In the retail market as a whole, sales decreased as some affluent shoppers began spending their money overseas to take advantage of the strong RMB, while mass consumers focused more of their spending on travel.

In November 2013, Plaza 66 welcomed the Chanel Plaza 66 boutique on its re-opening after a refurbishment and expansion program. The new 800-square meter two-story boutique provides an elegant and timeless Parisian shopping experience for customers in Shanghai.

As part of Plaza 66’s ongoing repositioning and trade mix reorganization, new brands were introduced to the mall, including Berluti, Emilio Pucci, the first Repetto store in Shanghai, as well as new specialty restaurants and lifestyle cafés. Existing international fashion labels also achieved a satisfactory sales performance during the year.

To increase sales, we held a number of promotional activities such as the Summer in Paris campaign. This event not only attracted shoppers, but also received the Gold Award of Spatial Display from the Shanghai Municipal Commission of Commerce and Shanghai Commercial Association.

In 2014, trade mix refinement will be carried out continuously to enrich shoppers’ experience and excitement while more F&B outlets will be introduced, aiming to provide an attractive offering to shoppers. Strategic marketing campaigns will also be launched in order to reinforce the luxury positioning and sales turnover of Plaza 66.

Despite new supply in the market, the office towers of Plaza 66 continued to enjoy a high occupancy rate. Rapid tenant replacements also proved that Plaza 66 is a desirable landmark development in the central business district of Shanghai. New tenants during the year included Fangda Partners and VIP, a law firm and an e-business company, respectively.

The office towers have also been enjoying favorable rental reversions and stable revenue growth as a result of steady demand by new and existing tenants. Rental turnover during the year was HK$800 million, up 7% from the year before.

Planning for the renovation of the two office towers is underway, which will help us stay at the forefront of the market as new office buildings come on stream in Puxi district.

During the year, a total of 17 international brands including Maje, Sandro, Red Valentino and Diesel opened their doors following our second floor renovation. MCM also set up one more shop on the second floor after the success of its store on the first floor.

Eland China, which already has a presence at Palace 66, Forum 66 in Shenyang and Parc 66 in Jinan, leased five units at Grand Gateway 66 in 2013.

In the retail market as a whole, competition intensified with the opening of new malls in Shanghai. Other factors putting pressure on the market included luxury brands holding back on their expansion plans for Asia, reduced marketing budgets, and the rise of on-line shopping.

Nevertheless, some positive trends emerged during the year. The global economy showed signs of recovery while average income in mainland China increased, which will give consumers greater spending power and ultimately support the growth of the retail tenants in Grand Gateway 66.

We expect both retail sales and rental turnover to continue to grow in 2014, based on the performance of our existing tenants during the review period. Grand Gateway 66 in the year ahead will continue to support tenants and invest in various marketing and promotional activities, while also launching a VIP program and renovation program in order to maintain the leading position of the mall in the mid- to high-end luxury market.

With the opening of the international lifestyle brands and trendy fashion zones on the first floor of the mall, we attracted new tenants such as Juicy Couture, BMW Lifestyle, Aape, Mandarina Duck, CHOCOOLATE, and Monki, leading to an increase in retail sales.

Starbucks, Pacific Coffee and a teahouse were introduced to the mall for creating a relax and stylish shopping ambience. A series of creative advertising and promotional campaigns further contributed to the mall’s growing popularity. Additionally, the completion of road works in August 2013 helped to increase footfall gradually during the year.

In the year ahead, we will continue to upgrade the trade mix by bringing in affordable luxury brands, fast fashion brands, more F&B outlets, and lifestyle-oriented services such as a yoga & fitness center. The mall’s positioning as a fashion and lifestyle center targets to attract more customers, especially from the young age group. With enhanced tenant mix, we are confident that rental turnover of Palace 66 will grow satisfactorily.

A variety of marketing campaigns was held to provide a favorable business environment for our tenants, as well as to give our customers an all-round shopping experience. These included shows hosted jointly with fashion brands in the mall, the flash mob performance as a celebration of Parc 66’s second anniversary, and the Halloween parade, which succeeded especially in attracting customers from the young age group.

