Keppel Land acquisitions will focus on residential, 3 other development types

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Singapore and China represent the core markets of Keppel Land, and DBS Group believes that the group will continue to selectively acquire prime sites in these two countries for residential, township, commercial and mixed developments.

"In terms of new launches, there could potentially be 1,187 apartments in Seasons Residence in Shanghai and 510 landed homes in Nantong and Chengdu on offer. In Singapore, it plans to launch its 500-unit condo at Tiong Bahru in 1H14," said DBS.

DBS foresees higher residential development contributions from Singapore, with the recent launch of The Glades, where 89 units (12% of total) were sold at an ASP of $1518psf.

There are also 2,754 units in China to be completed and recognized in FY14, notes the research firm.

DBS Group reckons that with a current gearing 0.44x, the group has deep balance sheet capacity of S$1.1bn debt headroom assuming a gearing of 0.6x.

Should Keppel Land continue to successfully reinvest this huge balance sheet capacity and see robust sales in both China and Singapore, then the stock's share price should jump accordingly.