Presentation - Keppel Land

Presentation Outline• Introduction• Market Update• City Updates- Shanghai - Tianjin- Beijing - Wuxi- Chengdu• Residential Township Development2

3Introduction

KLL’s Steps in ChinaEarly 1990sLed Singapore consortium in development of Suzhou Industrial Park1994 Jointly developed Spring City Lake & Golf Resort in Kunming2000 Ventured into Shanghai market with land acquisition in Jingan District2002 Acquired two sites in Beijing and Chengdu and launched One Park Avenue inphases2003 Forayed into township development with acquisition of Chengdu site2004 Acquired site in Xujing, Shanghai for villa developmentLaunched 8 Park Avenue in Shanghai, The Seasons in Beijing and The Waterfrontin Chengdu2005 Acquired sites for Tianjin villas and Wuxi townshipLaunched and fully sold The Botanica Ph 1 (970 units)2006 Increased stake in Dragon Land, now known as Evergro Properties, to 71%Joint acquisition of mixed development site in Jiangyin, Jiangsu ProvinceSold stakes in Dragon Land’s subsidiary in Tianjin, Singapore Suzhou IndustrialHoldings and Ocean Towers in ShanghaiLaunched The Botanica Ph 2 and received good sales4

Key Data2005 Figures Shanghai Beijing Chengdu TianjinPopulation (mil) 17.8 15.4 10.8 10.4GDP Growth Rate (%) 11.1 11.1 13.5 14.5GDP Per Capita (RMB) 51,428 44,969 20,185 35,457Urban Per Capita Disposable Income (RMB) * 18,645 17,653 11,359 12,639Growth of Disposable Income (%) 11.8 12.9 9.3 10.2Mortgage RateMore than 5.81% for loans over five yearsSource : Municipal Statistics Bureaus* Urban Per Capita Disposable Income = Per Capita Household Income - Income Tax - Four Funds (Housing, Pension, Medical and Unemployment Funds)6

7Market Update

2004Anti-Speculation Measures‣ Mortgage payment cannot be over 50% of household income‣ Resale of uncompleted properties disallowed2005‣ Mortgage rate hike from at least 5.31% to 5.51% (above 5 year term loans)‣ Loan quantum reduced from 80% to 70%‣ Sales and capital gain tax of 5%‣ Repayment of mortgage before resale of properties2006‣ Two mortgage hikes bring rate to 5.81% (above 5 year term loans)‣ At least 70% of citywide GFA should comprise apartments of less than 90 sm in size‣ Only foreigners who have lived for more than one year in China may buy propertiesfor own occupation‣ Sales and capital gain tax on housing sold within 5 years of purchases, up from 2years previously‣ Registered capital of foreign investments up from 40%* to 50% for investments of atleast US$10 mil* For investments of US$10-30 mil. 33% capital requirement for investment of over US$30 mil8

City Updates- Shanghai10

Shanghai Residential MarketCondominiums *• Jan - Sep 06 sales : 12.6 mil sm or approximately 117,500 units• Average price (Inside Inner Ring Road) : Above RMB 16,000 psmVillas **(Inside Middle Ring Road) : Above RMB 11,000 psm• Jan - Sep 06 sales : 900,000 sm or approximately 2,700 units• Average price : RMB 14,000 - 1,9000 psm or* Exclude economic housing** Exclude semi-detached housesSource : Shanghai Real Estate Exchange CentreRMB 5 - 7 mil per unit11

Outlook for Shanghai Market• Demand drivers :-– Growing number of expatriates‣ 4.4 mil expatriates and non-Shanghai residents (25% of totalresidents) *– Income growth‣ Urban personal disposable income up 60% while savingstripled in last five years *– Increasing cross-province and overseas investors– World Expo 2010‣ New MRT lines before 2010– Mega projects‣ Maglev train linking Shanghai to Hangzhou‣ High speed train linking Shanghai to Beijing*Source : Shanghai Municipal Statistics Bureau12

