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45 MACQUARIE MEAG PRIME REIT
ANNUAL REPORT 2007
THE RENHE SPRING ZONGBEI PROPERTY
MMP REIT acquired the Renhe Spring Zongbei
Department Store (Renhe Spring Zongbei) in Chengdu,
China on 28 August 2007 at a price of RMB 350
million (SGD 70.6 million1). Chengdu is the capital of
Sichuan, one of the most populous provinces in China,
and the fourth largest city in China. Chengdu’s year-on-
year GDP for 2007 was 15.3%2, higher than Shanghai’s
GDP growth rate of 13.3%3 in the same year. Chengdu
has a population of 11.3 million and is an important
economic centre in China serving as a transport and
communications hub for southwest China.
Renhe Spring Zongbei is located in Chengdu’s consulate
precinct, in a high-end commercial centre and high
income area. It comprises the retail podium of a
mixed-use development completed in 2003, which
includes a Grade A office tower. Renhe Spring Zongbei
has gross floor area of about 101,000 square feet and
comprises four levels of retail premises plus a mezzanine
floor, and is served by basement and road level open
carparking. The property is serviced by two main roads,
Renminnan Road and Lingshiguan Road. A new metro
line is being constructed in Chengdu, and the Ni Jia
Qian station, with an expected completion date of
2010, will be located directly in front of the property.
Renhe Spring Zongbei is positioned as a mid-to-high
end department store operating under the Renhe
Spring brand name. Tenants include luxury brands such
as Prada, Hugo Boss, Montblanc, Vertu, Givenchy,
Dunhill, Bally, as well as popular international brands
such as Miss Sixty and Ecco. The property enjoyed full
occupancy in 2005, 2006 and 2007, with sales revenue
hitting year-on-year growth of 22% in 2007.
CHINA PROPERTY
1 Based on exchange rate of RMB 4.96: S$1 at acquisition
2 Chengdu Statistics Bureau
3 Shanghai Statistics Bureau