OPERATIONS AND MARKET REVIEW Phuket’s tourism continued to rebound with total arrivals up 23% year-on-year (y-o-y). For FY 2024, international arrivals reached 99% of pre-pandemic levels, boosting the mall’s foot traffic by 30%. Tenants’ gross turnover (GTO) sales also improved by 74.4% y-o-y, reflecting increased shopper confidence. UK The Central London office market remains quite resilient despite economic headwinds. As of 31 December 2024, the Group’s UK commercial portfolio reported a committed occupancy of 79.5%, pulled down by several tenants vacating their premises at 125 Old Broad Street, Aldgate House and St Katharine Docks. However, with over 153,000 sq ft of renewals/lettings achieved in 2024, occupancies are expected to stabilise and start trending up again. The recent refurbishment of the reception at 125 Old Broad Street has been a significant driver behind existing tenants expanding within the building as well as new occupiers moving in. The Group has also secured a new letting at St Katharine Docks and an existing tenant at Aldgate House has expanded into the ground floor retail unit. THE LIVING SECTOR UK The Private Rented Sector (PRS) in the UK demonstrated growth, driven by strong demand, supply shortages and shifting demographic trends. The Group expanded its living sector portfolio with the acquisition of The Yardhouse, a forward-funded co-living development in White City, London in Q1 2024 for £88.0 million (approximately $148.6 million). This 209-unit PRS project is in one of Central London’s key regeneration zones, marking CDL’s first co-living venture in the UK. Construction is in progress for The Octagon, a 370unit PRS project in Birmingham, which topped out its structure in September 2024, and The Joinery, a 261unit PRS project in Manchester. The estimated practical completion for both projects is Q3 2025 and Q2 2026, respectively. To mitigate rising operating costs for its 2,368-bed Purpose-Built Student Accommodation (PBSA) portfolio, the Group took proactive steps to enhance operational efficiency and actively hedged the portfolio’s utility contracts. The portfolio achieved over 90% occupancy for Academic Year 2024/2025. The Octagon | UK BUSINESS OVERVIEW CITY DEVELOPMENTS LIMITED 64
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