8 Park Avenue Top 10 Foreign Developers by Shanghai Real Estate TradeAssociation• 946-unit condominium project in heart of Jingan District• 5 blocks (456 units) launched and fully sold• Latest achieved price : About RMB 22,000 psm13

Villa Riviera• 168-unit villa development in Xujing Town, Qingpu Districttargeted at local upper class and expatriate communities• Soft launched on 10 Nov 2006• Some 14 units sold at average price of RMB 17,000 psm14

City Updates- Beijing15

Beijing Residential Market• Jan- Sep 06 sales : 14.5 mil sm• Average price : RMB 7,855 psm in Sep 2006, up 15.6% fromsix months agoSource : Beijing Statistics Bureau16

Outlook for Beijing Market• Demand drivers :– Growing number of expatriates‣ 3.6 mil expatriates and non-Beijing residents (23% of totalresidents)– Income growth‣ Urban personal disposable income up 71%while savings nearlytripled in last five years– Positive outlook in the lead up to 2008 Olympics‣ Improvements of infrastructure and living environment, andcreation of jobs‣ Less housing supply approaching Olympics likely to boostpricesSource : Municipal Statistics Bureau17

The Seasons 2005 Most Anticipated Project Award by An Jia magazine• 1,859-unit condominium development near Wang Jing West MRTstation• Amenities including newly opened 2nd largest Ikea outletglobally with NLA of about 43,000 sm• 1,672 units or 94% of 1,775 launched units sold to date• Latest achieved price : About RMB 9,200 psm18

City Updates- Chengdu19

Background of Chengdu• Capital of Sichuan province• Fourth largest in population after Chongqing (31.4m), Shanghai(17.8m) and Beijing (15.4m)• Rapid GDP growth at a CAGR of 12.5% during the past fiveyears• Key industries such as IT, automobile (First Automobile Worksand Sichuan Toyota), aviation and pharmacy as maineconomic contributors• First subway line to be completed before 2010, with Ph 1 oftotal length of 15.9 km and 15 stations• Proposed giant new CBD with land area of 13,000-ha to drivecity economy20

Chengdu Residential Market• Jan - Sep 06 sales : 5.7 mil sm, up 28.7% y-o-y• Average price : RMB 4,335 psm in Sep 2006, up12.7% y-o-yFigures for five urban districtsSource : Chengdu Real Estate Information Centre21

Outlook for Chengdu Market• Demand drivers :-– More people relocating from other cities and countries‣ Low living cost and attractive lifestyle‣ Easing of regulations for resident status– High percentage of owner-occupation‣ 85-90% buyers are end-users– Affluent consumption‣ Consumer-related businesses accounting for half of GDP– Rising income‣ Urban personal disposable income up 49%while savingssurged 150% in last five years22

The Waterfront2006 Top 30 Most Valued Property Developments in Chengdu byTianfu Morning Post and Chengdu Statistics Bureau• 1,143-unit condominium development located in south-east Chengdu,within 10 minutes’ drive to city centre• 1,010 units or 94% of 1,070 launched units sold to date• Latest achieved price : About RMB 6,600 psm23

City Updates- Tianjin24

Background of Tianjin• One of four autonomous cities in China‣ Alongside Beijing, Shanghai and Chongqing• Within Greater Beijing Economic Rim, and centre of Huan Bo HaiEconomic Region• An international harbour city, economic and logistic hub of northernChina• Growing Tianjin Economic Development Area (TEDA)‣ Four key industries accounting for about 90% of annual industrial outputElectronics and communications : Motorola, Samsung, Sanyo and Panasonic Machinery : Toyota, SEW and Emerson Pharmaceuticals : GSK and Novo Nordisk Food and beverage : Coca Cola and Nestle‣ Return of 15% in past five years, highest in China’s industrial park zones‣ Recognised by Fortune magazine as China’s Most Admired Industrial Park25

Tianjin Residential MarketVillas• Estimated demand for 2006 : 500 -600 units• Average price : RMB 13,000 - 15,000 psm orRMB 4 - 6 mil per unitCondominiums• Jan - Sep 06 sales : 5.9 mil sm• Average price : RMB 4,847 psmSource : www.soufun.com26

