S$336.6 M S$277.5 M
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PROPERTY PORTFOLIO PROPERTY PORTFOLIO SUMMARY1 GROSS REVENUE NET PROPERTY INCOME FY15/16 FY15/16 Gross Floor Area 3 S$336.6m S$277.5m 3,256,667sq ft Lettable Area Occupancy Top 2 2,625,438sq ft Rate Tenants Offi ce : 1,621,114 sq ft Retail : 1,004,324 sq ft Apple, Arup, Bank of China, BMW, China Fortune Land Market Valuation 98.6% Development (CFLD), AS OF 31 MARCH 20164 Cummins, H&M, I.T, Spreadtrum, TaSTe S$5,922m ANNUAL REPORT 2015/2016 23 FESTIVAL WALK Hong Kong, ̬ࣴ Festival Walk is a premier Beijing and one-stop shopping, dining and lifestyle destination that offers more than Shanghai 200 local and international brands as well as more than 30 food outlets OVERVIEW STRATEGY Retail and Offi ce over seven retail levels. Situated in the upscale residential area of Kowloon MGCCT’s portfolio Tong, Festival Walk is directly linked comprises three prime to the Kowloon Tong MTR station and commercial properties enjoys excellent connectivity between located in Hong Kong, the underground Kwun Tong Line and the overland East Rail Line which links Hong Kong directly to the Shenzhen border. Beijing and Shanghai, Adjacent to two universities and neighbouring schools, the mall is also accessible covering a net lettable area by bus and road networks. The mall is well-supported by commuters passing of 2.6 million square feet. through the busy transport node as well as a catchment area with a population All three assets enjoy of more than 1.4 million. Key tenants at the mall include the Apple store, H&M, PERFORMANCE excellent connectivity with LOG-ON, Marks & Spencer, Page One bookstore, TaSTe supermarket, UNIQLO and Zara Home. The mall also features a large multiplex cinema1, “FoodFest” food court convenient access to major and one of Hong Kong’s largest ice rinks, the “Glacier”. Festival Walk also has a roads, expressways and four-storey offi ce block with tenants such as Arup and Prudential. subway lines. With high quality tenants operating GATEWAY PLAZA across diversifi ed trade ҟ⼷Ꭻ౦ sectors contributing to the Strategically located in the well- GOVERNANCE & SUSTAINABILITY FINANCIALS & OTHERS established “Lufthansa” commercial portfolio’s steady rental hub within the Third Ring Road in growth, the three properties Beijing, Gateway Plaza is a Grade-A are expected to deliver offi ce building which is home to stable DPU growth. a diverse group of well-known multinationals and local companies including BASF, BMW, CFLD, and Cummins. It occupies a vantage position, well-linked by major train, bus and road networks and next to the Airport Expressway with direct access to the Beijing Capital International Airport. Amenities provided at the podium area of the building include Bank of China, Nanyang Commercial Bank, a medical clinic and a selection of food & beverage (“F&B”) outlets including Starbucks and a Western café. SANDHILL PLAZA ᆁᘟᎫ౦ Acquired in June 2015, Sandhill Plaza is one of the newest premium quality business park developments Weighted Average in the mature area of Zhangjiang Lease Expiry (WALE) Hi-tech Park, designated as a Free by Monthly Gross Trade Zone in Shanghai. Located 5 between the Middle Ring and Outer Rental Income (GRI) Ring Expressways of Shanghai, it is within a 30-minute drive to Pudong 2.6years International Airport, Lujiazui Central Business District and People’s Square in Puxi as well as within a 5-minute walk to Metro Line 2 Guanglan Road Station. 1 All portfolio information and numbers presented The tenants come from diverse sectors and include Analog Devices, Axalta, in this section are as of 31 March 2016 unless Borouge, Disney, Spreadtrum, Univar and Wincor Nixdorf. Sandhill Plaza offers a otherwise specifi ed. The footnotes below also apply to this section. range of amenities including a staff canteen, F&B outlets and a convenience store. 2 Top 10 tenants by gross rental income for the month of March 2016. 3 sq ft (square feet). 4 Based on valuation on each property carried out by Colliers International (Hong Kong) Limited as of 31 March 2016. 