Guangdong Investment (GDI), the provincial government's investment arm, said its newly built Teem Tower in Guangzhou would be the group's earnings driver this year in addition to any potential acquisition of utilities and infrastructure projects.
The 45-storey A-class office tower, near the company's Teemall, one of the most popular shopping centres in the prime area of Guangzhou, has a total gross floor area of 102,000 square metres at an investment of HK$840 million.
'With the completion of the building this year and the very encouraging response at the pre-leasing stage, Teem Tower is expected to provide an additional source of steady rental income for the group,' said chairman Li Wenyue.
GDI, which last month reported a 15.6 per cent growth in net profit to HK$1.5 billion on lower interest expenses, a tariff rise in the mainland water business and improved profitability of its power business, is also building a five-star hotel with 450 hotel rooms at the same site.
The hotel, budgeted at HK$780 million, is expected to be completed next year. International hotel management firm Sheraton Overseas Management Corp has been engaged to operate, manage and promote the hotel under the name of Sheraton Guangzhou Hotel for an initial 10-year term.
Although Teem Tower is expected to bring stable rental income for the company, Mr Li said property investment was not the company's focus.