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