PSA Corporation Ltd has created a new company, The HarbourFront Ltd, to spearhead its harbourfront development projects in Singapore and overseas. The new company will hold PSA properties at The HarbourFront project in Singapore. PSA will own 20% of the company, while the remaining 80% will be transferred to Temasek Holdings, PSA’s shareholder. This move to have a focused and niche vehicle for harbourfront development will facilitate future equity participation by established developers and potential strategic partners.

Dr Yeo Ning Hong, Chairman, PSA Corporation Ltd, said, “The creation of The HarbourFront Ltd will allow PSA to continue to exploit waterfront development opportunities both in Singapore and overseas without the need to carry a heavy asset base.”

The HarbourFront Ltd’s main project is the multi-billion dollar business-and-lifestyle complex located in the Maritime Square area in Singapore. Known as The HarbourFront, the project promises to be a waterfront landmark with MRT access and integrated facilities catering for cruises, retail and entertainment businesses as well as a hotel and an office park.

“The HarbourFront Ltd will also enable PSA to realise the synergy between its overseas port ventures and the redevelopment of old disused port areas into new vibrant waterfront lifestyle hubs that are in great demand in modern cities”, said Dr Yeo. Overseas examples of such projects are our on-going waterfront development under the Bay Bridge in San Francisco, USA, and the redevelopment of the old port area in Dalian, China.

PSA will also transfer its non-port properties to another new company to be wholly-owned by its shareholder, Temasek Holdings. These properties will include PSA Building, PSA Vista, Alexandra Distripark, Tanjong Pagar Distripark and Pasir Panjang Distripark.

PSA Chairman Dr Yeo said, “This transfer of assets, following on from our credit rating and our bond issues earlier in the year, will give us a leaner balance sheet and help us achieve better shareholder value. It will give us the best of both worlds. Firstly, it will allow PSA to sharpen its focus on growing its core business of providing world-class integrated port and logistics services both in Singapore and globally, and to better meet our customers’ requirements through increasing application of technology and e-commerce such as our innovative and proprietary PORTNET® system. And secondly, we will be able to continue to tap on the expertise and track record of our associate company, The HarbourFront Ltd, to exploit waterfront development opportunities overseas.”

In recognition of the success that PSA’s properties team has brought to the development and management of its non-port properties and to give The HarbourFront Ltd a good headstart, Temasek has requested the current management and staff of PSA’s Properties Division to continue to manage the two companies. The entire team will be seconded to The HarbourFront Ltd with effect from January 1, 2001 and thereafter absorbed into the company at the end of 2001. They will continue to be involved in PSA’s overseas waterfront development projects.

Background on The HarbourFront.

PSA has appointed a renowned international architect, the Jerde Partnership, to design the project and has also undertaken detailed feasibility studies with a number of international property developers interested in creating a novel and unique waterfront development (see attached — an artist impression of The HarbourFront).

The project will make The HarbourFront the nucleus of a new lifestyle hub in the Maritime Square area which already houses some of Singapore’s best tourist attractions: Sentosa, Mount Faber and the Cable Car. The entire precinct will become even more accessible when The HarbourFront MRT Station, the new dual-level roadway as well as the new people mover system linking the project to Sentosa, are ready by 2003.

The new hub will also get to tap into the more than six million international and regional passengers that call at the Singapore Cruise Centre annually, as well as the resident population from new lifestyle projects like Keppel’s Caribbean at Keppel Bay and the Sentosa Cove. The HarbourFront project, when completed, is expected to attract 35 to 40 million visitors annually.

To kick off the development, PSA recently signed a joint venture agreement with the Keppel Group to develop The HarbourFront twin office towers at the Office Park precinct. The office towers are expected to be completed by early 2003.