1,908 1,678 - the wharf (holdings) limited (e) times square.pdfyear with the recruitment of...
TRANSCRIPT
Business Assets:
Gross Revenue:
Operating Profit:
HK$ Million
HK$ Million
HK$ Million
43,643
1,908
1,678
Annual Report 2012 / The Wharf (Holdings) LimitedAnnual Report 2012 / The Wharf (Holdings) Limited 2928
Business AssetsAs at 31 December
2012HK$ Million
2011HK$ Million
Properties (at valuation) 43,600 37,000 Other assets 43 51
Total business assets 43,643 37,051
Gross Revenue2012
HK$ Million2011
HK$ Million Change
Retail 1,352 1,258 +7%Office 556 474 +17%
Total gross revenue 1,908 1,732 +10%
Operating Profit2012
HK$ Million2011
HK$ Million Change
Retail 1,198 1,121 +7%Office 480 401 +20%
Total operating profit 1,678 1,522 +10%
Times SquareProperty Value(HK$ Million)
0
7,500
15,000
22,500
30,000
37,500
45,000
08 09 10 11 12
43,600
Year
Gross Revenue (HK$ Million)
0
250
500
750
1,000
1,250
1,500
1,750
2,000
08 09 10 11 12
1,908
Year
The most successful and tallest vertical shopping mall in Hong Kong
Annual Report 2012 / The Wharf (Holdings) LimitedAnnual Report 2012 / The Wharf (Holdings) Limited 3130
Times Square — “The Place of Happenings”
Withdrawal of 17% of total retail space from the market for a major renovation moderated the growth rate of Times Square compared to recent years. Revenue increased by 10% to HK$1,908 million and operating profit by 10% to HK$1,678 million. Times Square was valued at HK$44 billion at the end of 2012, an increase of 18% over 2011, representing 13% of the Group’s business assets.
RetailTimes Square is the most successful vertical mall in Hong Kong. Its success stems from its unique 16-level design, comprehensive trade-mix and direct linkage to the Mass Transit Railway in the prime retail district of Causeway Bay on the Hong Kong Island. Total retail sales at Times Square maintained a 1.5% growth to HK$9.3 billion despite the withdrawal of approximately 85,000 square feet of lettable area or 17% of total retail space from the market for cinema relocation during the year. On a per-square-foot basis, Times Square’s retail sales posted a 15% growth over 2011 to over HK$1,700.
Revenue of Times Square’s retail sector increased by 7% to HK$1,352 million. Occupancy was maintained at virtually 100% at the end of 2012 (excluding the areas vacated for refurbishment).
The cinema relocation, with a view to adding immense retail value to Times Square, progressed as planned. The new retail shops at the ground and lower floors, as well as the new cinema on 12th and 13th floors are scheduled to open in the second half of 2013.
In an attempt to enrich Times Square’s product offerings, tenant-mix was further refined during the year with the recruitment of international and trendy labels including Blackbarret, Cartier, Chaumet, Georg Jensen, IWC, Jill Stuart, Loewe. Galerie, Omega, Repetto and Samsung. Some existing tenants including A.T. by Atsuro Tayama, Bose, Chanel Beauté, Furla, Jurlique and Links of London were relocated to uplift the shopping experience. The opening of BLT Burger further widened the culinary selection at Times Square.
Innovative marketing campaigns at Times Square continued to capture shoppers attention and reinforce its positioning of “The Place of Happenings”. The New Year’s Eve Apple Countdown remains one of the most popular events in Hong Kong. The ‘Lego Christmas Village’ was installed during Christmas to celebrate the 80th anniversary of the iconic Danish toy manufacturer. Large scale art and cultural events such as the Fang Lijun Art Exhibition, the Korean Contemporary Art Exhibition and the UK Festival were held during the year.
Completion of the cinema relocation will further enhance Times Square’s zoning strategy and shoppers’ traffic distribution for the mall. Times Square will strive to strengthen its leading position as a must-visit shopping landmark in Hong Kong through brand-mix refinement for an all-round and unique shopping experience.
OfficeRevenue of the office sector increased by 17% to HK$556 million, on the back of positive rental reversion. Occupancy stood high at 98% at the end of 2012. Times Square remains the preferred office location for multinationals in the service and consumer goods industries. Lease renewal retention was maintained at 67%, with renewals from tenants including Assicurazioni Generali, Bates Asia, Dennis Lau & Ng Chun Man Architects & Engineers, EF Education, JT International and Walt Disney. New lettings during the year included Alliance Global, Chanel, Forex Trade, Kosei International, Unity and Workday Asia. There were also in-house expansions from Aon Hong Kong, Apple, Balenciaga, Google, Honda Motor, Lane Crawford and L’Oréal.
Business Review
Times Square
Annual Report 2012 / The Wharf (Holdings) LimitedAnnual Report 2012 / The Wharf (Holdings) Limited 3332
Retail Tenant Mix (by Rental and Area) % by Rental % by Area
Fashion 34.8 24.8Jewellery, Beauty and Accessories 27.2 15.2Department Stores, Confectionery Products 15.4 23.6Electrical & Audio-visual Equipment 9.0 9.0Sports Wear 6.5 4.8Restaurant, Fast Food, F&B 5.8 18.6Others 1.3 4.0
Total 100.0 100.0
Notes:(a) UA Times Square (20,348 sq. ft.) moved out in the end of January 2013(b) 12/F and 13/F of Food Forum (49,705 sq. ft.) was under reconfiguration
Portfolio InformationGross Floor Average Year-end
Area Revenue Occupancy Valuation(sq ft) (HK$ Million) (%) (HK$ Million)
Retail 936,000 1,352 98 29,751Office 1,033,000 556 97 13,849
Business Review
Times Square
The New Year’s Eve Apple Countdown remains one of the most popular events in Hong Kong and Asia