Investor FAQs

  • Q. How did your property leasing business perform in the year ended Dec 31, 2016?
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    A.

    Total rental revenue stayed flat at HK$7.7 billion, or up 3% when excluding the 6% RMB depreciation effect during 2016.  Revenue of Hong Kong leasing portfolio up 5% while mainland China portfolio recorded a moderate rental growth in RMB terms.


    Mainland China rental revenue currently contributes 52% of total rental income. 

  • Q. Did you sell any Hong Kong residential properties in the year ended Dec 31, 2016?
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    A.

    We sold 441 units during 2016, including 436 units of The Long Beach, two semi-detached houses at 23-39 Blue Pool Road, one duplex unit at The HarbourSide and the last two units of Carmel-on-the-Hill.

  • 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 only a moderate decrease in rental revenue for Plaza 66 in 2016 due to short-term rental disruption by asset enhancement works. Upgrading work for Plaza 66 office tower I and shopping mall is nearly completed.  The new basement of shopping mall has been re-opened for business since early 2017.  A similar program for Plaza 66 Office tower II was commenced in the last quarter of 2016 and the whole upgrade will be completed in phases by 2018.


    Upgrading work of Grand Gateway 66 was also started by the end of 2016 and the whole upgrade will be completed in phases by 2019.  

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

    We have four commercial projects under construction on the Mainland, namely Spring City 66 in Kunming, Heartland 66 in Wuhan, Forum 66 in Shenyang and Center 66 in Wuxi with total gross floor area of 2.2 million square meters (including car parks). 


    Total gross floor area of our Mainland portfolio will increase to 4.5 million square meters (including car parks) upon completion of all our Mainland projects in the pipeline.

  • 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 reform 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 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$44 billion, including Medium term notes program of about HK$10.5 billion, as of Dec 31, 2016.  In addition, the present of about 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$2.7 billion or low net gearing of 2.1% as of Dec 31, 2016.

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

    As of Dec 31, 2016, we have 253 completed residential units (include 16 semi-detached houses at 23-39 Blue Pool Road) available for sale.