Annual Report - QuamIR

Chairman’s Statement (Continued)
HKC has commenced development of all its major
property projects, and is poised to benefit when the
industry recovers.
During 2011, HKC made considerable progress on the development of
its property projects. With the groundbreaking ceremony on its Sichuan
North Road Lot 108 project in Shanghai on 9 January 2012, HKC has now
commenced development on all of its major property projects on hand. The
Group’s North Bund commercial/hotel project has achieved good progress
during 2011, with the hotel tower now reaching above the 20th floor.
108
20
All superstructure works for phase 1 of the Tianjin Hongqi South Road project
have been topped out and completion is expected in the second half of 2012.
Superstructure construction for phases 2 and 3 began in April 2011, and is
expected to be completed by the second quarter of 2014. Presales for phase
2 were launched in the fourth quarter of 2011. For the Tianjin Tuanbo Lake
project, land reclamation work which involved the creation of 836,000 sq.m.
GFA of land bank commenced and was completed during 2011.
836,000
In Jiangmen, construction of phase 1 commenced on 22 July 2011 and
completion is expected by the second quarter of 2013. Presales were
launched in January of 2012, with strong initial demand.
In Shenyang, the government handed over to the Group two parcels of
land for the Shenyang South Lake project in the fourth quarter of 2011, and
foundation work has commenced.
For 2011, the Group has been able to unlock the value of
its assets through the sales of HK$2.3 billion of non-core
properties at premiums to book value.
In order to focus on the Group’s core development projects, and to further
unlock the value of its assets and to strengthen the Group’s liquidity and
financial position, HKC sold HK$2.3 billion of non-core properties, generating
a profit on each sale. In March 2011, the Group sold its Jingguang Centre
in Shenzhen for RMB850.0 million (equivalent to approximately HK$1,003.0
million). While the property was generating rental revenues, HKC considers
that it can better utilize the cash generated from the sale to develop more
profitable development projects. For the same reason, HKC also sold its
office building in Shanghai for RMB95.0 million (equivalent to approximately
HK$113.0 million). In August, HKC sold its commercial project in the Heping
District of Shenyang for HK$652.3 million. And in September, HKC disposed
of its entire share interest in the Peninsula Beijing Hotel for HK$578.0 million.
23
23
850,000,000
1,003,000,000
95,000,000 113,000,000
652,300,000
578,000,000
•
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