Annual Report 2023

124 2023 Annual Report Transport International Holdings Limited FINANCIAL REVIEW Property Holdings and Development The Group’s Property Holdings and Development Division reported a profit after taxation of HK$334.0 million (including a fair value gain of HK$287.4 million) for 2023, compared to the restated profit after taxation of HK$507.7 million (including a fair value gain of HK$448.7 million) for 2022. The decrease was primarily due to the lesser extent of HK$161.3 million in the fair value gain on investment properties and investment property under development. 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. During the year, two office towers of The Millennity have been completed and certain tenants have moved in, commencing their operations. The podium mall beneath The Millennity is still under construction and scheduled to have its grand opening in 2024. As at 31 December 2023, the office portion of The Millennity was classified as investment property, while the remaining portion was classified as investment property under development in the consolidated statement of financial position. As at 31 December 2022, the entire portion of The Millennity was classified as investment property under development in the consolidated statement of financial position. 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, and classified as investment property in the consolidated statement of financial position. LCK Commercial Properties Limited (“LCKCP”) LCKCP, a wholly-owned subsidiary of the Group, is the owner of “Manhattan Mid-town”, the commercial complex of Manhattan Hill. The 50,000 square feet shopping mall has provided Manhattan Hill residents and other shoppers with high quality retail facilities since its opening in March 2009. As at 31 December 2023, the entire lettable area of the shopping mall was leased out, generating a stream of recurring rental income for the Group, and classified as investment property in the consolidated statement of financial position. TM Properties Investment Limited (“TMPI”) TMPI is jointly owned by TM Properties Holdings Limited (“TMPH”), an indirect wholly-owned subsidiary of the Group, and Mega Odyssey Limited (“MOL”), an indirect wholly-owned subsidiary of SHKP subsequent to the disposal of TMPH’s 50% equity interest in TMPI to MOL in 2020. TMPI, the owner of the property at Tuen Mun Town Lot No. 80 in the New Territories, has become a 50%-owned joint venture of the Group. TMPI owns an industrial property which is currently used for industrial use or godown purposes or both. On 23 June 2023, TMPI obtained approval from the Town Planning Board for a change of use from the existing industrial use to office, shop and services uses. As at 31 December 2023, the entire lettable area of the property has been leased out to generate rental income for the Group.