investment holding<br />
Ordinary Shares 100 100 101 101<br />
Preference Shares 100 100 13,000 13,000<br />
Swansville Investment Pte Ltd 100 100 1 1 Singapore Investment holding<br />
Tat Chuan Development Pte Ltd 100 100 26,117 26,117 Singapore Property development<br />
Toshmatic Pte Ltd Singapore Investment holding<br />
Ordinary Shares 100 100 104 104<br />
Preference Shares 100 100 17,600 17,600<br />
Ultimore Development Pte Ltd * 100 100 1 1 Singapore Investment holding<br />
Valour Investment Pte Ltd 100 100 1 1 Singapore/ Property investment<br />
United Kingdom<br />
Virginia Developments Pte Ltd 51 51 2,602 2,602 Singapore Property investment<br />
Waterfront Properties Pte Ltd 50 50 5,852 5,852 Singapore Property development<br />
Waterville Investment Pte Ltd 100 100 1 1 Singapore Investment holding<br />
Willowville Pte Ltd * 100 100 6 6 Singapore Investment holding<br />
Wiseland Investment Pte Ltd 100 100 101 101 Singapore Investment holding<br />
Wisely Consultancy Pte Ltd 100 - 2 - Singapore Investment holding<br />
(Incorporated on 9.7.2001)<br />
Astek Pty Ltd 100 100 12,477 12,477 Australia Financial services<br />
<strong>Keppel</strong> <strong>Land</strong> Development Pty Ltd * 100 100 - - Australia Property development<br />
<strong>Keppel</strong> <strong>Land</strong> Pty Ltd 100 100 - - Australia Investment holding<br />
Straits Properties (Bayswater) Pty Ltd * 100 100 - - Australia Property investment<br />
Aintree Assets Ltd 100 - 2 - British Virgin Investment holding<br />
Islands<br />
Double Peak Holdings Ltd British Virgin Investment holding<br />
Ordinary Shares 100 100 - - Islands/<br />
Preference Shares 100 100 226,330 226,330 Singapore<br />
Erskine Holdings Ltd * 70 70 1 1 British Virgin Investment holding<br />
Islands/<br />
Hong Kong<br />
Pembury Properties Ltd * 100 100 1,683 1 British Virgin Investment holding<br />
Islands/<br />
Singapore<br />
Saigon Centre Investment Ltd * 100 100 17,821 17,821 British Virgin Investment holding<br />
Islands/<br />
Hong Kong<br />
Smooth Sail Investments Ltd * 100 100 - - British Virgin Investment holding<br />
Islands/<br />
Indonesia<br />
Vanese International Ltd * 70 70 1 1 British Virgin Investment holding<br />
Islands/<br />
Hong Kong<br />
171<br />
and Accounts<br />
Report<br />
Statutory
<strong>Keppel</strong> <strong>Land</strong> Limited<br />
Subsidiary and Associated Companies<br />
(continued)<br />
Statutory Report and Accounts<br />
172<br />
Country of<br />
Effective<br />
Incorporation/<br />
Equity Interest Cost of Investment Place of<br />
PROPERTY 2001 2000 2001 2000 Business Principal Activities<br />
% % $’000 $’000<br />
Subsidiaries<br />
Vobster Properties Ltd * 100 100 - - British Virgin Investment holding<br />
Islands/<br />
Indonesia<br />
Kep Corporation Incorporated * 100 100 1,089 1,089 Cayman Islands Financial services<br />
<strong>Keppel</strong> <strong>Land</strong> (Shanghai) Management 100 - - - China Property services<br />
Co Ltd* (Established on 4.12.2001)<br />
Shanghai Merryfield <strong>Land</strong> Co Ltd * 99 - 54,356 - China Property development<br />
Shanghai Floraville <strong>Land</strong> Co Ltd 99 - 1,624 - China Property development<br />
Shanghai Pasir Panjang <strong>Land</strong> Co Ltd 99 - 2,561 - China Property development<br />
Duit Investments Ltd * 100 100 644 644 Hong Kong Financial services<br />
<strong>Keppel</strong> <strong>Land</strong> (Hong Kong) Ltd 100 100 11,342 11,342 Hong Kong Investment holding<br />
<strong>Keppel</strong> <strong>Land</strong> (Saigon Centre) Ltd * 100 100 6 6 Hong Kong Investment holding<br />
Straits Investments Ltd * 100 100 1,365 1,365 Hong Kong Investment holding<br />
Straits-KMP (HK) Ltd * 51 51 - - Hong Kong Investment holding<br />
Ventek International Ltd * 100 100 1 1 Hong Kong Investment holding<br />
PT Kepland Investama* 100 100 71,080 71,080 Indonesia Property investment/<br />
development<br />
PT Kelindo Properti * 100 100 37 37 Indonesia Property services<br />
PT <strong>Keppel</strong> <strong>Land</strong> * 100 100 19,937 19,937 Indonesia Property services/<br />
development/<br />
investment<br />
PT Ria Bintan * 46 46 55,261 55,261 Indonesia Property development<br />
PT Sedona Hotels Indonesia * 100 100 1,126 1,126 Indonesia Hotel and resort<br />
management<br />
PT Sentral Supel Perkasa* 80 80 19,937 19,937 Indonesia Property investment/<br />
development<br />
PT Sentral Tanungan Perkasa * 80 80 48,843 48,843 Indonesia Property development<br />
PT Straits CM Village* 39 39 41,513 41,513 Indonesia Hotel ownership and<br />
operations<br />
<strong>Keppel</strong> <strong>Land</strong> Sdn Bhd 100 100 - - Malaysia Property services<br />
Straits Greenfield Ltd * 100 100 5,797 5,797 Myanmar Hotel ownership and<br />
operations<br />
Wiseland Investment Myanmar Ltd * 100 100 3,292 3,292 Myanmar Hotel ownership and<br />
operations<br />
<strong>Keppel</strong> Philippines Properties Inc. 50.5 48 15,966 15,915 Philippines Investment holding<br />
Five Stars Property Public Co Ltd 45 45 14,208 14,208 Thailand Property development/<br />
investment<br />
Utayan Thani Co Ltd * 49 49 6 6 Thailand Investment holding<br />
Straits (USA) Inc 100 100 10,555 10,555 United States Investment holding<br />
of America<br />
Straits Realty (Texas) Inc.* 100 100 8,890 8,890 United States Investment holding<br />
of America<br />
International Centre * 43 43 8,307 8,307 Vietnam Property investment<br />
<strong>Keppel</strong> <strong>Land</strong> Watco I Co Ltd * 68 68 38,977 38,977 Vietnam Property investment/<br />
development<br />
<strong>Keppel</strong> <strong>Land</strong> Agtex Ltd * 60 60 5,169 5,169 Vietnam Property investment<br />
Quang Ba Royal Park JV Co * 59 59 34,902 34,902 Vietnam Property investment
<strong>Keppel</strong> <strong>Land</strong> Limited<br />
Country of<br />
Effective<br />
Incorporation/<br />
Equity Interest Cost of Investment Place of<br />
PROPERTY 2001 2000 2001 2000 Business Principal Activities<br />
% % $’000 $’000<br />
Associates<br />
Asia Real Estate Fund Management Limited * 50 50 500 500 Singapore Fund management<br />
