Review of Operations – Business in Property Development

2007 Highlights

Q 862,856 square feet of residential, Q An attributable HK$7,894.8 Q “Grand Waterfront” was widely commercial and hotel properties million worth of properties in applauded for the exceptional completed Hong Kong sold and pre-sold quality of its construction and materials, reinforcing the reputation of the Group as a premier developer

the fi nancial year, the Group completed four in a buoyant property market. During the year, two large-scale During development projects, namely, Royal Green development projects, namely, Grand Waterfront in – Phase 2, Grand Waterfront, Phase 1 for the project in Tong Yan and The Sherwood in Tuen Mun were launched for sale. Up to the San Tsuen and Newton Place Hotel at Kwun Tong. These projects year end, 1,143 residential units and 1,073 residential units, or totally comprise 862,856 square feet of attributable gross fl oor 64% and 68% respectively of the total units, were sold for these area, of which approximately 590,000 square feet were residential two development projects. Other projects which were launched areas for sale. By the end of the year, 203 units or 72% of the total for sale during the year, including Scenic Horizon in Shau Kei units at Royal Green – Phase 2 were sold. New owners of Grand Wan, CentrePlace in the Mid-Levels and The Verdancy in Yuen Waterfront units praised the development for the exceptional Long, also received encouraging response. Together with the re- quality inherent in its construction and in the materials used, launch of other popular projects such as , Royal with a satisfaction rate of almost 100%. Newton Place Hotel at Green and , during the year the Group sold an Kwun Tong, a stylish hotel with 598 guest rooms, has commenced attributable HK$7,894.8 million worth of properties in Hong Kong, business since July 2007, while the project in Tong Yan San Tsuen, a remarkable growth of 130% when compared with HK$3,434.6 a low-density development, will be launched for sale shortly. million for the year before. Particulars of these newly completed projects are set out in At the year end, the Group had a total of 3,341 residential units greater detail on page 10 of the Chairman’s Statement. available for sale, comprising a total gross area of over 3.7 million square feet, of which 3.0 million square feet was attributable to Property Sales the Group. Particulars of the major development projects offered Substantial growth in GDP, rising wages, improved employment for sale and pending sale or pre-sale are shown on pages 11 to 13 prospect and favourable bank mortgage terms have all resulted of the Chairman’s Statement.

CentrePlace, Mid-Levels, Hong Kong

Annual Report 2007 30 Henderson Land Development Company Limited Review of Operations – Business in Hong Kong Property Development

The Beverly Hills, Tai Po, Hong Kong

Status of Major Residential Developments 33 Lai Chi Kok Road, Mong Kok (100% owned) Site area : 9,600 square feet The Beverly Hills, 23 Sam Mun Tsai Road, Tai Po Gross fl oor area : 84,156 square feet (90.10% owned) Residential units : 108 Site area : 982,376 square feet Expected completion : Mid 2008 Gross fl oor area : 1,165,240 square feet Residential units : 535 (25% of this project is held for This site will be developed into a 31- residential tower with rental purpose) a commercial podium, complemented by a residents’ clubhouse. Expected completion : October 2008 (Phase 3) Deluxe duplex units will be situated on the top floor of the tower, leading to a private roof. The development will provide With magnifi cent views of the azure sea and lush hills in this, the a total gross floor area of approximately 84,000 square feet. most exclusive stretch of the Tolo Harbour coastline, the fi rst two Superstructure works are now in progress. phases of The Beverly Hills were already completed and Phase 3 comprises 163 luxury villas with fl oor areas ranging in size Lot No. 1740 in DD 122, Tong Yan San Tsuen, from 3,500 to 11,000 square feet. Benefi tting from a fi ve-level Yuen Long (100% owned) grand clubhouse and over 1.8 million square feet of greenery Site area : 78,781 square feet and recreation area, The Beverly Hills is the only residential Gross fl oor area : 78,781 square feet development in Hong Kong with a go-kart circuit, theme park Residential units : 60 concept children’s playground, infi nity pool, and other superb Expected completion : January 2008 (Phase 2) facilities. The site will be developed over two phases into 11 low-density Fanling Sheung Shui Town Lot 231, Sheung Shui residential blocks and two luxurious detached houses with a (100% owned) total gross fl oor area of approximately 78,781 square feet. In Site area : 45,779 square feet total, there will be 60 units including low-rise apartments, duplex Gross fl oor area : 228,821 square feet units and deluxe private villas together with car parks and Residential units : 362 clubhouse facilities. The fi rst phase, with a total gross fl oor area of Expected completion : End of 2009 61,138 square feet and comprising 9 residential blocks and one detached house, was completed in June 2007. The second phase, Situated adjacent to the Group’s Royal Green project and with a total gross fl oor area of 17,643 square feet, comprising surrounded by lush greenery in a tranquil environment, this site 2 residential blocks and one detached house, is expected to be will be developed into a 38-storey residential tower, consisting of completed by January 2008. 362 units. The foundations have been laid and construction of the superstructure commenced in mid-August 2007.

