Property - Guthrie GTS Ltd

Operations Review
Property
The Property Division has, over the years, built up substantial resources and know-how for the management of
local and overseas shopping malls. This has provided a regular income stream. In addition to the management
expertise, property investment and development is another focus of the Division. In 2010, the fair value gains
from property investments were a significant factor in boosting the Division’s contributions to the Group’s profit.
The year in review saw the Division venturing into a new property investment and a development project in
Singapore; one involving the development of public housing residential units and the other, an acquisition of
a mixed-use building.
New Residential Development
Working with a partner, SK Land Pte Ltd, the Division won a tender from the Housing and Development Board
(HDB) in May 2010 to build public housing on a site at Yishun Central. The $340 million project under the HDB
Design, Build and Sell Scheme, involves the building of 806 units of 3, 4 and 5-room flats and is scheduled for
completion in 2014. The project is called Adora Green and was launched in February 2011. Sales applications
received to-date have been positive.
Commercial and Retail Properties
For the second project, the Division teamed up with Sun Venture Property Pte Ltd, forming a new joint venture
company to acquire 163 strata-titled office and retail units of The Adelphi from Capitaland Commercial Limited.
Comprising 5 levels of retail space, 6 levels of offices and 4 levels of basement parking, the $218 million
transaction for units in this mixed-use building is in line with the Group’s strategy in sourcing for properties
with good investment value. The 163 units acquired represent 55% of the total share value in the property.
The property has a 999-year lease tenure and is located in the heart of the downtown district. The office and
retail spaces have occupancy rates of 92.1% and 98.2% respectively. The retail and commercial complex has
potential for capital appreciation while offering stable income and will further increase the Division’s profile
in the real estate sector.
In other developments, the Group sold part of its investments comprising 6 office units at Guthrie Building at
Changi Road and 5 units of shophouses at Amoy Street. Full occupancy was recorded for the 4-storey Guthrie
House, at Fifth Avenue, where the Group’s head office is located.
Retail Mall Management
Our property investment and development activities facilitate our participation across residential, commercial
and retail sectors. Among others, our partial stakes in several retail mall funds provide the opportunity to
align our strategies with our partners to build up comprehensive management expertise for retail properties.
Our success in managing retail properties provides a base to grow our services, which has evolved into a
regular business stream for the Division. As a result, the Division counts among its clients, local and overseas
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