Outlook of Tianjin Market• Demand drivers :-– Urban personal disposable income up 55% in lastfive years– Government’s pledge of RMB 80 bil to expand cityinfrastructure, including :-‣ MRT line (on trial operation since June 2006)‣ Two highways to Beijing‣ Expansion of international airport– Faster access to Beijing (30 mins)‣ Beijing-Tianjin high speed train to operate before Olympics– Airbus to establish an aircraft assembly plant worthRMB 8 bil in Tianjin27

The Arcadia• 168-unit villa development• Near Meijiang Area, aprestigious housing estate• Within proximity of threeeconomic and sciencedevelopment zones• Launch in 200728

City Updates-Wuxi29

Wuxi Residential Market• Jan - Sep 06 sales : 2.5 mil sm• Average price : RMB 4,800 psm in Sep 2006, up17% from RMB 4,100 psm in 2Q06Source : Wuxi Municipal Statistics Bureau, Wuxi Municipal Housing Bureau31

Outlook of Wuxi Market• Demand drivers :-– Population to reach 3.6 mil in 2010, up from 3.06 mil in 2005– Urbanisation rate to reach 83% in 2010, up from 73% in 2005– Expected housing demand of 31 mil sm in 2005-2010– Urban personal disposable income up 86% while savingssurged 150% in last five years– High level of local demand ideal for township development :About 85% local home buyers32

Residential TownshipDevelopment33

Push for Township Opportunities• Demand drivers :-– Strong economic growth in secondary cities– Wealth effect spreading to middle to lower-middle incomegroups– Increasing mass market demand from rapid urbanisation• New concept with promising prospects– Substantial demand amid short supply of good quality housing– Unaffected by government measures due to less speculation– Provides long-term steady income stream34

The Botanica 2005 Most Reasonably Priced Projectin Chengdu by Chengdu ResidentialProperty and Real Estate Association• Located in the southeast Chengdu,near Sichuan Normal University• About 8,000 units of low- and high-riseapartments and commercial buildings• Targeted at local middle-income group• Launched and sold out Ph 1 (970 units)• 811 units or 93% of launched 868 unitsin Ph 2 sold to date35

Wuxi Residential Township• 35-ha site in southeast Wuxi, as part of the Taihu New City, a proposedsecondary city centre within the Binhu Economic Development Zone• Close to Proposed municipal administrative office, a university townand a high-tech IT park• About 5,000 units of low- and high-rise apartments, commercialbuildings and amenities• First phase to launch in 200736

37Thank You

38This presentation may contain statements which aresubject to risks and uncertainties that could cause actualresults to differ materially from such statements. You arecautioned not to place undue reliance on such statements,which are based on the current views of Management onfuture developments and events.

39Additional Slides

Impact of Anti-Speculation Measures• Price and volume recovered in Sep 06 in ShanghaiShanghai Primary Housing MarketJan-06 Feb-06 Mar-06 Apr-06 May-06 Jun-06 Jul-06 Aug-06 Sep-06Area Sold ('000 sm) 1,572 855 1,859 2,390 2,507 1,694 1,542 1,748 1,928Average Price (RMB psm) 6,019 7,583 8,204 8,645 8,644 9,330 8,670 7,350 8,024('000 sm)3,000Area SoldAverage Price(RMB psm)10,0008,0002,0006,0001,0004,0002,0000Jan-05Feb-05Mar-05Apr-05May-05Jun-05Jul-05Aug-05Sep-05Oct-05Nov-05Dec-05Jan-06Feb-06Mar-06Apr-06May-06Jun-06Jul-06Aug-06Sep-060Source : Shanghai Real Estate Trading Centre40

