Keppel Land Ltd : Keppel Land deepens presence in Indonesia with acquisition of residential site in Jakarta

In line with Keppel Land Limited's (Keppel Land) commitment to strengthen its foothold in Indonesia, with a focus on Jakarta, the Company has entered into an agreement to acquire a well-located three hectare site for approximately Rp. 400.8 billion (S$ 42.0 million) in West Jakarta where it will develop a high-rise condominium with ancillary shophouses for sale.

Mr Sam Moon Thong, President (Indonesia), Keppel Land, said, "Indonesia is one of Keppel Land's key growth markets where we will continue to build up our presence. We believe that Indonesia's steady economic growth, underpinned by strong fundamentals, will continue to support demand for well-located and affordable homes.

"The residential sector has been growing rapidly in the last few years and we expect this trend to continue in the mid- to long-term, driven by a burgeoning middle-class and growing population."

Located along the Jakarta Outer Ring Road, residents can enjoy excellent connectivity to key business districts and various entertainment hotspots. The new site is also a 15-minute drive from the Soekarno-Hatta International Airport, and about 12 km away from International Financial Centre Jakarta, Keppel Land's Grade A commercial development in the city centre along Jalan Jenderal Sudirman.

"This new residential site is situated within an established residential area that is well-served by major transportation networks as well as supporting amenities and facilities, including shopping malls and international schools. We are confident that we will see positive demand from homeowners who want to own thoughtfully-designed homes in close proximity to West Jakarta's Central Business District," Mr Sam added.

Keppel Land was named Indonesia's Best Residential Developer at the Euromoney Real Estate Awards 2013. Leveraging its expertise and experience in masterplanning and developing quality properties, Keppel Land plans to develop more than 1,200 condominium units as well as about 60 ancillary shophouses on the site.

Targeted at homebuyers in the middle income segment, the first phase of the development is expected to be launched in the first quarter of 2015.

Future homeowners will also be able to enjoy a wide range of shopping, dining and leisure amenities at Puri Indah Mall, PX Pavilion and Carrefour Hypermart. International schools such as Ipeka International and Global Nusantara School are also in close proximity.

Despite the global economic uncertainty, Indonesia has remained resilient and registered laudable economic growth rates of 5.6% (estimated) and 6.2% in 2013 and 2012 respectively. The Organisation for Economic Co-operation and Development has forecasted Indonesia's annual GDP growth to average about 6% between 2014 and 2018, and the country is expected to remain as the fastest growing economy among ASEAN countries in the coming years.

Keppel Land is currently constructing International Financial Centre Jakarta Tower 2, which is located just beside the fully-leased Tower 1 and near the upcoming Setiabudi MRT station. Work on the new 48-storey Grade A office tower is progressing well, with piling works completed. When completed in the second half of 2015, Tower 2 will offer about 50,000 sm of net leasable area.

In keeping with Keppel Land's commitment towards sustainable development, International Financial Centre Jakarta Tower 2 is the first project in Indonesia to be conferred the highest Green Mark Platinum Award by the Building and Construction Authority (Singapore).

The above transaction is not expected to have any significant impact on the net tangible asset per share or earnings per share of Keppel Land Limited for the current financial year.

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 a Grade A office development in Beijing, Seasons City in the Sino-Singapore Tianjin Eco-City 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.

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 75,000 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.

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