Business Review Property

32 CITIC Pacific Summary Financial Report 2009 Key operational highlights • Twin office towers of Shanghai Lu Jia Zui New Financial District Project topped out, one already sold • Ningbo Pacific Plaza office building completed • Construction of the infrastructure, two hotels and apartments at Hainan project progressing well • Strong residential sales in Shanghai, Wuxi, Yangzhou and Jiangyin

CITIC Pacific Summary Financial Report 2009 33 34 Business Review C I T I C P a c i f i c S u m m a r y F i n a n c i a l R e p o r t 2 0 0 9 Assets Property CITIC Pa Gross floorarea Capital Cash L i a b i l i t i e s

Assets

Profit TurnoverH K $ m i l l i o n Hong Mainland Hong Mainland Hong Mainland Chin Mainland

inflow

c o n t r i b u t i o n

e x p e n d i t u r e a

Kong Kong Kong

91% cific proper

from China China China

o p e r a t i o n s

Pr ties oper Pr oper ty ty 9% 26% Hong Kong Hong Kong 11,093 29,728 3,3813,620 7,158 1,647 2009 473 397 524 508 (33)% 259% 5,058 1,007

431 63% 4,391

11,121 2,7 14% 25,973

27% 0 8 Change2008 73% 9 (4)% 492 9 (19)% 490 8 109% 787 523

Chin Mainland a 0% 0%

Jiangsu Beijing Tianjin Yangzhou China Nanjing Jiangyin Yangtze Shanghai Chongqing Wuxi Shanghai River Suzhou Delta Guangzhou Anhui Hong Kong Hangzhou Hainan Shaoxing Zhejiang Ningbo Haikou

Boao Hainan Wanning Island

Sanya

Cities in which CITIC Pacific owns land

Profit contribution

Mainland China 14% 57% Property Property

43% Hong Kong

CITIC Pacific Summary Financial Report 2009 35 36 Business Review C I T I C P a c i f i c S u m m a r y F i n a n c i a l R e p o r t 2 0 0 9 In The• M a i n l a n d C h i n a Property t r a n s a c t i o n Strategic• property Co-operation• up economic Two of growth high-speed i n t e r c h a n g e s , with by CITIC mainland By gr

2009, mainland

P e n i n s u l a o n H a i n a n I s l a n d m a r k e t i n f o r m a t i o n a n d o t h e r r e s o u r c e s w e l l - p l a n n e d the oss floorarea(G Residential

factors l a r g e - s c a l e

Pacific

pace mainland

and the

market, 18%

China, housing. De

volume

railway

property driving

u r b a n i s a t i o n . of China’s has

focus

secondary

velopment land 10% FA

r e s i d e n t i a l

properties f a c i l i t i e s . many

) the

with China

on lines supply the

rise property

ffice

government market

of Shanghai

CITIC

long-term over

67%

and

town property which

With

and

c o m m u n i t i e s in

50%. in urban

market Real excellent

centres

Retail the the mainland

are

and d e v e l o p m e n t To has

Estate c o n s t r u c t i o n provision

market t r a n s p o r t a t i o n s u b s t a n t i a l

are maintain

been

are major

locations

economic

supported China

Hotel/Reso on emerging

stepping is

future

cities 96% To a

saw tal grossfloorarea

key of

healthy

scale.

new

focus facilities

projects.

the

and Yangtze These District New new project l a r g e - s c a l e c o m p r e h e n s i v e The Peninsula to island We projects coming : 5.3 million

The

a benefit

expect

main d e v e l o p m e n t

railway City

include as two

River project, in 4%

years.

m in

an Station

Shanghai 2 business on from

China the companies r e s i d e n t i a l

i n t e r n a t i o n a l transport

Delta Hainan

Shanghai’s

profit

the

the community

projects, to

g o v e r n m e n t ’ s

Sichuan area,

increase and of

our c o n t r i b u t i o n Island

system. d e v e l o p m e n t s

CITIC

will

Noble resort

tourism as Lu

which 33%

Beilu

share f a c i l i t i e s .

