Retail Portfolio. Rental Relief Measures to Support Occupancy 2020 has been difficult for many retailers and landlords in China. According to the National Bureau of Statistics, China’s retail sales of consumer goods fell by 3.9% year-on-year in 2020. At the height of the pandemic, cinemas, gyms and entertainment venues had to be closed for business temporarily according to government measures. Only take-away and delivery services were allowed for restaurants. Some retailers struggled to pay rent. At the same time, many landlords faced various challenges, such as rental collection problems, tenant bankruptcies and substantial reduction in rental income and occupancy. COVID-19 has brought structural changes to the retail industry and consumer behaviour. Consumers stayed at home during the lockdown and shopped online, accelerating the shift from physical to online purchasing. Shopper footfall and retail sales in the majority of brick-and-mortar stores recorded decrease in figures. In China, online retail sales of physical goods increased 14.8% year-on-year in 2020, accounting for 24.9% of the total retail sales of consumer goods. Hui Xian REIT’s retail portfolio consists of two shopping centres: (i) The Malls at Beijing Oriental Plaza, and (ii) The Mall at Chongqing Metropolitan Oriental Plaza. NPI was RMB667 million (2019: RMB893 million). In 2020, Beijing’s total retail sales of consumer goods declined 8.9% year-on-year, steeper than the national average of 3.9% decrease. At The Malls at Beijing Oriental Plaza, a number of tenants suffered from a decline in business during 2020. Some faced cash flow and supply chain problems; and some sought rental relief and deferment plan, or lease renegotiation. The Malls’ occupancy rate in the beginning of 2020 was approximately 99%; subsequently it dropped to 86% in the middle of the year. In a weak retail environment, The Malls had to consider offering rent relief programme. At the same time, The Malls worked hard on lease renewals, even at a lower rental rate. Due to its excellent location and tenant mix, The Malls remained popular among retailers and shoppers. Occupancy rate as at December 2020 was improved to 91.5%. Average occupancy rate for 2020 was 92.4% (2019: 98.4%). Average monthly passing rent was RMB972 (2019: RMB1,151) per square metre. Average spot rent was down by 9.7% year-on-year. Negative rental reversion rate was 34.4%. Various online and offline marketing campaigns were launched by The Malls to drive shopper traffic ...
Retail Portfolio. The COVID-19 pandemic hit China’s retail sector hard, particularly H1 2020. During the lockdown, residents had to stay at home. Many brick-and- mortar stores saw a fall in foot traffic and sales. Sit- down restaurants also suffered as only take-away and delivery services were allowed at the height of the pandemic. Per government guidelines, cinemas, gyms and entertainment venues across the country were temporarily closed for business. During 2020, China’s total retail sales of consumer goods fell by 3.9% year-on-year as compared to 8.0% growth for 2019 according to the National Bureau of Statistics of China. THE MALLS AT BEIJING ORIENTAL PLAZA
Retail Portfolio. During 2021, China’s total retail sales of consumer goods amounted to RMB44 trillion, up by 12.5% year-on-year according to the National Bureau of Statistics of China. Hui Xian REIT’s retail portfolio comprises two large-scale shopping centres: (i) The Malls at Beijing Oriental Plaza and (ii) The Mall at Chongqing Metropolitan Oriental Plaza, providing about 222,000 square metres of retail space. During the year, revenue was RMB1,008 million (2020: RMB973 million) and NPI was RMB690 million (2020: RMB667 million).
Retail Portfolio. According to official data, China’s retail sales rose 8.4% to RMB19,521 billion during the first half of 2019. Disposable income per capita grew 8.8% to RMB15,294. Consumption is a key driver for the country’s economic growth and the Chinese government has been rolling out a host of stimulus measures to boost domestic consumption. With the support of social media, smartphones and mobile payment, e-commerce continues to expand in China. In the first half of 2019, online retail sales increased 17.8% year-on-year to RMB4,816 billion. Hui Xian REIT’s retail portfolio consists of two shopping centres at Beijing Oriental Plaza and Chongqing Metropolitan Oriental Plaza. NPI was RMB452 million (2018: RMB450 million). During the Reporting Period, The Malls at Beijing Oriental Plaza sustained a high level of occupancy and rents, achieving revenue and NPI growth. Occupancy rate was 98.0% (2018: 97.2%). Average monthly passing rent was RMB1,153 (2018: RMB1,126) per square metre. The Malls continues to be a sought-after destination for both retailers and shoppers, attributable to its prime location in Wangfujing, excellent accessibility and high footfall. The tenant mix at The Malls has been going through refinement with the addition of sportswear and lifestyle stores, as well as a variety of food and beverage outlets to meet the fast-changing customer tastes. The comprehensive asset enhancement and tenant revamp programme at Chongqing Metropolitan Oriental Plaza mall continued throughout the Reporting Period and is expected to be completed by the end of 2019. During the renovation period, average occupancy rate was 86.7% (2018: 84.0%) and average monthly passing rent was RMB155 (2018: RMB171) per square metre.
