Looking ahead, Keppel Land will unlock value of some of its existing assets within one to two years. First, it will market land parcels in the Cluny Hill good class bungalow enclave in the vicinity of Botanic Gardens. The current ten bungalows residing in the Cluny Hill estate site, which the Group has owned for many years, produced a low yield. This situation will be reversed with Keppel Land’s unique marketing concept of offering bungalow lots with design-and-build options for sale. The freehold site area totals 303,697 sf.

In addition, Keppel Land will extract value from its prime office portfolio of about 2 million sf of net floor area. The approaches being considered include listing, real estate investment trusts, partial sell-down and securitisation. We will also continue to look for other new ways to unlock the value of the Group’s assets.

The real estate business is facing changes in the New Economy, and just as Keppel Land has re-defined properties by introducing innovative features and setting new standards in quality, it must also redefine its business to create value more through leveraging on the Group’s expertise and human capital rather than on financial assets. We believe that the way forward is through an “asset-light” approach.