well Jia s u b s t a n t i a l l y

Pacific well In

Zhujiajiao

Manor project

vestment Zui

form

Station as

d e s t i n a t i o n . plan underway from

knowledge,

New

the

offering

16% in part

in to

51% our

Yangzhou

Financial Shenzhou

New

Shenzhou and promote

property

the and

the

Jiading

Town

city’s stands

the are

Development Properties

Approx. site area Approx. GFA Expected Project Usage Ownership (m2) (m2) completion Shanghai New Westgate Garden Residential, retail 100% Phase I 32,900 2,000 Completed Phase II 35,300 137,000 2015 Qingpu Residential Residential, 100% 796,800 545,000 In phases from Development hotel, retail 2009 onwards (approx. 31,000 m2 completed) Lu Jia Zui New Financial Office, hotel, 50% 249,400 847,000 2010 to 2018 District Project residential, retail Site at Sichuan Beilu Station of Metro Line Office, retail 100% 13,300 53,000 2012 No. 10, Hongkou No.10, Hainan Rd., Hongkou Office, retail 100% 16,400 66,000 After 2012 Site at Jiading New City Station of Office, hotel, 100% 156,000 538,000 In phases from Metro Line No. 11, Jiading residential, retail 2011 onwards Zhejiang Province Pacific Plaza, Ningbo Office, retail 100% 39,500 18,000 Completed Jiangsu Province Yangzhou Residential, retail 100% 328,600 359,000 In phases from 2009 onwards (approx. 90,000 m2 completed Jiangyin Residential, retail 70% 91,300 178,000 2010 to 2011 Binhu District, Wuxi Residential, retail 70% 1,479,000 249,000 In phases from 2010 onwards Hainan Province Shenzhou Peninsula Hotel, retail, 80% – 7,432,700 2,100,000 In phases from Wanning residential 99.9% 2010 onwards Total 10,671,200 5,092,000 GFA = gross floor area i.e. the total area of permitted construction above ground

Projected completion in the next five years

’000 m2

800

630 590 570

360

2010 2011 2012 2013 2014

Target completion from 2015 to 2018: 2.1 million m2

CITIC Pacific Summary Financial Report 2009 37 38 Business Review C I T I C P a c i f i c S u m m a r y F i n a n c i a l R e p o r t 2 0 0 9 Property Progress The E x p e c t e d Usage: c o m p l e t i oGross n : floorS i t earea: a r e a : SHANGHAI previously is the developed S h i p b u i l d i n g Grade-A With a being master prominent along Phase star attracting managed p a r t i c u l a r l y As Total O t h e r p h a s e s a p a r t m e n t s Hotel

Twin Phase I

hotel. the

the

Huangpu hotel site

riverside

office

last

the l developed financial

comprises

plan.

serviced of

office

with prime

by Huangpu

the

used towers by landmark

the

Once an

increasing

C o r p o r a t i o n ,

River

CITIC views

Lu serviced buildings,

Lu centre

i n t e r n a t i o n a l l y

d e v e l o p m e n t

Jia

in two L u J i a Z u i N e w F i n a n c i a l D i s t r i c t P r o j e c t

Jia completed, a

Pacific

phases

River.

shipyard Zui and

in Zui central

Grade-A of

a p a r t m e n t s , 2 0 1 0 – 2O 0 f 1 fi 8 c e , r847,000 e t a i l , hm o t e l a n d r e s i d e n t i al 249,400 m

the

number New

convenient China,

Financial retail Approx.

this and

under Lu

Shanghai. 847,000

Financial by 8 , 0 69% 584,000 0 , 0 2% 4Q 24% 200,000 6 , 0 31% 263,000

area

Jia renowned the

office project premises, 63,000

the Shanghai

of Shanghai

G r F c A r e Pe g n e t t a g e Ta 2 (m 2 Zui

a project District

financial China on

which c o m p r e h e n s i v e 2

of ) buildings transport

Financial

the

will District

Jointly

apartments

hotel State (and

will in south will

comprise Shipyard

i n s t i t u t i o n s

Pudong) total

become

and project,

links, District operator. 100%

shore

F cmlto Status completion GFA % 4Q 7%

Co., five it

and is

of a

be building; c o r p o r a t i o n quarter 2009 The that

sold 2 0 1 s 2 e Ba m e n t 2010 One

twin wish

and

to of Under under The

office

the to are

another 2010.

