Investor FAQs

  • Q. How did your property leasing business perform in the year ended December 31, 2019?
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    A.

    Total rental revenue increased 5% to HK$8.6 billion. Mainland portfolio increased 12% in RMB terms and that of our Hong Kong portfolio rose 2%.

    Mainland China rental revenue contributed 53% of total rental income.

  • Q. Did you sell any Hong Kong residential properties in the year ended December 31, 2019?
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    A.

    We sold 1 semi-detached house 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. How is the progress of the asset enhancement program in Grand Gateway 66?
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    A.

    Revenue from Grand Gateway 66 mall increased 6% in the year ended December 31, 2019 which was mainly benefit from the full year effect of the re-opening of the North Building since September 2018 and its basement in June 2019. 

    The second phase of the renovation covering the bulk of the South Building and its basement is in the process of stage-by-stage completion and has been partially re-opened.  Louis Vuitton and Gucci have opened their flagship stores on Level 1 before end 2019.  The entire renovation is scheduled for completion in late 2020.

  • Q. How many upcoming commercial projects in the pipeline?
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    A.

    On the Mainland, we have five projects with total gross floor area of 1.9 million square meters (including GFA of car parks, exclude Westlake 66 in Hangzhou) under development. These projects include Heartland 66 in Wuhan, phase 2 development of Center 66 in Wuxi, Westlake 66 in Hangzhou, remaining portion (i.e. serviced apartments / hotel) of Spring City 66 in Kunming and phase 2 development of Forum 66 in Shenyang. 

    In Hong Kong, we are embarking on a re-development project at 226-240 Electric Road in North Point for the construction of a Grade A office tower inclusive of a retail area on the lower floors.  This project is jointly developed with Hang Lung Group Limited.

  • 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. Moreover, we are seeing a solid increase of spending from those around 35 years old.

  • 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$34 billion, including Medium term notes program of about USD 1.4 billion, Green panda bonds of RMB 9 billion and Green loan facility of HK$1 billion as of December 31, 2019.  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$26.4 billion or net gearing of 17.8% as of December 31, 2019.

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

    As of December 31, 2019, we have 12 completed residential units (include 11 semi-detached houses at 23-39 Blue Pool Road) available for sale.

    We have consolidated the entire interests in the Amoycan Industrial Centre in Ngau Tau Kok and is planned to be re-developed into residential properties for sale, with commercial areas on the lower floors.

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