Annual Report - QuamIR

Management Discussion and Analysis (Continued)
Business Review
Property Investment, Development and Management
The Group holds a property investment portfolio made up of premium
commercial developments in Shenzhen, Guangzhou, and Nanxun. These
continue to provide the Group with a steady stream of rental revenue across
the year.
The Group sold HK$2.3 billion of non-core investment properties in 2011. In
March 2011, the Group sold its Jingguang Centre in Shenzhen for HK$1.0
billion. During the first half of the year, the Group also sold an office building
in Shanghai for HK$113.0 million. In August 2011, the Group sold its
commercial project in Shenyang for HK$652.3 million. Also in the second half
of the year, the Group disposed of its entire share interest in the Peninsula
Beijing Hotel for HK$578.0 million.
Nanxun
During 2011, the Group continued sales of the remaining units at Nanxun
International Building Materials City, Zhejiang Province. The property is
a complex of three-storey buildings and is a trading centre for wooden
flooring, furniture and building materials. The gross floor area (“GFA”), already
developed by the Group at Nanxun International Building Materials City is
approximately 180,135 sq.m., in which approximately 65,766 sq.m. are
offered for sale and 114,369 sq.m are for lease. For the year, sales revenues
reached HK$259.6 million, compared to HK$60.1 million in 2010. As of the
end of 2011, the Group has leased out 55.3% of the available leasing space.
Jiangmen
This plot of land is located directly next to Jiangmen’s Hong Kong ferry
terminal and close to Guangzhu Intercity Railway’s Waihai Station connecting
Jiangmen to Guangzhou and Zhuhai. This project will be developed into
a high quality residential community with prestigious villas and high rise
apartments, surrounded by an attractive landscape.
23
10
113,000,000
652,300,000
578,000,000
180,135
65,766114,369
259,600,000
60,100,000
55.3%
Piling work for the phase 1 of the development project along the Xi Jiang
commenced in March 2011 and was completed in June 2011. Construction
on the superstructure for phase
1 commenced on 22 July 2011,
and is expected to be completed
by the second quarter of 2013.
Construction of the first phase
villas began to top out in the fourth
quarter of 2011, and presales
were launched during the first
quarter of 2012, with promising
initial demand. Construction for all
phases of the project is expected
to be completed by the second
half of 2014.
Eka Garden at Jiangmen, Guangdong
10 HKC (Holdings) Limited • Annual Report 2011