The highly distinctive Manulife Financial Centre sets a precedent for the regeneration of the older districts of Hong Kong, providing over one

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1 Gateway to the future The highly distinctive Manulife Financial Centre sets a precedent for the regeneration of the older districts of Hong Kong, providing over one million square feet of Grade-A office space in the heart of Kwun Tong. The offices are complemented by excellent facilities for leisure, entertainment and fine dining which will contribute to revitalizing the socio-economic fabric of the local community.

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3 Property Investment 2009 HIGHLIGHTS Including contributions from associates and jointly controlled entities, gross rental income increased by 67% to HK$6,025 million 9.4 million square feet of completed investment properties with another 1.0 million square feet of hotels Quality portfolio with core properties attaining 97% occupancy at 31 December At 31 December 2009, the Group held a total attributable gross floor area of approximately 9.4 million square feet in completed investment properties in Hong Kong (which increased by 400,000 square feet as compared with 30 June 2008), made up of 4.5 million square feet of commercial or retail space, 3.4 million square feet of office space, 900,000 square feet of industrial/office space and 600,000 square feet of residential and apartment space. This investment portfolio is geographically diverse, with 25% in Hong Kong Island, 33% in Kowloon and the remaining 42% in the New Territories. The composition of the Group s diverse property investment portfolio at 31 December 2009 is shown in the accompanying chart. Investment Properties (gross floor area in million square feet) Hong Kong Island & Kowloon Residential / Hotel serviced suites Office New Territories Annual Report Shopping malls Industrial / Office & Industrial After several months of consolidation since the onset of the global financial crisis in September 2008, leasing demand for retail shops and shopping space has shown signs of recovery since mid-2009 amid improving consumption sentiment. The Group s recentlycompleted office and industrial premises in Kowloon East also fared well with over 60% of their space already taken up at 31 December Driven by higher rents for new lettings and lease renewals, mostly from retail shops and shopping spaces in particular during the second half of 2009 as well as an increased contribution from these new projects, the Group s attributable gross rental income in Hong Kong for the eighteen months ended 31 December 2009, including that derived from the investment properties owned by the Group s associates and jointly controlled entities, amounted to HK$6,025 million, representing an increase of 67% over that for the twelve months for the financial year ended 30 June Net rental income also increased from HK$2,550 million for the twelve months of the previous financial year to HK$4,262 million for the eighteen months for the current financial year, whilst the leasing rate for the Group s core rental properties (excluding the recently-completed developments in Kowloon East) rose to 97% at 31 December Commercial The Group holds 4.5 million square feet of prime shopping space spread over various strategic locations in Hong Kong. Located at the heart of the city, ifc mall houses a number of designer boutiques, flagship stores and dining outlets, making it a popular destination for locals and tourists alike. During the period under review, ifc mall was almost fully let with remarkable growth in rental income. Leasing performance for the Group s large-scale shopping malls in the new towns was equally satisfactory and Metro City Phase III in Tseung Kwan O, Sunshine City Plaza in Ma On Shan, City Landmark II in Tsuen Wan, Citimall in Yuen Long, Flora Plaza in Fanling, Shatin Plaza and Shatin Centre each recorded almost full occupancy at 31 December 2009.

