Investor FAQs

  • Q. How did your property leasing business perform in the six months ended June 30, 2019?
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    A.

    Total rental revenue increased to HK$4.2 billion in the first half of 2019. Mainland portfolio increased 7% in RMB terms and that of our Hong Kong portfolio rose 3% period-on-period.

    Mainland China rental revenue currently contributes 52% of total rental income.

  • Q. Did you sell any Hong Kong residential properties in the six months ended June 30, 2019?
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    A.

    We sold 1 semi-detached house at 23-39 Blue Pool Road in the first half of 2019.

  • 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. The second phase of the upgrade program commenced in July 2018, covering the bulk of South Building including the transformation of the mall’s main entrance and its basement, is in full swing and on track. The basement has partially re-opened and the whole upgrade are expected to be completed in stages from late 2019. 

    The first phase of the upgrade works was completed with the North Building re-opened in September 2018. More than 80 brands were recruited and 18 of them were making their debut in Shanghai or even their first appearance in the Mainland.

  • 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 Electric Road in North Point for a commercial and office tower. This project is jointly developed with Hang Lung Group Limited.

  • Q. What is the completion schedule of your new commercial projects in 2H 2019?
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    A.

    On the Mainland, we have three new projects completed in 2H 2019. These include:

    • The mall of Spring City 66 in Kunming opened in August 23, 2019
    • Office of Spring City 66 in Kunming & office tower II of Center 66 in Wuxi - Handed over to tenants in August 2019
    • Conrad Hotel in Shenyang Forum 66 opened on September 1, 2019

  • 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 have successfully won the land auction in May 2018 for acquiring a prime site at Hangzhou for the development of a large scale mixed-use project with mall / office / hotel.

    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$39 billion, including Medium term notes program of about USD 1.4 billion and Green panda bonds of RMB 9 billion as of June 30, 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$25.4 billion or net gearing of 17.6% as of June 30, 2019.

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

    As of June 30, 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. 

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