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Investor Relations

Keppel Land shareholders vote in favour of the proposed asset swap of MBFC Phase 1 and Keppel Towers and GE Tower.   Senior management engaged openly with the media and analysts during briefings for the Company's half-year and full-year results.


RENEWED INTEREST
With the strong economic rebound in 2010, Keppel Land engaged in more corporate actions and developments during the year. Investor relations activities intensified with the renewed interest from investors and shareholders. The strategic asset swap between Keppel Land and K-REIT Asia captured much attention from the investment community.

After its announcement in October 2010, there were some concerns that the deal tipped in favour of Keppel Land. Senior management went on roadshows in the US, Hong Kong and Europe, and organised meetings and conference calls with major shareholders and fund managers in Singapore to explain the rationale and mutual benefits of the bundled deal to seek their support.

The Investor Relations (IR) team also took efforts to address issues raised by investors and shareholders via emails and phone calls, which include the valuation and pricing of the properties, the timing of the divestment, and proposed use of the cash proceeds from the divestment.

SUCCESSFUL ASSET SWAP
Approval from the minority shareholders and unitholders for the asset swap deal was obtained at Keppel Land's and K-REIT Asia's Extraordinary General Meetings on 8 December 2010 and the deal was completed by end-2010.

Concurrently, Keppel Land announced the issue of $500 million unsecured convertible bonds in November 2010. There were queries as to whether the bond issue was necessary since the Company would have substantial cash proceeds after the asset swap. The IR team took pains to explain that the move would enhance the Company's financial flexibility to acquire sites for large-scale developments which would require substantial investment. The new bond issue would also help to pay off bond holders if a put option for an earlier convertible bond issued in 2006 was exercised.

In addition, Keppel Land's successful bid for a 1.6-ha site at Lakeside Drive in May 2010 also raised concerns as the purchase price was some 15% higher than the second highest bid. The IR team worked at allaying such concerns by communicating the strong marketing attributes of the site arising from the transformation of the Jurong Lakeside District and its proximity to MRT stations. When The Lakeside Residences was launched just six months later in November, it was well-received by buyers and gained positive media and analysts' coverage.

ADDRESSING CONCERNS
At the outset, there were fears among analysts and investors over new office supply over the next five years, which could put pressure on the office market. The management made efforts to explain that the supply was not excessive as there was strong pre-commitment from pent-up demand which will be intensified by existing supply being removed from the market due to redevelopment into other use. The IR team put together a special feature in Keppel Land's 2009 annual report addressing the concerns of the office supply.

In 2010, the rolling out of property measures to cool the residential markets in Singapore and China affected investors' sentiments towards developers. Management and the IR team reassured investors of the strategic strength of the Company's projects, especially its townships.

The Company is committed to spending more efforts and resources to serve the interests of the growing investment community. Meetings with fund managers as well as buy-side and sell-side analysts, post-results luncheon meetings and conference calls have increased significantly. The management took part in investor roadshows in Singapore, Malaysia, Hong Kong, United Kingdom, Europe and the United States, and participated in 13 conferences in 2010.

With increasing investors' interest in the growing China market, the IR team facilitated more site visits to China. Some 15 site visits were arranged for analysts and fund managers to meet with local management teams in the cities where Keppel Land operated in. Projects which drew strong interest included the Tianjin Eco-City, The Springdale and 8 Park Avenue in Shanghai, The Botanica in Chengdu, Central Park City in Wuxi and residential sites in Shenyang and Chengdu.

Reflecting the keen interest in new Grade A office space, the IR team also organised and co-ordinated visits to its new iconic development, Marina Bay Financial Centre (MBFC) Phase 1. On one occasion, a visit to the MBFC Phase 1 was made the first stop in the itinerary of an international real estate fund manager's first overseas board meeting.

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