CapitaLand To Capitalise On Strong Market With Slew Of New Projects

Source : Channel NewsAsia, 31 July 2007

SINGAPORE: Property giant CapitaLand has seen its earnings leap to a new record of more than S$1.5 billion in the first six months of the year.

This was due to a booming property market, which has helped the developer rake in strong profits from new projects and has boosted the value of its investment properties.

CapitaLand's Singapore operations were its fastest-growing in the first half of the year, with pre-tax earnings jumping nine times from a year ago to reach S$1.4 billion, accounting for about 70 percent of the company's total profits.

CapitaLand is targeting to capitalise on the strong local property market with a slew of new projects, coming out of its 5.5 million square feet (gross floor area) land bank.

CapitaLand acquired the bulk of its land bank through the en bloc sites of Gillman Heights, Farrer Court and Char Yong Gardens earlier this year.

The CEO of CapitaLand, Liew Mun Leong, said: "Gillman Heights and Farrer Court are for the mid-class onwards. And I believe that as the super luxurious class prices escalate, the prices will cascade down to the middle class.

"Think about it, when somebody does an en bloc, they must live somewhere, they must have replacement apartments. Gillman Heights and Farrer Court will address this class of people."

These projects are likely to be in the S$1,200 to S$1,800 per square foot price range, while the Char Yong Gardens site in the prime Orchard Road area will be aimed at the top-end luxury market, where prices have reached over S$4,000 per square foot.

CapitaLand also viewed positively the recent moves by the government to calm the property market.

Mr Liew said: "To long-term developers, any move by the government to stabilise the market – to avoid volatility, to avoid hiccups – is positive for us. So we like what the government is doing in terms of stabilising prices because in the long term, the market must bear the prices."

He added that CapitaLand would continue to expand overseas in countries such as China, India and Vietnam. - CNA/so