Keppel Land

Keppel Land: has acquired a 17.5ha residential site in Shanghai’s Seshan area for RMB1.33b ($266m) on which it would develop ~200 landed homes with 250-350 sqm GFA. The site is 20km away from Shanghai Hongqiao International Airport and 32km from the city centre and is KPLD’s ninth project in Shanghai. Owners of landed homes on the site would enjoy views of the Sheshan National Forest Park. OCBC takes a positive view on this acquisition and estimate that it would accrete 3.5 to 5.2 cents to KPLD’s RNAV. Maintains Buy with TP $4.53.