Keppel Land in Vietnam - Keppel Corporation in... · 2019. 7. 29. · KLL In Vietnam Oct-07 1 1 Keppel Land in Vietnam Investor Meetings ... Market leader in serviced apartments in

KLL In Vietnam Oct-071

1

Keppel Land in VietnamInvestor Meetings

October 2007

2

Presentation Outline

Keppel Land’s Overseas Strategy

Introduction to Vietnam

Market Review and Outlook

Keppel Land’s Investments in Vietnam

Going Forward


3

Keppel Land’s Overseas Strategy

4

Regionalisation Drive

Embarked on regionalisation drive in early 1990s

– Broaden earnings base geographically and reduce exposure to Singapore property cycles

– China and Vietnam among the first countries KLL invested in


5

Regional Strategy

Focus on property development for sale to tap on demand for quality housing in Asia

HOME OWNERSHIP

ASPIRATIONS

Economic Growth

FavourableDemographics

Growing Middle Class

Rising Affluence

UrbanisationTrends

6

Regional Strategy

Current focus on China, India, Vietnam and Indonesia

- China : Sustained genuine home demand- Vietnam : WTO entry to expand economy and boost property market- India : Outsourcing and IT boom to drive market growth- Indonesia : Interest rate cuts to stimulate home demand and fuel market

Two-pronged efforts focusing on :(a) Residential projects and large-scale townships(b) Integrated lifestyle developments


7

Early Head-start in Vietnam for KLL

Forayed into Vietnam in early 1990s– Jul 1991 : Entered Hanoi to develop International Centre

– Feb 1992 : Entered HCMC to develop Saigon Centre

Pioneer property developer with strong brand name and expertise– Among largest foreign developers and top Singapore companies

with the highest FDI in Vietnam

– Developed good networks and reputation

Total asset value : S$290m (6% of Group’s total assets in 2006)

8

Strong Presence in Vietnam

Built up portfolio of prime residential developments, townships,Grade A commercial buildings, and serviced apartments in HCMC, Hanoi, Dong Nai and Vung Tau

Substantive residential land bank in prime locations

– Total GFA of 4.4 mil sm

– Pipeline of about 23,000 homes

– Lifestyle waterfront developments fronting Saigon River, Ca Cam River and Dong Nai River


9

Introduction to Vietnam

10

Key Facts

Area : 329,560 sq km

Coastline : 3,444 km

Capital : Hanoi

Commercial hub : Ho Chi Minh City

Total population : 85 mil- 13th most populous country

in the world- 70% below 35 years old- HCMC : 6.2 mil- Hanoi : 3.1 mil

Literacy rate : 96%


11

Economic Background

Shift from centrally-planned to market-oriented economy1986 : Implementation of Doi Moi reforms2000 : Stock markets set up in HCMC and Hanoi

: Investment Law and Unified Enterprise Law increased number of private enterprises (230,000 currently)

2006 : Housing Law opened up real estate market2007 : Deregulation of banking industry

Integration with global economies1995 : Member of ASEAN Free Trade Area (AFTA)1998 : Membership in Asia-Pacific Economic Co-operation (APEC)2001 : US-Vietnam Bilateral Trade Agreement2006 : US ratification of Permanent Normal Trade Relations 2007 : Member of World Trade Organisation (WTO)

12

Strong Economic Growth

GDP growth rate of 8.3% for first nine months of 2007– Average GDP growth rate over last 5 years : 7.8%

– 2006 GDP growth rate : 8.2% Size of GDP : US$60.5b

– 2007 GDP growth target : 8.4%

US$9.6b of FDI in Jan-Sep 2007, up 38% y-o-y– Rising FDI due to economic reforms and pro-investor policies

– 2006 FDI : $10.2b

– 2007 FDI forecast : US$13b, up 27% y-o-y


13

Key Economic Data2006 2007F 2008F

Real GDP growth (%) 8.2 8.4 8.1

GDP per capita (US$) 720 820 940

Commercial banks’ prime rate (average,%) 11.2 11.5 11.7

FDI (US$b) 10.2 13.0 14.5

Exchange rate (Dong/US$, average) 15,994 16,054 15,963

Personal disposable income (US$b) 28.7 32.1 36.2

Private consumption (US$b) 38.5 44.7 51.5

CPI change (average,%) 7.5 7.6 7.3

Source: Economic Intelligence Unit, Vietnam Ministry of Planning and Investment

14

Market Review and Outlook


15

Demand Drivers for Residential Market

Buoyant Stock Market

Shortage of Good Quality

Homes

Liberalisation of Government Policies

Rapid Urbanisation

Returning Viet Kieus

FavourableDemographics

Increasing Demand for Home Ownership

Increasing Affordability and Rising Affluence

Rising Number of Expatriates

16

Fast-growing middle class due to strong economic growth– GDP per capita in HCMC : US$2,200 – Strong homeownership aspirations especially in well-planned

residential enclaves

Buoyant stock market– VN Index up 144% in 2006 and another 38% in 1H2007– Stock market gains channeled into property