set that

other expected

towers

50% owned up

One

will

other tower

c o r p o r a t i o n .

their

tower, c o n s t r u c t i o n planning up

set tower

were to

and

to sold

regional up

end be

be subject

s u p e r s t r u c t u r e

has its

to sold topped

Jan completed

a h e a d q u a r t e r s

already single

soon

2010 h e a d q u a r t e r s

out

contract,

subject

c o r p o r a t i o n

been

in works

November

the

in to

sold

will

fourth the contract in

the

to soon

city.

SHANGHAI Qingpu Residential Project – Zhujiajiao New Town 100% owned

Site area: 796,800 m2 Gross floor area: 576,000 m2 Usage: Low density residential, retail and hotel Expected completion: In phases from 2009 onwards

Located at the junction of Shanghai, Zhejiang Province and Jiangsu Province, Qingpu District is the gateway to and focus of development in the western part of Shanghai.

Next to scenic Dadian and Dianshan lakes, the Zhujiajiao living environment in the core district of Zhujiajiao, with New Town project will take full advantage of the cultural villas, semi-detached houses, town houses, retail shops traditions and history of the area. It will create a unique and a hotel. Progress Sales up to end Jan 2010 Approx. Percentage Target Pre-sale Units Average price GFA (m2) of total GFA completion year sold GFA(m2) RMB/m2 Phase I 31,000 5% Completed 2007 61 9,800 8,400 Apartments & low-rise houses 2008 54 7,800 12,000 2009 85 11,300 10,800 Phase II 39,000 7% 2Q 2010 2009 347 35,600 10,300 Apartments & low-rise houses Phase III 74,000 13% 1H 2011 – – – – Apartments & low-rise houses Hotel 27,000 5% In phases – – – – from 2011 Other phases 405,000 70% Under planning Total 576,000 100% 547 64,500

From the first pre-sale in September 2007 to the end of January 2010, a total of 547 units (64,500 m2 GFA) were sold, of which 44,000m2 GFA were apartments and the remainder were low-rise houses with average selling prices of RMB8500/m2 and RMB14,200/m2 respectively.

SHANGHAI New Westgate Garden 100% owned

Phase I Located in the Huangpu District of Shanghai at Xizang Site area: 32,900 m2 Nanlu and Jianguo Donglu, this premium residential Gross floor area: 117,000 m2 development is within walking distance of the Lao Xi Usage: Residential Men subway station on the new Metro Line 8. Completed: June, 2006 It comprises residential towers and retail shops with Current Status: 99% sold a basement car park. Phase II Site area: 35,300 m2 Gross floor area: Approx. 137,000 m2 (subject to government authority approval) Usage: Residential and retail Expected completion: 2015 Current Status: Re-settlement in progress

CITIC Pacific Summary Financial Report 2009 39 40 Business Review C I T I C P a c i f i c S u m m a r y F i n a n c i a l R e p o r t 2 0 0 9 Property C u rE r x p e e c t e n d Usage: c t o m p l e t i S o n : t a t u s : Gross floorS i t earea: a r e a : SHANGHAIC u r r e n t sE t x a p e t c u t s : e d Usage: c o m p l e t i oGross n : floorS i t earea: a r e a : SHANGHAI The C u rE r x e p n eUsage: t c t s eGross t d a floor c tS i t o u earea: m a s r e p : a : lSHANGHAI e t i o n :

Station c o n s t r u c t i o n 2010. outlets, by advantages Located gateway such As as project new Putuo, its includes under

a c o m p l e t i o n . the the

base site

Metro as

The

trial

first

metro Changning,

Suzhou, of

will

the to

for

situated

Metro project, situated

operation northwest satellite

Line a

benefit

offered the Jiading

number and line

The

No.11,

Kunshan science

Line

and expected

J i a d i n g N e w C i t y S t a t i o n o f M e t r o L i n e N o . 1 1 N o . 1 0 , H a i n a n R o a d S i c h u a n B e i l u S t a t i o n o f M e t r o L i n e N o . 1 0 at comprising

city above Xuhui

first

from

by New the

Shanghai, of No.

