KepLand To Delay Home Launches; Posts Sterling Gains

Source : The Straits Times, Jan 30, 2008

Developer confirms it is pushing back sales of projects by two to three weeks each

KEPPEL Land (KepLand) has confirmed it has pushed back the launch of Marina Bay Suites and will be slightly delaying other launches in Singapore this year.

This comes amid recent wild swings in stock markets as fears mount over the fallout of the sub-prime mortgage crisis and a possible United States recession.

KepLand group chief executive Kevin Wong also cast some uncertainty on how Singapore's luxury home segment - which had led the market boom until recently - will perform this year, saying it depends on the sub-prime outcome.

But he added that prices of mid-tier and mass market homes are expected to 'continue to go up steadily'.

Marina Bay Suites - which Keppel is developing together with partners Cheung Kong Holdings/Hutchinson Whampoa and Hongkong Land - falls into the high-end homes category.

The 221-unit condominium was initially scheduled for launch last Friday, but Mr Wong said the consortium came to a 'consensus' to delay the launch until after Chinese New Year, 'after bonuses' and 'when people get their hongbao'.

'There is some rationality to pushing it back,' he said yesterday. 'During the Chinese New Year break, people go away.'

KepLand has five other projects to launch this year but these will be pushed back due to the Marina Bay Suites delay, as the developer wants to 'stagger' its launches, added Mr Wong.

But he emphasised that the delays - of only 'two or three weeks' for each project - are 'not material'.

The other projects include 400 units in Reflections at Keppel Bay, which are scheduled to start being sold in 'the middle of the year', Mr Wong said.

KepLand also plans to launch 52 units in Park Infinia at Wee Nam, 15 units in The Crest @ Cairnhill, 34 units in The Tresor at Duchess Road and 56 units in Madison Residences in Bukit Timah Road.

The group yesterday posted a sterling set of results, due to good sales in projects such as The Suites at Central and Belvedere in Singapore; Villa Riviera in China; and Elita Promenade in India.

Net profit for the fourth quarter ended Dec 31 surged seven times to $572.3 million, largely due to a $388.2 million gain on revaluation of investment properties. Revenue rose 8.6 per cent to $371.4 million.

Earnings per share for the quarter soared to 79.5 cents, from 11.3 cents a year ago.

For the full year, net profit more than trebled to $779.7 million while revenue climbed 48.5 per cent to $1.4 billion.

Net asset value per share was 3.18 cents as at Dec 31, from 2.21 cents a year ago.

KepLand is declaring a total cash dividend of 20 cents for the year, consisting a final dividend of eight cents and a special dividend of 12 cents.