Altantic Marina Services (Asia Pacific) Pte Ltd 20 20 1,680 1,680 Singapore Property investment<br />
Bugis City Holdings Pte Ltd 31 31 55,304 55,304 Singapore Property investment<br />
China-Singapore International Pte Ltd 20 20 4,001 4,001 Singapore Investment holding<br />
DL Properties Ltd 35 35 31,832 31,832 Singapore Property investment<br />
Dragon <strong>Land</strong> Limited 25 - 27,429 - Singapore Property investment<br />
and development<br />
EM Services Pte Ltd 25 25 500 500 Singapore Property management<br />
FELS SES International Pte Ltd 17 17 1,470 1,470 Singapore Investment holding<br />
<strong>Keppel</strong> Bay Pte Ltd 30 30 1,476 1,476 Singapore Property development<br />
<strong>Keppel</strong> Marina Holdings Pte Ltd 30 30 4,404 4,404 Singapore Development of marina<br />
<strong>Keppel</strong> Point Pte Ltd 30 30 52,622 52,622 Singapore Property development/<br />
investment<br />
<strong>Keppel</strong> Power Systems Pte Ltd 15 15 1,782 1,782 Singapore Investment holding<br />
Kingsdale Development Pte Ltd * 50 50 7 7 Singapore Investment holding<br />
One Marina Boulevard Pte Ltd * 33 - - - Singapore Property development<br />
(Incorporated on 9.3.2001)<br />
Parksville Development Pte Ltd * 50 50 10,500 10,500 Singapore Property investment<br />
SAFE Enterprises Pte Ltd 25 25 21,971 21,971 Singapore Investment holding<br />
Sedona Hotel Bintan Management Pte Ltd * 49 49 25 25 Singapore/ Hotel management<br />
Indonesia<br />
Semtec-Syntech Pte Ltd * 32 32 50 50 Singapore Construction<br />
Sing-Mas Investment Pte Ltd * 30 30 10,804 10,804 Singapore Investment holding<br />
Singapore Suzhou Industrial Holdings Pte Ltd * 25 25 12,026 12,026 Singapore Investment holding<br />
Straits Parco Retail Management Pte Ltd * 33 33 330 330 Singapore Investment holding<br />
Suzhou Property Development Pte Ltd * 25 25 250 250 Singapore Investment holding<br />
Tenantworld Pte Ltd * 25 - 313 - Singapore E-exchange and<br />
collaboration hub<br />
<strong>Keppel</strong> Kunming Resort Ltd 15 15 - - Hong Kong Property investment<br />
PT Pantai Indah Tateli * 50 50 28,235 28,235 Indonesia Property development<br />
PT Pulomas Gemala Misori * 25 25 8,024 8,024 Indonesia Property development<br />
PT Purimas Straits Resort * 25 25 4,245 4,245 Indonesia Development of<br />
holiday resort<br />
PT Purosani Sri Persada * 20 20 6,013 6,013 Indonesia Property investment<br />
Jernih Rezeki Sdn Bhd * 49 49 1,396 1,396 Malaysia Property development<br />
Renown Property Holdings (M) Sdn Bhd 40 40 4,219 4,219 Malaysia Property investment<br />
Tropical Garden NV * 25 25 13 13 Netherlands Investment holding<br />
Antilles<br />
<strong>Keppel</strong> Houston Group Partnership* 30 30 10,937 10,937 United States Property investment<br />
of America<br />
173<br />
and Accounts<br />
Report<br />
Statutory
<strong>Keppel</strong> <strong>Land</strong> Limited<br />
Subsidiary and Associated Companies<br />
(continued)<br />
Country of<br />
Effective<br />
Incorporation/<br />
Equity Interest Cost of Investment Place of<br />
INACTIVE COMPANIES 2001 2000 2001 2000 Business<br />
% % $’000 $’000<br />
Subsidiaries<br />
Fairfield Properties Pte Ltd * 82 82 5,346 5,346 Singapore<br />
Floraville Estate Pte Ltd 100 100 1 1 Singapore<br />
iPP Technology Pte Ltd * 100 100 571 571 Singapore<br />
<strong>Keppel</strong> <strong>Land</strong> Asia Pte Ltd 100 100 1 1 Singapore<br />
<strong>Keppel</strong> <strong>Land</strong> (UK) Pte Ltd 100 100 1 1 Singapore<br />
Mansfield & Company Pte Ltd 100 100 30,000 30,000 Singapore<br />
Mansfield Investments Pte Ltd * 100 100 100 100 Singapore<br />
Transport & Storage Pte Ltd 90 90 - - Singapore<br />
QAF-OIL (Hong Kong) Ltd 51 51 1,807 1,807 Hong Kong<br />
Pride Properties Sdn Bhd 100 100 - - Malaysia<br />
Wellmade <strong>Land</strong> Sdn Bhd 100 100 - - Malaysia<br />
Statutory Report and Accounts<br />
174<br />
Associates<br />
Hotforge Energy Services Pte Ltd 50 50 - - Singapore<br />
Straits-TCG Systems Automation Pte Ltd * 50 50 10 10 Singapore<br />
Malaysian Mokes Sdn Bhd* 49 49 45 45 Malaysia<br />
QAF-OIL (Thailand) Ltd * 24 24 388 338 Thailand<br />
Notes:<br />
1. The holding in the equity shown for each subsidiary and associated company is the proportion attributable to <strong>Keppel</strong> <strong>Land</strong><br />
Limited. Changes in interest, if any, and subsidiary and associated companies acquired or disposed of during the year are as<br />
indicated in brackets against the companies concerned. Subsidiaries (including their subsidiaries and associated companies)<br />
and associated companies directly owned by <strong>Keppel</strong> <strong>Land</strong> Limited are included in the above list.<br />
2. Associated companies are those in which the Group has a long-term substantial equity interest and in whose commercial<br />
and financial policy decisions the Group actively participates.<br />
3. The cost of investment in each subsidiary/associated company is the proportion of the historical cost of its shares<br />
attributable to <strong>Keppel</strong> <strong>Land</strong> Limited. Companies indicated with an asterisk (*) are indirectly held by <strong>Keppel</strong> <strong>Land</strong> Limited.<br />
4. All the active companies operate in their respective countries of incorporation, unless otherwise specified.<br />
5. Subsidiaries incorporated outside Singapore are audited by associated firms of Ernst & Young, Singapore, except for:<br />
(a) Straits (USA) Inc and Straits Realty (Texas) Inc which are audited by Ernst & Young, Singapore;<br />
(b) <strong>Keppel</strong> <strong>Land</strong> (Hong Kong) Ltd, Straits Investments Ltd and QAF-OIL (Hong Kong) Ltd which are audited by<br />
H.L. Leung & Co.;<br />
(c) International Centre which is audited by Deloitte Vaco; and<br />
(d) Quang Ba Royal Park JV Company Ltd and <strong>Keppel</strong> <strong>Land</strong> Agtex Ltd which are audited by KPMG Peat Marwick.<br />
(e) <strong>Keppel</strong> Philippines Properties, Inc which is audited by Sycip Gorres Velayo & Co.
