Investor FAQs

  • Q. How did your property leasing business perform in the six months ended June 30, 2017?
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    A.

    Total rental revenue reduced 2% to HK$3.8 billion, or up 1% when excluding the 5% RMB depreciation effect.  Revenue of Hong Kong leasing portfolio up 1% and mainland China portfolio also recorded 1% rental growth in RMB terms.


    Mainland China rental revenue currently contributes 51% of total rental income. 

  • Q. Did you sell any Hong Kong residential properties in the six months ended June 30, 2017?
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    A.

    We sold 198 units during 1H2017, including 197 units of The Long Beach and the last unit (duplex) of The HarbourSide.

  • 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.  Upgrading work for Grand Gateway 66 office tower I and shopping mall was commenced in late 2016 and early 2017 respectively.  The whole upgrade will be completed in phases to 2019.

    Enhancement work for Plaza 66 office tower I and shopping mall was completed by the re-opening of the renovated basement in phases from January 2017.  Upgrading work for Plaza 66 Office tower II was commenced in the last quarter of 2016 and the whole upgrade will be completed in phases by 2018.

  • Q. How many upcoming commercial projects do you have on the Mainland?
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    A.

    We have four commercial projects under construction on the Mainland, namely Spring City 66 in Kunming, Heartland 66 in Wuhan, Forum 66 in Shenyang and Center 66 in Wuxi with total gross floor area of 2.2 million square meters (including car parks).


    Total gross floor area of our Mainland portfolio will increase to 4.5 million square meters (including car parks) upon completion of all our Mainland projects in the pipeline.

  • 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 reform 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 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$43 billion, including Medium term notes program of about HK$10.6 billion, as of June 30, 2017.  In addition, the present of about 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$1.4 billion or low net gearing of 1% as of June 30, 2017.

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

    As of June 30, 2017, we have 55 completed residential units (include 16 semi-detached houses at 23-39 Blue Pool Road) available for sale.