1 The cinema has been undergoing renovations since early 2016 and is expected to re-open under a new 5 Based on committed leases. operator in June 2016. PROPERTY PORTFOLIO Festival Walk Hong Kong GROSS REVENUE NET PROPERTY INCOME 80 Gross Floor Area FY15/16 FY15/16 Tat Chee 1,208,754sqft Avenue, Offi ce : 228,665 sq ft S$236.5m S$187.2m Kowloon Tong, Retail : 980,089 sq ft Hong Kong Lettable Area Market Valuation Top Comprises a LOCAL CURRENCY/S$ four-storey offi ce tower 798,372sqft Tenants atop a seven-storey Offi ce : 213,982 sq ft Retail : 584,390 sq ft HK$23,930m RETAIL territorial retail mall and (S$4,253 million) Apple Store, H&M, three underground HSBC and Premier Centre, car park levels WALE by Monthly GRI I.T, LOG-ON, Overall: 2.3years Occupancy Rate Marks & Spencer, Offi ce : 1.8 years AS OF 31 MARCH 2016: TaSTe, UNIQLO Retail : 2.4 years OFFICE 100.0% Arup, Prudential As of 31 March 2015: 100% ANNUAL REPORT 2015/2016 25 Festival Walk’s Lease Expiry Profi le by Monthly GRI Demonstrates As of 31 March 2016 Percentage Consistently (%) 30 29.5 Strong 26.0 25.1 24 Performance 18 OVERVIEW STRATEGY in FY15/16 12 6 4.7 4.8 5.4 Festival Walk, positioned 2.0 1.7 0.8 as a shopping, dining and 0 FY16/17 FY17/18 FY18/19 FY19/20 FY20/21 lifestyle destination in and beyond Kowloon Tong, Hong Kong, No. of leases 111 75 63 7 10 continued to demonstrate Lease Expiry by % of GRI for Office Lease Expiry by % of GRI for Retail consistently strong Note: The lease expiry profi le is based on existing leases. performance in FY15/16, PERFORMANCE Festival Walk’s Tenant Mix by GRI with gross revenue and As of 31 March 2016 NPI increasing by 14.6% and 15.5% respectively. Its % Apparel & Fashion Accessories 34.6 strategic location, excellent Food & Beverages 15.5 connectivity and diverse Personal Cosmetics 8.6 range of retail options Leisure & Entertainment 7.7 GOVERNANCE & SUSTAINABILITY FINANCIALS & OTHERS and amenities drew more Departmental Store & Supermarket 7.6 than 40 million shoppers, Houseware, Electronics & Furnishings 7.0 with tenant sales reaching Services 6.9 Professional & Business Services 5.8 HK$5,321 million in the year Luxury Jewellery, Watches & Accessories 4.5 ended 31 March 2016. Financial Institution/Insurance/ Banking/Real Estate 1.8 Retail Sales Footfall (HK$ million) (Million) 6,000 5,619 50 5,321 41.7 40.4 3,000 25 0 0 FY14/15 FY15/16 FY14/15 FY15/16 heung R g C d un Car Park Lots Dynasty L Heights Meridian 830 Hill Beacon Heights One Beacon Building Completion Hill Beacon November 1998 Hill Rd One Mayfair Cornwall St Festival Junction Rd Hong Kong Date of Purchase Waterloo Rd Baptist Tat Chee Ave Walk University City University 7 March 2013 of Hong Kong Somerset Rd Lok Fu Suffolk Rd Kowloon To Fuk Rd Government Lease Term/ Tong Land Use Right Expiry Norfolk Rd Sunderland York Rd Court 30 June 2047 To Yuen St Parc Hereford Rd Residential Oasis Village Garden University Number of Leases Nam Cheong St Tong Yam St Kwun Tong Line East Rail Line 266 Shek To Tsim Sha Tsui Kip Mei Fa Po St 26 MAPLETREE GREATER CHINA COMMERCIAL TRUST PROPERTY PORTFOLIO Festival Walk Hong Kong Nike Basketball kate spade new york J.LINDEBERG fresh An Nam Restaurant “Ted 2” Novelty Concept Store ANNUAL REPORT 2015/2016 27 OVERVIEW STRATEGY PERFORMANCE Zara Home GOVERNANCE & SUSTAINABILITY FINANCIALS & OTHERS Seed Heritage NEW Nespresso CONCEPTS AND BRANDS Ferrari Store Junior sen-ryo 28 MAPLETREE GREATER CHINA COMMERCIAL TRUST PROPERTY PORTFOLIO Festival Walk Hong Kong “Canon Wonderland” event promotion. The grand Christmas opening by international celebrity Tang Wei. Football game on skates at the Glacier. The popular car shows were staple events at the mall. Hunter, a tenant at Festival Walk, promoting its colourful range of rainboots. Ushering in the new year at Festival Walk. ANNUAL REPORT 2015/2016 29 OVERVIEW STRATEGY PERFORMANCE Many shoppers were attracted to the fi rst-ever Disney Tsum Tsum promotion held in Hong Kong. GOVERNANCE & SUSTAINABILITY FINANCIALS & OTHERS GALORE Make-up demonstrations by tenants OF at the Pink Panther Poolside Party. EXCITING ACTIVITIES “Sports Craze” event featuring an indoor rock Maiden exhibition of the life-size Batmobile in Hong Kong, at the climbing wall and the latest sportswear fashion. “BATMAN v SUPERMAN: Dawn of Justice” movie promotional event. PROPERTY PORTFOLIO Gateway Plaza Beijing GROSS REVENUE NET PROPERTY INCOME 18 Xiaguangli, Gross Floor Area3 FY15/16 FY15/16 East 3rd Ring Road 106,456 sqm North, Lufthansa Offi ce : 94,715 sqm S$82.3m S$73.7m Area, Beijing Podium : 11,741 sqm A premier Grade-A offi ce Lettable Area Market Valuation building, consisting of two Top 25-storey towers connected 106,456 sqm LOCAL CURRENCY/S$ Tenants by a three-storey podium area Offi ce : 94,715 sqm and three underground fl oors RMB5,930m OFFICE Podium : 11,741 sqm 1 (S$1,256 million) Anhui Yucheng , BMW, 2 CFLD , Changjiu Group, 1 Anhui Yucheng is no longer a tenant of WALE by Monthly GRI Cummins, Doosan, Gateway Plaza since 1 April 2016. 4 2 China Fortune Land Development (CFLD). Overall: 3.9 years Occupancy Rate John Deere, 3 Square metres (sqm) is the standard Offi ce : 3.4 years AS OF 31 MARCH 2016: SBC Business Service convention for area in China. 4 During the quarter, one of the largest Podium : 7.8 years PODIUM tenants of the portfolio (by gross rental 96.8% Bank of China, income) has committed a further fi ve-year term, which extended its lease from As of 31 March 2015: 98.0% Nanyang Commercial Bank FY17/18 to FY22/23.