Office Portfolio. Xxx Xxxx XXXX’s office portfolio comprises Xxx Xxxxx Xxxxxxx xx Xxxxxxx Xxxxxxxx Xxxxx and The Tower at Chongqing Metropolitan Oriental Plaza. Revenue was RMB547 million (2020: RMB562 million) and NPI was RMB396 million (2020: RMB403 million).
Office Portfolio. With increased market uncertainty due to the pandemic and ongoing China-US trade tensions, many corporations continued to be cost cautious and put their expansion plans on hold. Some struggling tenants even reneged on leases. The office leasing momentum in China was generally weak in 2020. Xxx Xxxx XXXX’s office portfolio consists of The Tower Offices at Beijing Oriental Plaza and The Tower at Chongqing Metropolitan Oriental Plaza. Revenue was RMB1,111 million (2019: RMB1,264 million) and NPI was RMB790 million (2019: RMB935 million).
Office Portfolio. Focused on Retaining Quality Tenants China’s office leasing market has been facing the challenge of weakening demand and oversupply. The ongoing trade disputes between China and Western countries, and the pandemic have exacerbated the challenges on the office leasing market. As business activities resumed gradually in 2021, China’s office leasing market began to show signs of stabilisation. However, many corporations remained cost-conscious and postponed their decisions on leasing new space. “Work-from- home or hybrid work model” becomes the new normal, affecting the underlying leasing demand for office space in the long run. Landlords had become more flexible in lease negotiations to avoid the risk of lengthy voids. Hui Xian REIT’s office portfolio consists of (i) The Tower Offices at Beijing Oriental Plaza, and (ii) The Tower at Chongqing Metropolitan Oriental Plaza. During the year, the NPI was RMB795 million (2020: RMB790 million). Vacancy rate in the Beijing office market continued to stay at a relatively high level of 15.0%1 in the fourth quarter of 2021. Downward pressure on rents continued. To maintain a stable income stream and improve the occupancy level, Xxx Xxxxx Xxxxxxx xx Xxxxxxx Xxxxxxxx Xxxxx focused on retaining existing quality tenants by offering competitive renewal packages. Average occupancy rate was 87.4% (2020: 85.2%); and average monthly passing rent was RMB269 (2020: RMB281) per square metre. Chongqing’s office leasing market was still at the stage of adjustment. The city’s office vacancy rate was at a high level of 27.0%2 in the fourth quarter of 2021. At The Tower at Chongqing Metropolitan Oriental Plaza, average occupancy rate was 83.8% (2020: 87.4%). Average monthly passing rent was RMB100 (2020: RMB103) per square metre. Sources:
Office Portfolio. During the first half of 2019, the ongoing China-US trade tensions and China’s slower economic growth created uncertainties, affecting the business sentiment and curtailing demands for office space in key Chinese cities. Many multinational and domestic corporations have become more cost- conscious and have held off their expansion plans or have downsized their office space.
Office Portfolio. Due to the uncertainty in the global and China’s economic outlook, leasing demand for office space in key Chinese cities softened during the first half of 2019, putting pressure on occupancy and rental rates. Many multinational and domestic companies have become more cost- conscious and conservative in their expansion plans. Hui Xian REIT’s office portfolio comprises Xxx Xxxxx Xxxxxxx xx Xxxxxxx Xxxxxxxx Xxxxx and The Tower at Chongqing Metropolitan Oriental Plaza. Revenue was up by 3.0% year-on-year to RMB660 million. NPI increased 4.6% year-on-year to RMB499 million.
Office Portfolio. Hui Xian REIT’s office portfolio has been materially impacted by the ongoing China-US trade war since 2019. The COVID-19 pandemic, which has disrupted the global supply chains and international trade, further exacerbated the vulnerability of the situation. During the lockdown, stringent restrictions halted most economic activities and citizens were not allowed to go to work. Even when offices and workplaces gradually reopened later, there were government restrictions on the area and number of staff that could be allowed to go back to the office to work. The economic uncertainty and the dampened operating environment severely impacted the leasing demand. Many companies have become extremely cost-conscious and have held off their expansion plans. There were also many cases of tenants scaling back or even reneging on leases. Moreover, COVID-19 has accelerated the adoption of “work from home”; this might have led to lower demand for office space in the long run. All these have affected office leasing prospects and further rental declines are expected. Hui Xian REIT’s office portfolio consists of: (i) The Tower Offices at Beijing Oriental Plaza, and (ii) The Tower at Chongqing Metropolitan Oriental Plaza. NPI was RMB403 million (2019: RMB499 million). Against a backdrop of economic uncertainty, a number of tenants at Beijing Oriental Plaza did not renew or requested to early terminate their leases during the Reporting Period. Further, corporations were extremely cost-cautious and had put their expansion plans on hold. As a result, leasing momentum was slow during the Reporting Period and occupancy rate was down to 84.5% (2019: 94.0%). Rental rates continued to be under pressure. Average monthly passing rent was RMB288 (2019: RMB297) per square metre. Newly committed rents were unavoidably lower resulting in negative reversion; and average monthly spot rent was RMB281 (2019: RMB323) per square metre.
Office Portfolio. Hui Xian REIT’s office portfolio consists of (i) Xxx Xxxxx Xxxxxxx xx Xxxxxxx Xxxxxxxx Xxxxx and (ii) The Tower at Chongqing Metropolitan Oriental Plaza. Revenue was RMB1,101 million (2020: RMB1,111 million) and NPI was RMB795 million (2020: RMB790 million).
Office Portfolio. The Tower Offices at Beijing Oriental Plaza The Tower at Chongqing Metropolitan Oriental Plaza The Tower Offices at Beijing Oriental Plaza consists of eight towers, offering over 300,000 square metres of Grade A office space. It has a strong and diversified tenant base, which includes some of the leading multinational and domestic corporations, as well as government related bodies. Located in the heart of Jiefangbei Central Business District, The Tower at Chongqing Metropolitan Oriental Plaza is home to a number of consulates and multinational corporations from a wide range of sectors. THE TOWER OFFICES AT BEIJING ORIENTAL PLAZA
