Investor FAQs

  • Q. How did your property leasing business perform in the six months ended June 30, 2018?
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    A.

    Total rental revenue increased 7% to HK$4.1 billion in the first half of 2018.  Revenue from Hong Kong leasing portfolio grew 3% while that of the Mainland China portfolio increased 11%.

    Mainland China rental revenue currently contributes 53% of total rental income.

  • Q. Did you sell any Hong Kong residential properties in the six months ended June 30, 2018?
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    A.

    We sold 8 units in the first half of 2018, including 5 units of The Long Beach and 3 semi-detached houses at 23-39 Blue Pool Road.

  • Q. What is your strategy for investment on the Mainland?
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    A.

    Our strategy for investment on the Mainland remains and is for long-term yield enhancement and capital appreciation.

  • Q. Have your Shanghai projects been affected by your asset enhancement program?
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    A.

    There was a decrease in rental revenue for Grand Gateway 66 due to short-term rental disruption by asset enhancement works.  Upgrading work for Grand Gateway 66 office tower I and shopping mall was commenced in late 2016 and early 2017 respectively.  The whole upgrade will be completed in phases to 2019. 

    The first phase of upgrade works will be handed over to the tenants in the third quarter of 2018. The brand - new area will house many young and trend-setting brands, with most making their first appearance at the malls.

  • Q. How many upcoming commercial projects do you have on the Mainland?
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    A.

    We have five commercial projects under construction on the Mainland, namely Spring City 66 in Kunming, Heartland 66 in Wuhan, Forum 66 in Shenyang, Center 66 in Wuxi and Hangzhou project with total gross floor area of 2.4 million square meters (including GFA of car parks, exclude Hangzhou project). 

  • Q. Have you started pre-leasing of your new commercial projects on the Mainland?
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    A.

    The pre-leasing status of our Spring City 66 in Kunming is promising.  Over 50% of the leasable area was committed up to date.  We are confident of achieving a high occupancy when it opens in mid-2019.
     
    Office tower II of Center 66 in Wuxi is scheduled to complete in mid-2019 and we have started marketing with prospective tenants.

  • Q. Why have you chosen to develop commercial projects on the Mainland, in particular, shopping malls?
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    A.

    With the benefits of continued economic development and urbanization, Chinese cities with population of about 5 million are poised for economic take-off. We expect disposable income to rise, consumer spending and the size of middle class to increase for these cities.

  • Q. Will there be more land acquisitions on the Mainland?
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    A.

    We have successfully won the land auction in May 2018 for acquiring a prime site at Hangzhou for the development of a large scale mixed-use project with mall and office.
     
    We maintain our discipline and stringent criteria towards new land acquisitions. Moreover, our ample war chest enables us to capture purchase opportunities where deemed appropriate.

  • Q. How will you finance your investment in new commercial projects on the Mainland?
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    A.

    We have cash and available facilities of about HK$54 billion, including Medium term notes program of about USD1.4 billion and Green panda bond of RMB10 billion as of June 30, 2018.  In addition, the present of over HK$8 billion annual rents shall increase over time, and thus our overall financial position shall remain healthy.
     
    We have a net debt of HK$7.7 billion or low net gearing of 5.4% as of June 30, 2018.

  • Q. How many completed residential units for sale do you still have in Hong Kong?
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    A.

    As of June 30, 2018, we have 17 completed residential units (include 12 semi-detached houses at 23-39 Blue Pool Road) available for sale.

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