Annual Report 2011 - Hongkong Land

In 2012, the final office tower of Marina Bay
Financial Centre will be completed. This 122,000 sq. m.
tower has been 65% pre-let with DBS Bank as the
largest tenant.
Market conditions are expected to be challenging given
the relative weakness in demand for Grade A office
space, particularly from the financial services sector,
combined with the overall availability of office space
in the market. However, there are no significant leases
expiring in 2012 across the Group’s existing portfolio,
and its quality will enable it to maintain a strong
competitive position.
Other Commercial Property Investments
In Macau, the retail centre at our 47%-owned joint
venture project, One Central, had a strong year
benefiting from growing retail sales. The retail mall
of some 20,000 sq. m. features the world’s leading
luxury brands and is considered the preeminent
shopping venue in the city. Overall occupancy at
the end of 2011 was 93%, including 7% of the space
for which contracts are signed but operations have
yet to begin. The hotel component of One Central,
Mandarin Oriental, Macau, is now firmly established
as the most exclusive hotel in the market.
In Jakarta, the Group’s 50%-owned joint venture
currently owns and manages some 80,000 sq. m.
of space in three buildings located prominently in
the city’s Central Business District. These are 99.7%
let. A fourth tower, which is under construction and
expected to complete in 2012, is nearly 80% pre-let.
Market conditions are generally encouraging, although
rental levels remain low compared with other major
Asian markets.
The Group has other commercial investment properties
in Hanoi, Bangkok and Bermuda, the overall results of
which continue to be satisfactory. The two buildings in
Hanoi, which are approximately 70% owned, remain
fully let at premium rates to the market. In Bangkok,
at the Group’s 49%-owned luxury retail and office
complex, Gaysorn Plaza, trading conditions for the
retailers remained challenging. In Bermuda, Jardine
Gibbons Property, in which Hongkong Land has a 40%
interest, owns four commercial buildings in the centre
of Hamilton.
10.84
10.85
11.18
8.52
6.33
5.08
4.69
4.04
3.78
4.83
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
Central portfolio average office effective rent (US$/sq. ft per month)
Annual Report 2011 9