<strong>Keppel</strong> <strong>Land</strong> Limited<br />
Corporate Governance<br />
The Company believes in having high standards of corporate governance and is committed to making sure that<br />
effective self-regulating controls exist to protect the interests of its shareholders. These self-regulatory controls<br />
are set out in the Company’s Corporate Governance Manual which is being reviewed and improved in the light<br />
of the principles and guidance notes in the Code of Corporate Governance issued by the Ministry of Finance in<br />
April 2001.<br />
BOARD MATTERS<br />
The Board’s Conduct of its Affairs<br />
The Board of Directors has set out governance policies covering, inter alia, the Board’s and Board committees’<br />
functions, composition and operations. The committees of the Board and their years of formation are as follows:<br />
Audit Committee 1990<br />
Share Option Scheme Committee 1977<br />
Board Committee (Delegated Powers) 1986<br />
The Board is in the process of forming the Nominating Committee and Remuneration Committee, and is also<br />
reviewing the terms of reference of all committees to ensure compliance with the Code.<br />
Board Composition and Balance<br />
The frequency of Board meetings in 2001and Directors’ attendances at these meetings are as follows:<br />
Corporate Governance<br />
175<br />
(a) (b) Percentage (%)<br />
Lim Chee Onn 4 3 75<br />
Kevin Wong Kingcheung 4 4 100<br />
Alan F C Choe (Retired on 22 May 2001) 1 1 100<br />
Kwa Soon Bee (Retired on 22 May 2001) 1 0 0<br />
Lim Leong Geok 4 4 100<br />
Thai Chee Ken 4 4 100<br />
Khor Poh Hwa 4 4 100<br />
Tsui Kai Chong (Appointed on 8 November 2001) 1 1 100<br />
Lim Ho Kee (Appointed on 8 November 2001) 1 0 0<br />
Loh Wing Siew 4 3 75<br />
Choo Chiau Beng 4 4 100<br />
Teo Soon Hoe 4 4 100<br />
(a) : Number of meetings held while a member<br />
(b) : Number of meetings attended
<strong>Keppel</strong> <strong>Land</strong> Limited<br />
Corporate Governance<br />
(continued)<br />
Nine out of ten Board members are non-executive Directors. Together, they bring a wide range of technical skills<br />
and management expertise and experience to ensure that the Group continues to be a competitive leader in the<br />
property industry with a strong reputation for technical and professional competence. Brief details of the Directors’<br />
responsibilities and qualifications are set out on pages 16 to 19.<br />
The principal functions of the Board are the following:<br />
• Reviews and, where required, approves the major strategies, the objectives and plans of the Company, and<br />
the appropriate financial and operational matters;<br />
• Advises Management on significant issues facing the Group;<br />
• Oversees processes for evaluating the adequacy of internal controls, risk management, financial reporting and<br />
compliance, and satisfies itself as to the adequacy of such processes;<br />
Corporate Governance<br />
176<br />
• Nominates Directors and ensures that the structure and practices of the Board provide for sound corporate<br />
governance; and<br />
• Supervises and appropriately remunerates executive management.<br />
Each Board member has equal responsibility to oversee the business and affairs of the Company. The Managing<br />
Director is responsible for the day-to-day operation and administration of the Company.<br />
The Board meets regularly on a quarterly basis. As a general rule, papers on specific subjects are sent to the Board<br />
in a timely manner to enable the Directors to obtain further explanations where necessary and to ensure that they<br />
are adequately informed prior to the Board meetings. Directors are expected to adequately prepare for the<br />
meetings, attend and participate at the meetings. Directors are assisted in gaining an understanding and<br />
knowledge of the Group through the provision of relevant reading materials, working papers and presentations.<br />
The time requirement varies depending on the number of Board and Board committee meetings a Director<br />
attends.<br />
Disclosure of interested person transactions is set out on page 188 of the annual report. When a potential<br />
conflict of interest arises, the Director concerned takes no part in discussions nor exercises any influence over<br />
other members of the Board.<br />
Chairman and Managing Director<br />
There is a clear division of responsibilities at the top of the Company, with the non-executive Chairman and<br />
Managing Director having separate roles. The Chairman’s responsibilities include:
<strong>Keppel</strong> <strong>Land</strong> Limited<br />
• Scheduling of meetings to enable the Board to perform its duties responsibly while not interfering with the<br />
flow of the Company’s operations;<br />
• Preparing meeting agenda in consultation with the Managing Director;<br />
• Exercising control over the quality, quantity and timeliness of the flow of information between Management<br />
and the Board; and<br />
• Assisting in ensuring the Company’s compliance with the Code.<br />
REMUNERATION MATTERS<br />
The Company is in the process of forming a Remuneration Committee to facilitate appropriateness, transparency<br />
and accountability to shareholders on remuneration issues for Directors and executive management.<br />
The number of Directors and top five key personnel whose remuneration falls within the following bands for the<br />
year ended 31 December 2001 are as follows:<br />
Number of Directors Top Five Key<br />
Range of remuneration Executive Non-Executive Personnel<br />
Below $250,000 - 11 2<br />
$250,001 to $500,000 - - 3<br />
$500,001 to $750,000 - - -<br />
$750,001 to $1,000,000 - - -<br />
$1,000,000 to $1,250,000 1 - -<br />
177<br />
Corporate Governance<br />
Details of the Company’s Employee Share Option Scheme can be found in pages 127 and 128 of the Directors’<br />
Report.<br />
ACCOUNTABILITY AND AUDIT<br />
Accountability<br />
In presenting the annual financial statements and quarterly announcements to shareholders, it is the aim of the<br />
Board to provide the shareholders with a balanced and understandable assessment of the Company’s position<br />
and prospects. Management currently provides the Board with appropriately detailed management accounts on<br />
the Company’s performance, position and prospects on a quarterly basis.<br />
Audit Committee<br />
The Audit Committee was established in 1990 and is chaired by Mr. Thai Chee Ken, an independent Director.<br />
The other members of the Audit Committee are Mr. Lim Leong Geok, an independent Director and<br />
Mr. Kevin Wong Kingcheung, Managing Director. The Board is reviewing the composition of the Audit<br />
Committee to ensure compliance with the Code.
