Page 83 - TreasuryChinaTrust

Treasury China Trust Annual Report 2010 14

TRUSTEE-MANAGER’S REPORT

Overview

Treasury Holdings Real Estate Pte. Ltd is the Trustee-Manager of TCT and executes this function in accordance with the Trust Deed established and executed on 19 May 2010. In this capacity, Treasury Holdings Real Estate Pte. Ltd has created one of the leading players in China’s burgeoning commercial real estate sector.

TCT is an owner, manager and developer of commercial real estate in key markets across China. With more than 240,000 square metres of high quality office and retail property located in China’s number one commercial market of Shanghai, TCT produces a strong and consistent cashflow that is complemented by more than 160,000 square metres of office, retail and logistics properties currently under development in Shanghai and Beijing.

In late 2010 TCT announced its intention to acquire a further 345,000 square metres (approximately) in total GFA of retail property in Shanghai and the key regional market of Qingdao. Comprising both income producing assets and development opportunities, these acquisitions enable TCT to leverage its exposure to the all-important Chinese consumer, who has driven year-on-year double digit retail sales volume for over 5 years. Most recently, an annual retail sales volume increase of more than 18% was recorded in 2010.

Asset Portfolio by GFA before Acquisition 1, 2

Asset Portfolio by GFA post Acquisition 2, 3

retail 56%

logistics 21%

63% increase office 51%

retail 28%

logistics 13%

office 31%

1 Includes both income-producing and development assets

2 Comprises above-ground GFA

3 Assume 100% ownership of Central Avenue Mall