The property services business groups held up well last year despite the keen competition. The three main businesses for CapitaLand Property Services are Property Management & Consultancy, Engineering and Township Management – secured new businesses, maintained current clientele and expanded overseas.

The business units focused on ensuring quality services through an emphasis on customer service, and meeting local productivity standards. They also worked towards developing talents and skills to meet higher demands for management services for intelligent buildings, asset management and consulting. A regional drive has increased the Company's geographical presence in cities like Shanghai, Hong Kong, Guangzhou, Kuala Lumpur, Johor Bahru, Jakarta, Bandung, Surabaya and Medan.

The merger of PREMAS International Limited ("PREMAS") and ESMACO Pte Ltd in November 2000 consolidated the respective expertise, business and operations under PREMAS. PREMAS, a member of CapitaLand Property Services, is now Southeast Asia's largest property services group.

FINANCIAL SUMMARY

In 2000, the Company recorded an after-tax profit of S$12 million on a turnover close to S$100 million. Third-party business increased to more than 70% of the total portfolio of projects.

BUSINESS REVIEW

With the merger, PREMAS has the capability to deliver total property management and consultancy services, namely, Asset & Property Management, Facility Management, Property related Audits, Total Building Performance Consulting, Project Consulting & Management, Carpark Management, Interior and Landscape Design, Valuation and Agency.

Asset & Property Management was the main revenue generator. It maintained more than 25 million square feet of net lettable commercial space, 13,000 private residential units and 20,000 carpark lots.

Valuation and Agency recorded impressive growth despite weak sentiments in the regional real estate markets. It increased its third party customer base and access to bank valuation panels.

In Interior and Landscape Design the teams were successful in penetrating the Shanghai market and will continue to make inroads into other regional markets to complement our project management capabilities.

The Carpark Management maintained high standards and returned satisfactory yields to carpark owners despite rising costs.

LOOKING AHEAD

The market remains extremely competitive. In view of this, the Company endeavours to enhance the range of services, focusing on value-add to the customer. In this regard, it has developed a Total Building Performance (TBP) Consulting team which aims to enhance properties and buildings through building audits and consulting. The team aims to deliver energy-saving programmes and services, indoor air quality improvement services, and other building environment enhancing deliverables. These will improve capital appreciation and rental values, and maintain the economic life span of building assets.