Interim Report 2015/2016
EXECUTIVE VICE-CHAIRMAN’S REPORT
9
On 20 November 2015, the Group entered into an agreement with Chow Tai Fook Enterprises Limited to purchase
36% of the entire issued shares of Beames Holdings Limited (“Beames”) and the entire amount of unsecured and non-
interest bearing shareholder’s loan at an adjusted consideration of approximately HK$3,592.8 million. Beames owns and
operates various hotel properties in Hong Kong and Southeast Asia, including certain attributable interests in Rosewood
Beijing, Renaissance Riverside Hotel Saigon, New Word Hotel Saigon, New World Makati Hotel, Grand Hyatt Hong
Kong, Renaissance Harbour View Hotel and Hyatt Regency Hong Kong, Tsim Sha Tsui and Shun Tak Centre Shopping
Mall in Hong Kong.
Through the acquisition of further interests in Beames, the Group will effectively consolidate the Group’s interest in
hotel properties, which is consistent with the core business strategies of the Group. Besides streamlining the structure
of Beames, the increase in stake in the hotel properties will provide flexibility and a wider platform for investments
which will enhance recurrent income and facilitate future merger or joint venture opportunities.
As at 31 December 2015, the Group had a total of 18 hotel properties providing over 8,000 guest rooms in Hong Kong,
Mainland China and Southeast Asia.
Mainland China Properties
During the period under review, New World China Land Limited (“NWCL”) achieved a profit attributable to shareholders
of HK$542.2 million. Taking into account the revenue from the joint-development projects, the revenue and segment
results from property development in Mainland China during the period under review amounted to HK$6,369.7 million
and HK$1,286.1 million respectively. The contribution from property development in Mainland China was mainly
attributable to the sales of the projects located in Guangzhou, Shenzhen, Shenyang, Tianjin, Langfang, Wuhan and
Zhaoqing.
During the period under review, the overall contracted property sales of NWCL reached a total GFA of 734,426 sq m and
the gross sales proceeds amounted to RMB12.3 billion.
During the period under review, NWCL’s completed property development projects for sale in Mainland China amounted
to a total GFA of 237,535 sq m, of which residential GFA amounted to 114,021 sq m. In FY2016, it is anticipated to
complete property development projects totalling a GFA of 813,765 sq m in Mainland China, of which residential GFA
will amount to 578,059 sq m.
For property leasing in Mainland China, the opening of Shanghai K11 Art Mall has enhanced the patronage, occupancy
and rental performance of Shanghai Hong Kong New World Tower. Furthermore, positive rental reversion has been
achieved for Wuhan New World International Trade Tower upon tenancy renewal. The abovementioned factors have
provided upside support to NWCL’s rental businesses.
In December 2015, NWCL successively disposed of interests of several projects in Wuhan, Haikou, Huiyang, Guiyang
and Chengdu, involving a total amount of RMB20.8 billion. The aforesaid transactions are in line with the Group’s existing
strategy and have evidenced the Group’s achievements in effective allocation of resources and asset enhancement. It
will also simplify the Group’s strategy of optimising its project development and investment portfolio by scaling down
investment in second and third-tier cities and putting more resources in first-tier and 1.5 tier cities.