the

which

Hongkou. I n p h a s e sO f fi f r c o e m , 2 r 0a e 1 p t p 1 a r i o l o x , nO . t w h a h 4 e r o 4 r d t 1 s e , p l h 0 0 a aP 0 s n h e d a s m s r e – e s I i d538,000 – e n a t p i p al r o xm . 9 7 , 0 0 0 m After 2012Office and66,000 retail m 2012Office and53,000 retail m C o n s t r u c t i o n i n p r o156,000 g r e m s s D e s i g n i n p r o g r e s s 16,400 m i n p r oB g r e a s s s e m e n t c o n13,300 s t m r u c t i o n the phase

n e i g h b o u r i n g and Jiading

the City and

Shanghai, and

10, the overall

end

automobile

which pedestrian

will

Station, Taicang

Sichuan Pudong

be office

of New Jiading

2 the 2 2

run g e o g r a p h i c a l o p e r a t i o n a l

2 2 2009.

is Jiading

Metro

buildings City through

was currently

New Beilu economic

District

Jiangsu i n d u s t r i e s . flow

Station

2 completed

Line,

District

is Metro

well generated Jiading, by 100% owned

and

under

which Province.

regions of mid 2 the

known

after

retail This the

and

The developed retail integrated city’s c o m p r e h e n s i v e centres, research Acquired east designed project

Jiading

side

metro shops

for

sports

districts of

in and

with this in

our New and lines December

phases,

developed

and thriving

Sichuan

an plan a

City

and in

hotel. 100% owned

i n t e r c h a n g e

r e c r e a t i o n a l the

Station other will

100% owned

2007,

r e s i d e n t i a l s u r r o u n d i n g district.

The Beilu

include as

public

a d e v e l o p m e n t

project, the

Station combined

hub parks

site

r e s i d e n c e s ,

transport, districts,

i n c o r p o r a t i n g

area.

is also project.

and

situated

landmark

being

scientific will

business

under

offices, It

will

the

a be

ZHEJIANG PROVINCE Ningbo Pacific Plaza 100% owned

Site area: 39,500 m2 Pacific Plaza is located in Jiangdong District of Ningbo, Gross floor area: 98,000 m2 the economic provincial capital of Zhejiang Province. Usage: Office and retail The site is close to Ningbo Eastern New City, the future Expected completion: October 2009 political and economic heart of Ningbo. In 2009, CITIC Current Status: Sale and leasing underway Pacific acquired the remaining 0.7% equity interest of the project company from the local joint venture partner.

Pacific Plaza comprises two Grade-A office towers and a shopping mall. Strata-title sales of one office tower and leasing of another office tower and its retail podium are currently underway.

Progress By the end of January 2010, the shopping mall (approx. 27,100m2 GFA) and 17% of the office space (approx. 3,500m2 GFA) were sold.

JIANGSU PROVINCE Wuxi Binhu District Residential Project 70% owned

Site area: 1,479,000 m2 property in the Binhu District of Wuxi. The site is located Gross floor area: 249,000 m2 in front of scenic Tai Lake and is about 15 minutes’ driving Usage: Residential and retail distance of the city centre. Developed in phases with Expected completion: In phases from 2010 onwards villas, town houses and low-rise and mid-rise residential buildings, the project will take advantage of picturesque CITIC Pacific, together with the Wuxi Guolian Group, is views of the landscape, golf course and Tai Lake. jointly developing this residential and commercial Progress Sales up to end Jan 2010 Approx. Percentage Target Pre-sale Units Average price GFA (m2) of total GFA completion year sold GFA(m2) RMB/m2 Phase I 157,000 63% 2Q 2010 In phases 381 69,000 17,300 Apartments & from 2009 low-rise houses Phase II 92,000 37% 3Q 2011 – – – – Apartments & low-rise houses Total 249,000 100% 381 69,000

From the first pre-sale in May 2009 to the end of January 2010, a total of 381 units (69,000 m2 GFA) were sold, of which 47,300 m2 GFA were apartments and the remainder were low-rise houses with average selling prices of RMB12,300/m2 and RMB28,200/m2 respectively.