<strong>Keppel</strong> <strong>Land</strong> Limited<br />
Corporate Governance<br />
(continued)<br />
The Audit Committee met on five occasions during 2001. Full attendance by the members of the Audit Committee<br />
was achieved in all five meetings. The external and internal auditors and the Director, Corporate Services were<br />
invited to attend the meetings of the Audit Committee. The Company Secretary is the secretary to the Audit<br />
Committee.<br />
The Audit Committee’s terms of reference, as approved by the Board, is documented in the Company’s Corporate<br />
Governance Manual. The main objective of the Audit Committee is to assist the Board of Directors in developing<br />
policies that will enhance the controls and operating systems of the Company.<br />
The duties and responsibilities of the Audit Committee include the following:<br />
Corporate Governance<br />
178<br />
• Reviews the audit plans of the external auditors and approves the audit plans of the internal auditors;<br />
• Evaluates the overall effectiveness of both the internal and external audits through regular meetings with each<br />
group of auditors;<br />
• Determines that no restrictions are being placed by Management upon either the internal or external auditors;<br />
• Evaluates the adequacy of the internal control systems of the Group by reviewing written reports from the<br />
internal and external auditors, and Management’s responses and actions to correct any deficiencies;<br />
• Evaluates adherence to the Company’s administrative, operating and internal accounting controls;<br />
• Reviews the annual financial statements and announcements to shareholders before submission to the Board;<br />
• Reviews interested person transactions to ensure that they are on normal commercial terms and not prejudicial<br />
to the interests of the Company and its shareholders;<br />
• Discusses with the external auditors any suspected fraud or irregularity or failure of internal controls or<br />
suspected infringement of any Singapore or other applicable law, rule and regulation;<br />
• Considers other matters as requested by the Board.<br />
The Audit Committee is authorised to investigate any matter within its terms of reference, and has full access to<br />
Management and also full discretion to invite any Director or executive officer to attend its meetings, as well as<br />
reasonable resources to enable it to discharge its functions properly. Annually, the Audit Committee meets with<br />
the internal auditors and the external auditors separately, without the presence of Management. This is to review<br />
the adequacy of audit arrangements, with particular emphasis on the scope and quality of their audits, and the<br />
independence and objectivity of the external auditors.<br />
Internal Controls<br />
The Board is responsible for ensuring that Management maintains a sound system of internal controls. The systems<br />
provide reasonable assurance, but not an absolute guarantee, against material financial misstatement or loss, and<br />
include the safeguarding of assets, the maintenance of proper accounting records, the reliability of financial<br />
information, compliance with appropriate legislation, regulation and best practice, and the identification and<br />
containment of business risks.
<strong>Keppel</strong> <strong>Land</strong> Limited<br />
Internal Audit<br />
The Company has an in-house internal audit function that is independent of the activities it audits. Internal audit<br />
primarily reports to the chairman of the Audit Committee and administratively to the Director, Corporate Services.<br />
The internal auditors are expected to meet or exceed the Standards for the Professional Practice of Internal<br />
Auditing set by The Institute of Internal Auditors. The Audit Committee ensures that the internal audit function<br />
has adequate resources and has appropriate standing within the Company. The Committee, on an annual basis,<br />
assesses the effectiveness of the internal auditors by examining areas such as:<br />
• The scope of the internal auditors’ work;<br />
• The quality of their reports;<br />
• Their relationship with the external auditors; and<br />
• Their independence of the areas reviewed.<br />
COMMUNICATION WITH SHAREHOLDERS<br />
In line with continuous disclosure obligations of the Company, pursuant to the Singapore Exchange Securities<br />
Trading Limited’s Listing Rules and the Singapore Companies Act, the Board’s policy is that shareholders are<br />
informed of all major developments that impact on the Company. The Company had in operation during 2001<br />
a continuous disclosure process to ensure compliance with the Companyíss continuous disclosure and reporting<br />
obligations.<br />
179<br />
Corporate Governance<br />
Information is communicated to shareholders on a timely basis. Where there is inadvertent disclosure made to a<br />
selected group, the Company will make the same disclosure publicly to all others as soon as practicable.<br />
Communication is made through:<br />
• The Company’s summary financial reports and annual reports;<br />
• Notices of and explanatory memoranda for annual general meetings and extraordinary general meetings;<br />
• Press and analyst briefings for the Company’s interim and annual results as well as other briefings, as appropriate;<br />
• Press releases on major developments of the Company;<br />
• Disclosures to the Singapore Exchange Securities Trading Limited; and<br />
• Company’s web-site at http://www.kepland.com.sg from which shareholders can access information on the<br />
Company. The web-site provides, inter alia, corporate announcements, press releases, annual reports, and<br />
profiles of the Group.
