Page 20 - Forterra

18 ANNUAL REPORT 2012
COMMERCIAL REAL ESTATE PORTFOLIO
THE HQ — THE OVERWHELMING FOCUS IN
THE SHORT TO MEDIUM TERM
OVERVIEW
The HQ comprises 188,675 square metres of existing
office and retail facilities to be complemented by an
88,541 square metre extension for which the design has
received all the necessary approvals and is currently
under construction. Leveraging Forterra’s signature
strengths of international quality retail design and
proactive and strategic development and asset
management, upon completion The HQ will provide a fully
integrated commercial complex comprising over 277,000
square metres of office and retail accommodation and
ancillary facilities (basement car parking etc).
The retail scheme of The HQ is expertly designed by
Benoy Limited, an internationally recognized design firm
and is positioned to be one of Shanghai’s most exciting
new business and lifestyle destinations.
Construction Progress
The construction program of the HQ reflects three
distinctive elements:
1. The refurbishment of the existing 7 level (including 1
basement) retail podium previously housing Parkson
Department Stores as its major tenant (“The HQ 1”)
2. Refurbishment of the outdoor pedestrian mall and
food street (“The HQ 2”)
3. Construction of a 4 level basement, 7 level retail
podium and 12 level office tower (“The HQ 3”)
The HQ Extension is set to secure Gold LEED
(“Leadership in Energy and Environmental Design”)
certification upon completion, a unique achievement for
a retail/office mixed-use property in China.
Upon its completion and stabilization as an International
Grade “A” high-quality income-producing commercial
real estate asset The HQ will contribute approximately
RMB700 million per annum (S$138 million) in gross
revenue to the Trust. This is a significant and substantial
increase on the gross income from the asset for 2012 of
approximately RMB260 million (S$52 million).
This revenue incorporates the following parameters and
assumptions:
1. Total retail space available for lease of approximately
62,000 square metres with pre-commitments
The HQ 1 : The
refurbishment
of the existing
7 level (including
1 basement) retail
podium previously
housing Parkson
Department Stores
as its major tenant
The HQ 3 :
Construction
of a 4 level
basement,
7 level retail
podium
and 12 level
office
The HQ 2 :
Refurbishment
of the outdoor
pedestrian
mall and food
street