Annual Report 2022

2022 Annual Report Transport International Holdings Limited 109 Property Holdings and Development The Group’s Property Holdings and Development Division reported a profit after taxation of HK$52.4 million for 2022, representing an increase of HK$4.3 million or 8.9% compared with the profit after taxation of HK$48.1 million for 2021. A review of the Group’s investment properties is set out as follows: KT Real Estate Limited (“KTRE”) KTRE, a wholly-owned subsidiary of the Group, together with Turbo Result Limited (“TRL”), a subsidiary of Sun Hung Kai Properties Limited (“SHKP”), owns The Millennity situated at 98 How Ming Street, Kwun Tong, Kowloon, Hong Kong in equal shares as tenants in common for long-term investment purpose. The Millennity, a premium integrated commercial project strategically located in the heart of Kwun Tong, is close to Kwun Tong and Ngau Tau Kok MTR stations. An occupation permit was obtained in November 2022. The Millennity will provide Grade-A offices with a total gross floor area of approximately 650,000 square feet in two 20-storey towers and a large shopping mall in a 10-storey podium covering leisurely retail space of approximately 500,000 square feet. Nearly 400 parking spaces will be provided in a 4-storey parking garage in the basement, a number of which will be equipped with electric vehicle charging systems. In December 2022, Sun Hung Kai Real Estate (Sales and Leasing) Agency Limited and Kai Shing Management Services Limited, both subsidiaries of SHKP, were appointed as the marketing and leasing agent and the property manager for The Millennity, respectively. Preleasing of the office towers is progressing smoothly and some tenants will begin to move in over the next few months. The preparation for the grand opening of the podium mall in the second half of this year is also making good progress. As at 31 December 2022, the carrying value of The Millennity (classified as investment property under development in the consolidated statement of financial position) amounted to HK$4,465.2 million (2021: HK$3,844.6 million). LCK Real Estate Limited (“LCKRE”) LCKRE, a wholly-owned subsidiary of the Group, is the owner of a 17-storey commercial office building at 9 Po Lun Street, Lai Chi Kok, Kowloon, which has a total gross floor area of about 156,700 square feet. The building is situated next to Manhattan Hill. A portion of the lettable area is used by the Group as headquarters with the remaining lettable area leased out to offices, shops and restaurants. As at 31 December 2022, the carrying value of the building stated at cost less accumulated depreciation, amounted to HK$19.5 million (2021: HK$23.1 million).