Investor FAQs

  • Q. How did your property leasing business perform in the six months ended June 30, 2016?
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    A.

    Total rental revenue rose by 1% for the six months ended June 30, 2016 to HK$3.9 billion, Hong Kong up 7% and mainland China down 4%. When excluding the 6% RMB depreciation effect during the first half of 2016, rental revenue of mainland China grew 2% and overall rental revenue up 5%. 

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

  • Q. Did you sell any Hong Kong residential properties in the six months ended June 30, 2016?
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    A.

    We sold 228 units in 1H2016, including 226 units of The Long Beach 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.

    We try to minimize the disruption by carrying out majority of the upgrading work in night time.  Upgrading work in Plaza 66 has been carried out and is scheduled to complete by phases to 2017.  Grand Gateway 66 will be started in late 2016 to minimize the overlap of upgrading two projects at the same time.

  • 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 other than Shanghai, Beijing, Guangzhou and Shenzhen 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$47 billion, including Medium term notes program of about HK$10.5 billion, as of June 30, 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$2.8 billion or low net gearing of 2.1% as of June 30, 2016.

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

    As of June 30, 2016, we have 466 completed residential units (include 18 semi-detached houses at 23-39 Blue Pool Road) available for sale.