Investor FAQs

1. How did your property leasing business perform in the six months ended Jun 30, 2015?
2. Did you sell any Hong Kong residential properties in the six months ended Jun 30, 2015?
3. What is your strategy for investment on the Mainland?
4. How many upcoming commercial projects do you have on the Mainland?
5. Why have you chosen to develop commercial projects on the Mainland, in particular, shopping malls?
6. Will there be more land acquisitions on the Mainland?
7. How will you finance your investment in new commercial projects on the Mainland?
8. How many completed residential units for sale do you still have in Hong Kong?
9. What is your dividend policy?

1. How did your property leasing business perform in the six months ended Jun 30, 2015?

Total rental turnover rose by 9% for the six months ended Jun 30, 2015 to HK$3.9 billion with rental turnover generated from Hong Kong and Mainland China operations up 7% and 10% respectively, compared to a year ago. Mainland China rental turnover currently contributes 55% of total rental turnover.

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2. Did you sell any Hong Kong residential properties in the six months ended Jun 30, 2015?

Total 26 units were sold, 9 units of The HarbourSide and 17 units of AquaMarine.

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3. What is your strategy for investment on the Mainland?

Our strategy for investment on the Mainland is for long-term yield enhancement and capital appreciation. We invested in Shanghai about twenty years ago and have two very successful rental properties, Plaza 66 and Grand Gateway 66, which have a total gross floor area (including car parks) of about 588,000 square meters.

About ten years ago, we embarked on our new Mainland strategy to expand to second tier cities. We acquired nine prime sites in Tianjin, Shenyang, Wuxi, Jinan, Dalian, Kunming and Wuhan between 2005 and 2013. Total gross floor area (including car parks) of these projects amounts to about 4 million square meters.

In June 2010, we completed the first Mainland project outside of Shanghai—Palace 66 in Shenyang. Followed by the completion of Parc 66 in Jinan in August 2011, shopping mall of Forum 66 in Shenyang in September 2012, shopping mall of Center 66 in Wuxi in September 2013, Riverside 66 in Tianjin in September 2014 and office tower of Center 66 in Wuxi in October 2014.

We have two projects completed in 2015, office tower of Forum 66 in Shenyang in early 2015 and Olympia 66 in Dalian in December 2015.

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4. How many upcoming commercial projects do you have on the Mainland?

We have four upcoming commercial projects on the Mainland and details are summarized in the table below:-

Spring City 66, Kunming Heartland 66,
Wuhan
Forum 66,
Shenyang
Center 66,
Wuxi
Location Dongfeng Dong Road, Panlong District, Kunming Jinghan Avenue, Qiaokou District, Wuhan Qingnian Street, Shenhe District, Shenyang Renmin Zhong Road & Jiankang Road, Chong’an District, Wuxi
Land use
right signed
Sep 11 Feb 13 Aug 06 Dec 06 / May 09
Usage Shopping Mall, Office, Serviced Apartments Shopping Mall, Office, Serviced Apartments Shopping Mall, Office, Hotel, Serviced Apartments Shopping Mall, Office, Hotel, Serviced Apartments
Total GFA
(sq m)
<note>
622,520 697,580 1,060,040 487,505
Completion In phases from 2018 In phases from 2019 In phases from 2012
(Mall: Sep 2012; office tower: 1Q 2015)
In phases from 2013
(Mall: Sep 2013; office tower: Oct 2014)

Note: including GFA of car parks

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5. Why have you chosen to develop commercial projects on the Mainland, in particular, shopping malls?

With the benefits of continued economic reform and urbanization, Chinese cities with population of about 5 million other than Shanghai, Beijing, Guangzhou and Shenzhen are poised for economic take-off. We expect disposable income to rise and consumer spending to increase for these cities. Our strategy to invest in commercial projects enables us to capitalize on the growing consumer spending trend on the Mainland.

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6. Will there be more land acquisitions on the Mainland?

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.

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7. How will you finance your investment in new commercial projects on the Mainland?

We have cash and available facilities of about HK$59 billion, including Medium term notes program of about HK$10.5 billion, as of June 30, 2015. In addition, the present over HK$7 billion annual rents shall increase over time, and thus our overall financial position shall remain healthy.

We have a net cash position of HK$935 million as of June 30, 2015.

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

As of June 30, 2015, we have 731 completed residential units (include 18 semi-detached houses at 23-39 Blue Pool Road) available for sale.

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9. What is your dividend policy?

We aim at maintaining a steady and progressive dividend growth each year.

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Last update: January 6, 2016