<strong>Keppel</strong> <strong>Land</strong> Limited<br />
Corporate Governance<br />
(continued)<br />
The Annual General Meeting is the principal forum for dialogue with shareholders. At each Annual General<br />
Meeting, the Board encourages shareholders to participate in the question and answer session. The Chairman<br />
and, where appropriate, the Managing Director respond to shareholders’ questions. The chairmen of the Board<br />
committees and external auditors are also present in the meeting to assist in addressing any relevant questions<br />
from shareholders.<br />
Each item of special business included in the notice of the meeting is accompanied, where appropriate, by an<br />
explanation for the proposed resolution. Separate resolutions are proposed for substantially separate issues at the<br />
meeting.<br />
SECURITIES TRANSACTIONS<br />
The Company has issued a policy on dealings in its securities to executives within the Group, setting out guidance<br />
on such dealings and the implications of insider trading. It has adopted in full the Best Practices Guide on Dealing<br />
in Securities issued by the Singapore Exchange Securities Trading Limited.<br />
Corporate Governance<br />
180<br />
INTERESTED PERSON TRANSACTIONS UNDER SHAREHOLDERS’ MANDATE<br />
Aggregated Transactions<br />
$’000<br />
Property-based transactions<br />
<strong>Keppel</strong> Corporation Limited Group 9,069<br />
Other services and products transactions<br />
<strong>Keppel</strong> Corporation Limited Group 1,615<br />
Total interested person transactions 10,684<br />
All the above interested person transactions were done on normal commercial terms.
<strong>Keppel</strong> <strong>Land</strong> Limited<br />
Corporate Information<br />
Board of Directors<br />
LIM CHEE ONN<br />
Chairman<br />
KEVIN WONG KINGCHEUNG<br />
Managing Director<br />
LIM LEONG GEOK<br />
THAI CHEE KEN<br />
KHOR POH HWA<br />
LIM HO KEE<br />
TSUI KAI CHONG<br />
Audit Committee<br />
THAI CHEE KEN<br />
Chairman<br />
LIM LEONG GEOK<br />
KEVIN WONG KINGCHEUNG<br />
Joint Company Secretaries<br />
CHOO CHIN TECK<br />
HO MUN PIEW<br />
Registered Office<br />
230 Victoria Street #15-05<br />
Bugis Junction Towers<br />
Singapore 188024<br />
Telephone: 63388111<br />
Facsimile: 63377168<br />
Website: http://www.keppelland.com.sg<br />
Auditors<br />
ERNST & YOUNG<br />
Certified Public Accountants<br />
Singapore<br />
Audit Partner: NAGARAJ SIVARAM<br />
Registrar<br />
LOH WING SIEW<br />
CHOO CHIAU BENG<br />
TEO SOON HOE<br />
KON CHOON KOOI PTE LTD<br />
47 Hill Street #06-02<br />
Chinese Chamber of Commerce &<br />
Industry Building<br />
Singapore 179365<br />
Telephone: 63363355<br />
Facsimile: 63372197<br />
Share Listing<br />
181<br />
Information<br />
Corporate<br />
The Company’s shares are listed on the<br />
Singapore Exchange Securities Trading<br />
Limited.<br />
General<br />
For further information about<br />
<strong>Keppel</strong> <strong>Land</strong> Limited, please contact the<br />
Secretariat at the Registered Office.
<strong>Keppel</strong> <strong>Land</strong> Limited<br />
Corporate Structure<br />
Singapore Projects<br />
100%<br />
<strong>Keppel</strong> <strong>Land</strong><br />
International Limited<br />
100%<br />
Straits Properties Limited<br />
100%<br />
Straits Property<br />
Investments Pte Ltd<br />
76%<br />
Ocean Properties<br />
Pte Ltd<br />
100%<br />
Mansfield Realty Limited<br />
85%<br />
Ocean & Capital<br />
Properties Pte Ltd<br />
100%<br />
<strong>Keppel</strong> <strong>Land</strong> Realty<br />
Pte Ltd<br />
100%<br />
Sherwood Development<br />
Pte Ltd<br />
100%<br />
Glenville Estate<br />
Investment Pte Ltd<br />
100%<br />
Harvestland Development<br />
Pte Ltd<br />
100%<br />
Acresvale Investment<br />
Pte Ltd<br />
Information<br />
182<br />
100%<br />
100%<br />
100%<br />
Bukit Timah Hill<br />
Development Pte Ltd<br />
Evansville Investment<br />
Pte Ltd<br />
Tat Chuan Development<br />
Pte Ltd<br />
Corporate<br />
100%<br />
<strong>Keppel</strong> <strong>Land</strong> (Tower D)<br />
Pte Ltd<br />
<strong>Keppel</strong> <strong>Land</strong> Limited<br />
70%<br />
Capital Square Pte Ltd<br />
100%<br />
<strong>Keppel</strong> <strong>Land</strong> Properties<br />
Pte Ltd<br />
100%<br />
<strong>Keppel</strong> <strong>Land</strong> (Palm Gardens)<br />
Pte Ltd<br />
100%<br />
<strong>Keppel</strong> <strong>Land</strong> (Mayfair)<br />
Pte Ltd<br />
100%<br />
<strong>Keppel</strong> <strong>Land</strong> (Villa Verde)<br />
Pte Ltd<br />
100%<br />
Boulevard Development<br />
Pte Ltd<br />
33%<br />
One Marina<br />
Boulevard Pte Ltd<br />
100%<br />
Mansfield & Co.<br />
Pte Ltd<br />
100%<br />
Mansfield Investment<br />
Pte Ltd<br />
52%<br />
Mansfield Development<br />
Pte Ltd<br />
100%<br />
Denton Investment<br />
Pte Ltd<br />
50%<br />
Parksville Development<br />
Pte Ltd<br />
50%<br />
Waterfront Properties<br />
Pte Ltd<br />
25%<br />
Steadfast Development<br />
Pte Ltd<br />
60%<br />
Goodways Investment<br />
Pte Ltd<br />
40%<br />
100%<br />
35%<br />
31%<br />
30%<br />
30%<br />
Keplandehub Limited 100% <strong>Keppel</strong> Digihub<br />
Holdings Limited<br />
D.L. Properties Ltd<br />
Bugis City Holdings<br />
Pte Ltd<br />
<strong>Keppel</strong> Bay Pte Ltd<br />
<strong>Keppel</strong> Point Pte Ltd<br />
100% <strong>Keppel</strong> Digihub<br />
Limited<br />
Note: This is intended to show only the principal companies involved in the Group's Singapore and overseas property projects.<br />
For a complete list of Group companies, please refer to pages 168 to 174. The Group's property projects are shown on pages 106 to 118.
