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China Propertiesproperties ChinaChina PropertiesProperties NovemberNovember 28,28, 20072007 Disclaimer Wheelock (Stock code: 20) & Wharf (Stock code: 4) Group Presentation Disclaimer All information and data are provided for information purposes only. All opinions included herein constitute Wheelock and Wharf’s judgment as of the date hereof and are subject to change without notice. The Group, its subsidiaries and affiliates hereby disclaim (i) all express, implied, and statutory warranties of any kind to user and/or any third party including warranties as to accuracy, timeliness, completeness, or fitness for any particular purpose; and (ii) any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the information and data contained herein. China Properties 2 Presentation Outline Introduction Flagship Projects - Shanghai Wheelock Square, Shanghai - Wuxi Super Tower, Wuxi - Suzhou Super Tower, Suzhou - Hongxing Lu, Chengdu 。IFC 。IFC Tiandi Residential Projects China Properties - Wholly-owned -J/V Outlook 3 China Macro Economic Environment Government revenue rose by 30% Vs last year Foreign exchange reserves ~ US$1,400B at Q3 2007 Low foreign debts ~ about 12% of GDP as at end of 2006 Inflation rate ~ 4.4% (Jan – Oct 2007) China Properties 4 Market Outlook China Property Market Robust economic growth and steady wealth creation process with increasing domestic demand in housing in China → continue to benefit its real estate developments Robust economic growth – 8-9% GDP growth p.a. and even higher in certain cities (11% in 2007) Growth in private enterprise formation ~ over 16% for 2006, ie. about 5 million private enterprises in mainland now (for 10-year up to 2005, the annual growth rate was about 30%!) Growth in automobile sales ~ over 20% p.a. (2007- as of October - automobile sales: 7.15 million vehicles) High personal saving rates ~ over 30% in 2006 for urban households China Properties Urbanization: - About 577 million urban population as at end 2006 - Another 300 million people is expected to move into the city area in the next 20 years and directly effect demand on housing 5 Development Strategies Execution Plan: Geographic focus on 1st & 2nd tier cities. Currently covered 11 cities in China Two regional teams located in (i) YRD (Wuxi / Suzhou) & (ii) Chengdu Two principal offices established in Beijing & Shanghai Joint ventures to speed up growth and mitigate risks (China Merchants / China Overseas / Green Town / Jindu) Portfolio expansion anchored on financial solidarity China Properties - financial model based on (i) appreciating RMB and (ii) land portion being financed by HK$ where interest differential gain against RMB interest rate is currently at about 2% p.a. 6 Disclaimer: All information contained herein is subject to final plans Development Strategies Execution plan: Focused on CBDs and new CBDs Brand building & management experience for city center properties (Harbour City / Times Square) Balanced approach on investment & development properties; investment properties to be less than 30% of total China Properties 7 Disclaimer: All information contained herein is subject to final plans Land Bank: Current & Target (attributable) Overall Group Perspective: Aiming for up to 50% of total Group asset value to derive from China portfolio in 5 years (subject to suitable opportunities) Current: Total attributable plot ratio GFA: about 75M sq ft - Acquired in 2007: about 45M sq ft - Acquired since 2005: about 68M sq ft 11 cities 26 sites / projects China Properties Aim: 100 million sq ft (plot ratio GFA) as the initial milestone 8 Disclaimer: All information contained herein is subject to final plans China Project List (Post-2005) Property Name Ownership Project Nature Plot Ratio GFA Attributable AV Completion (s.f.) Plot Ratio (RMB psf) (s.f.) POST 2005 – INVESTMENT PROPERTIES IFC / IFC Tiandi (Chengdu) 100% Office / Retail / Hotel / Residential 4.7M 4.7M 1,533 2010-2012 • 194 metres • Arquitectonica design Wuxi Super Tower (Wuxi) 100% Office / Retail / Hotel 3.0M 3.0M 58 2012-2014 • 339 metres • SOM design Sub Total: 7.7M 7.7M Suzhou Super Tower (Suzhou) HCDL 80% JV Office / Hotel / Residential 3.8M 3.0M 93 2013 • 420 metres • KPF design Sub Total: 3.8M 3.0M POST 2005 – FOR SALE / MIXED Suzhou Ind’l Park Lot 68210 (Suzhou) 100% Residential 2.2M 2.2M 578 2008-2010 Tian Fu Times Square (Chengdu) * 100% Office / Retail / Hotel / Residential 4.4M 4.4M 169 2009-2011 No. 10 Gaoxin District (Chengdu) 100% Office / Residential 4.4M 4.4M 187 2009-2011 Shuangliu Development Zone (Chengdu) 100% Office / Retail / Hotel / Residential 9.8M 9.8M 32 Under Planning Taihu Plaza Project – Residential (Wuxi) 100% Residential 9.0M 9.0M 145 2011-2014 Sub Total: 29.8M 29.8M Lot 37, 38, 43 & 