Retail Portfolio. Hui Xian REIT’s retail portfolio comprises two large-scale shopping centres: The Malls at Beijing Oriental Plaza and The Mall at Chongqing Metropolitan Oriental Plaza, providing about 219,000 square metres of retail space. Amidst a challenging operating environment, revenue was RMB614 million (2018: RMB605 million) and NPI was RMB452 million (2018: RMB450 million).
Retail Portfolio. China’s retail market continued its steady recovery during H1 2021. The country’s total retail sales of consumer goods rose 23.0% year-on-year according to the National Bureau of Statistics of China. Hui Xian REIT’s retail portfolio comprises two large-scale shopping centres: The Malls at Beijing Oriental Plaza and The Mall at Chongqing Metropolitan Oriental Plaza, providing about 222,000 square metres of retail space. During the Reporting Period, revenue was RMB508 million (2020: RMB483 million) and NPI was RMB361 million (2020: RMB344 million).
Retail Portfolio. The first half of 2020 has been very difficult for many retailers in China. Consumers were forced to stay at home during the lockdown. Social distancing and inter/intra city travel restriction dampened retail traffic and consumer sentiment. There was a substantial decline in foot traffic and turnover in physical stores. Business of sit-down restaurants was particularly hit, with only take-away and delivery services allowed at the height of the outbreak. There was a strict limitation on the seating capacity when they were allowed to open for dine in. Cinemas, gyms and entertainment venues were ordered by the government to close temporarily. As the retail market continued to deteriorate and vacancy rate on the rise, landlords were under as much pressure as their beleaguered tenants. They also had experienced a substantial reduction in their rental income. Hui Xian REIT’s retail portfolio consists of two shopping centres: (i) The Malls at Beijing Oriental Plaza, and (ii) The Mall at Chongqing Oriental Plaza. NPI was RMB344 million (2019: RMB452 million). Most of our tenants have suffered from a severe drop in business. They also faced various challenges, such as cash flow and supply chain issues. Some tenants sought for rent relief and deferment plan, and others negotiated to restructure the leases. There were also struggling tenants requesting for the leased areas to be shrunk and some requested early termination of their tenancy agreements. INTERIM REPORT 2020 5
Retail Portfolio. The COVID-19 outbreak hit China’s retail sector hard. During the lockdown, residents were forced to stay at home. Brick-and-mortar stores saw a plunge in foot traffic and sales. Sit-down restaurants also suffered as only take-away and delivery services were allowed at the height of the pandemic. Following government guidelines, cinemas, gyms and entertainment venues across the country were closed temporarily. China’s total retail sales of consumer goods during the first half of 2020 fell by 11.4% year-on-year as compared to 8.4% growth for the same period of 2019. Hui Xian REIT’s retail portfolio comprises two large-scale shopping centres: The Malls at Beijing Oriental Plaza and The Mall at Chongqing Metropolitan Oriental Plaza, providing about 222,000 square metres of retail space. Many of our retail tenants saw a massive drop in business during the Reporting Period. Rent relief were offered, which in turn affected our revenue immediately. During the Reporting Period, revenue was RMB483 million (2019: RMB614 million) and NPI was RMB344 million (2019: RMB452 million).
Retail Portfolio. In the case of the Retail Mall, the JV Company will acquire from BBCC the Strata Space and within the Strata Space, the JV Company will construct the Retail Mall together with 2,400 car park bays (“Car Park Bays”) at its sole cost and expense, otherwise free from all encumbrances and subject to all the existing category of land use, conditions of title and restrictions in interest, express or implied, imposed on or relating to or affecting the Land. The Retail Mall will be located on that part of the Land delineated in yellow in the Layout Plan annexed hereto and will be constructed in accordance with the preliminary design, development concepts and development schedule attached to the Retail Mall SPA. The estimated gross floor area (“GFA”) of the Retail Mall is 1,349,950 square feet. In the case of the Retail Podium, the JV Company will acquire from BBCC the Retail Podium on a fully-constructed basis free from all encumbrances and subject to all the existing category of land use, conditions of title and restrictions in interest, express or implied, imposed on or relating to or affecting the Land. The Retail Podium will be located on that part of the Land delineated in blue in the Layout Plan annexed hereto and will be constructed in accordance with the design and specification to be discussed and agreed between BBCC and the JV Company and will be attached to the Retail Podium SPA. The estimated GFA of the Retail Podium is 40,085 square feet.
Retail Portfolio. The Malls at Beijing Oriental Plaza The Mall at Chongqing Metropolitan Oriental Plaza Hui Xian REIT’s retail portfolio consists of two large-scale shopping centres: The Malls at Beijing Oriental Plaza and The Mall at Chongqing Metropolitan Oriental Plaza, collectively offering about 222,000 square metres of retail space. Xxx Xxxxx xx Xxxxxxx Xxxxxxxx Xxxxx is home to a variety of top international and domestic fashion, accessory and lifestyle brands. It also boasts a cinema and over 50 food and beverage outlets, making it Beijing’s leading one stop shopping, dining and leisure destination for locals and tourists alike.
