Harbour Centre Development Limited (stock code: 51) is a listed subsidiary of The Wharf (Holdings) Limited (stock code: 4), with property development and investment business in Hong Kong and the Mainland as its primary business. It also owns the Marco Polo Hongkong Hotel in Hong Kong.
The Group’s core profit for the first half of 2013 increased by 547% from the first half of 2011 and exceeded its past five-year average by 138%. This followed an exceptionally strong 2012 and confirms a sustainable and solid foundation. During the period under review, the Group’s China property accounted for 80% of revenue and 49% of core profit. China property business will continue to be a core business in the years to come.
As at the end of June 2013, the Group's total attributable land bank in China was 2.0 million square metres, which comprise six prime sites in the cities of Changzhou, Chongqing, Shanghai and Suzhou as well as represent 70% of the Group’s total business assets at a book value of HK$13 billion.
This includes the 450-metre skyscraper, Suzhou International Finance Square ("IFS"), previously named Suzhou International Finance Centre. This investment property is designed by the internationally renowned architect, Kohn Pedersen Fox, and scheduled for completion by 2016 for a total project cost of over RMB5 billion.
The faster pace of profit realisation of our China property business will strengthen the Group’s financial position to fund the Suzhou IFS development, as well as other investment opportunities as they arise.
As for Hong Kong Portfolio, thanks to the resilient local and international consumption demand, the investment property segment in Hong Kong (mainly comprising prime Canton Road retail properties) performed solidly, with a 20% increase in revenue and a 21% increase in operating profit.
For hotel business, business travellers’ spending was tightened amid uncertain global environment. Nevertheless, on the back of a solid hotel room demand, the average room rate at Marco Polo Hongkong Hotel (“MPHK Hotel”) increased by 4% while average occupancy was maintained at 88% during the period under review.