Review of Operations – Business in Hong Kong Property Development 2011 Highlights • Sold an attributable HK$10,846 million worth of properties in Hong Kong during this financial year • Three projects successfully pre-sold with an attributable sales revenue totalling HK$3,373 million to be reflected in the results for the next financial year, when they are due for completion Property Sales successfully re-launched an array of economic deterioration in both mainland popular developments for sale. However, China and the United States led to a starting from mid-2011, stabilizing stagnant property market in the latter half During the first half of the year under measures introduced by the Hong Kong of the year. review, with the local property market SAR Government, the lingering European remaining robust, the Group capitalized debt crisis and the growing concerns over on the positive market sentiment and Hill Paramount, Shatin, Hong Kong Henderson Land Development Company Limited 44 Annual Report 2011 Review of Operations – Business in Hong Kong • Property Development Luxury developments put up for sale revenue of HK$8,308 million, a marked premises (including some rental properties during the year included Hill Paramount increase when compared with HK$4,842 such as the office at 9 Queen’s Road in Shatin, Headland Road in Island South, million for the previous financial year Central), were also disposed of during the Casa Marina (Phases 1 and 2), as well as (before taking into account the effect of year. Including the Group’s share of sales The Beverly Hills (Phase 1) and Légende cancelled sales). Meanwhile, 67 deluxe proceeds of HK$2,538 million arising Royale - The Beverly Hills (Phase 3) in villas in Casa Marina (Phases 1 and 2) from these disposals, the Group sold an Tai Po. They all received encouraging and The Beverly Hills (Phase 1), which attributable HK$10,846 million worth of responses. For the year ended 31 December were previously held for rental purposes, properties in Hong Kong for the year ended 2011, the Group sold 325 residential units together with approximately 100,000 31 December 2011. in Hong Kong, generating attributable sales square feet of industrial/office/commercial Légende Royale, Tai Po, Hong Kong Henderson Land Development Company Limited Annual Report 2011 45 Review of Operations – Business in Hong Kong • Property Development Furthermore, The Gloucester, an by the end of the year. E-Trade Plaza, a 2011. AZURA, the Group’s joint venture 114,000-square-foot signature residential 170,000-square-foot Grade A office tower development at Mid-Levels of Hong Kong project situated on Hong Kong waterfront at Island East, also achieved encouraging Island, went on sale in November 2010 and with full sea views, was launched for results with about 30% of its saleable area cumulatively, 98 of its total 126 residential pre-sale in April 2011 with over 90% of successfully sold within a few months units had been pre-sold by the end of its total 177 residential units snapped up since its pre-sale in the fourth quarter of 2011. Their attributable sales revenue totalling HK$3,373 million, as well as the corresponding profit contribution, will be reflected in the results for the next financial year, when they are due for completion. La Verte in Fanling has sold well since it was released for sale in February 2012. At 31 December 2011, the Group had over 580 residential units available for sale, comprising a total gross area of about 1.0 million square feet, of which around 880,000 square feet was attributable to the Group. Particulars of the major development projects offered for sale and pending sale are shown on pages 12 and 13 of the Chairman’s Statement. In addition, the Group has two suburban developments, namely the projects in Lok Wo Sha, Ma On Shan (Phase 1) and Tai Tong, Yuen Long, planned to be launched for sale in 2012 upon receipt of the relevant sales consents. As such, a total of over 4,000 residential units with an aggregate attributable gross floor area of about 2,300,000 square feet will be available for sale and pre-sale in 2012. E-Trade Plaza, Chai Wan, Hong Kong (artist’s impression) Henderson Land Development Company Limited 46 Annual Report 2011 Review of Operations – Business in Hong Kong • Property Development Status of Major Property Developments E-Trade Plaza, 24 Lee Chung Street, Chai Wan AZURA, 2A Seymour Road, Mid-Levels (100% owned by the Group) (12.5% owned by the Group) Site area : 11,590 square feet Site area : 22,957 square feet Gross floor area : 173,850 square feet Gross floor area : 206,306 square feet Expected completion : Second quarter of 2012 Residential units : 126 Expected completion : Second quarter of 2012 E-Trade Plaza commands a premium location and is just a 3-minute walk from Chai Wan MTR Terminus. Advanced provisions such as Located in the highly sought-after Mid-Levels West area, AZURA