Keppel Land acquires residential site in West Jakarta for S$42 million

Three-hectare site for a high-rise condo.

Keppel Land Limited (Keppel Land) announced that in line with its commitment to strengthen its foothold in Indonesia, particularly focusing on Jakarta, the company has entered into an agreement to acquire a well-located three hectare site for approximately Rp. 400.8 billion (S$ 42.0 million) in West Jakarta where it will develop a high-rise condominium with ancillary shophouses for sale.

Mr Sam Moon Thong, President (Indonesia), Keppel Land, said, "Indonesia is one of Keppel Land's key growth markets where we will continue to build up our presence. We believe that Indonesia's steady economic growth, underpinned by strong fundamentals, will continue to support demand for well-located and affordable homes.

"The residential sector has been growing rapidly in the last few years and we expect this trend to continue in the mid- to long-term, driven by a burgeoning middle-class and growing population."

Located along the Jakarta Outer Ring Road, residents can enjoy excellent connectivity to key business districts and various entertainment hotspots. The new site is also a 15-minute drive from the Soekarno-Hatta International Airport, and about 12 km away from International Financial Centre Jakarta, Keppel Land's Grade A commercial development in the city centre along Jalan Jenderal Sudirman.

"This new residential site is situated within an established residential area that is well-served by major transportation networks as well as supporting amenities and facilities, including shopping malls and international schools. We are confident that we will see positive demand from homeowners who want to own thoughtfully-designed homes in close proximity to West Jakarta's Central Business District," Mr Sam added.

Keppel Land was named Indonesia's Best Residential Developer at the Euromoney Real Estate Awards 2013. Leveraging its expertise and experience in masterplanning and developing quality properties, Keppel Land plans to develop more than 1,200 condominium units as well as about 60 ancillary shophouses on the site.

Targeted at homebuyers in the middle income segment, the first phase of the development is expected to be launched in the first quarter of 2015.

Future homeowners will also be able to enjoy a wide range of shopping, dining and leisure amenities at Puri Indah Mall, PX Pavilion and Carrefour Hypermart. International schools such as Ipeka International and Global Nusantara School are also in close proximity.

Despite the global economic uncertainty, Indonesia has remained resilient and registered laudable economic growth rates of 5.6% (estimated) and 6.2% in 2013 and 2012 respectively. The Organisation for Economic Co-operation and Development has forecasted Indonesia's annual GDP growth to average about 6% between 2014 and 2018, and the country is expected to remain as the fastest growing economy among ASEAN countries in the coming years.

Keppel Land is currently constructing International Financial Centre Jakarta Tower 2, which is located just beside the fully-leased Tower 1 and near the upcoming Setiabudi MRT station. Work on the new 48-storey Grade A office tower is progressing well, with piling works completed. When completed in the second half of 2015, Tower 2 will offer about 50,000 sm of net leasable area.

In keeping with Keppel Land's commitment towards sustainable development, International Financial Centre Jakarta Tower 2 is the first project in Indonesia to be conferred the highest Green Mark Platinum Award by the Building and Construction Authority (Singapore).

The above transaction is not expected to have any significant impact on the net tangible asset per share or earnings per share of Keppel Land Limited for the current financial year.