A YEAR OF HIGHS FOR CDL
As Singapore’s leading developer, CDL has reinforced its position by marking 2006 with an outstanding record of achievements.

Having anticipated the surge in demand for high-end, luxury properties and to capture the upswing in the property market, CDL swiftly responded to satisfy the desires of this affluent segment with all four launches this year targeting at the high-end market. The success of this astute strategy in capitalising on the niche market has reaped amazing results for the group.

Although CDL sold fewer homes this year, 1,337 units compared to 2,071 units in 2005, its sales value of $2.77 billion surpassed 2005’s $1.66 billion – a staggering increase of 67%!

HIGH LIFE REDEFINED
St. Regis Residences, Singapore’s first branded residences, the pinnacle of luxury and refinement
In yet another pioneering move, CDL kick started its launches in June this year by being the first developer to introduce Singapore’s first branded residential property, St. Regis Residences. Redefining the concept of luxury in Singapore, residents will be able to luxuriate in a sanctuary that exemplifies quality, style and sophistication down to the smallest detail and the privilege of access to professional à la carte services from the adjoining world-class St. Regis Hotel (at a fee).

Causing a furore during the launch, media and buyers were invited to view the highly anticipated, elegantly-appointed Show Suite which was designed to perfection at a cost of $6 million, making it possibly the most expensive in Singapore. St. Regis Residences also created a sensation as it was the first to set a new benchmark price of over $3,000 per square foot.

Residences @ Evelyn which boasts the best views in the Newton vicinity was successfully launched shortly after. Response to this prime 208-unit freehold development was very positive and sales are progressing well with over 93% sold.

Live the high life at The Oceanfront @ Sentosa Cove, the ultimate waterfront living paradise.
Hot on its heels was the launch of The Oceanfront @ Sentosa Cove in July, CDL’s first imprint into Singapore’s prized gated community, Sentosa Cove. Buyers were smitten by the charming waterfront lifestyle and the panoramic views of this resort-like project, built majestically at 15-storeys tall, the highest allowed at Sentosa Cove. Sited at the mouth of the marina, this exclusive 264-unit iconic waterfront marvel will capture the imagination of all who sail past. The Oceanfront @ Sentosa Cove was a phenomenal success having sold 90% within a week.

Enjoy panoramic views of the Singapore River at the trendy Tribeca.
To top off the launches of the year, Tribeca by the waterfront, CDL’s hip and chic freehold 30-storey development is poised to enliven the Singapore River. Located along Kim Seng Road, Tribeca is the perfect oasis for the discerning. With an enthusiastic response from buyers, about 75% has been sold.


PAVING THE HIGH-WAY FOR THE FUTURE
As the proxy to the Singapore property market, CDL owns one of the most valuable land banks amongst private property developers in Singapore. However, it has kept a close watch to secure strategic opportunities to add further value to its land bank. Keeping steadfast to its strategy of paying a competitive deal for all its acquisitions, CDL has attained many solid purchases this year.

CDL’s key acquisition in 2006 is no doubt the highly-coveted The Quayside Collection, which is the only commercial site providing both entertainment and leisure amenities at Sentosa Cove. It was awarded to CDL based not only on its offer price of $235.75 million but other factors including design and concept, tourism appeal as well as the strength of the prospective lessee and operator.

The Quayside Collection will feature a seven-storey, 320- room five-star waterfront hotel, a three-storey waterfront commercial and retail site and a six-storey condominium development comprising 223 apartments. The condominium is expected to be launched in 2007, and the entire development is estimated to be completed by mid-2009.

Strengthening its foothold in the luxury market, CDL, through its wholly owned subsidiary, Aston Properties Pte Ltd, purchased Lucky Tower for $383 million. A prime 169,189 square feet freehold site along Grange Road, it has the potential to be redeveloped into an upscale 24-storey condominium. Just a stone’s throw away, Futura was also purchased for $287.3 million. This 87,034 square feet freehold site can be developed up to 36 storeys with more than 100 large-sized apartments.

Another well-located site comprising Lock Cho Apartment, Comfort Mansion and a four-storey walk-up apartment development in the Thomson Road vicinity was also purchased for $156.3 million in March 2006. CDL hopes to amalgamate the site with an adjoining state land, enlarging the site to an impressive 179,828 square feet. With a permissible height of 36 storeys, this freehold development is estimated to contain about 380 to 400 apartments.

In line with CDL’s policy to replenish its land bank, its four strategic land acquisitions amount to over $1 billion with a gross floor area of more than 1.8 million square feet.

To add to its land bank, in February 2007, CDL also made a successful bid for The Albany, a prime residential freehold site in district 11 for $65 million. The Albany site is approximately 41,688 square feet with the possible purchase of an adjoining state land plot of 15,177 square feet. It is just next to the sites purchased in March 2006. CDL also purchased the freehold Concorde Residences which is 34,092 square feet in size. With these two additional sites along Thomson Road, CDL has certainly strengthened its presence in the vicinity.

HIGH REIT SOLUTIONS
CDL Hospitality Trusts (CDLHT) was successfully listed on the main board of the Singapore Exchange on 19 July 2006. CDL Hospitality Trusts is a stapled group comprising CDL Hospitality Real Estate Investment Trust (H-REIT) and CDL Hospitality Business Trust.

H-REIT is the first hotel real estate investment trust in Asia (excluding Japan), established with the principal investment strategy of investing in a portfolio of hospitality and hospitality related real estate assets. It started with an initial focus on Asia and Australasia, leveraging on the strengths of its sponsor, Millennium & Copthorne Hotels plc (M&C).

Currently, H-REIT’s portfolio comprises Orchard Hotel and Orchard Hotel Shopping Arcade, Grand Copthorne WaWaterfront Hotel, M Hotel and Copthorne King’s Hotel, all based in Singapore, as well as Rendezvous Hotel Auckland in New Zealand.

Its sterling performance this year has led to a 100% increase from its IPO price of $0.83 to $1.67 at the end of the year.

CREATING HIGH VALUES OF HOSPITALITY EXCELLENCE
M&C has delivered the highest level of profits since its listing in 1996. It has performed well with an 8.6% increase in revenue to £646.3 million with headline operating profit up 15.4% to £124.7 million.

The sale of long leasehold interests in three Singapore hotels has demonstrated M&C’s astute ability to not only unlock shareholder value but to create and use an appropriate platform to accelerate future portfolio growth.

M&C signed on nine management contracts in 2006 taking the total number of rooms signed since 2004 to just under 4,000 and the total number of management contracts to 21. M&C’s first foothold in China, the Millennium Hongqiao Hotel Shanghai, opened its doors in October. Located along Yan An Xi Road, the premium five-star hotel has 369 rooms catering to all the needs of the world class traveller. M&C also announced in May that its second hotel in China, the 520-room Millennium Beijing, is slated to open as early as April 2008.

In Singapore, M&C strengthened its presence in having successfully bid for a hotel site along the trendy Mohamed Sultan Road and Nanson Road for $45.8 million through Republic Hotels & Resorts Limited, a wholly owned M&C subsidiary. The site has the potential to be developed into a 10-storey hotel with about 350 to 400 rooms.

With its strong balance sheet, the flexibility created through the hospitality REIT platform and with a new management team under the leadership of its new Group Chief Executive Officer, Mr Peter Papas, M&C is in an advantageous and enviable position to seize opportunities and is well-placed for its next phase of growth.