With high-quality commercial real estate in mainland China, Sun Hung Kai Properties showed its resilience during the research period.
Rental revenue and net rental income of the mainland portfolio, including share of joint ventures, increased by 8% in Hong Kong dollar terms to HK$6.305 billion ($0.81 billion) and HK$5.027 billion, respectively. In Renminbi terms, rental revenue increased by 12% to Rmb5.822 billion ($0.8 billion). The rental growth is driven mainly from newly completed properties, including Nanjing IFC Mall and Tower A of Three ITC in Shanghai. The rental portfolio on the mainland will further expand upon completion of the remaining portion of Three ITC.
As of 30 June 2024, SHKP had a total attributable land bank of 66.7 million sq ft on the mainland. This included about 21.0 million sq ft of completed properties, mostly located in major business hubs of first tier and leading second-tier cities in China, an overwhelming majority of which were for rental and long-term investment purposes.
SHKP achieved attributable contracted sales of Rmb11 billion on the mainland during the research period. The successful launch of the third phase of Shanghai Arch in Shanghai and the third phase of the residential portion of the joint-venture Hangzhou IFC in Hangzhou contributed significantly to property sales in the mainland market. In particular, the Shanghai Arch project’s 212 upscale residential units were snapped up within less than one day.
SHKP will continue to develop new landmark mixed-use projects on the mainland where the residential portion will be for sale, such as Guangzhou South Station ICC, to be completed in phases from 2025, and Hangzhou IFC, where units were launched for sale earlier this year. Other projects including Lake Genève project in Suzhou and Oriental Bund in Foshan will launch in the future.
Sustainability is a priority for SHKP during development, with the introduction of low-carbon construction and green designs in the residential estates on the mainland – Hangzhou IFC attaining LEED for Communities Platinum pre-certification and WELL pre-certification proving its efforts on this.