Perennial Real Estate Holdings Limited - Annual Report 2017

BUSINESS REVIEW: REAL ESTATE – CHINA PERENNIAL QINGYANG MALL, CHENGDU ឡᇴ۱ ݙ ࣅܳԿ юЁ Perennial Qingyang Mall in Chengdu is a prime one-stop suburban mall positioned to serve the sizeable population catchment in the western part of Chengdu. The mall is part of an integrated development, comprising a five-star hotel, four office blocks and SOHO, with several residential developments in the vicinity, allowing the mall to enjoy a sizeable shopper catchment from its immediate surroundings. Strategically sited with prominent frontage along Guanghua Avenue, a key west arterial road leading to the Chengdu city centre, Perennial Qingyang Mall is easily accessible by car and connected directly via an underground pedestrian link to Zhongba Subway Station on the east-west Subway Line 4. With its strategic location, complementary surrounding establishments and strong tenant mix, Perennial Qingyang Mall is the premier shopping, dining and entertainment destination in the western region of Chengdu. Key Developments in FY2017 Perennial Qingyang Mall continued to deliver outstanding performance, with total committed occupancy reaching 99.4% in FY2017 and average rental increasing by approximately 9% year- on-year. Despite competition from new malls in the precinct, shopper traffic remained resilient at about 13 million in FY2017. Focus Areas for FY2018 In FY2018, the focus will be on curating a unique retail experience for shoppers by optimising the tenant mix and differentiating the mall’s offerings so as to reinforce its distinctive positioning in the precinct. Marketing activities including bank and mobile application promotions continue to be intensified to drive shopper traffic and tenants’ sales. Annual Report 2017 66 PERENNIAL REAL ESTATE HOLDINGS LIMITED