In 2013, other factors affecting the retail market as a whole included the fact that some affluent shoppers chose to spend their money overseas, taking advantage of the strong RMB, while mass consumers focused more of their spending power on travel, causing local sales in Shanghai to decrease.

In November 2013, after an impressive refurbishment and expansion program, Plaza 66 welcomed the re-opening of the Chanel Plaza 66 boutique. The new 800-square meter two-story boutique offers customers a Parisian shopping experience that is both timeless and elegant.

As part of Plaza 66’s ongoing repositioning and trade mix reorganization, new brands were introduced to the mall in 2013, including Berluti, Emilio Pucci, the first Repetto store in Shanghai, as well as new specialty restaurants and lifestyle cafés. Satisfactory sales performances were also achieved in 2013 by the existing international fashion labels.

To promote the mall and increase sales, Plaza 66 held a number of marketing activities in 2013, such as the Summer in Paris campaign. This event attracted a large number of shoppers and, as a result of its success, Plaza 66 received the Gold Award of Spatial Display from the Shanghai Municipal Commission of Commerce and the Shanghai Commercial Association.

Looking ahead, trade mix refinement will be carried out continuously to enrich shoppers’ experience and excitement in 2014. We plan to introduce more F&B outlets to provide an attractive offering to shoppers, and launch strategic marketing campaigns in order to maintain the luxury positioning and sales turnover of Plaza 66.

The office towers of Plaza 66 continued to enjoy a high occupancy rate in 2013, despite several new commercial spaces entering the market. Rapid tenant replacements also proved that Plaza 66 is a desirable landmark development in the central business district of Shanghai. New tenants in 2013 included the law firm Fangda Partners and VIP, an e-business company.

As a result of steady demand by new and existing tenants, the office towers at Plaza 66 enjoyed favorable rental reversions and stable revenue growth in 2013. Rental turnover during the year was HK$800 million, up 7% from 2012.

We are in the process of planning the renovation of the two office towers at Plaza 66. This will help us stay at the forefront of the market as new office buildings come on stream in Puxi district.

During 2013, following the completion of the second floor renovation, a total of 17 international brands including Maje, Sandro, Red Valentino and Diesel opened their doors in Grand Gateway 66. Additionally, MCM set up one more shop on the second floor, following the success of its store located 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.

Several factors combined to put pressure on the retail market in Shanghai, including luxury brands holding back on their expansion plans for Asia, reduced marketing budgets, and the rise of on-line shopping. As well, competition intensified in 2013 with the opening of new shopping malls in Shanghai.

Nevertheless, there were positive trends that emerged during 2013 and these are worth noting. The global economy began to show signs of recovery while average income in mainland China increased. These indicators will give consumers greater spending power and ultimately support the growth of the retail tenants in Grand Gateway 66.

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

During the year, occupancy rate of the office towers recorded at 93%, while the residential apartments were leased at 89%, generating rental turnover of HK$277 million and HK$181 million, respectively. Overall rental turnover of Grand Gateway 66 was HK$1,526 million, up 5% from 2012.

We attracted new tenants such as Juicy Couture, BMW Lifestyle, Aape, Mandarina Duck, CHOCOOLATE and Monki after opening the international lifestyle brands and fashion zones on the first floor of the mall. These initiatives led to an increase in retail sales in 2013.

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 creative 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.

Strategic advertising and promotional campaigns have proved highly effective, enabling us to increase awareness of the mall and traffic to it. Enlisting the close cooperation of the tenants, we held several co-marketing events including fashion shows in the atrium. These innovative marketing initiatives have significantly enhanced the shopping ambience of the mall.

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

We expect increased pedestrian traffic in the mall with the opening of the new metro station. The station is directly connected to Forum 66. The Office Tower One, now under construction, is expected to be topped out in 2014.

These factors contributed to its early success: the mall’s high-end positioning, a well-designed shopping environment and a desirable location. These components were supported by an extensive marketing campaign promoting Center 66 as a fashionable and cosmopolitan place to shop.

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

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 prospects for Center 66. More footfall is expected as the new subway passageway and office tower 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, will arrive. In addition, other renowned brands are also paying keen attention to Center 66, creating more and more excitement and opportunities for the mall.

Positioned as a stylish and trend-setting lifestyle destination, this new mall will attract attention with its outstanding architectural design and quality management services. Our marketing efforts have been successful as we have signed or secured commitments from anchor tenants and from 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.

Our focus for the mall is on lifestyle luxury products and high-end fashion brands. The new tenants at Riverside 66 are able to support this 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. To keep expectations and anticipation high, we are planning a series of exciting marketing events.

Over the course of next few years, Tianjin and the surrounding area will see an increase in the number of mixed-use developments, international office towers, hotels, serviced apartments and luxury residences. We expect these developments will contribute to a stable and high quality source of consumer traffic for Riverside 66. Despite the competitive market situation in Tianjin, we remain confident that our first-class property management services, as well as creative marketing and promotional activities will be successful in attracting and retaining quality tenants and consumers in Tianjin.

Riverside 66 has been widely acclaimed for its innovative design which allowed it to garner several design awards, 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 tenant-related activity are now in top gear in preparation for the grand opening in the third quarter of 2014.

Conveniently located in Wuxi’s Chong’an central business district on Renmin Zhong Lu, this world-class shopping mall has a gross floor area of 262,700 square meters (excluding car park areas). Plans for two Grade A office towers, due for completion in phases beginning from 2014 onwards, will round out the shopping mall.

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

The shopping mall opened in September 2012 and will eventually be joined by two office towers rising 350 meters above the city. These towers will be the tallest office buildings in northeast China. The low and middle zone of Office Tower One has an expected inauguration date in 2015. In addition to the shopping mall and office towers, Forum 66 will include hotels and serviced apartments.

The Forum 66 complex is strategically located on Qingnian Da Jie, the “Golden Corridor” which runs through the Shenyang city center. It is also close to Shenyang’s most well-known landmarks such as the Liaoning Grand Theater, the Liaoning Provincial Museum, the Municipal Government Building and City Plaza. Additionally, a new metro line and station opened in 2013, providing direct access to Forum 66, injecting new energy into the area and bringing more pedestrian traffic 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.

A new landmark for the city, this shopping mall has already received wide acclaim for its unique design that blends traditional Chinese and modern design elements. The design is based on the concept of the auspicious Chinese Tai Chi twin dancing carps. It 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 at the International Property Awards 2011. We are immensely 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 our We Do It Right principle, the Olympia 66 project was designed as truely environmentally-friendly building. Our efforts were rewarded when the project 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.

A new central business district is now being planned for Kunming, and Spring City 66 is situated in a desirable central location in the core business and commercial heart of the city. Located on the site of the former municipal building of the Kunming government, Spring City 66 is 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 Heartland 66, 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 focal point for the nation’s “Rise of Central China” strategy, as well as being a key transportation hub. Both these factors will allow us to benefit from the economic development currently underway in the area.

Heartland 66 will be a showcase of modern architecture and design, bringing together the best of East and West. It will be our flagship project for central China and 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).

Situated conveniently near light rail and mass railway connections, Heartland 66 enjoys an ideal location on Jinghan Da Dao in the vibrant Qiaokou District, the commercial and business heart of Wuhan. Scheduled for completion in phases from 2019, the shopping mall will be the first structure to be completed.