In 2013, Parc 66 enjoyed steady growth in traffic up to a daily average of 50,000 visitors. Rental turnover was HK$367 million, up 1% from the previous year. After the completion of the first lease cycle, a lower occupancy rate was recorded in the course of tenant reshuffle. Nevertheless, retail sales of Parc 66 increased 8% during 2013, which proved the great potential in the Jinan retail market. As a result of more efficient cost control, the rental margin and operating profit also recorded increases by three points and 7%, respectively.

In the Jinan market, consumers have strong purchasing power but tend to be conservative in their spending habits, with the majority still focused on value-for-money household products. In the year ahead, we will continue to upgrade the mall by exploring the development of special theme zones such as international trendy fashion brands, first-in-Jinan brands and domestic designer brands to provide a more convenient one-stop shopping environment. We will also continue to organize more brand promotions with tenants and more creative promotional activities to boost the overall shopping ambience and the sales performance.

MCM, a famous German crafts luxury leather goods retailer, has already opened its first store in Jinan in January 2014. Innisfree, a very popular Korean cosmetics brand, will also open its first store in Jinan at Parc 66 in February 2014. With this new energy injected into the mall, together with our continuous effort in upgrading the trade mix and organizing diversified marketing campaigns, we are confident that retail sales of the mall will have a more substantial growth in 2014 and achieve the target of positioning Parc 66 as the must-visit place in Jinan.

Through a series of innovative advertising and promotional campaigns, we have increased awareness of the mall and traffic to it. We have also maintained close cooperation with tenants on holding co-marketing events such as fashion shows in the atrium, which have significantly enhanced the overall shopping ambience.

Some of the other successful campaigns we have undertaken included the launch of iButterfly, the first mobile app marketing event in Shenyang; the Les Champs-Elysées au Forum 66 2013; a series of Christmas and New Year events; and the premiere of the movie Firestorm at Palace Cinema with a special guest appearance by renowned Hong Kong artist Andy Lau.

With the opening of a new metro station connected directly to Forum 66, we expect to attract more footfall to the mall. The Office Tower One, which is now under construction, is expected to be topped out in 2014.

Its early success is based on the mall’s high-end positioning, well-designed shopping environment and convenient location, as well as an extensive marketing campaign promoting it as a fashionable and cosmopolitan place to shop.

Destined to become the flagship of our operations in Wuxi, Center 66 lives up to the highest standards of architectural design excellence. The mall also brings shoppers an exclusive shopping experience with global brands, F&B outlets, and lifestyle offerings all under one roof. Among the 250 tenants who have leased premises are CHAUMET, kate spade, PRADA, Roger Vivier, Valentino, Cerruti 1881, EMPORIO ARMANI, RIMOWA, TOD’S and Uniqlo, to name just a few.

Although the mainland China government has implemented measures to rein in the economy, and there has also been an influx of new commercial projects into Wuxi in recent years, we are optimistic about the mall’s prospects. This is because the new subway passageway as well as the office section of the project will both open in 2014. New tenants such as Louis Vuitton, Apple, Ermenegildo Zegna, MONT BLANC, Panerai and Jaeger-LeCoultre, as well as a number of high-end F&B brands, are all arriving. Other renowned brands are also paying keen attention to our mall, opening attractive possibilities for future cooperation.

We are positioning this new mall as a stylish, trend-setting lifestyle destination, with outstanding architectural design and quality management services. As a result of our marketing efforts, we have successfully signed or secured commitments from anchor tenants, as well as international fashion brands, F&B outlets and lifestyle retailers. Some of these tenants are new to the market and will open their first store in Tianjin.

The trade mix of Riverside 66 will focus on lifestyle luxury and high-end fashion brands, which can deliver the new, trend-setting shopping experience we are bringing to Tianjin.

The grand opening of Riverside 66 will be the most important event for the Group in 2014, and we are planning a series of marketing activities to keep expectations in the market high.

In the next few years, a number of new mixed-used developments, international office towers, hotels, serviced apartments and luxury residences will open nearby. We expect these developments will contribute a stable and high quality source of traffic for Riverside 66. Despite the competitive market situation in Tianjin, we are confident that our first-class property management services, creative marketing and promotional activities will be successful in attracting quality tenants and consumers in Tianjin.

