The HQ launches in Shanghai

Treasury China Trust (TCT) has launched The HQ, a mixed-use commercial development in Shanghai.

Located in the heart of the Hong Qiao business district in Shanghai, The HQ is a fully integrated commercial complex comprising 264,000 sq m of premium office and retail space. The development will combine the existing City Center property with a newly built 88,000 sq m extension, which was developed to achieve the accredited gold standard for Leadership in Energy and Environmental Design (LEED).

Richard Barrett, Chairman of TCT, said The HQ combines a complete revamp of an aging mixed-use development with complementary new construction that will revitalise the Hong Qiao area.

“With its cutting edge design, commitment to sustainable development and contemporary international architecture, The HQ will become an iconic drawcard for multinational corporate clients and international retailers, delivering to Shanghai’s shoppers and business community a world-class mixed-use facility.”

Upon completion in 2013, The HQ will provide more than 100,000 sq m of high quality retail space, including provision for 885 basement parking lots, and host a wide spectrum of quality international and local retailers, ranging from fashion stores, beauty salons and spas to homeware and electronics shops, food and beverage outlets and a Cineplex, all of which will cater to a wide variety of visitors.

Marks & Spencer, the UK’s leading retailer, has already committed to a 4,000 sq m flagship store. In addition, the existing twin towers, which provide up to 90,000 sq m of office space, will be expanded with another tower of International Grade A standard.

Meanwhile, the trust’s gross revenue climbed 34.2 percent to RMB127.3 million (S$24.5 million) in the third quarter, while net property income rose 7.5 percent to S$15.41 million.

This was mainly attributed to TCT’s strong tenant covenants and near-100 percent occupancy rate in the core portfolio of Treasury Building, Central Plaza and City Center.

“TCT is well-positioned to take further advantage of a tightening leasing market. The leasing market for Shanghai retail real estate remains particularly buoyant and TCT is achieving strong success in the pre-leasing of its key City Center redevelopment. Details of this progress, which underpins TCT’s projections as to a doubling of its annualised revenue base upon completion of this development in 2013, will be progressively revealed to the market in the coming months,” said Barrett.

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