CITIC Pacific Summary Financial Report 2009 41 42 Business Review C I T I C P a c i f i c S u m m a r y F i n a n c i a l R e p o r t 2 0 0 9 Property were Progress In Gross floorS i t earea: a r e a : J I A N G S U P R O V I N C E From Progress Located Gross floorS i t earea: a r e a : J I A N G S U P R O V I N C E From E x p e c t e d Usage: c o m p l e t i o n : E x p e c t e d Usage: c o m p l e t i o n : CITIC units Jiangyin designed (122,300 and into Retail ApartmentsPhase II A p a r t m e n t s O t h e r p h a s e s

Total

Total A p a r t m e n t s Phase I

Jiangyin,

n e i g h b o u r i n g a

sold

Pacific

the the r e s i d e n t i a l

low-rise,

X i n g c h e n g ’ s m

first first to

with

the

200 1 21/01 09 7 45,200 371 2009 2010/2011 21% 92,000 one

blend GFA) and 5,0 58% Under 255,000

pre-sale pre-sale

western

of mid-rise

the and

were

average

e n v i r o n m e n t h a r m o n i o u s l y the

Wuxi

GFA commercial old

437,000

A p p r o r x e r c . - g e Pe s e n a t t l Pr a e i g Un t e s Ta

f a s t e s t - g r o w i n g in in

part sold 178,000 m 437,000 m 2 0 1 0 – 2R 0 1 e 1 s i d e n t i a l a n d r e t a i l I n p h a s e sR f e r o m s 2 i 0 0 9 d o e n w a n r d t s i a l a n d r e t a i l 91,300 m 328,600 m 0 0 0 1 Cmltd 07 5 28,000 253 2007 Completed 21% 90,000

September December and

GFA steel (m

178,000

A p p r o x . r Pe r c g e e e n t - t Pr s a a g l e e i Ta Un t s Guolian 5 , 0 8% Mid 87% 154,000 selling

4 0 0 3 End 13% 24,000 with 2

of ) high-rise

the (m

mill Y a n g z h o u N o b l e M a n o r J i a n g y i n R e s i d e n t i a l P r o j e c t

2 2

with of) an

2 2

city

2 price

property.

Yangzhou.

Group

site

average 2008

2007

total

the centre,

buildings

total cities in of 100%

area’s

to the

are F completion GFA year sold GFA(m RMB8,400/m 100% to

G m F p A l co e a t l r i A d so o ( GF n m ye the

selling in the this

A c o - d e v e l o p i n g eastern

Jiangsu variety historical

end will

end project

price

be of

of city

planning of

January 2 provided.

Province, January .

has

r e s i d e n t i a l culture

centre of

RMB5,900/m

0 1 – – – – 2011 0 0 08 6 8,700 56 2008 2010

been the

00 500 3 21,200 2010 174 27,400 2009 In 231 2008

2010,

00 3 2,200 13 2010

09 7 105,900 670 2009

phases 100% owned

total

from 70% owned 2 .

of –

739

1,032 1,032 739

apartment

Sales Sales 116,800 122,300

up up

units

to to

units 2 2

– end end ) ) Average Average

(116,800

Jan Jan

2010 2010

RMB/m RMB/m 2

10,400 GFA) 8,400 6,2005,9005,900 7,800 6,100

5,600 price price –

2 2

HAINAN PROVINCE Wanning Shenzhou Peninsula 80%-99.9% owned

Site area: 7,432,700 m2 Gross floor area: 2,100,000 m2 Usage: Residential, hotel, retail and recreation Expected completion: In phases from 2010 onwards Current Status: Design and construction of Phase I (approx. 440,000 m2 GFA) in progress

CITIC Pacific is developing a resort project on the Shenzhou Peninsula of Hainan Island and is responsible for the project’s overall planning and infrastructure construction. This project will benefit from the Constructed by the Hainan provincial government, this government’s recent plan to promote the island as an new express railway is targeted for completion international tourism destination. in 2011. By then, the accessibility of the Shenzhou The project will also benefit from a new express railway Peninsula site will be significantly improved from line being built along the east coast of Hainan Island, Haikou and Sanya, both of which are regional hubs with which will connect the cities of Haikou and Sanya, and a international flights. railway station at Wanning city, which is approximately We recently sold the development rights of several lots six kilometres from the Shenzhou Peninsula site. (approx. 291,000m2 GFA) to a local developer.

