Annual Report 2012 - singapore land limited

Singapore Land Limited - Annual Report 2012
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re-opened in September 2012. The renovated hotel with a
spectacular lobby, more luxurious guest rooms and new
restaurants will be well placed to reposition itself as the
premier hotel of choice for discerning business and leisure
guests in the Marina Bay hub.
West Mall which is strategically connected to the Bukit
Batok MRT station continued to be a vibrant destination
for shopping and dining, catering to a wide catchment
of residents living in the West. During the year, the
Mall achieved 99% occupancy rate and visitor traffi c of
more than 12 million. Rental revenue increased by 2% to
$31.1 million.
Novena Square in which the Group owns a 20% interest
continued to strengthen its brand image as a sports cum
lifestyle shopping and dining destination. Several new
innovative sports events were successfully organised,
creating buzz and drawing strong shopper traffi c.
During the year, the development, including Velocity@
Novena Square as well as offi ce Towers A and B, enjoyed
99% occupancy.
SINGAPORE RESIDENTIAL PROJECTS
During the year, the Group acquired three prime residential
sites through public tenders at Jervois Road, Farrer Drive
and Alexandra Road. The three sites are close to Orchard
Road and the Central Business District and enjoy easy
access to amenities such as top schools and MRT stations.
In addition, the Group jointly acquired a site at Bright
Hill Drive off Upper Thomson Road, with UOL Group on a
50:50 basis. This site is located very close to a designated
MRT station. All four sites are expected to be launched for
sale in 2013.
Archipelago, our 50:50 joint venture with UOL Group,
was fully sold as at end December 2012. Located in
Bedok Reservoir Road and close to Bedok Reservoir, the
development comprises 553 apartments and 24 stratahouses.
TOP is expected to be obtained in 2016.
The Trizon, our freehold condominium in Mount Sinai,
obtained the Certifi cate of Statutory Completion in
November 2012. The 289-unit project is 94% sold as at
the end of January 2013.
OVERSEAS INVESTMENTS
The Group’s wholly-owned project in China, The
Excellency, in Chengdu, Sichuan province was completed
in the second quarter of 2012. The development comprises
two 51-storey residential blocks and 3,300 square metres
of retail space. 74% of the residential units had been sold
as at end December 2012.
In Shanghai, construction of the Shanghai Chang Feng
project is expected to commence in the second quarter
of 2013. The project is jointly developed by a consortium
comprising Singland China Holdings Pte. Ltd. (a whollyowned
subsidiary), UOL Capital Investments Pte. Ltd.
(a subsidiary of UOL Group Limited) and Peak Star Pte. Ltd.
(a subsidiary of Kheng Leong Company (Private) Limited)
with shareholdings of 30%, 40% and 30% respectively.
The mixed development project comprises 398 residential
units and 8,000 square metre retail component.
The Beijing Landmark Towers, a mixed-use development,
in which the Group holds a 19.95% stake, was able to
register high occupancy rates for its hotel, apartments
and offi ces despite stiff competition. For the year ended
December 2012, the Group received $2.1 million of
dividend from this investment.
OUTLOOK FOR 2013
The Singapore GDP is forecast to grow at a slow pace
of 1% to 3% in 2013. With substantial offi ce space in
newly completed buildings not fully leased yet, rentals will
be impacted.
In January 2013, the Government implemented another
round of cooling measures to moderate escalating housing
prices. The new measure is likely to reduce transaction
volume. However price correction would be moderated
by low interest rate and high employment.
With higher operating costs arising from the tight labour
market coupled with cautious sentiment over the global
economy, retail rental is likely to remain subdued. The
hotel industry is expected to register moderate growth as
visitor arrivals is expected to grow at a slower pace in 2013.
Increased operating costs due to the tight labour market
will remain the biggest challenge for the hotel industry.
ACKNOWLEDGEMENT
On behalf of the Board of Directors, I would like to thank
shareholders, business partners, customers and tenants
for their support during the year. I would also like to
express my appreciation to the staff and management
for their commitment and hard work without which the
Group’s success would not have been possible.
The Board would like to thank Mr Alvin Yeo for serving as
interim Chairman of the Audit Committee. Mr Yang Soo
Suan, an Independent Director, was appointed as the
Chairman of the Audit Committee on 2 January 2013.
Finally I would like to thank members of the Board for their
guidance and wise counsel.
Wee Cho Yaw
February 2013