Increasing affordability– Availability of mortgages of up to 50-70% of value of property– Mortgage rates of 12% pa– Loan quantum : 10-15 years



17


Liberalisation of government policies– Housing Law (Jul 06) : Viet Kieus allowed to buy houses in Vietnam– Real Estate Trading Law (Jan 07) : Transparency in property transactions

Rapid urbanisation rate– 27% in 2006 from 19% in 1999– Forecast : 33% by 2010 and 45% by 2020– Target : 14.2 sm per capita average housing by 2010

Additional 103 mil sm of housing needed

Returning Viet Kieus as investors– Remittances in 2006 : US$4.7b, up 24% y-o-y– 2007 forecast : US$5.4b, up another 15% y-o-y

18

Capital values doubled over past 18 months

– Prices of high-end condominiums in prime areas reach US$3,500 psm in HCMC and US$1,850 psm in Hanoi

Prices relatively affordable compared to other Asian markets

Growing international interest in Vietnam’s property markets

– Number of funds rose to 43 with total capital of US$5.6b in Jun-07 from 20 in Jan-06

Buoyant Residential Market


19

Strong economic growth and rising FDI fuel expansion and upgrading– Additional demand for CBD space from entry of international

banks

Grade A space : Fully occupied– Limited Grade A space, with no new supply in near-term

Grade A office rentals up– US$50 psm per month in HCMC– US$48 psm per month in Hanoi

Positive Office Market

20

Growing number of expatriates with the country’s integration with global markets

Limited supply of quality serviced apartments and rental apartments

Average 98% occupancy for Grade A serviced apartments in HCMC and Hanoi

Room rates up 12-20% over past year – US$28-38 psm per month in HCMC– US$22-40 psm per month in Hanoi

Active Market for Serviced Apartments


21

Keppel Land’s Investments in Vietnam

22

Ho Chi Minh City


23

Landmark building located at prime Le Loi Boulevard in HCMC’s CBD

Total site area : 20,000 sm

Phase 1 completed in 1996

KLL’s stake : 68%

Awards :Gold Medal Vietnam Quality Award 2005by Ministry of Science, Technology and Environment of Vietnam

Best Business Serviced Apartments in HCMC for Sedona Suites HCMCby The Guide Awards for 2003 – 2005

Asia Pacific Quality Awards 2000 –Outstanding Achievement First property development in Vietnam to receive this prestigious award

Saigon Centre

24

Office- Net lettable area : 10,433 sm (11 levels)- Occupancy : 100%- Tenants : Deutsche Bank, Motorola,

Mitsubishi, AIG, Fuji Xerox,Temasek Holdings, Hyundai, Kuehne & Nagel

Retail- Area : 3,663 sm (3 levels) - Occupancy : 100%- Tenants : Mango, Highlands Coffee

Serviced Apartments- Managed by Sedona Hotels International- No. of units : 89- Occupancy : 100%- Began operations : 1996

Saigon Centre


25

Fully sold in less than a year since its launch in Apr-06Total of 101 waterfront villas in prime An Phu Ward in District 2Three-storey villas with land plot sizes of between 300 sm and 550 smAverage price : US$400,000 – US$1.5 mil per unit

Villa Riviera

100% Sold

26

Located in prime An Phu Ward in District 2

Residential township with commercial space and public sports facilities- Site area : 640,476 sm

- Sports : 14,000 sm

- Residential & commercial : 40,000 sm

- GFA : 890,000 sm

Total units : 3,000 apartments- Target market : Upper-middle income

- Exp. launch date : 2008

KLL’s stake : 90%

Saigon Sports City


27

Saigon Sports City

28

The Estella

Located in An Phu Ward, District 2

High-rise condominium with supporting commercial amenities- Site area : 47,906 sm

- GFA : 280,000 sm

Total units : 1,500 apartments- Target market : Upper-income

- Exp. launch date : 4Q07 (Ph 1)

