Review of Operations Investment Properties – U.S.A. The Group owns 62.93% of the shopping centre at the Brickell City Centre development. The remaining interest Overview in the shopping centre is owned by Simon Property Brickell City Centre, Miami Group (25%) and Bal Harbour Shops (12.07%). Bal Brickell City Centre is an urban mixed-use development in Harbour Shops has an option, which has been exercisable the Brickell financial district of Miami, U.S.A. It has a site since February 2020, to sell its interest to the Group. area of 504,017 square feet (approximately 11.6 acres). The shopping centre was 90% leased (including by way The first phase of the Brickell City Centre development of letters of intent) at 30th June 2023. Retail sales in the comprises a shopping centre, two office towers (Two and first half of 2023 increased by 7% compared to the same Three Brickell City Centre, which were sold in 2020), period in 2022. a hotel with serviced apartments (EAST Miami, which was The second phase of the Brickell City Centre sold in 2021) managed by Swire Hotels and two development, to be known as One Brickell City Centre, is residential towers (Reach and Rise) developed for sale. being planned. It will be a commercial development and All the residential units at Reach and Rise have been sold. will be connected to the first phase of Brickell City Centre. Brickell City Centre, Miami (1) GFA (sq. ft.) Attributable (100% Basis) Interest Completed Shopping centre 496,508 62.9% Future Development One Brickell City Centre 1,510,000 100% Total 2,006,508 (1) Represents leasable/saleable area except for the car parking spaces, roof top and circulation areas. Miami Market Outlook In Miami, retail sales are expected to increase due to an improved tenant mix. Valuation of Investment Properties The portfolio of investment properties was valued at 30th June 2023 on the basis of market value (96% by value having been valued by Cushman & Wakefield Limited and 2% by value having been valued by another independent valuer). The amount of this valuation was HK$284,404 million, compared to HK$271,191 million at 31st December 2022. The increase in the valuation of the investment property portfolio primarily reflected the acquisition of subsidiary companies in the Chinese Mainland, partly offset by a decrease in the valuation of the office investment properties in Hong Kong and foreign exchange translation losses in respect of the investment properties in the Chinese Mainland. Under HKAS 40, hotel properties are not accounted for as investment properties. The hotel buildings are included within property, plant and equipment. The leasehold land is included within right-of-use assets. Both are recorded at cost less accumulated depreciation or amortisation and any provision for impairment. 36 Swire Properties Limited Interim Report 2023