<strong>Keppel</strong> <strong>Land</strong> Limited<br />
Overseas Projects<br />
100%<br />
<strong>Keppel</strong> <strong>Land</strong> Pty Ltd<br />
100%<br />
100%<br />
Straits Properties<br />
(Bayswater) Pty Ltd<br />
<strong>Keppel</strong> <strong>Land</strong><br />
Development Pty Ltd<br />
100%<br />
Silkland Investments<br />
Pte Ltd<br />
20%<br />
P.T. Purosani Sri Persada<br />
100%<br />
Flannigan Investment<br />
Pte Ltd<br />
25%<br />
P.T. Pulomas<br />
Gemala Misori<br />
100%<br />
Montfort Development<br />
Pte Ltd<br />
50%<br />
P.T. Pantai Indah Tateli<br />
100%<br />
100%<br />
Meadowsville<br />
Investment Pte Ltd<br />
<strong>Keppel</strong> <strong>Land</strong><br />
International Limited<br />
80%<br />
69%<br />
100%<br />
P.T. Sentral Tunjungan<br />
Perkasa<br />
P.T. <strong>Keppel</strong> <strong>Land</strong><br />
P.T. Kepland<br />
Investama<br />
80%<br />
P.T. Sentral Supel<br />
Perkasa<br />
51%<br />
Prestige <strong>Land</strong>mark<br />
Pte Ltd<br />
35%<br />
P.T. Purimas<br />
Straits Resorts<br />
25.5%<br />
Tropical Garden NV<br />
30%<br />
25%<br />
SAFE Enterprises<br />
Pte Ltd<br />
44%<br />
Bintan Lagoon Resort<br />
Pte Ltd<br />
100%<br />
<strong>Keppel</strong> <strong>Land</strong><br />
(Hong Kong) Ltd<br />
10%<br />
30%<br />
<strong>Keppel</strong> Marina<br />
Holdings Pte Ltd<br />
100%<br />
100%<br />
Waterfront Investment<br />
Pte Ltd<br />
Pembury Properties<br />
Ltd<br />
56%<br />
90%<br />
P.T. Nongsa Point<br />
Marina<br />
Bintan Bay Resort<br />
Pte Ltd<br />
51%<br />
Straits-KMP Resort<br />
Development Pte Ltd<br />
85%<br />
Straits-CM Village<br />
Hotel Pte Ltd<br />
<strong>Keppel</strong> <strong>Land</strong> Limited<br />
100%<br />
OIL (Asia) Pte Ltd<br />
100%<br />
Saigon Centre<br />
50%<br />
Holdings Pte Ltd<br />
70% 10%<br />
Erskine Holdings Ltd<br />
100%<br />
Saigon Centre<br />
Investment Ltd<br />
50%<br />
<strong>Keppel</strong> <strong>Land</strong><br />
(Saigon Centre) Ltd<br />
68%<br />
Avondale Properties<br />
Ltd<br />
<strong>Keppel</strong> <strong>Land</strong> Watco I<br />
Co Ltd<br />
100%<br />
Union Charm<br />
Development Ltd<br />
100%<br />
P. T. Ria Bintan<br />
183<br />
Information<br />
Corporate<br />
55%<br />
84%<br />
Fernland Investment<br />
Pte Ltd<br />
Palmsville Investment<br />
Pte Ltd<br />
75%<br />
70%<br />
International Centre<br />
Quang Ba Royal Park<br />
JV Co<br />
100%<br />
Grandsdale Investment<br />
Pte Ltd<br />
100%<br />
Willowville Pte Ltd<br />
60%<br />
<strong>Keppel</strong> <strong>Land</strong> AGTEX Ltd<br />
40%<br />
Renown Properties<br />
Holdings (M) Sdn Bhd<br />
45%<br />
Tanah Sutera<br />
Development Sdn Bhd<br />
100%<br />
High Point<br />
Development Pte Ltd<br />
49%<br />
Jernih Rezeki Sdn Bhd<br />
100%<br />
<strong>Keppel</strong> Philippines<br />
Properties Inc<br />
100% 61% Buena Homes (Sandoval)<br />
Buena Homes Inc<br />
Inc<br />
48%<br />
SM-<strong>Keppel</strong> Straits<br />
<strong>Land</strong> Inc<br />
100%<br />
Greenfield<br />
Development Pte Ltd<br />
100%<br />
Straits Greenfield Ltd<br />
100%<br />
Wiseland Investment<br />
Pte Ltd<br />
100%<br />
Wiseland Investment<br />
Myanmar Ltd<br />
45%<br />
Five Stars Property<br />
PCL<br />
100%<br />
<strong>Keppel</strong> <strong>Land</strong> China<br />
Holdings Pte Ltd<br />
100% Merryfield Investment<br />
Pte Ltd<br />
99%<br />
Shanghai Merryfield <strong>Land</strong><br />
100%<br />
Floraville Estate<br />
99%<br />
Shanghai Floraville<br />
<strong>Land</strong> Limited<br />
100%<br />
Pasir Panjang Realty<br />
Pte Ltd<br />
99% Shanghai Pasir Panjang<br />
<strong>Land</strong> Co Ltd<br />
100%<br />
Spring City Resort<br />
Pte Ltd<br />
50%<br />
Kingsdale<br />
Development Pte Ltd<br />
100%<br />
Sunlake Development<br />
Pte Ltd<br />
30%<br />
SING-MAS Investments<br />
Pte Ltd<br />
97%<br />
Shanghai Sing<br />
Straits <strong>Land</strong> Co Ltd<br />
25%<br />
Dragon <strong>Land</strong> Limited<br />
100%<br />
100%<br />
Valour Investments<br />
Pte Ltd<br />
Straits (USA) Inc<br />
100% 30%<br />
Straits Realty (Texas) Inc<br />
<strong>Keppel</strong> Houston<br />
Group Partnership
<strong>Keppel</strong> <strong>Land</strong> Limited<br />
Calendar of Financial Events<br />
Announcement of interim results 6 August 2001<br />
End of financial year 31 December 2001<br />
Preliminary announcement of total year results 28 January 2002<br />
Despatch of Summary Financial Report 15 April 2002<br />
Despatch of Annual Report 29 April 2002<br />
Annual General Meeting 16 May 2002<br />
2001 proposed final dividend<br />
Books closure dates 24 to 28 May 2002<br />
(both dates inclusive)<br />
Payment date<br />
6 June 2002<br />
Information<br />
184<br />
End of financial year 31 December 2002<br />
Announcement of interim results August 2002<br />
Preliminary announcement of full year results January 2003<br />
Shareholder<br />
Annual General Meeting May 2003<br />
Proposed final dividend payout date June 2003
<strong>Keppel</strong> <strong>Land</strong> Limited<br />
Statistics of Shareholdings<br />
as at 3 April 2002<br />
Authorised share capital : $500,000,000<br />
Issued and fully paid-up capital : $354,296,540<br />
Class of shares : Shares of 50 cents each with equal voting rights<br />
Size of Shareholdings Number of Shareholders % Number of Shares %<br />
1 - 1,000 3,157 29.35 2,487,018 0.35<br />
1,001 - 10,000 6,522 60.64 26,398,825 3.72<br />
10,001 - 1,000,000 1,058 9.84 41,634,580 5.88<br />
1,000,001 and above 18 0.17 638,072,658 90.05<br />
Total 10,755 100.00 708,593,081 100.00<br />
Location of Shareholders Number of Shareholders % Number of Shares %<br />
Singapore 10,020 93.17 703,833,772 99.33<br />