4 Property Investment The newly transformed Metro City Phase II in Tseung Kwan O The Group enhances rental values by regularly upgrading its investment properties. The first phase of renovation works at the South Wing of Trend Plaza in Tuen Mun is progressing well, whilst transformation of the upper ground floor of Metro City Phase II in Tseung Kwan O was completed at 31 December 2009 with over 20,000 square feet of its space converted into more than 20 retail outlets. Encouraging responses have been received from the pre-leasing of these two projects with rentals bid up considerably. Meanwhile, the facelift to Kowloon Building on Nathan Road as well as the facility upgrade for Golden Centre in Sheung Wan have commenced already. The second phase of renovation works at South Wing of Trend Plaza in Tuen Mun will also begin soon. The planning of refurbishment works for Sunshine City Plaza in Ma On Shan, Citimall in Yuen Long and City Landmark I in Tsuen Wan is currently in the pipeline. Offices The Group owns approximately 3.4 million square feet of rental office space, mainly located in the urban business districts. 66% with Manulife, one of the anchor tenants, exercising their expansion right to take up an additional space of 130,000 square feet. International Trade Centre in San Po Kong also recorded an improving leasing rate of 74% at 31 December Residential / Hotel Serviced Suites The Group holds about 640,000 square feet of residential properties / hotel serviced suites for lease, making its investment property portfolio more balanced and diversified. Due to limited supply in the marketplace, as well as the increasing number of returning expatriates, leasing demand for the Group s luxury residences has been strong. The serviced suite hotel at Four Seasons Place, which was highly sought after by expatriate executives and practitioners in the legal, banking and finance sectors, recorded solid growth in both occupancy and room rates. Eva Court, a luxury apartment complex in the Mid-Levels, also reported high occupancy by the end of December 2009 with satisfactory rental growth for both renewals and new lettings. The Group s quality office developments, such as the International Finance Centre in Central and AIA Tower in North Point, continued to perform satisfactorily despite adversities posed by the global financial crisis. In Kowloon East, an upcoming commercial hub with abundant supply of leasing space, the Group boasts a 2.0 million square foot portfolio of new premium office and industrial developments and most of them have been leasing well. The leasing rate of Manulife Financial Centre in Kwun Tong reached Other Properties The Group owns a number of rentable car parking spaces, generating steady rental income. The Group also owns approximately 900,000 square feet of industrial premises. Some of the industrial buildings, such as Big Star Centre at 8 Wang Kwong Road, Kowloon Bay, are being evaluated for conversion into other uses such as offices or hotels. Annual Report

5 Property Investment Major Completed Investment Properties Name Hong Kong Island Eva Court Location 36 MacDonnell Road, Mid-Levels Lease expiry Group s interest (%) Attributable gross floor area (sq.ft.) Residential/ Hotel Serviced Suite Commercial Office Industrial/ Office Total Attributable no. of carpark , , Golden Centre Des Voeux Road, Central , , ,292 - ING Tower Des Voeux Road Central / Wing Lok Street , , ,360 - AIA Tower 183 Electric Road, North Point , , , One International Finance Centre 1 Harbour View Street, Central , , , Two International Finance Centre 8 Finance Street, Central , , , (excluding levels of 33 to 52, 55, 56 and 77 to 88) Four Seasons Place 8 Finance Street, Central , , /F., Nine Queen s Road Central 9 Queen s Road Central (Note 1) ,742-13,742 - CentreStage 108 Hollywood Road , , Conduit Road 39 Conduit Road, Mid-Levels , , Kowloon Hollywood Plaza 610 Nathan Road, Mong Kok ,511 64,422-97,933 - Kowloon Building 555 Nathan Road, Mong Kok ,656 84, ,282 - Winning Centre 29 Tai Yau Street, San Po Kong , ,212 - Well Tech Centre (excluding levels 16 and 17) Big Star Centre 9 Pat Tat Street, San Po Kong , , Wang Kwong Road, Kowloon Bay , , Nathan Road 579 Nathan Road, Mong Kok ,805 18,810-26,615 - Paradise Square 3 Kwong Wa Street, Mong Kok , , Dragon Centre Manulife Financial Centre 79 Wing Hong Street, Cheung Sha Wan Wai Yip Street, Kwun Tong , , , , , Hung To Road 78 Hung To Road, Kwun Tong , , The Pivot 52 Hung To Road, Kwun Tong , ,114 - International Trade Centre 712 Prince Edward Road East, San Po Kong , , Cité Lai Chi Kok Road, Mong Kok , ,624 - The Sparkle 500 Tung Chau Street, Cheung Sha Wan , , Annual Report 2009

