Keppel Land : to redevelop International Financial Centre Jakarta Tower 1

Integrated with International Financial Centre Jakarta Tower 2 currently under construction, a new iconic twin-tower office complex will rise in Jakarta's central business district to meet demand for prime office space.

Keppel Land Limited (Keppel Land) will redevelop the existing International Financial Centre (IFC) Jakarta Tower 1 into a 49-storey state-of-the-art office tower that will more than double its net leasable area (NLA) to approximately 69,800 sm of premium grade office space. The total cost to redevelop the building, excluding land cost, will be approximately S$266.4 million (Rp 2,504 billion).

Presently, construction of IFC Jakarta Tower 2, which will have an NLA of 50,200 sm, is progressing on track for completion in the fourth quarter of 2015. It is the first project in Indonesia to be conferred the highest Green Mark Platinum Award by the Building and Construction Authority of Singapore (BCA). Keppel Land targets to attain the BCA Green Mark Platinum Award for the redeveloped IFC Jakarta Tower 1 as well.

Keppel Land is committed to grow its commercial portfolio in key Asian cities. The redevelopment of IFC Jakarta Tower 1 follows Keppel Land's recent announcements on the expansion of its mixed-use developments in Vietnam and the Philippines, namely the 37-storey office tower in Saigon Centre Phase Two in Ho Chi Minh City as well as the 42-storey office building and retail mall extension of the SM-KL project Phase Two in Manila.

Located along major thoroughfare Jalan Sudirman in Jakarta's financial district and within the golden triangle zone, the current 18-storey IFC Jakarta Tower 1 was completed in 1985 and is 100% owned by Keppel Land. It is currently fully occupied with anchor tenants including Bank Mutiara, Tower Bersama, Ithaca Resources and Rintis Sejahtera.

Mr Sam Moon Thong, President (Indonesia), Keppel Land, said, "We continue to execute Keppel Land's strategy to actively recycle capital and further strengthen our commercial portfolio. The redevelopment of IFC Jakarta Tower 1 also reaffirms Keppel Land's long-term commitment to participate and contribute to Indonesia's growth. We are confident that the prime location and premium quality of the IFC Jakarta complex will attract multinational and local corporations seeking a prestigious address in Jakarta's CBD."

Demolition works is targeted to begin in the first quarter of 2016. Construction works for the new tower will follow and is scheduled to be completed in the fourth quarter of 2019.

According to the World Bank, Indonesia's GDP growth averaged 6.3% from 2011 to 2013, and is forecasted to be between 5.1-5.4% in 2014. Total foreign direct investment (FDI) realisation in the second quarter of 2014 reached Rp 78.0 trillion (approximately US$6.8 billion), a growth of 16.9% compared to the same quarter in 2013. The Economist Intelligence Unit has forecasted FDI levels to remain healthy at an annual average growth rate of 8.7% from 2015 to 2018. This, coupled with the resilient economy, is expected to boost demand for quality office space as more companies set up or expand their presence in Jakarta.

As reported by JLL, from 2011 to 2013, net office demand in Jakarta's CBD remained strong and consistently exceeded 300,000 sm per annum. The occupancy rate for Grade A office space in the CBD increased from 80% in 2010 to 94% in second quarter 2014, with premium grade offices achieving an occupancy rate of 96% in the same period.

Besides IFC Jakarta, Keppel Land's portfolio of projects in Indonesia includes a three-hectare residential site in West Jakarta acquired earlier this year and Ria Bintan, an integrated resort comprising hotels and championship golf courses.

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About Keppel Land Limited

One of Asia's premier property companies, Keppel Land is recognised for its sterling portfolio of award-winning residential developments and investment-grade commercial properties as well as high standards of corporate governance and transparency.

The Company is geographically diversified in Asia, with Singapore and China as its core markets, and Vietnam and Indonesia as its growth markets. It focuses on a two-pronged strategy of property development for sale and property fund management.

A leading prime office developer in Singapore, Keppel Land contributes to enhancing the city's skyline with landmark developments such as Marina Bay Financial Centre, Ocean Financial Centre and One Raffles Quay.

The Company is committed to grow its commercial portfolio in key Asian cities. Its portfolio of overseas commercial properties includes Seasons City in the Sino-Singapore Tianjin Eco-City, a Grade A office development in Beijing and a retail mall Life Hub @ Jinqiao in Shanghai, China, Saigon Centre in Ho Chi Minh City, Vietnam, as well as International Financial Centre Jakarta in Indonesia. The Company also plans to develop Park Avenue Central in Shanghai into a retail-cum-office complex.

Keppel Land is also Asia's premier home developer with world-class iconic waterfront residences at Keppel Bay and Marina Bay in Singapore.

With a pipeline of over 66,000 homes across Asia, Keppel Land is well-positioned to meet the demand for quality housing driven by homeownership aspirations.

An established property fund manager, Keppel Land has two property fund management vehicles, Keppel REIT, a pan-Asian commercial real estate investment trust, and Alpha Investment Partners (Alpha), a private equity arm.

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