Japan Properties
China Property
Renhe Spring Zongbei Property
Renhe Spring Zongbei Property
is located in Chengdu, the capital
city of Sichuan province and
well-known as the hometown
of pandas, a popular tourist
destination. Chengdu is one of
the most populous cities of China
with a population of 14 million
and is the transit centre and
financial hub of Western China.
To accommodate increased
transportation demand, a second
airport has been planned with
scheduled completion in 2018.
The central government continued
the austerity economic strategy
which affected sales and the
high-end luxury retail market.
Nationwide retail sales growth
in 1H 2015 eased to 10.3%, down
from 12.4% in 1H 2014. In Chengdu,
retail sales growth in 1H 2015 also
eased to 10.9% compared to 13.6%
in 1H 2014.
The property comprises four
levels of retail space and a café
on a mezzanine floor with a GFA
of approximately 100,854 sq ft.
Both basement and road level
parking facilities are available.
A Mass Rapid Transit station is also
located in front of the property. It
is surrounded by consulates and
high-end residences. Operating
as a department store with
concessionaires, international
brands present include Armani
Collezioni, Dunhill, Ermenegildo
Zegna, Hugo Boss, Max Mara
Weekend and Rolex. Occupancy
has been maintained at 100% since
acquisition in August 2007.
Oversupplied retail space during
the austerity measures
period intensified the market
competition. The retail landscape
in Chengdu continued to be
challenging which negatively
affected the performance of
Renhe Spring Zongbei Property
for FY 2013 and FY 2014/15.
Nonetheless, Renhe Spring
Zongbei Property remains focused
on fine-tuning the tenancy mix
and cost containment.
The Renhe Spring Zongbei Property is located in
a high income area and surrounded by grade A
buildings and high-end residences.
RENHE
SPRING
ZONGBEI
PROPERTY
No. 19, 4th Section,
Renminnan Road, Chengdu, China
S$
70.6m
PURCHASE
PRICE
S$
66.3m
MARKET
VALUATION
(as at 30 Jun 2015)
TOTAL GFA (SQ FT)
100,854
Leasehold
Estate
(expiring on
27 Dec 2035)
MONTHLY SALES YOY COMPARISON
(RMB millions) including VAT
2015
2014 2013
Jan Feb Mar Apr May Jun Jul
Aug Sep Oct Nov Dec
60.0
50.0
40.0
30.0
20.0
10.0
As at 30 June 2015, Starhill Global
REIT’s Japan portfolio consists of
five contemporary commercial
buildings located in the heart
of prime Tokyo in areas such as
Harajyuku, Ebisu and Roppongi,
within walking distance from
major subway stations. The
portfolio was refined in March
2014 with the divestment of
Holon L at a sale consideration
of JPY1,026.0 million (or
approximately S$12.8 million).
These five properties are targeted
to appeal to young and stylish
urbanites from the mid-income
segment. As at 30 June 2015,
the Japan Properties with a total
NLA of approximately 47,130 sq
ft enjoyed an overall portfolio
occupancy of 96.1%, with four of
them fully occupied.
Having weighed the costs and
benefits of earthquake insurance
for the Japanese assets, the
claimable sum and that their
contribution to Starhill Global
REIT’s portfolio is approximately
2.6% by asset value as at 30 June
2015, no specific earthquake
insurance has been taken up,
which is consistent with the
industry practice in Japan.
S$
146.2 m
(1)
PURCHASE
PRICE
S$
81.9 m
MARKET
VALUATION
(as at 30 Jun 2015)
16
TOTAL NLA (SQ FT)
47,130
TENURE
Freehold
1
F&B
46.0%
2 Others
30.4%
3 Services
13.3%
4 General Trade
4.4%
5 Health & Beauty
3.6%
6 Fashion
2.3%
RETAIL TRADE MIX
by gross rental contribution
(for Jun 2015)
6 5 4 3
2
1
Note:
(1)
Excludes Holon L which was divested
to Tadashi Kumazaki in March 2014
at JPY1,026 million, 6% above the
independent valuation done as at
31 December 2013. The open
market value was derived using the
discounted cash flow and income
capitalisation methods.
Starhill Global REIT’s Japan portfolio consists of five contemporary
commercial buildings located within walking distance from major
subway stations in prime Tokyo areas.
Ebisu Fort
Harajyuku Secondo Nakameguro Place
Roppongi Terzo
Daikanyama
NUMBER
OF TENANTS
as at 30 Jun 2015
OCCUPANCY RATE
30 Jun 2015
Retail
96.1%
31 Dec 2013
Retail
89.8%
31 Dec 2012
Retail
92.7%
1
Fashion
74.6%
2 Accessories
11.2%
3 Jewellery & Watches
7.7%
4 Leather Goods
3.7%
5 Café
1.5%
6 Cosmetics & Healthcare
1.3%
RETAIL TRADE MIX
by gross rental contribution
(for Jun 2015)
65 4
2
1
3
TENURE
40
YEARS
57
56
STARHILL
GLOBAL
REIT
Annual
Report
FY 2014/15
