Page 74 - TreasuryChinaTrust

Treasury China Trust Annual Report 2010 23

TRUSTEE-MANAGER’S REPORT

Superior Location

Strategically located in the heart of Shanghai CBD, Central Plaza is a 22-storey office and retail podium in close proximity to the city’s metro and expressway networks.

Weak Rent Roll

• 121 tenants

• Approx. 315 sqm/tenant

Under-performing Income Stream

• 5.5% yield on cost

Central Plaza – Where We Started ...

Cost Effective Asset Enhancement Initiative

• CAPEX representing just 3.2% of initial cost

Conversion to Quality Tenant Covenants

• 67 tenants

• Approx. 570 sqm/tenant • Longer lease term profile

• Top 10 tenants now occupy 54% of GFA

Comprehensive Renovation and Refurbishment Programme Aggressive Marketing, Tenant Sourcing and Creative Leasing Strategies

The Completed Product

Income

• 6.7% yield on cost

Valuation

• 17.5% since acquisition

Strongly Performing Income Stream

• Increase in rent roll based revenue of 25.1%

Before Refurbishment

After Refurbishment

TCT has long recognised the significant value-add that can be created in the China commercial real estate market through a proactive approach to an asset enhancement and repositioning programme. Central Plaza is proof of this strategy with the delivery of a stunning result that took an under-performing asset, in a strategic location and created an institutional quality asset, both in terms of the built environment and tenant register.