6 Property Investment Attributable gross floor area (sq.ft.) Name Location Lease expiry Group s interest (%) Residential/ Hotel Serviced Suite Commercial Office Industrial/ Office Total Attributable no. of carpark New Territories Fanling Centre 33 San Wan Road, Fanling , , Flora Plaza 88 Pak Wo Road, Fanling , , The Trend Plaza Tuen Mun Heung Sze Wui Road, Tuen Mun Marina Cove Lot No. 526 in D.D. No. 210, Sai Kung , , ,566 (Note 2) - - 9, City Landmark I 68 Chung On Street, Tsuen Wan , , , City Landmark II Castle Peak Road, Tsuen Wan , , Skyline Plaza 88 Tai Ho Road, Tsuen Wan , , Shatin Centre 2-16 Wang Pok Street, Sha Tin , , Shatin Plaza Shatin Centre Street, Sha Tin , , Blocks A & B, Sunshine City 18 On Shing Street, Ma On Shan , ,305 - Blocks C & D, Sunshine City 22 On Shing Street, Ma On Shan , ,118 - Blocks N, P, Q & R, Sunshine City 8 On Shing Street, Ma On Shan , , Sunshine City Plaza 18 On Luk Street, Ma On Shan , , Sunshine Bazaar 628 Sai Sha Road, Ma On Shan , , Citimall 1 Kau Yuk Road, Yuen Long , , La Cité Noble Shopping Arcade 1 Ngan O Road, Tseung Kwan O , ,186 - Dawning Views Plaza 23 Yat Ming Road, Fanling , ,766 - Metro City Phase 2 Shopping Arcade 8 Yan King Road, Tseung Kwan O , , The Metropolis, Metro City Phase 3 Shopping Arcade Citygate 8 Mau Yip Road, Tseung Kwan O , , Tat Tung Road, Tung Chung, Lantau Island ,536 32, , The Beverly Hills, Phases 1 & 2 23 Sam Mun Tsai Road, Tai Po , , The Sherwood 8 Fuk Hang Tsuen Road, Tuen Mun , , Total: 458,465 3,972,154 3,053, ,878 8,385,958 5,821 Note 1: Of the four land lots for this building, three lots expire in 2854 and the remaining lot expires in 2856 Note 2: In addition there are 121 pontoons and 30 hardstand spaces attributable to the Group Annual Report

7 Major Completed Investment Properties Major Completed Investment Properties 1 Eva Court 2 Golden Centre 3 ING Tower 4 AIA Tower 5 One International Finance Centre 6 Two International Finance Centre 7 Four Seasons Place 8 Nine Queen s Road Central 9 CentreStage Conduit Road 11 Hollywood Plaza 12 Kowloon Building 13 Winning Centre 14 Well Tech Centre 15 Big Star Centre Nathan Road 17 Paradise Square 18 Dragon Centre 19 Manulife Financial Centre Hung To Road 21 The Pivot 22 International Trade Centre 23 Cité The Sparkle 25 Fanling Centre 26 Flora Plaza 27 The Trend Plaza 28 Marina Cove City Landmark l City Landmark ll Skyline Plaza Shatin Centre Shatin Plaza 34 Blocks A & B, Sunshine City 35 Blocks C & D, Sunshine City 36 Blocks N, P, Q, & R, Sunshine City 37 Sunshine City Plaza 38 Sunshine Bazaar 39 Citimall 40 La Cité Noble Shopping Arcade 41 Dawning Views Plaza 42 Metro City Phase 2 Shopping Arcade 43 The Metropolis 44 Citygate 45 The Beverly Hills Phases 1 & 2 46 The Sherwood Tuen Mun Airport Existing Line MTR Tung Chung Cable Car Light Rail Route 3 Cross Harbour Tunnel 44 Tung Chung Lantau Island Under Construction West Island Line Guangzhou - Shenzhen - Hong Kong Express Rail Link North Hong Kong Island Line Under Planning Northern Link Shatin to Central Link South Island Line (East & West) Residential / Hotel Serviced Suites Commerical Office Industrial & Offices Commerical & Offices 52 Annual Report 2009

8 Major Completed Investment Properties Sheung Shui Lok Ma Chau 25 Fanling Tai Po 39 Yuen Long New Territories Sai Kung Tsuen Wan Shatin 34 Ma On Shan Discovery Bay Tsing Yi Kowloon Tseung Kwan O Quarry Bay 8 Hong Kong Island Annual Report