Annual Report 2019

Property Rental Business Mira Place (Mira Place Tower A, Mira Place 1 and Mira Place 2) The Mira Place as the iconic multi-purposes property in central Tsim Sha Tsui area has been enjoying a steadily rising demand from commercial customers with our lettable floor areas close to being fully occupied. Despite this, the relentless crowd protests and social unrests had not reprieved our rental business as the renewal pace slowed down and rental negotiation became more lengthy towards the end of the year under review. In the second half of the year, the Group was preoccupied with the tasks of ensuring our mall and office properties a safe, secured and hygienic commercial hub for all of our tenants. In light of the adverse socio-economic conditions, we had also stayed in close communication with our tenants and regularly gauged their business, with timely and appropriate measures implemented to help alleviate their temporary operating burdens. During the year, the Group continued its on-going exercise in promoting its property branding, refining its tenant mix and improving its property management services. The destination choice of Mira Place as the debut flagship stores in Hong Kong by a number of highly-coveted brands from Japan, including Don Don Donki and Tokyo Lifestyle have infused fresh shopping experience and invigorated shopper appeals. Collaborative promotions and campaigns were also launched with the Group’s hotels and restaurants to offer more and better shop-dine-wellness experience to our customers encompassing various business segments. During the year, the Group launched a series of popular promotional activities to keep the mall illustrious for its unique and modernistic dynamism. The popular annual musical fiesta “Gimme LiVe Music Festival” and “MIRAcle Voice” are widely acclaimed by shoppers and participants alike. Other applauded events held in the year included “OINK for Happiness” in collaboration with renowned Japanese illustrator Ogawa Kohei; “Secret PetGarden” Pop-up Store; “All About Coffee” Coffee Mart; “Get FIT Together” and “DRESDEN X’mas Market”, which all further embellished Mira Place with vogue and frantic joy. Our landmark “e-PARKING” mobile application, being a novel, artificial-intelligence- enhanced parking service dexterously embodied in a leisure mall digital service platform to impart more intimate customer visit experience, was also featured in our mall promotion “Win a Car” to amass popularity, while the mobile solution itself has garnered multiple accolades in 2019, including the Silver Award of the Hong Kong ICT Awards 2019 – Smart Mobility Award (Smart Transportation). Net increase in fair value of investment properties The Group adopts the accounting policy of recording its investment properties at their fair value. Cushman & Wakefield, an independent professional surveying firm, was appointed to conduct a valuation for the Group’s investment properties as at 31 December 2019. On account principally of the steady stream of rental revenue generated by the Mira Place, our major property, the Group’s investment property portfolio continued to record a net increase in fair value of HK$504 million (2018: HK$783 million), bringing the book value of our total portfolio of investment properties to stand at HK$15.4 billion. Miramar Hotel and Investment Company, Limited Annual Report 2019 Management Discussion and Analysis 015