MANAGEMENT DISCUSSION & ANALYSIS | REVIEW OF OPERATIONS Residential compulsory sale of the Wah Ha Factory Building site, the The completed residential portfolio comprises Pacific Place two sites are intended to be redeveloped for office and Apartments at Pacific Place, EAST Residences in Quarry other commercial uses with an aggregate GFA of Bay, STAR STUDIOS in Wan Chai and a number of luxury approximately 779,000 square feet. houses on Hong Kong Island and Lantau Island, with an 983-987A King’s Road and 16-94 Pan Hoi Street aggregate GFA of approximately 0.6 million square feet. In 2018, a joint venture company in which the Group The residential portfolio was 72% let at 31st December holds a 50% interest submitted a compulsory sale 2022. Demand for our residential investment properties application in respect of this site in Quarry Bay. Subject was primarily local, and was affected by COVID-19 as well to the joint venture company having successfully bid in as a net outflow of residents to overseas. the compulsory sale and in accordance with applicable Investment Properties Under Development town planning controls, it is expected that the site can be redeveloped for residential and retail uses with a GFA of Six Pacific Place approximately 440,000 square feet. (formerly known as 46-56 Queen’s Road East) Planning permission to develop this site in Wan Chai for 9-39 Hoi Wan Street and 33-41 Tong Chong Street office use was obtained in 2018. The site area is In June 2022, the Group submitted a compulsory sale approximately 14,400 square feet. The development has an application in respect of this site in Quarry Bay. The gross aggregate GFA of approximately 223,000 square feet. site area is approximately 20,060 square feet. Proceeding Superstructure works are in progress. Completion of with the development (the planning of which is being construction is expected later in 2023. reviewed) is subject to the Group having successfully bid in the compulsory sale. Others Wah Ha Factory Building, 8 Shipyard Lane and Taikoo Shing Car Parking Spaces Zung Fu Industrial Building, 1067 King’s Road Since November 2020, the Group has offered 2,530 car In 2018, the Group submitted compulsory sale applications parking spaces in the Taikoo Shing residential in respect of these two sites in Quarry Bay. In March 2022, development in Hong Kong for sale. 1,458 of these car the Group acquired the remaining interests in Zung Fu parking spaces had been sold at 7th March 2023. Industrial Building and obtained full ownership of the site. Sales of 1,452 car parking spaces had been recognised at Subject to the Group having successfully bid in the 31st December 2022, 250 of them in 2022. Sales of 6 car parking spaces are expected to be recognised in 2023. 46