SHKP Quarterly

The Group strengthens its mainland property investment portfolio with integrated landmarks For years, the Group has adopted a selective and focused strategy in the mainland market, building premium developments in key cities. The Group made its first move to the mainland in the 1990s. In light of rising demand for premium commercial properties after 2000, the Group decided to replicate its successful model of developing integrated landmarks in Hong Kong to key cities on the mainland. Its debut integrated complex on the mainland was Shanghai IFC, which has been a great success, followed by a few other integrated landmarks in other key cities. The Group will continue to expand its mainland property investment portfolio, with an expected completion of about 12 million square feet of attributable gross floor area over the next four financial years, primarily covering Nanjing IFC, the remaining phase of ITC in Shanghai, and some phases of Chengdu ICC. Shanghai IFC Shanghai IFC is the Group's first integrated complex in the mainland and its second IFC project after the debut of Hong Kong’s International Finance Centre (IFC) in 1998. The project comprises two premium grade-A office towers, the Shanghai IFC Mall, Shanghai IFC Residence serviced suites and The Ritz-Carlton Shanghai, Pudong. Located in a prime site in Pudong’s Little Lujiazui district, Shanghai IFC is well served by transportation links. It offers easy access across the Huangpu River, and its mall basement is directly connected to the Lujiazui metro station. Shanghai IFC has been popular among high-end consumers since its completion, by offering truly integrated experiences under the same roof. The contribution from the mainland property investment portfolio saw an upward trend in the past decade. Gross rental income from the mainland increased from 7% to 19% of the Group’s total gross rental income from 2009/10 financial year to 2019/20 despite the rental growth of the Hong Kong portfolio during the period. Although there was a temporary impact due to the COVID-19 outbreak in 2020 , domestic economic activity has been on the recovery track since March 2020, thanks to effective measures to contain the pandemic. The Group remains positive about the long- term growth of the mainland economy, which will bode well for premium mega commercial developments, especially in key cities. In the long run, there are more mega commercial projects in the pipeline, including the joint-venture Jianghehui Project in Hangzhou and the Qingsheng Project in Nansha. Shanghai IFC 上海國金中心 Feature Story Vol 98 • Q4 2020 • SHKP Quarterly 4