Keppel Land

Keppel Land: Plans to develop more residential and commercial properties in Indonesia -where a resilient economy, rising FDI and declining interest rates have helped to buoy demand for homes, and office and retail space. Notes its integrated township project, Jakarta Garden City, has sold 95% of the 1060 units launched ytd. Highlights its currently exploring a no of projects and these will probably be landed housing developments in the Greater Jakarta region or high-rise condos targeted at mid to high-end mkt at the fringe of Jakarta's CBD. Also keen to undertake more commercial projects in Indonesia, esp good quality office buildings in the CBD and decentralised office locations such as around Simatupang in South Jakarta. At end 1Q12, Indonesia accounted for 4% of KPLD's total asset distribution. We note that grp could further increase its Indonesian asset base, to diversify away from its core SG and China mkts, both of which have been plagued with high political risk and has weighed on Co’s share price. Furthermore, Indonesia’s stellar economic growth and high growing domestic consumption, has seen a slew of SG co’s ramping up their expansion phase in the largest Asean economy.