Malaysia 594 5.52 3,596,335 0.51<br />
Others 141 1.31 1,162,974 0.16<br />
Total 10,755 100.00 708,593,081 100.00<br />
Twenty Largest Shareholders<br />
Number of Shares %<br />
1. <strong>Keppel</strong> Corporation Limited 369,698,733 52.17<br />
2. Raffles Nominees Pte Ltd 52,836,081 7.46<br />
3. DBS Nominees Pte Ltd 41,843,952 5.91<br />
4. Citibank Nominees Singapore Pte Ltd 35,824,589 5.06<br />
5. Overseas-Chinese Bank Nominees Pte Ltd 32,986,131 4.66<br />
6. HSBC (Singapore) Nominees Pte Ltd 22,409,479 3.16<br />
7. United Overseas Bank Nominees Pte Ltd 18,398,521 2.60<br />
8. DB Nominees (S) Pte Ltd 17,320,900 2.44<br />
9. Morgan Stanley Asia (Singapore) Sec. Pte Ltd 12,468,000 1.76<br />
10. <strong>Keppel</strong> Finance Nominees Pte Ltd 10,020,000 1.41<br />
11 J M Sassoon & Co (Pte) Ltd 7,563,207 1.07<br />
12 NTUC Income Insurance Co-operative Ltd 5,348,000 0.75<br />
13 Overseas Union Bank Nominees Pte Ltd 3,200,352 0.45<br />
14 Tudor Court Gallery Pte Ltd 2,064,000 0.29<br />
15 Hong Leong Enterprises Pte Ltd 1,871,000 0.26<br />
16 Selat Pte Ltd 1,691,972 0.24<br />
17 ABN Amro Nominees Singapore Pte Ltd 1,418,741 0.20<br />
18 Singasia Investments Pte Ltd 1,109,000 0.16<br />
19 DBS Vickers Securities (S) Pte Ltd 907,751 0.13<br />
20. Island Investment Company Pte Ltd 904,718 0.12<br />
185<br />
Information<br />
Shareholder<br />
Total 639,885,127 90.30<br />
Substantial Shareholders<br />
Number of Shares %<br />
1. Temasek Holdings (Pte) Ltd (deemed interest) 380,681,733 53.72<br />
2. <strong>Keppel</strong> Corporation Limited (including holdings by subsidiary companies) 379,959,733 53.62
<strong>Keppel</strong> <strong>Land</strong> Limited<br />
Notice of Annual General Meeting<br />
ALL MEMBERS ARE CORDIALLY INVITED to attend the Annual General Meeting of the Company which will be held at<br />
230 Victoria Street #15-05, Bugis Junction Towers, Singapore 188024 on 16 May 2002 at 10:30 a.m. to transact the following<br />
business:<br />
AS ORDINARY BUSINESS<br />
1. To receive and, if thought fit, adopt the Directors’ Report and Accounts for the year ended 31 December 2001<br />
(Resolution 1).<br />
2. To declare dividends as recommended by the Directors (Resolution 2).<br />
3. To re-elect Mr Lim Chee Onn, Mr Choo Chiau Beng, Mr Lim Ho Kee and Dr Tsui Kai Chong, Directors retiring in<br />
accordance with the Articles of Association of the Company (Resolutions 3 to 6).<br />
4. To approve Directors’ fees (Resolution 7).<br />
5. To appoint Auditors, and to authorise Directors to fix their remuneration (Resolution 8).<br />
6. To transact any other ordinary business of the Company.<br />
AS SPECIAL BUSINESS<br />
7. To consider and, if thought fit, pass the following Ordinary Resolutions:<br />
RESOLVED that:<br />
Information<br />
186<br />
(a) Pursuant to Section 161 of the Companies Act, Cap 50, the Directors be and are hereby empowered to issue shares in<br />
the Company (whether by way of bonus issue, rights issue or otherwise, and including any capitalisation pursuant to<br />
Article 136 of any sum for the time being standing to the credit of any of the Company’s reserve accounts or any sum<br />
standing to the profit and loss account or otherwise available for distribution) at any time and upon such terms and<br />
conditions and for such purposes as the Directors may, in their absolute discretion, deem fit provided that:<br />
Shareholder<br />
(i) the aggregate number of shares to be issued pursuant to this Resolution does not exceed 50% of the issued capital<br />
of the Company for the time being, and<br />
(ii) the aggregate number of shares issued other than on a pro-rata basis to existing Members does not exceed 20% of<br />
the Company’s issued share capital for the time being,<br />
such authority to continue in force until the conclusion of the next Annual General Meeting or the expiration of the<br />
period within which the next Annual General Meeting of the Company is required by law to be held, whichever is<br />
earlier, unless previously revoked or varied at a general meeting of the Company (Resolution 9);<br />
(b) Approval be and is hereby given for the purposes of Chapter 9A of the Listing Manual of the Singapore Exchange<br />
Securities Trading Limited, for the Company, its subsidiaries and target associated companies (the “Group”) or any of<br />
them to enter into any of the transactions falling within the types of Interested Person Transactions, particulars of which<br />
are set out in the Company’s Circular to Members dated 10 June 1997 (“the Circular”), as amended with Members’<br />
approval on 7 June 1999, with any party who is of the class of Interested Persons described in the Circular provided that<br />
such transactions are made on an arm’s length basis and on normal commercial terms and that the Directors of the<br />
Company be and are hereby authorised to complete and do all such acts and things (including executing all such<br />
documents as may be required) as they may consider expedient or necessary or in the interest of the Company to give<br />
effect to this Resolution (Resolution 10); and<br />
(c) The Directors of the Company be and are hereby authorised to make purchases from time to time of up to 10% of the<br />
issued ordinary share capital of the Company as at the date of this Resolution at any price up to but not exceeding the<br />
Maximum Price, in accordance with the “Guidelines on Share Purchases” set out in Appendix 2A of the Circular to<br />
Members dated 14 September 1999, and this mandate shall, unless revoked or varied by the Company in general<br />
meeting, continue in force until the date on which the next Annual General Meeting of the Company is or is required<br />
by law to be held, whichever is the earlier (Resolution 11).
