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Investment Properties
The Group’s principal investment properties
are Ocean Building, Ocean Towers,
Keppel Towers, GE Tower, Capital Square
and Prudential Tower in Singapore, and
Saigon Centre and International Centre in
Vietnam. The rental income from these
properties is sensitive to changes in their
occupancies and rental rates for lease
renewals.
Assuming that average rental rates are
maintained, a full year’s impact on rental
income for every 1% change in the
occupancies of the above mentioned
properties is approximately $1.1 million.
In respect of committed leases and lease
renewals, a full year’s impact on rental
income for every 10% change in average
rental rates resulting from the new rates
negotiated is about $10.7 million.
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Trading Properties
The Group’s profits from property trading
is sensitive to actual sales achieved and the
percentage of physical completion
recognised during the year.
Based on the actual sales contracts
signed as at 31 December 2000, the
incremental impact on Group pre-tax profit
for every 5% of physical completion is about
$0.1 million.
For every additional 1% of sales achieved
for projects which have been launched,
the additional contribution to Group pre-tax
profit is an estimated $1.8 million. This is
based on physical completion projected
and sales projected for the year, and the
completed properties available for sale
which the Group had at end-2000.
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