Keppel Land profit surges a whopping 77% to $236 6m

Thanks to steady sales from Singapore property sector.

In a release, Keppel Land's net profit grew 77% to $236 6m due to higher contribution from property trading. Strong cash position of $1.6b was registered as at end‐Jun 2012. Additional debt headroom of about $2b if D/E ratio grows to 0.5x.

Keppel Land enjoyed steady sales from Singapore residential and commercial properties.

The Luxurie sold about 88% of 480 launched units as at end‐Jul 2012. It was found out that the choice suburban locations are those close to MRT, schools, retail and sporting facilities

Waterfront projects at Keppel Bay and Marina Bay were substantially sold. Marina Bay Suites sold about 91% of 188 launched units as at end‐Jul 2012. Reflections at Keppel Bay sold about 90% of 950 launched units as at end‐Jul 2012

Keppel Bay Plot 3 will be launched according to market sentiments. It is a 367‐unit premium waterfront development, located close to HarbourFront Office Park and VivoCity.

Grade A office demand at MBFC Tower 3 hit over 70% commitment Marina Bay Financial Centre. About 120,000 sf NLA leased in 1H 2012. Diversified mix of financial and nonfinancial tenants such as DBS, Clifford Capital, Rio Tinto, Regus Group, Clyde & Co, Mead Johnson, Berge Bulk, McGraw‐Hill boosted commitment level. DBS Bank started operation at end‐June 2012. Other tenants are progressively moving in.

Sales volume rebounded in July with 1,943 units sold. It was 42% more than June figure of 1,370 units. Volume also rose across all segments with YTD sales of 13,871 units, 87% of FY201. Private residential prices increased marginally by 0.4% Q‐o‐Q in 2Q 2012. Prices in CCR and OCR increased by 0.6% and 0.5% Q‐o‐Q respectively. Share of foreign buying decreased to 7% in 1H2012 vs 20% in 2011

Office rental eased amidst resilient demand in 1H 2012. Grade A rents moderated 4.7% Q‐o‐Q to an average $10.10 psf with take‐up of about 0.9m sf in 1H 2012.