REVIEW OF OPERATIONS

Exisiting Residential Properties

Nassim Woods

Nassim Woods, a luxury-end condominium located in the prime residential area of Nassim Hill, is currently available for lease.

The exclusive development enjoys the tranquillity provided by its Balinese-style landscaping, while being close to the Orchard Road shopping and entertainment belt as well as the financial district at Raffles Place.

Its prestigious address is further enhanced by its neighbourhood of foreign embassies, country clubs, lush Botanic Gardens and international hotels.

Nassim Woods offers 35 units of 3- to 4-bedroom apartment types and penthouses, with sizes ranging from 2,000 sf to 6,400 sf. The penthouses feature roof terrace gardens which come complete with a spa, a barbeque corner, trellis and lush planting areas.

Besides the private lift, which provides residents the privacy and convenience of stepping out of the lift and directly into their own private lift lobby, each unit is luxuriously furnished with quality finishes. Tenants have the option of leasing the units fully or partially furnished.

The development continues to enjoy high occupancy. Tenants include expatriates from Europe and the US.

Pebble Bay

Pebble Bay, one of Singapore’s first waterfront condominium developments located in the prime Tanjong Rhu area, obtained its (Temporary Occupation Permit (TOP) in October 1997.

The project offers 510 units of luxurious apartments with 20 different designs in sizes ranging from 850 sf to 6,114 sf. Outstanding amenities and recreational facilities, lush tropical landscaping and panoramic views form an integral part of the development.

Pebble Bay has been 98% sold with the remaining 12 units leased.

MIXED DEVELOPMENT

Bugis Junction, an integrated development comprising an office tower, large-scale retail space and the five-star Hotel Inter-Continental Singapore, has continued to outperform competitors despite the tougher environment. The hotel has been able to achieve an average occupancy rate of about 70%.

Enjoying the convenience of being located above the Bugis MRT station, the office tower and retail space are fully leased.

Parco Bugis Junction offers a unique shopping experience within air-conditioned streets and has consistently received many awards since its opening in 1995. It won the Singapore Tourism Board Award for “Best Shopping Experience - Shopping Centre Award” for 1996 and 1997 for its novel approach to retail. It has also taken the top prize for the Best Decorated Building Competition, organised by the Singapore Tourism Board for two years running for 2000 and 2001.

Taking advantage of the successful youth-focused retail formula at Parco Bugis Junction, a fashion concept theme called “edge>” was adopted for part of the retail space on the third storey of the shophouses. Launched on 16 November, the edge> aims to become the leader of the local retail scene with cutting edge styles targeted at the young and trendy. Offering the funkiest of clothes, accessories, gadgets and wacky novelties, the edge> brings to Singapore the hottest brands from Tokyo, Europe, Korea and elsewhere. The entire retail space of about 10,000sf at the edge> has been fully leased.

In 2001, Hotel Inter-Continental Singapore won one Star, three Gold and 19 Silver awards at the Excellent Service Awards organised by Singapore Productivity & Standards Board.

In addition, one of the hotel’s employees won the Model Workers Award presented by the Ministry of Trade & Industry and the National Trade Union Congress.

M A R K E T R E V I E W

OFFICE Demand Fell in 2001 but Outlook Remains Positive in the Medium Term Following the strong economic performance and pent-up demand in 2000, there was a sharp drop in demand in 2001 due to the economic recession and the fallout in the technology sector. Demand for office space dropped from a record high of 4.22 million sf (392,051 sm) in 2000 to 1.12 million sf in 2001. Prime office rents have consolidated by about 16% since end-2000. As at end-2001, average prime rentals have fallen to $6.60 psf per month. However, the medium-term outlook remains positive on hopes of a US-led recovery in 2002 and the limited new supply of prime office space especially in Raffles Place. The gradual emergence of Singapore as an important hub for financial and other service industries will boost demand for office space, especially those in the prime location.

OFFICE

As one of the largest prime office landlords, Keppel Land’s quality portfolio of investment properties include Ocean Building, Ocean Towers, Prudential Tower, Capital Square and The Exchange in Raffles Place. Within the CBD area, the Company also owns Keppel Towers, GE Tower and Bugis Junction Towers. Despite the softer market in 2001, Keppel Land’s well managed and well located office buildings enjoyed full or close to full occupancies, achieving higher rentals and take-up than the market.

Adding to Keppel Land’s quality portfolio is the Marina Boulevard site, which was awarded by the Urban Redevelopment Authority to a consortium of three - Keppel Land and its two renowned Hong Kong partners, Cheung Kong and Hongkong Land in March 2001. The proposed name for the project is One Raffles Quay.

One Raffles Quay

Located at the junction of Marina Boulevard and Raffles Quay, the 1.14-ha site is gateway to the New Downtown, Singapore’s new business and financial district, and adjacent to the heart of the existing CBD at Raffles Place.

The landmark development will showcase several key elements of infrastructure for Singapore’s New Downtown including a hub carpark, an underground retail mall leading to Raffles Place MRT, a District Cooling System plant and an elevated travellator system. This travellator system, envisioned to extend throughout the new CBD, will link some of the major developments in the centre of the city. The development will become a critical link in central Singapore’s pedestrian network.

Comprising two office towers linked by a podium, the large-scale development commands a total of about 1.32 milion sf (123,013 sm) of space. Tower One is a 50-storey building with 756,520 sf of office space. At ground level, the pedestrian plaza faces Raffles Place.

Linked by a parking podium is Tower Two, a 29-storey building offering 563,076 sf of column-free space which is popular among financial institutions.

The project is destined to make a major impact in both the city’s skyline and it’s pedestrian experience. Piling and main contract works are scheduled to begin in June 2002. The development is expected to complete in 2005.

One Raffles Quay will be the gateway to Singapore’s New Downtown, the proposed new business and financial district.