60 PERENNIAL HOLDINGS PRIVATE LIMITED Business Review Real Estate OVERVIEW On the China real estate front, Perennial Holdings is an established owner, developer and manager who strategically focuses on diversified, large-scale integrated projects. Besides its healthcare cities, the Company is developing several commercial-centric TODs which are either adjacent to or in close proximity to major HSR or metro stations, mostly comprising a mix of complementary office, retail and hospitality components. Its commercial portfolio comprises integrated developments, namely Hangzhou West HSR Integrated Development (“Hangzhou HSR TOD”), Beijing Tongzhou Integrated Development (“Beijing Tongzhou TOD”) and Shenyang Longemont Integrated Development. Perennial Holdings also owns two retail malls, namely Perennial Qingyang Mall in Chengdu and Perennial Jihua Mall in Foshan, which are close to metro stations. These developments represent a total gross floor area (“GFA”) of approximately 30.4 million square feet (“sq ft”). On the hospitality front, Perennial Holdings is a growing hospitality services owner, manager and operator with a portfolio of 3- to 5-star multibranded hotels with nearly 6,600 rooms within its healthcare-centric and commercial-centric HSR TOD projects. Conveniently situated within these integrated precincts, they complete the compositions of self-contained, commercial-centric and business cities that deliver one-stop services and offerings to residents and tourists. MARKET OUTLOOK China, the world's second-largest economy, expanded 5% year-on-year (“YoY”) in 2024, with its gross domestic product (“GDP”) reaching RMB134.9 trillion1. This is an achievement of its 2024 growth target amidst a complex domestic and global landscape. This robust growth rate stands out in the global economy, attributable to strong fundamentals, market resilience and the foreseeable potential of China's economy. Despite the challenges in the real estate market, with a YoY decrease of 10.4%2 in real estate development investment from January to November 2024, the government is taking active steps3 to promote market activities and instil confidence. Policies introduced during the year included increasing funding for near-completion housing projects, reducing mortgage interest rates and lifting restrictions on home purchases and loans across China, including first and second-tier provincial cities. With the aim to increase HSR lines to 60,000 kilometres (“km”) by 2030 from 48,000 at the end of 20244, China’s continued expansion of its HSR network will help drive the growth and accessibility of Perennial Holdings’ commercial-centric TODs and integrated developments. For example, a much-anticipated HSR between Hangzhou and Wenzhou officially began operations in September, creating a “one-hour transport circle” within the two cities5, increasing accessibility of Perennial Holdings’ landmark Hangzhou HSR TOD to the larger Zhejiang province. 1 The State Council The People’s Republic of China, 18 January 2025 https://english.www.gov.cn/news/202501/18/content_WS678ae501c6d0868f4e8eeef7.html 2 National Bureau of Statistics of China, 17 December 2024 https://www.stats.gov.cn/english/PressRelease/202412/t20241224_1957843.html 3 China Daily, 13 March 2025 https://www.chinadaily.com.cn/a/202503/13/WS67d240d0a310c240449da98d.html 4 China Daily, 2 January 2025 https://english.www.gov.cn/news/202501/02/content_WS67764b48c6d0868f4e8ee732.html 5 China Daily, 7 September 2024 https://global.chinadaily.com.cn/a/202409/07/WS66db9c60a3103711928a69d7.html As a leading healthcare and real estate company, Perennial Holdings is firmly anchored in the belief that real estate is a key enabler to a better quality of life in our communities. Across all the markets Perennial Holdings operates in, the company focuses on strategically located large-scale transit-oriented developments (“TODs”) and integrated developments which are close to major transport hubs, such as High-Speed Railway (“HSR”) and metro stations. Besides the Company’s healthcarecentric developments, this strategy anchors its commercial-centric integrated developments, which typically comprise a mix of complementary office, retail and hospitality components. In China, Perennial Holdings is the pioneer in creating innovative commercial-centric TODs, which serve as one-stop hubs catering to their immediate precincts, as well as people and businesses across the region. In Singapore, Perennial Holdings has gained a reputation for revitalising several of the country’s most treasured heritage icons into prime integrated landmarks for thriving communities. Additionally, the Company is developing a waterfront integrated development in Malaysia and a large-scale landed residential development in Indonesia. Perennial Holdings’ strategy effectively leverages its extensive real estate expertise to create synergies across its expanding portfolio. By enhancing its development capabilities and adopting a proactive, hands-on approach to value creation, the Company is committed to increasing asset value for the betterment of the communities it serves. Perennial Holdings remains highly adaptive and strategic in meeting evolving policies and market developments, guided by its direction to develop innovative and purposeful environments. This comprehensive approach is further supported by a proven track record of successfully transforming assets into valuable spaces for communities.
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