The construction of roads and bridges is substantially completed, and development of the two hotels and Sunbury apartments of Phase I is in progress. The two hotels, which will be managed and operated by Starwood Hotels Group as a Sheraton hotel and Four Points by Sheraton hotel, are scheduled to open at the end of 2010. Pre-sale and target completion of Sunbury apartments are expected in 2010/2011 and the second half of 2011 respectively.

Investment Properties

Approx. GFA Project Usage Ownership (m2) CITIC Square, Shanghai Office, retail 100% 114,000 Royal Pavilion, Shanghai Serviced apartments 100% 35,000 New Westgate Garden, Retail Portion (phase I), Shanghai Retail 100% 23,000 Pacific Plaza, Ningbo, Zhejiang Province Office, retail 100% 49,000 Total 221,000 GFA = gross floor area

CITIC Pacific’s investment properties in mainland China continue to enjoy steady rental growth with an overall occupancy of about 93% if the newly completed Pacific Plaza in Ningbo is excluded.

CITIC Pacific Summary Financial Report 2009 43 44 Business Review Major• C I T I C P a c i f i c S u m m a r y F i n a n c i a l R e p o r t 2 0 0 9 Discovery D i s cD o v e e v r e y l o B p a m y e n t P r o p e r t i e s • 231,000Hong Kong large HKR Discovery Property By gr Commercial o c c u p a n c y o f a p p r o x i m a t e l y 8 4 % a s o f t h e e n d o f J a n u a r y 2 0 1 0 oss floorarea(G Residential

I n t e r n a t i o n a l

r e s i d e n t i a l

investment

11%

Bay, Bay

De m 7%

2 has

which velopmen o f g r o s s f l o o r a r e a t o b e d e v e l o p e d i n D i s c o v e r y B a y FA

Centre. d e v e l o p m e n t )

Ltd. evolved O ffice

Since properties

50%

82% The tI

into

its owned

portfolio

jointly

Retail launch a

fully

include

developed integrated

in CITIC

enjoys

1973, Hote

CITIC

Pacific, To 45% l

tal grossfloorarea a

with

stable Tower

is Industrial

rental (the suburban Situated the open : as course 0.5 million

Group’s

a income

Disney private

space

55% and

m on

2 m u l t i n a t i o n a l h e a d q u a r t e r s )

Theme

marina. with

beach, and the

coast

r e c r e a t i o n a l

Park, central

overall

Discovery northeast r e s i d e n t i a l

park, 6% and

and nv

DCH

scenic 39%

estmen leisure

Bay Lantau

community.

54%

is promenade,

facilities endowed

t Island 1%

such

with

golf

The current Yi Pak Bay development is located in the Superstructure works of Phase 14 (a mid-rise northern part of Discovery Bay. It has a gross floor area development of approximately 16,000m2 GFA ) is of approximately 218,000 m2, of which 91,000 m2 have in progress with completion scheduled for the second been developed as Siena One (Phase 11) and Siena Two half of 2010. Construction of Phase 15 (a low-rise (Phase 12). Chianti (Phase 13), which has a gross floor development of approximately 18,000m2 GFA) area of 50,000 m2, was 99% sold as of the end of commenced in December 2009, with scheduled January 2010. completion in the first half of 2011. Pre-sale of Phase 14 and Phase 15 is planned for 2010 and the second quarter of 2011 respectively.

Investment Properties

Approx. GFA Project Usage Ownership (m2) CITIC Tower Office, retail 40% 52,000 DCH Commercial Centre Office, retail 100% 36,000 Wyler Centre I Industrial 100% 37,000 Broadway Centre Industrial 100% 21,000 Yee Lim Industrial Centre, Block C Industrial 100% 30,000 111 Lee Nam Road Industrial 100% 60,000 Other Various 100% 49,000 Total 285,000 GFA = gross floor area

CITIC Pacific Summary Financial Report 2009 45