opportunities in Tier-1 and emerging Tier-1 cities to reach luxury retail spaces in Taikoo Li Sanlitun North. Similar our goal of doubling our GFA in the region under our upgrades are also being carried out at HKRI Taikoo Hui in HK$100 billion investment plan by 2032. Our focus this Shanghai and Taikoo Li Chengdu with the aim of year remains on developing our new pipeline projects as expanding the luxury retail content within our portfolios. well as the ongoing asset reinforcement and upgrading of existing projects. Currently, we are expanding our coverage to establish a network of 11 major retail-led, commercial developments Our two new investments in Shanghai’s Pudong District, in six Chinese Mainland cities by 2027. Despite some the Shanghai New Bund Mixed-use Project and the economic uncertainties, in terms of our investment Shanghai Yangjing Mixed-use Project, newly named pipeline projects and portfolio upgrades, this will position Lujiazui Taikoo Yuan, are well underway. Both are large- the Company to increase our share of the Chinese scale, mixed-use projects and the latter marks a debut for Mainland luxury retail market. our premium residential brand in the Chinese Mainland market. The addition of these two new projects means we will have four developments in Shanghai in total, Retail Portfolio making it the city where we will have our largest and Residential Pipeline operation in the Chinese Mainland. Other key projects in our investment pipeline include Looking at retail in Hong Kong and the Chinese Mainland, Taikoo Li Xi’an, our first investment in Xi’an, as well as we have seen a drop in both markets following a strong Taikoo Li Sanya, which is expected to contribute to post-pandemic rebound last year. We are seeing new Sanya’s rapid development as an international tourist retail trends emerging, particularly the strong demand and consumption hub. In June, we were pleased to for experiential luxury. This has led to successful announce a plan to increase our stake in INDIGO Phase collaborations with our tenant partners on tailored Two in Beijing. The acquisition was completed in early customer-focused campaigns, anchored by the August 2024. INDIGO Phase Two is the largest, premium innovative use of digital technologies. We are also commercial hub currently under development in Beijing. investing in our loyalty programmes and premium Together with our new partner, China Life, and despite lounges across our Hong Kong and Chinese Mainland short-term soft demand, we remain confident in the malls, with crossover promotions helping to broaden outlook for Beijing’s office market. our reach. We are keen to increase our investment in the Greater With regards to trading properties, we are building an Bay Area and we are collaborating with Guangzhou Pearl exciting residential pipeline in our key markets of Hong River Enterprises Group to develop the Julong Wan Kong, four major cities in South East Asia and in the Project, the retail portion of a large-scale, mixed-use Chinese Mainland. In Shanghai, both the New Bund development in Liwan District, Guangzhou. We are also Project and Lujiazui Taikoo Yuan have significant expanding the retail portion of Taikoo Hui Guangzhou, residential components, with the latter marking the and in August 2024 we successfully bid for No. 387 debut of our premium residential brand in this Tianhe Road, which will be renovated as a luxury retail important market. addition to Taikoo Hui to accommodate pent-up market In Hong Kong, we were encouraged by the recent demand. removal of tightening measures by the HKSAR We are also carrying out significant upgrades across our Government which has instilled greater confidence in existing projects in the Chinese Mainland. In April 2024, the residential property market. We hope to see an we announced the redevelopment of The Opposite improvement in both demand and pricing levels, albeit House in Beijing into a retail landmark for global flagship in the short term we expect market conditions to stores. This is in addition to the development of new remain challenging. 11