Keppel Land To Go Abroad

Source : TODAY,Wednesday,July 25,2007

Property biggie eyes larger markets

KEPPEL Land is all set to spread its wings further overseas as the Singapore-based property developer recorded strong local earnings during half time.

The third-largest developer by assets yesterday reported a net profit of $125.5 million for the first six months this year, up 56 per cent from $80.6 million during the same period last year. Keppel Land said the improvement was largely due to the overall strong residential sales, as well as the robust Singapore office market.

Half-year revenue stood at $654.6 million, up 86.7 per cent from last year. However, cost of sales grew by about 113 per cent to $505.3 million, due largely to the increase in staff and related costs, said Keppel Land.

The company’s Singapore investments contributed $78.2 million, or 62.3 per cent of the earnings, with its overseas operations making up the remaining 37.7 percent, or $47.3 million. The developer said this is the result of higher profits from projects like Reflections at Keppel Bay, Marina Bay and The Sixth Avenue Residences coupled with the sale of a subsidiary in Tianjin.

Keppel Land’s managing director, Mr Kevin Wong, said Singapore’s property market is expected to remain strong, as demand continues to outpace supply. “We expect both prices and rentals of homes to go up for the rest of the year,” he added.

Going forward, Mr Wong said despite the strong growth, Singapore is just one of the many markets that Keppel Land intends to focus on. The plan is to tap on the growth of residential townships in Asia as a whole.

“We are very bullish on the Vietnam market and we will continue trying to secure new projects,” said Mr Wong, who has secured four projects within four months. The company also plans to expand operations in existing markets, such as China and Philippines, through organic growth.

Keppel Land stocks gained 15 cents or 1.8 per ent, to close at $8.70 yesterday.