3 Includes South Beach (in accordance with CDL’s proportionate ownership). Excludes assets planned for redevelopment and divestment (ceased leasing activities) 4 Based on URA real estate statistics for Q4 2024 5 Includes South Beach and Sengkang Grand Mall (in accordance with CDL’s proportionate ownership). Excludes assets planned for redevelopment, divestment (ceased leasing activities) and City Square Mall units affected by AEI per plot ratio (psm ppr) with its partner Lianfa Group Co., Ltd, following a government land tender. Through its wholly-owned subsidiary, Chenghong (Shanghai) Investment Co., Ltd., the Group holds a 51% controlling stake in the joint acquisition, which amounts to RMB 4.56 billion (approximately $846 million). The future development on the site can yield up to 77% of the gross floor area (GFA) for residential use, with at least 19% for commercial purposes and 4% for public amenities. Construction is targeted to commence in Q4 2025, with estimated project completion by 2030. Sales for the residential component are expected to commence in 2026, and the project aims to achieve China’s Three Star green building rating. The improved office performance reflects the effectiveness of the Group’s proactive asset management strategy. The Group’s Singapore retail portfolio5 achieved a committed occupancy rate of 98.0% as of 31 December 2024, surpassing the island-wide retail occupancy of 93.8%4. City Square Mall, currently undergoing a phased Asset Enhancement Initiative (AEI), maintained a 95.7% committed occupancy for unaffected areas. The Group’s other major retail assets, Palais Renaissance and Quayside Isle, reported high committed occupancies of 99.5% and 100%, respectively. CBD Grade A office rent growth in Singapore is expected to remain modest after many quarters of strong rental growth, with tight vacancy rates projected for 2025 due to limited new office supply and a push for return-tooffice. Companies continue to prioritise renewals and seek well-located offices. In the retail sector, leasing demand remains strong, with rental rates trending up in Q4 2024. The sector is expected to improve, bolstered by positive tourism, though inflation concerns may dampen consumer sentiment. OVERSEAS MARKETS China As of 31 December 2024, the occupancy for the Group’s office portfolio in China was 58.6%, reflecting the inherent challenges of the office leasing market. Efforts have been made to enhance asset efficiency, including repurposing certain spaces to improve long-term income stability. These initiatives, coupled with a newly secured lease, raised Hong Leong Hongqiao Center’s occupancy to 70% in January 2025. Thailand As of 31 December 2024, the Group’s Jungceylon Shopping Center in Phuket, reported a committed occupancy of 90.3%. A strong rental reversion of 50% for renewed leases was also achieved over the previous leases signed during the pandemic. Downtown Shanghai site | China INVESTMENT PROPERTIES Singapore As of 31 December 2024, the Group’s office portfolio3 committed occupancy stood at 97.7%, exceeding the island-wide office occupancy of 89.4%4. This was primarily driven by increased occupancy at its JV project – South Beach, now at 94.4%, as well as Republic Plaza, the Group’s flagship Grade A office building, now at 99.3%. Similarly, the Group’s other key office assets, City House and King’s Centre maintained healthy committed occupancies of 98.6% and 100%, respectively. All three wholly-owned office assets recorded healthy rental reversions. ANNUAL REPORT 2024 BUSINESS OVERVIEW 63
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