Impact of Anti-Speculation Measures• Price and volume stabilised in 3Q06 in BeijingBeijing Primary Housing MarketJan&Feb-06 Mar-06 Apr-06 May-06 Jun-06 Jul-06 Aug-06 Sep-06Area Sold ('000 sm) 2,741 1,804 1,733 2,281 1,854 1,353 1,398 1,378Average Price (RMB psm) 6,060 6,796 7,871 7,102 7,675 7,642 7,918 7,8553,000('000 sm)Area SoldAverage Price(RMB psm)8,0002,0006,0004,0001,0002,0000Jan&Feb-06 Mar-06 Apr-06 May-06 Jun-06 Jul-06 Aug-06 Sep-06Source : Beijing Statistics Bureau041

Impact of Anti-Speculation Measures• Chengdu price on uptrend and volume remained stablein 2006Housing Market in Five Urban Districts in ChengduJan-06 Feb-06 Mar-06 Apr-06 May-06 Jun-06 Jul-06 Aug-06 Sep-06Area Sold ('000 sm) 615 470 651 684 632 644 700 675 656Average Pirce (RMB psm) 3,977 3,932 4,001 4,058 4,167 4,392 4,339 4,336 4,335('000 sm)1,000Area SoldAverage Price(RMB psm)4,5007503,5005002,5002501,5000Jan-05Feb-05Mar-05Apr-05May-05Jun-05Jul-05Aug-05Sep-05Oct-05Nov-05Dec-05Jan-06Feb-06Mar-06Apr-06May-06Jun-06Jul-06Aug-06Sep-06500Source : Chengdu Housing Bureau42

KLL’s Residential Landbank in China• More than 2 mil sm of GFA for saleSite Location KLL's Stake Total Land Area Total GFA Remaining GFA Remaining Units(%) (sm) (sm) For Sale (sm) For Sale8 Park Avenue ^ Shanghai 99% 33,432 133,393 78,256 490Park Avenue Central Shanghai 99% 28,488 99,708 99,708 708Villa Riviera Shanghai 99% 153,726 53,796 53,796 ^^ 154The Arcadia Tianjin 100% 133,400 60,505 60,505 168Wuxi Township Wuxi 50% 352,534 670,970 # 670,970 # 5,000The Botanica ^ Chengdu 44% 419,775 1,049,438 # 842,000 # 6,418Mixed development Jiangyin 39% 82,987 NA NA 2,100Total 1,204,342 2,067,810 1,805,235 15,038^ Exclude area and units sold^^Include area sold# Include commercial space43

Market Outlook• Demand drivers in China:– Rising homeownership aspirations‣ Underpinned by robust economic and income growths– Increasing middle-class and expatriate community– Huge young population‣ Half population in age group 20-49 *Age 50-6414%65 andabove8%Age 0-1930%Age 20-4948%Source : UN Population Division Forecast44

Market Outlook• Demand drivers in China:China Urbanisation compared to other Asian countries– Rapid urbanisation‣ Urbanisation rate toreach 61% in 2030‣ Good urbanistionpotential compared toAsian peers‣ About 300 mil torelocate from rural tourban areas by 2020Source : UN Population Division45

Market Outlook• Secondary cities to see better growth‣ Faster urbanisation2nd-tier cities 2001 2002 2003 2004 3-year CAGRChongqing 21.4 22.3 23.2 24.1 4.5Hefei 33.2 34.3 35.1 38.0 4.8Chengdu 34.8 35.6 37.0 42.8 8.5Changchun 41.6 42.7 43.2 43.5 2.4Zhengzhou 55.5 55.9 57.0 58.0 3.0Tianjin 58.6 58.9 59.4 59.6 1.3Average of above 40.8 41.6 42.5 38.0 3.91st-tier cities 69.0 70.2 73.3 75.5 3.4National 37.7 39.1 40.5 41.8 4.1Source : CEIC, National Bureau of Statistics of China‣ Economic growth spreading out to secondary cities‣ Strong demand from resettlementResettlement wave move to secondary citiesDriven by city redevelopment and immigrationEasier to get resident status compared to gateway cities‣ Less affected by government measuresPolicy designed to retain end-user confidenceGrowth driven by affordable housing for owner-occupation46