Page 17 - Hang Lung Group 2012 Annual Report

̈ёᑗ˂ɨɘࡈఊЗd፽੻༈ධͦዝ
Ը௰৷ٙᗙყлᆗf͍ν͉ɛཀֻᅠ
ࠑdҢࡁᆀจܲʦ˂ٙᄆࣸ̈ਯ˓ɪ
הϞఊЗf̙઎d྅Ңࡁ வᗳႴσא
ڐ˷Ⴔσٙ يุdϓʹᕘֻֻϞה҅
ࠢf
ᛘ٫ʲʶ˸၍މଣᄴ̘ϋ̥݊ѬԮՉ
ϓfྼყɪdҢࡁጐ฽ҴၡɓᇞԄዚ
̈ਯණྠϓᆞٙڢࣨːҳ༟ يุd੽
Ͼໝྼ͉ɛΣٰ؇࿂Ϟ౤ʿٙ௅໇f
༈ഃਯ̈ٙ ي ุdϞεධί㛬ඤή
ପٙيุଡ଼Υlzʊ൴ཀɚɤϋdҢࡁ
ɓٜ။းΌɢމՉ௰՟ن ɽٙᖢ֛Ϋ
జdШᛠ׵ᅽᙧᗫڷdڭ ቮձၪ൬ࡌ
͜ೌ̙ᒒеήɪʺiՉॡږ ᄣ ׳ڗ
ᇠdᄣڗᆑɢ͵Ϟࠢf
ֱλd̹ఙɪϞՉ˼ஈ׵ʔΝᐄ༶ʿ
ࠬᎈً ر ٙਞၾ٫dႩ༈މ ഃ ي ุ
̙Ϟ̤ɓ೦ЪމfΪϤd຅˼ࡁЪᄆ
༺ϵʱʘ̬Їʞٙ༟͉ଟࣛd㛬ඤή
ପɰఱᆀจ׳ਯࢁତd˸کһѼഛή
༶͜༟ږf༈ʞ֚ࠠɽʹ׸੭Ըତږ
༺ಥ࿆ʞɤɧᄂʩdה੻๐л މߒಥ
࿆ɚɤɓᄂʩd༰ɚཧɓɚϋʬ˜ɧ
longer. HLP also parted with 9 units of The HarbourSide
and achieved a profit margin hitherto not seen. As I wrote
before, we will be happy to clear the entire stock at today’s
price. Unfortunately, for luxury or near-luxury products like
ours, transaction volume is somewhat limited.
Lest my readers think that management was coasting, we
identified a window of opportunity last year to do what I
have long alerted our shareholders, namely, to sell mature
non-core investment properties. Many of them have been in
HLP’s portfolio for over twenty years. We have always done
our best to maximize consistent return therefrom, but aging
still takes its toll. Maintenance and repair expenses inevitably
go up; rent increase was slow and growth potential limited.
Fortunately other players in the market with a different set
of circumstances and so a different risk profile may be able
to do something with them. So when they were willing to
pay with a cap rate of 4-5%, HLP was happy to unlock
value and recycle the capital. Five such major transactions
brought in cash of HK$5.3 billion with a realized profit of
about HK$2.1 billion. The latter figure represents a premium
of 77% over the revalued worth of June 30, 2012. Although
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