Review of Operations – Business in 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, (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, 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 , 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 . 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. Construction of the superstructure is now under way and an iconic arch between two of the 12 residential towers will give this project a unique architectural feature.

Henderson Land Development Company Limited 48 Annual Report 2011 Review of Operations – Business in Hong Kong • Property Development

59-63 Wing Hong Street and 88-92 68 Boundary Street (formerly known as 58-66 King Lam Street, Boundary Street) (100% owned by the Group) (100% owned by the Group) Site area : 6,750 square feet Site area : 28,004 square feet Gross floor area : 60,749 square feet Gross floor area : 336,048 square feet Residential units : 41 Expected completion : Third quarter of 2014 Expected completion : Fourth quarter of 2014

This site, which was enlarged following the completion of the Situated close to both Prince Edward and Mongkok East acquisition of its adjacent building, will be developed into a modern MTR stations, this 29-storey commercial-cum-residential tower industrial building. Its prime location close to Lai Chi Kok MTR overlooks a number of green parks and amenities, enjoying the station, plus the premium quality, innovative design and high breathtaking views that extend up to the Lion Rock. This project is specifications should make it a new benchmark for premium a tribute to the heritage of Tong’s historic mansions, industrial premises in West Kowloon. featuring spacious units and a unique modern façade design. Foundation works are in progress.

186-188 Tai Po Road, Sham Shui Po (100% owned by the Group) 45-49 Boundary Street and 189-195 Sai Yeung Choi Street North (100% owned by the Group) Site area : 8,324 square feet Gross floor area : 70,298 square feet Site area : 5,880 square feet Residential units : 138 Gross floor area : 52,919 square feet Expected completion : Fourth quarter of 2014 Residential units : 59 Expected completion : Fourth quarter of 2014 This development will comprise approximately 62,000 square feet of residential space and approximately 8,000 square feet of retail This property is at the transport nexus of Mongkok, with Prince shops upon completion in late 2014. Piling is under way and Edward MTR station and the cross-border coach terminus just construction of the superstructure will commence in September steps away. Meanwhile, the flower bazaar and Mongkok shopping 2012. avenue are both within its walking distance, offering unrivalled living convenience to its residents. Foundation works are in progress and it will be developed into a 32-storey residential-cum- 30-38 Po Tuck Street and 36 Clarence Terrace, commercial tower, overlooking the Police Sports and Recreation Western District (100% owned by the Group) Club, as well as the lush greenery nearby.

Site area : 7,310 square feet Gross floor area : 58,400 square feet Residential units : 133 Expected completion : Fourth quarter of 2014

The site is adjacent to the Hong Kong University MTR station now under construction that will commence its operation in 2014. It is also close to a number of prestigious primary and secondary schools, as well as the University of Hong Kong. Construction has proceeded to the foundation stage and this 31-storey residential development is expected to be finished by the end of 2014.

Henderson Land Development Company Limited Annual Report 2011 49 Review of Operations – Business in Hong Kong Major Development Projects

Major Projects Under Development

1 E-Trade Plaza, 24 Lee Chung Street, Chai Wan 2 Mira Moon, 388 Jaffe Road, Wanchai 3 AZURA, 2A Seymour Road, Mid-Levels 4 The Gloucester, 212 Gloucester Road, Wanchai 5 , Shatin Town Lot 502 at Lok Wo Sha, Ma On Shan 6 Yuen Long Town Lot 526, Tai Tong, Yuen Long 7 1-9 and 2-10 Sai Wan Terrace, Quarry Bay 8 19-21 Wong Chuk Hang Road 9 59-63 Wing Hong Street and 88-92 King Lam Street, Cheung Sha Wan 10 186-188 Tai Po Road, Sham Shui Po 11 30-38 Po Tuck Street and 36 Clarence Terrace, Western District 12 68 Boundary Street 13 45-49 Boundary Street and 189-195 Sai Yeung Choi Street North

Major Completed Development Projects Tuen Mun Offered for Sale or Pending Sale

14 Casa Marina I, 28 Lo Fai Road, Tai Po 15 Casa Marina II, 1 Lo Ping Road, Tai Po 16 The Beverly Hills – Phase 1, 23 Sam Mun Tsai Road, Tai Po 17 Légende Royale, The Beverly Hills – Phase 3, 23 Sam Mun Tsai Road, Tai Po 18 39 , Mid-Levels 19 Hill Paramount, 18 Hin Tai Street, Shatin 20 Green Lodge, Tong Yan San Tsuen, Yuen Long 21 La Verte, 283 Jockey Club Road, Fanling

Airport

Tung Chung

Residential / Hotel Serviced Suites Commerical / Residential Office Industrial

Existing Line Under Network Extensions MTR West Island Line Cable Car Guangzhou – Shenzhen – Hong Kong Express Rail Link Light Rail Shatin to Central Link Route 3 Kwun Tong Link Extension Cross Harbour Tunnel South Island Line (East)

Henderson Land Development Company Limited 50 Annual Report 2011 Sheung Shui

Lok Ma Chau 21 Fanling

14 15 16 17

Tai Po

Yuen Long 6 20 5 Sai Kung

Ma On Shan

Tsuen Wan Shatin 19

Tsing Yi 10 9 12 13

Kowloon

Discovery Bay Tseung Kwan O

11 3 7 18 2 4 Quarry Bay 1 Hong Kong Island

8

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