<strong>Keppel</strong> <strong>Land</strong> Limited<br />
NOTICE IS HEREBY GIVEN that the Register of Members of the Company will be closed from 24 to 28 May 2002 (both dates<br />
inclusive) for the preparation of dividend warrants. Duly completed transfers received by the Company up to 5:00 p.m. on<br />
23 May 2002 will be registered before entitlements to the proposed dividend for the year ended 31 December 2001 are<br />
determined.<br />
Directors have recommended a first and final dividend of 6% (or 3.0 cents per share) less tax amounting to $16.0 million on<br />
the existing capital (2000: 6% less tax or 3.0 cents per share less tax amounting to $16.0 million) in respect of the financial year<br />
ended 31 December 2001 for approval by Members at the Annual General Meeting to be held on 16 May 2002. The final<br />
dividend, if approved will be payable on 6 June 2002.<br />
By Order of the Board<br />
CHOO CHIN TECK<br />
Company Secretary<br />
Singapore, 15 April 2002<br />
187<br />
Information<br />
Shareholder<br />
NOTES:<br />
1. A Member is entitled to appoint one proxy or two proxies to attend and vote in his place. A proxy need not also be a Member of the<br />
Company. A Member which is a corporation is entitled to appoint its authorised representative or proxy to vote on its behalf. Members<br />
wishing to vote by proxy at the Meeting may use the Proxy Form enclosed. To be valid, the completed Proxy Form must be lodged at the<br />
Registered Office of the Company at 230 Victoria Street #15-05, Bugis Junction Towers, Singapore 188024 not less than 48 hours before<br />
the Meeting.<br />
2. Ordinary Resolution No. 10 under the heading of Special Business relates to the renewal of a mandate given by Members to the Company<br />
on 25 June 1997 allowing the Company and its related corporations to enter into transactions with interested persons as defined in Chapter<br />
9A of the Listing Manual of the Singapore Exchange Securities Trading Limited, details of which are set out in a letter to Members dated<br />
10 June 1997.<br />
3. Ordinary Resolution No. 11 under the heading of Special Business relates to the renewal of a mandate approved by Members on<br />
5 October 1999 authorising the Company to purchase its own shares subject to and in accordance with the guidelines set out in the<br />
Circular dated 14 September 1999, the Companies Act, Cap 50 and the rules of the Singapore Exchange Securities Trading Limited.
<strong>Keppel</strong> <strong>Land</strong> Limited<br />
Share Transaction Statistics<br />
Share Prices and Turnover<br />
Turnover (Shares)<br />
400<br />
Share Prices (Dollar)<br />
8<br />
350<br />
7<br />
300<br />
6<br />
250<br />
5<br />
200<br />
4<br />
150<br />
3<br />
100<br />
2<br />
50<br />
1<br />
0<br />
0<br />
1997 1998 1999 2000 2001<br />
2002<br />
Turnover<br />
High and Low Prices<br />
Shareholder<br />
Information<br />
188<br />
Straits Times and Straits Times Properties Indices Indices<br />
Index<br />
3000<br />
2500<br />
3000<br />
2500<br />
2000<br />
2000<br />
1500<br />
1500<br />
1000<br />
1000<br />
500<br />
500<br />
Investor Data<br />
0<br />
0<br />
1997 1998 1999 2000<br />
2001<br />
2002<br />
Straits Times Index<br />
Straits Times Properties Index<br />
1997 1998 1999 2000 2001<br />
Earnings per share (cents) (Note 1) 16.7 (53.5) 11.8 17.3 (51.7)<br />
Dividend per share (cents) (Note 2) 4 3 3 3 3<br />
Share price (cents) (Note 3)<br />
Highest 530 254 350 287 274<br />
Lowest 207 46 142 151 123<br />
Average 369 150 246 219 198<br />
Last done 232 179 273 279 1.72<br />
Turnover (million shares) 280.7 1,367.2 651.5 368.3 964.7<br />
Dividend yield (%) (Note 4) 1.1 2.0 1.2 1.4 1.5<br />
Net price-earnings ratio (Note 4) 22.1 n.m. 20.8 12.8 n.m.<br />
Net tangible assets per share ($) 4.32 2.80 3.04 3.16 2.28<br />
Notes<br />
1 Earnings are Group profits / (losses) after tax before extraordinary items.<br />
2 These are gross dividends declared out of taxed profits.<br />
3 Share prices reflect transactions recorded on the Singapore Exchange Securities Trading Limited.<br />
4 In calculating dividend yields and net price-earnings ratios, the average share prices have been used.<br />
5 n.m. means “not meaningful”.