Annual Report 2007 Henderson Land Development Company Limited 31 Review of Operations – Business in Hong Kong Property Development

The Sparkle, 500 Tung Chau Street, 11-12 Headland Road, Island South (44.42% owned) (100% owned) Site area : 43,492 square feet Site area : 35,629 square feet Gross fl oor area : 32,619 square feet Gross fl oor area : 320,659 square feet Residential units : 4 Residential units : 400 Expected completion : August 2008 Expected completion : Third quarter of 2008 This site will be developed into four three-storey luxurious The Sparkle, a 38-storey twin tower above a 6-storey shopping mansions with a total gross fl oor area of approximately 32,600 and car-parking podium, offers sweeping harbour views. Only square feet. The living space of each mansion will extend from minutes from MTR and KCR stations, The Sparkle is exceptionally the basement to the second fl oor and will be complemented by well situated for convenient transport to all districts of Hong a private roof, garden, swimming pool and car parking spaces. Kong and to the airport at Chep Lap Kok. Its clubhouse enables Superstructure works are now in progress. residents to enjoy comprehensive leisure and entertainment activities at all times and is equipped with a gymnasium, an Status of Major Offi ce aerobic room, a swimming pool and landscaped gardens, and Industrial Property Developments together with sports facilities such as a driving range as well as East, covering the areas from Kwun Tong to San Po Kong, access to a sports ground nearby. is steadily being transformed from a traditional industrial district Fanling Sheung Shui Town Lot 76, Fanling into a new commercial hub. As the Government’s initiative to (100% owned) redevelop the site of the former airport at Kai Tak gathers pace, Site area : 42,884 square feet the area’s transformation is expected to accelerate. According Gross fl oor area : 34,000 square feet to the Government’s development plan, a new cruise terminal Residential units : 54 together with tourism-related facilities will be built at the southern Expected completion : Early 2009 end of the former runway. Also, as part of the latest transport development plan, a fully integrated KCR/MTR interchange With the completion of land-use conversion during the year, station and a depot for the Shatin to Central Link will be located this site will be developed into 54 apartments, together with a at Diamond Hill, which is in close proximity to San Po Kong. clubhouse and car parking spaces. This transformation is expected to create enormous demand

Passion and Commitment The Sparkle

The professionalism of the Group’s project management capability was underlined in the speed to market of The Sparkle development in Cheung Sha Wan. Close cooperation between many different divisions resulted in a turnaround of only 15 months from site acquisition to receipt of pre-sale consent.

Annual Report 2007 32 Henderson Land Development Company Limited Review of Operations – Business in Hong Kong Property Development

for quality hotels and offi ces in Kowloon East. With the recent opening of Newton Place Hotel as well as the gradual completion of the properties listed below, the Group is well placed to benefi t from these impending developments.

Kwun Tong 223, Wai Yip Street, Kwun Tong (88.5% owned) Site area : 91,042 square feet Gross fl oor area : 1,092,502 square feet Expected completion : End of 2007

In the new commercial hub of Kowloon East, two Grade-A offi ce towers will be built with a total gross fl oor area of over 1.0 million square feet, fully equipped with advanced intelligent automation systems, a retail podium and ample parking spaces. The premises will also feature a 130,000 square feet club and conference facilities complemented with catering services.

