Investor FAQs

  • Q. How did your property leasing business perform in the year ended December 31, 2018?
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    A.

    Total rental revenue increased 5% to HK$8.2 billion. Revenue from Hong Kong leasing portfolio grew 3% while that of the Mainland China portfolio increased 7%.

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

  • Q. Did you sell any Hong Kong residential properties in the year ended December 31, 2018?
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    A.

    We sold 12 units including 3 semi-detached houses at 23-39 Blue Pool Road and 9 units of The Long Beach.

  • 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. The second phase of the upgrade program commenced in July 2018, covering the bulk of South Building including the transformation of the mall’s main entrance and its basement. The whole upgrade is expected to be completed in stages from late 2019. 

    The first phase of the upgrade works covering the entire North Building was finished and the refurbished building re-opened in September 2018. More than 80 brands were recruited and 18 of them were making their debut in Shanghai or even their first appearance in the Mainland.

  • 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 Westlake 66 in Hangzhou with total gross floor area of 2.4 million square meters (including GFA of car parks, exclude Westlake 66 in Hangzhou). 

  • 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 75% of the leasable area was committed up to date. We are confident of achieving a high occupancy when it opens in 2H 2019.

    Office tower II of Center 66 in Wuxi is scheduled to complete in 2H 2019 and the pre-lease activities have commenced.
     

  • 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$50 billion, including Medium term notes program of about USD 1.4 billion and Green panda bonds of RMB 9 billion as of December 31, 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$14.9 billion or net gearing of 10.4% as of December 31, 2018.

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

    As of December 31, 2018, we have 13 completed residential units (include 12 semi-detached houses at 23-39 Blue Pool Road) available for sale.

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