Major Investment Properties

Review of Operations – Business in Mainland China and Macau Major Investment Properties During the year, rental properties in mainland China generated business and will become a major source of steady income in a total gross rental income of HK$192.9 million, an increase mainland China. of HK$114.3 million over the previous year. With the gradual In order to better manage its property portfolio, in August 2007 completion of some of the above investment properties, which the Group increased its stakes in some of the rental properties, comprise mainly Grade-A offi ce space, rental income is set to which comprise commercial podia and car park basements: increase significantly during the years to come. The property investment business will complement the property development Major Completed Mainland Investment Properties Group’s share of developable gross fl oor area Group’s interest (million square Project name and location (%) feet) Commercial Podium & Car Parks Henderson Centre, Beijing 100 1.1 Skycity, Shanghai 75 0.3 Hengbao Plaza, Guangzhou 100 1.0 Sub-total: 2.4 Offi ce Offi ce Tower II, Grand Gateway, Shanghai 100 0.7 Sub-total: 0.7 Total: 3.1 Annual Report 2007 Henderson Land Development Company Limited 75 Review of Operations – Business in Mainland China and Macau Major Investment Properties Status of Major Completed Mainland Investment Properties Henderson Centre, Beijing (100% owned) Beijing Henderson Centre was completed in 1997. In order to offer a refreshing retail experience for shoppers and to promote sale for tenants, the atrium of its shopping mall has been undergoing a major renovation since March 2007. When completed in September 2007, the renovation will reinforce the mall’s position as a shopping, dining and entertainment focus for both tourists and local residents. Acquisition of its remaining 25% interest was completed in August 2007, allowing the Group to benefi t in full from this major revamp. Shanghai Skycity (75% owned) Commanding a prime location in Zhabei District in close proximity to the main Shanghai railway station and two metro stations, Henderson Centre, Beijing Skycity has become a popular location for mainland enterprises and retailers since its completion in 1997. This project, which comprises a four-storey commercial podium and 272 basement car parking spaces, was basically fully let as at the end of the year. With its stake increased from 37.5% to 75%, the Group has become the controlling shareholder for this quality project since August 2007. Hengbao Plaza, Guangzhou (100% owned) Located right above the subway station, Hengbao Plaza emerges as the focal point in the district, drawing huge pedestrian traffi c from the neighbouring residential development. Driven by the improved economy in Guangzhou, its occupancy rate was close to 80% as at June 2007 with many large-scale retailers as its anchor tenants. Shanghai Skycity, Zhabei District, Shanghai Annual Report 2007 76 Henderson Land Development Company Limited Review of Operations – Business in Mainland China and Macau Major Investment Properties Offi ce Tower II, The Grand Gateway, Shanghai Offi ce Tower II, The Grand Gateway, Shanghai Joint-Venture Development in Macau (100% owned) In April 2005, the Group entered into an agreement to jointly Right above the subway station at the heart of the Xujiahui develop a waterfront site of approximately 1.45 million square District, there stands a landmark building, the Offi ce Tower II of the feet of land area in Macau. The site’s total gross fl oor area has Grand Gateway. Designed by Callison, one of the top architectural yet to be fi nalized as it is still under application for land-use fi rms in the world, it rises up to a height of 230 meters with a total conversion. of 50 fl oors upon completion in late 2005. Many multinational companies such as Microsoft, Adidas and TESCO have been drawn as its tenants and its occupancy rate stayed high at 98% at the fi nancial year end. Annual Report 2007 Henderson Land Development Company Limited 77.

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