KLL’s stake : 55%


29

Waterfront condominium fronting Saigon River- Site area : 17,428 sm- GFA : 87,000 sm

Total units : 500 apartments- Target market : High-income- Exp. launch date : 2008

KLL’s stake : 60%

Waterfront Condominium, Binh Thanh District

Waterfront Condo

30

Waterfront condominium fronting Ca Cam River with supporting commercial amenities- Site area : 85,118 sm

- GFA : 408,500 sm



KLL’s stake : 75%

Waterfront Condominium, District 7

Waterfront Condo


31

Prime Condominium, District 2

Prime condominium with supporting commercial amenities- Site area : 51,043 sm

- GFA : 244,800 sm



KLL’s stake : 60%

Prime Condo

32

Dong Nai


33

Located in fast growing Dong Nai Province, 28km northeast of HCMC

Waterfront residential township with commercial and public amenities- Site area : 5,090,000 sm

- GFA : 2,601,263 sm

Total units : 14,000 apartments- Target market : Middle to

upper-middle income

- Exp. launch date : 2009 (Ph 1)

KLL’s stake : 45%

Residential Township

34

Hanoi


35

Centrally located at Ngo Quyen Street, next to historic Sofitel Metropole Hotel

First international standard office building in Vietnam- Net lettable area: 6,096 sm (8 storeys)- Occupancy : 100%- Tenants : Citibank, Freshfields,

Singapore Airlines,Bank of Nova Scotia,PriceWaterhouseCoopers,Fuji Xerox

Completed in 1995

KLL’s stake : 43%

International Centre

36

Sedona Suites, Royal Park

Located along Ho Tay, Hanoi’s largest lake

Market leader in serviced apartments in Hanoi

- Managed by Sedona Hotels International- No. of units : 175 - Occupancy : 100%- Began operations : 1998

Awards:

Best Luxury Serviced Apartments in Hanoi by The Guide Awards for four years (2002-05)Golden Dragon Award 2005Gold Medal Vietnam Quality Awards 2002

KLL’s stake : 59%


37

Intensify Township Expansion

Sai Dong Township (MOU)Envisioned to be the new downtown to complement Hanoi’s CBD

– Location : Sai Dong, Long Bien District, Hanoi– Site Area : 4,070,000 sm– Local Partner : Hanoi Electronics Corporation

North Thang Long Township (MOU)Themed with healthy lifestyle concept

– Location : North Thang Long, Dong Anh District, Hanoi– Site Area : 9,490,000 sm– Local Partner : Hanoi General Export and Import Corporation

38

Going Forward


39

Rolling out Quality Homes in Vietnam

Prime CondominiumsHo Chi Minh CityHo Chi Minh City

Integrated Townships

HanoiHanoi

The EstellaAn Phu Ward, District 2 1,500 luxury unitsLaunch: 4Q2007

Waterfront CondominiumBinh Thanh District500 luxury waterfront homesLaunch: 2008

Waterfront CondominiumDistrict 72,400 waterfront homesLaunch: 2008

Prime CondominiumDistrict 21,500 luxury unitsLaunch: 2009

Saigon Sports CityAn Phu Ward, District 2 3,000 homesLaunch: 4Q2007

Sai Dong (MOU)407 ha

North Thang Long (MOU)949 ha

Dong Dong NaiNaiDong Nai

28km from HCMC14,000 homesLaunch: 2009

40

KLL’s Total Site Total Total Units to LaunchStake Area (sm) GFA (sm) Units 2007 2008 2009

Saigon Sports City 90% 640,476 788,180 3,000 - 172 288

The Estella 55% 47,906 275,371 1,500 350 350 475

Waterfront Condo, 60% 17,428 87,140 500 - 300 200Binh Thanh District

Waterfront Condo, 75% 85,118 408,500 2,400 - 550 275District 7

Dong Nai Township 45% 5,090,000 2,601,263 14,000 - - 300

Waterfront Condo, 60% 51,043 244,800 1,500 - - 350District 2

Total 5,931,971 4,405,254 22,900 350 1,372 1,888

Rolling out Quality Homes in Vietnam


41

Thank you

This release may contain statements which are subject to risks and uncertainties that could cause actual results to differ materially from such statements. You are cautioned not to place undue reliance on such statements, which are based in the current views of Management on future developments and events.

Documents

Keppel Land in Vietnam - Keppel Corporation in... · 2019. 7. 29. · KLL In Vietnam Oct-07 1 1 Keppel Land in Vietnam Investor Meetings ... Market leader in serviced apartments in