its fully installed raised floor system, as well as innovative office consists of a 50-storey tower of 126 residential units and 45 car features such as the sky garden, set the property apart from all other parking spaces. The residence also features three exquisite commercial premises in the vicinity. About 30% of its saleable area penthouses on the top floor with rooftop and private pool, and three had been sold by the end of 2011. unique apartments on the podium level which feature a flat roof space. The spacious duplex clubhouse boasts an area of 20,000 square feet and contains a variety of facilities to meet the needs of Mira Moon, 388 Jaffe Road, Wanchai residents. Superstructure works are in progress and 98 units had (100% owned by the Group) been pre-sold by the end of 2011. Site area : 4,409 square feet Gross floor area : 66,128 square feet The Gloucester, 212 Gloucester Road, Wanchai Expected completion : Second quarter of 2012 (100% owned by the Group) Under the creative direction of renowned Dutch designer Marcel Site area : 11,545 square feet Wanders and the seasoned management of The Mira Hong Kong, Gross floor area : 113,977 square feet this 91-room boutique hotel will present a refreshing reinterpretation Residential units : 177 of Chinese traditions in the bustling district of Wanchai upon its Expected completion : Fourth quarter of 2012 scheduled opening in 2013. Construction is at the superstructure stage. Located in a prime waterfront urban area with the Causeway Bay shopping hub, exotic restaurants and a trendy boutique hotel in its proximity, The Gloucester offers sweeping Victoria Harbour views for all its 177 Manhattan-style apartments. By the end of 2011, over 90% of the units had been sold. Catering to its discerning residents who are mostly urban elites, its top-floor sky clubhouse includes the only aquarium-style heated pool in Hong Kong. Construction has proceeded to the superstructure stage and it is due for completion by the end of 2012. Henderson Land Development Company Limited Annual Report 2011 47 Review of Operations – Business in Hong Kong • Property Development Double Cove, Shatin Town Lot 502 at 1-9 and 2-10 Sai Wan Terrace, Quarry Bay Lok Wo Sha, Ma On Shan (10% owned by the Group) (59% owned by the Group) Site area : 28,490 square feet Site area : 1,042,397 square feet Gross floor area : 151,944 square feet Gross floor area : 2,950,660 square feet Residential units : 92 Residential units : 928 (Phase 1) Expected completion : Third quarter of 2013 Expected completion : Fourth quarter of 2012 (Phase 1) Located at Kornhill, Quarry Bay with a full range of amenities in Benefitting from a unique vantage point nestled between Starfish its vicinity, this joint venture development will comprise two Bay and To Tau Beach, this waterfront residential project will be 21-storey towers of 92 residential units and 69 basement car completed in phases and there will be 2.8 million square feet of parking spaces upon its scheduled completion in 2013. The gross floor area in 21 residential towers containing about 3,500 substructure works are in progress. units in various configurations, plus a 108,000-square-foot commercial area linked to the Wu Kai Sha MTR terminus. Construction of its first phase of development, which contains a 19-21 Wong Chuk Hang Road total residential gross floor area of about 685,000 square feet and a (50% owned by the Group) shopping area of about 99,000 square feet, is expected to be finished by the end of 2012, whilst additional residential space of about Site area : 14,298 square feet 639,000 square feet and about 811,000 square feet will be Gross floor area : 214,467 square feet respectively completed in 2013 and 2014 for the second and third Expected completion : Second quarter of 2014 phases. A top-notch design consultant team, namely Rogers Stirk Harbour + Partners, has introduced innovative architectural design This project is a 25-storey top grade office building with supporting ideas to their first residential project in Hong Kong, allowing retail space in the south of Hong Kong Island. The MTR South residents to enjoy stunning views across Tolo Harbour amid a Island Line (East Section) is scheduled for completion in 2015 and tranquil living environment. the future Wong Chuk Hang MTR station will be within walking distance, offering just a 2-stop ride to the interchange station at Admiralty. Foundation works are nearly completed. The contract Yuen Long Town Lot 526, Tai Tong, Yuen Long for superstructure works has been awarded. (79.03% owned by the Group) Site area : 371,358 square feet Gross floor area : 1,299,753 square feet Residential units : 2,580 Expected completion : Second quarter of 2013 Set in green and relaxing surroundings, many of the residential units in this project will enjoy panoramic views of the lush Tai Lam Country Park upon completion in the second quarter of 2013.