CapitaLand Commercial's vision is to transform commercial properties into living communities for the benefit of customers, delivering a level of service exceeding their expectations. This focus to create loyal customers will ultimately translate into higher retention rates, increased yields and therefore greater shareholder value.

CapitaLand Commercial is one of the largest business units of the CapitaLand Group. It owns, develops and manages an extensive portfolio of commercial properties in Singapore and other gateway cities including Shanghai, Hong Kong, Tokyo, Kuala Lumpur and London.

CapitaLand Fund Management was set up to own and manage sector specific and regional funds targeting local and international investors. CapitaLand Fund Management works closely with CapitaLand Commercial to identify attractive and stable assets for injection into new property funds to meet the different risk-return profiles of investors.

BUSINESS STRATEGY

CapitaLand Commercial will continue to enhance its portfolio to improve yields through selective new developments and acquisitions; redevelopment and repositioning of inefficient assets; and strong asset management. It aims to unlock value through the progressive divestment of fringe assets, and injection of stable and mature assets into property funds. Management of these funds will also generate more fee-based income.

The commercial and fund management businesses stretch across the whole commercial property value chain, allowing strong core competencies to be fully developed. These include fund and portfolio management, investments and divestments, asset management, marketing, leasing, retail branding and retail property management.

FINANCIAL SUMMARY

CapitaLand Commercial contributed S$443 million to CapitaLand Group's turnover for the year ended 31 Dec 2000, of which about 36% (S$158 million) was from office properties in Singapore, 27% (S$122 million) from overseas properties, 21% (S$95 million) from Singapore retail properties and 11% (S$48 million) from Singapore industrial properties.

In terms of contributions at the EBIT (earnings before interest and tax) level, the Company recorded S$329 million. 40% (S$130 million) was generated from Singapore office properties, 27% (S$88 million) from overseas investment properties, 16% (S$54 million) from Singapore retail properties, and 9% (S$29 million) from Singapore industrial properties.

During the year, CapitaLand Commercial sold shophouse units at Neil Road and retail space at Thomson Plaza in line with its strategy to unlock value through divestments. Total extraordinary gains from these two transactions amounted to S$11 million. Overseas, the Company sold its interest in Phases 2 and 3 of Canary Riverside in London for a S$64 million (£26 million) profit.