44 Hangzhou (Hangzhou) Wharf 50% JV Residential & O/A 4.0M 2.0M 778 2011-2013 Lot 24 Suzhou Ind’l Park(Suzhou) Wharf 50% JV Residential 1.8M 0.9M 556 2011-2013 Danzishi (Chongqing) Wharf 40% JV Office / Retail / Apartment / Residential 22.6M 9.0M 332 Under planning Wharf JV Total: 28.4M 11.9M HCDL China Properties Hangzhou CBD (Hangzhou) HCDL 40% JV Residential/Hotel 3.2M 1.3M 1,092 2009-2012 Zone B of Jiangbei City (Chongqing) HCDL 55% JV Residential 4.6M 2.5M 554 2011-2012 Suzhou Ind’l Park Lot 82044-82047 (Suzhou) HCDL 80% JV Residential 9.8M 7.8M 279 2013 HCDL JV Total: 17.6M 11.6M WPL Wharf + HCDL JV Total: 46.0M 23.5M Foshan 06H (Foshan) WPL 50% JV Residential 4.9M 2.5M 196 2011 Foshan 07-005 (Foshan) WPL 50% JV Residential 2.9M 1.5M 521 2011 WPL JV Total: 7.8M 4.0M 9 * Project partly sold (floor areas shown exclude sold portion) JV Total: 53.8M 27.5M27.5M Disclaimer: All information contained herein is subject to final plans Total (Post-2005) : 68.0M China Project List (Pre-2005) Property Name Ownership Project Nature Plot Ratio GFA Attributable AV Completion (s.f.) Plot Ratio GFA (RMB psf) (s.f.) PRE 2005 – INVESTMENT PROPERTIES Shanghai Times Square (Shanghai) 100% Office / Retail / Apartment 0.9M 0.9M 462 1999 Chongqing Times Square (Chongqing)* 100% Office / Retail / Apartment 0.5M 0.5M 213 2004 Wuhan Times Square (Wuhan)* 100% Retail / Hotel 0.4M 0.4M 45 2008 Dalian Times Square (Dalian) 100% Retail 0.2M 0.2M 132 2009 Sub Total: 2.0M 2.0M Beijing Capital Times Square (Beijing) 87.5% JV Office / Retail 0.9M 0.8M 546 1999 Shanghai Wheelock Square (Shanghai) 98% JV Office / Retail 1.2M 1.2M 549 2009 • 270 metres • KPF design Sub Total: 2.1M 2.0M PRE 2005 – FOR SALE Wuhan Times Square (Wuhan)* 100% Residential 0.7M 0.7M 45 2007 Dalian Times Square (Dalian) 100% Residential 1.3M 1.3M 132 2009 Sub Total: 2.0M 2.0M Wellington Garden (Shanghai)* 59% JV Residential 0.2M 0.1M 391 2007 No. 1 Xin Hua Road (Shanghai) 85% JV Residential 0.2M 0.2M 1,121 2009 China Properties Jingan Garden (Shanghai) 55% JV Residential 0.8M 0.4M 385 2011 Sub Total: 1.2M 0.7M WPL Tung Fung Lu (Guangzhou) 70% JV Residential / Retail 0.36M 0.3M 495 2010 * Project partly sold (floor areas shown exclude sold portion) Sub Total: 0.36M 0.3M Total (Pre-2005) : 7.0M 10 GRAND TOTAL (Post-2005 + Pre-2005) : 75.0M Disclaimer: All information contained herein is subject to final plans Flagship Projects Shanghai Wheelock Square, Shanghai (1717 Nanjng Xi Lu) Wuxi Super Tower, Wuxi Suzhou Super Tower, Suzhou Hongxing Lu, Chengdu -IFC China Properties - IFC Tiandi 11 Flagship Projects: Shanghai Wheelock Square, Shanghai China Properties 12 Disclaimer: All information contained herein is subject to final plans Flagship Projects: Shanghai Wheelock Square, Shanghai Location: Nanjing Xi Lu, Jingan District (靜安區南京西路) at Yan An Expressway exit to Nanjing Xi Lu Site area: 136,432 sq ft Project nature: Investment property - office Plot ratio GFA: 1.2M sq ft AV: RMB 549 psf Target completion: 2009 Ownership: 98%-owned by Wharf 2%-owned by 利偉地產有限公司 China Properties 13 Disclaimer: All information contained herein is subject to final plans Flagship Projects: Shanghai Wheelock Square, Shanghai China Properties 14 Flagship Projects: Shanghai Wheelock Square, Shanghai The only Grade A supply in 2009 in Puxi prime location Strong office market in Shanghai: - WTO factor: growth in services and office demand from banking, securities, law, accounting, etc - Multinationals continue to set up regional headquarters due to rapid economic development - Demand > supply: upward rental spiral for 6 years since 2001 Prime location – Nanjing Xi Lu: - Adjacent to metro line 2, Jingansi station, with a direct access to (i) Shanghai prime shopping area and CBD; (ii) Pudong airport via airport line; and (iii) easy access to inner-ring highway China Properties - at Yan An Expressway exit to Nanjing Xi Lu 270-metre Grade A office tower with top specs Designed by KPF 15 Disclaimer: All information contained herein is subject to final plans Flagship Projects: Shanghai Wheelock Square, Shanghai China Properties 16 Disclaimer: All information contained herein is subject to final plans Flagship Projects: Wuxi Super Tower China Properties 17 Disclaimer: All information contained herein is subject to final plans Flagship Projects: Wuxi Super Tower Wuxi Super Tower China Properties 18 Disclaimer: All information contained herein is subject to final plans Flagship Projects: Wuxi Super Tower Location: Taihu Plaza, Nanchang District (南長區太湖廣場) Site area: 313,867 sq ft Project nature: Investment property Plot ratio GFA: 3.0M sq ft AV: RMB 58 psf Target completion: 2012-2014 Ownership: 100%-owned by Wharf China Properties 19 Disclaimer: All information contained
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