SEO Version
FORTERRA
ANNUAL REPORT 2013
TRUSTEE-MANAGER’S REPORT
15
Gross Revenue
by Property
Huai Hai Mall
Forterra House
Central Plaza
Beijing
Logistics Park
The Place Existing
1
Central Park Mall
(Phase I)
Forterra Real Estate Pte. Ltd.
(formerly known as Treasury
Holdings Real Estate Pte. Ltd.) is
the Trustee-Manager of Forterra
and executes this function in
accordance with the Trust Deed
established and executed on 19
May 2010 and Supplemental Trust
Deed dated 26 February 2013.
In this capacity, Forterra Real
Estate Pte. Ltd. has created one
of the leading players in China’s
burgeoning commercial real
estate sector.
OVERVIEW
Forterra is an owner, manager and
developer of quality commercial
real estate in China with its
focus on Shanghai, the largest
commercial and economic region
in the country.
With a diverse portfolio comprising
office, retail and logistic park real
estate represented by stabilised
income
produc ing
assets ,
redevelopment projects and
green field sites, Forterra strives
to deliver optimum returns to
unitholders through a mixture of
recurrent lease rental income and
accretive net asset value through
proactive management of its
development assets.
BUSINESS REVIEW
• Gross Revenue by Property
Gross revenue for the Trust
registered a year-on-year decrease
of 22.0% mainly attributable by
the sale of Central Plaza settled
in May 2013 and the absence of
retail rental from The Place Phase
1 (formerly known as The HQ 1)
amid refurbishment work during
the year. Huai Hai Mall continued
its transition to a pre-development
state with tenants moved out
gradually from the premises and
thus resulted in lower revenue
contribution during the year.
For Central Park Mall, whilst the
termination of rent guarantee with
TRIO have a short term impact
to its revenue contribution, the
restructure of the financing
arrangement represented an
outflow saving of RMB18.6 million
(S$3.9 million) for the entirety of
the restructure.
• Rental Reversion for Renewal
and New Leases
The results for the year reflected
that office portfolio remained
a strong contributor to gross
revenue in terms of total income
generated and positive rental
reversion. During the year, 73
office tenancies were negotiated
reflecting an average increase
in contracted rental income of
8.9% on a net effective basis. This
leasing activity encompassed over
130,000 sqm of office space of
which 47 tenants renewed expiring
leases including 9 negotiations
for expansion space and 26 new
tenants were introduced to the
portfolio across 2013.
24.8
57.2
108.3
35.0
12.9
260.4
FY 2012
14.9
35.3
50.5
42.8
31.1
204.8
(RMB Million)
FY 2013
1. Formerly known as The HQ Existing
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