MANAGEMENT DISCUSSION & ANALYSIS REVIEW OF OPERATIONS Serviced Apartments Sanya There are 24 serviced apartments at the Mandarin Oriental Strategically located in the heart of Haitang Bay National in Taikoo Hui Guangzhou, 42 serviced apartments at The Coastal Recreation Park in Sanya, the development is Temple House in Taikoo Li Chengdu and 102 serviced our first-ever resort-style premium retail development apartments at The Middle House Residences in HKRI including underground parking and other ancillary Taikoo Hui Shanghai. facilities, with GFA of approximately 2.2 million square feet. In collaboration with China Tourism Group Duty Free The performance of the serviced apartments in Shanghai in Corporation Limited, the development will be Phase III of 2023 improved following the lifting of COVID-19 associated the Sanya International Duty-Free Complex. Basement restriction. Occupancy at the Mandarin Oriental in works are in progress. The development is expected to be Guangzhou, The Temple House in Chengdu and The Middle completed in phases from late 2025. The Group has a 50% House Residences in Shanghai was 83%, 61% and 93% interest in this development. respectively at 31st December 2023. Chinese Mainland Serviced Apartments Shanghai New Bund Mixed-use Project Market Outlook The New Bund Mixed-use Project is situated within Shanghai’s middle-ring road and spans a site area of The performance of the serviced apartments is expected to approximately 686,000 square feet. Located at the improve in 2024. intersection of three Shanghai metro lines, the site is Investment Properties Under Development directly opposite to Taikoo Li Qiantan, our first joint venture development with the Lujiazui Group. It is a mixed-use INDIGO Phase Two, Beijing development comprising retail, office and residential INDIGO Phase Two is an extension of the existing INDIGO components, with an approximate GFA of 4.1 million square development, with a GFA of approximately four million feet (including retail floor area below ground). Office square feet. Jointly developed with the Sino-Ocean group, towers have been topped out. Basement and retail INDIGO Phase Two will be an office-led mixed-use construction works are in progress. The development is development and is planned to be completed in two expected to be completed from 2025. The Group has a 40% phases, in 2025 and 2026. Basement and superstructure interest in the development. works are in progress. The Group has a 35% interest in Shanghai Yangjing Mixed-use Project INDIGO Phase Two. Jointly developed with the Lujiazui Group, the Yangjing Taikoo Li Xi’an Mixed-use Project, which is along the Huangpu River and Taikoo Li Xi’an is located at the Small Wild Goose Pagoda within the inner-ring road in Pudong district of Shanghai, historical and cultural zone in the Beilin district of Xi’an will be developed into a mixed-use landmark comprising and is expected to be developed as a retail-led mixed-use premium residential properties, retail, office and cultural development comprising retail and cultural facilities, facilities, potentially a lifestyle hotel as well. The estimated a hotel and serviced residences. The estimated GFA is GFA is approximately 4.2 million square feet (including approximately 2.9 million square feet and is subject to the retail floor area below ground and residential portion for finalisation of development scheme. Excavation works are trading), subject to relevant plan approval. Basement in progress. The project is expected to be completed in structure works are in progress. The development is phases from 2026. The development is being done in expected to be completed in phases from 2027. The Group collaboration with Xi’an Cheng Huan Cultural Investment has a 40% interest in the development. and Development Co., Ltd. The Group has a 70% interest in Taikoo Li Xi’an. 52