Riverside 66 has been widely acclaimed for its innovative design, including the 2010 AIA New York Chapter’s Design Awards – Unbuilt Category from the American Institute of Architects (AIA) New York Chapter. Other recognitions included the MIPIM Architectural Review Future Project Awards 2007 – Retail and Leisure award, and Precertification under the Leadership in Energy and Environmental Design (LEED) for Core and Shell Development – Gold Level issued by the U.S. Green Building Council. Pre-leasing and other preparation works are now in top gear for the grand opening in the third quarter of 2014.

This world-class shopping mall is conveniently located in Wuxi’s central business district on Renmin Zhong Lu in Chong’an District. With a gross floor area of 262,700 square meters (excluding car park areas), the shopping mall will also feature two Grade A office towers that are due for completion in phases from 2014 onwards.

Phase 2, just south of Renmin Zhong Lu, will offer commercial facilities as well as a hotel and serviced apartments. Following its completion, Center 66 will be the largest retail and commercial landmark in the central business district of Wuxi.

Opened in September 2012, the shopping mall will eventually be joined by two office towers rising 350 meters above the city – the tallest office buildings in northeast China. The low and middle zone of Office Tower One is expected to be inaugurated in 2015. In addition to the shopping mall and office towers, Forum 66 will comprise hotels and serviced apartments.

This complex is strategically located on Qingnian Da Jie, the “Golden Corridor” which runs through the city center. It is also close to Shenyang’s most well-known landmarks, including the Liaoning Grand Theater, the Liaoning Provincial Museum, the Municipal Government Building and City Plaza. Moreover, a new metro line and station opened during the year, providing direct access to Forum 66, injecting new energy into the area and bringing more footfall to the mall.

Built to the high level of environmental standards, the shopping mall of Forum 66 has been awarded Certification under the Leadership in Energy and Environmental Design (LEED) for Core and Shell Development – Gold Level by the U.S. Green Building Council.

This landmark shopping mall has already received wide acclaim for its unique design that blends both traditional Chinese and modern design elements. Based on the concept of the auspicious Chinese Tai Chi twin dancing carps, the design has won numerous awards, including the MIPIM Asia Awards 2011 – Bronze Award in the category of the Best Chinese Futura Projects, as well as the highly coveted Best Retail Architecture in Asia Pacific and Five-star Best Retail Architecture in China awards in the International Property Awards 2011. We are especially proud that Olympia 66 outperformed other projects from across the world to bring home the Best International Retail Architecture 2011 award. The project was also awarded the top honor in the 2013 Cityscape Awards for Emerging Markets in the category of Retail Project Awards – Future.

As part of the We Do It Right principle, we designed Olympia 66 as an environmentally-friendly building and received Precertification under the Leadership in Energy and Environmental Design (LEED) for Core and Shell Development – Gold Level from the U.S. Green Building Council.

Spring City 66 enjoys a central location in the business and commercial heart of Kunming in the core of a new central business district now being planned. It is on the site of the former municipal building of the Kunming government, ideally positioned along the intersection of Dongfeng Dong Lu to the north and Beijing Lu to the west, the two leading commercial avenues and main thoroughfares in the city.

Metro Lines 2 and 3 now under construction will provide direct access to Spring City 66 and attract further traffic to the complex.

On November 19, 2013, we held a groundbreaking ceremony for this new project, our 10th development on the Mainland and one that will give us a major presence in the central region of the country. Wuhan is a key transportation hub and a focal point for the nation’s “Rise of Central China” strategy, allowing us to benefit from its economic development.

As our flagship project for central China, Heartland 66 will be a showcase of modern architecture and design, bringing together the best of East and West. It will comprise a world-class shopping mall, a Grade A office tower and serviced apartments covering a total gross floor area of 460,000 square meters (ground level or above and B1 commercial area, excluding car park areas).

Heartland 66 enjoys an ideal location on Jinghan Da Dao in the vibrant Qiaokou District, the commercial and business heart of Wuhan, with convenient light rail and mass railway connections. Scheduled for completion in phases from 2019, the shopping mall is due to be the first part of the project to come on stream.