78 Hung To Road, Kwun Tong (100% owned) Site area : 10,000 square feet Gross fl oor area : 119,992 square feet Expected completion : January 2008

This development will provide approximately 120,000 square feet of premium industrial/workshop space. It will be interconnected with the Group’s Kwun Tong 223 commercial development by a footbridge. Superstructure works have been completed and other Kwun Tong 223, Kwun Tong, Hong Kong installations are in progress.

52 Hung To Road, Kwun Tong (100% owned) 9-11 Sheung Hei Street, San Po Kong (100% owned) Site area : 11,375 square feet Site area : 10,450 square feet Gross fl oor area : 125,037 square feet Gross fl oor area : 125,399 square feet Expected completion : Mid 2008 Expected completion : Second quarter of 2008

This development will comprise approximately 125,000 square Overlooking the Choi Hung Road playground, this project will feet of industrial space. Superstructure works are in progress and comprise approximately 125,000 square feet of premium offi ce completion is expected by mid-2008. space with easy access to Central and mainland China via the planned Shatin to Central Link. Its modern design will set a new Midas Plaza, 1 Tai Yau Street, San Po Kong benchmark for premium offi ces in the district upon its completion (70% owned) in the second quarter of 2008. Site area : 15,393 square feet Gross fl oor area : 189,383 square feet 712 East, San Po Kong Expected completion : End of 2007 (100% owned) Site area : 18,051 square feet Adjacent to the planned integrated KCR/MTR interchange station Gross fl oor area : 216,590 square feet at Diamond Hill, this 22-storey high-class light industrial building Expected completion : Fourth quarter of 2008 will have a total gross fl oor area of about 190,000 square feet and is situated to provide excellent transport links. Superstructure Located next to the former , this development works have been completed and internal and external fi nishing commands panoramic views of Victoria Harbour and will provide works are in progress. approximately 216,000 square feet of quality office space with state-of-the-art facilities and a sky garden. This project is progressing well and will be completed by the end of 2008.

Annual Report 2007 Henderson Land Development Company Limited 33 Review of Operations – Business in Hong Kong Major Development Projects

Major Projects Under Development Q 22 Central Heights Q 23 Royal Green Q 1 The Beverly Hills – Phase 3 Q 24 CentreStage Q 2 Fanling Sheung Shui Town Lot 231 Q 25 Scenic Horizon Q 3 33 Lai Chi Kok Road Q 26 CentrePlace Q 4 Lot No. 1740 in DD 122, Tong Yan San Tsuen Q 27 Grand Waterfront Q 5 The Sparkle Q 28 The Sherwood Q 6 Fanling Sheung Shui Town Lot 76 Q 29 The Beverly Hills – Phases 1 & 2 Q 7 11-12 Headland Road Q 8 Kwun Tong 223 Q 9 78 Hung To Road Q 10 52 Hung To Road Q 11 Midas Plaza Q 12 9-11 Sheung Hei Street Q 13 712 Prince Edward Road East

Major completed development projects offered for sale 28 Q 14 Casa Marina I & II Q 15 King’s Park Hill Tuen Mun Q 16 Royal Terrace Q 17 – Phases 1 & 2 Q 18 Metro Harbour View Q 19 Paradise Square Q 20 Grand Promenade Q 21 Splendid Place Hong Kong International Airport

Discovery Bay

Tung Chung Mui Wo

Lantau Island

Residential & Commercial & ResidentialCommercial Office Industrial Office

Annual Report 2007 34 Henderson Land Development Company Limited Review of Operations – Business in Hong Kong Major Development Projects

Lo Wu

23 2 Lok Ma Chau Sheung Shui 6

Fanling 29 1 14

4

Yuen Long Tai Po

New Territories

Ma On Shan Sai Kung

Shatin Tsuen Wan

Kowloon 13 11 12 Lai King Kowloon 19 Tsing Yi 18 5 Tong 27 9 3 17 22 8 10 15 Mong Kok Tseung Kwan O Hunghom 26 24 21 16 20 25

Central 7 Chai Wan

Existing Line Existing Line MTR Route 3 Airport Express Lok Ma Chau Spur Line Cable Car KCR East Rail Under Construction KCR West Rail Kowloon Southern Link KCR Ma On Shan Rail Light Rail Under Planning Cross Harbour Tunnels Shatin to Central Link

Annual Report 2007 Henderson Land Development Company Limited 35