Ladies and gentlemen, welcome to the live webcast of Swire Properties final results analyst briefing. Let me first introduce the host of today's briefing. We have Mr. Tim Blackburn, Chief Executive of Swire Properties, and Ms. Fanny Leung, Finance Director of Swire Properties. Tim and Fanny will walk us through the final results in 2021, then we will proceed to the Q&A session. Analysts are welcome to submit questions in the question box at the bottom right of the screen throughout the briefing. As we always do, before we start the presentation, we would like to show you a video highlighting the company's key developments and milestones in the past year. Hope you enjoyed the video. May I now invite Tim and Fanny to take us through the presentation.
Well, thank you, and welcome to the webcast for 2021 annual results briefing for Swire Properties. Thank you for joining us this afternoon. I'll briefly run through the highlights for the 2021 results and overview our strategic investment plans. I'll give a brief overview of the performance of our portfolios over the last 12 months, and then I'll hand over to Fanny to take you through the financial highlights and the encouraging progress we've been making in sustainable development over the last 12 months. Finally, I'll touch on the outlook and the prospects for the year ahead, after which we should have some time for a brief Q&A. After another challenging year, I'd like to open with this slide, which we've titled, Business Resilience, Strength and Growth.
The fully underlying profit for 2021 was HKD 9.54 billion, representing a 25% reduction year-on-year, due primarily to a reduction in the sale of non-core assets in Hong Kong relative to 2020. However, I'm pleased to report that Swire Properties achieved a recurring underlying profit of HKD 7.15 billion for 2021, which despite the pandemic and the related disruption to our business, was slightly ahead of 2020. The solid result was due to several factors, the resilience of our Hong Kong office portfolio, which continues to enjoy high overall occupancy, the gradual recovery of our Hong Kong retail portfolio, which in addition to being almost 100% leased, achieved a rebound in sales between 9% and 27%, and the robust performance of our retail portfolio in the Chinese Mainland was particularly encouraging.
Achieving attributable retail sales growth of 30% and attributable retail gross rental growth of 29%. Both Taikoo Li Sanlitun in Shanghai and Taikoo Li Sanlitun West in Beijing opened in the second half of last year, and performance to date has been extremely encouraging. I'll cover this more later in the presentation. As you're aware, we've been going through a process of active capital recycling over the last few years in order to fund investments in new projects in Hong Kong, in the Chinese Mainland, and in Southeast Asia. Last year we achieved additional sales proceeds of HKD 6.3 billion, thanks to the sale of EDEN in Singapore, REACH and RISE condominiums in Miami, and car parking spaces in Taikoo Shing in Hong Kong.
As a consequence, over the next 10 years, we're planning to invest up to HKD 100 billion in an exciting pipeline of new potential projects in our core markets of Hong Kong, the Chinese Mainland, and Southeast Asia. In terms of sustained growth, we're aiming to deliver mid-single- digit annual dividend growth, and we intend to pay a second interim dividend per share of HKD 0.64, which is a 4.9% increase on last year. As a result, our full year dividend per share will be HKD 0.95, representing a 4.4% increase on 2020.
As I mentioned in that opening slide, as a result of our capital recycling efforts and our strong balance sheet, we're planning to invest up to HKD 100 billion over the next 10 years to drive our future growth and deliver sustained annual dividend growth. As you heard in previous briefings, we've been working hard on a pipeline of potential projects across our core markets. We plan to allocate approximately HKD 50 billion to retail-led mixed-use projects in the Chinese Mainland, HKD 30 billion to expand and strengthen our core centers of Pacific Place and Taikoo Place here in Hong Kong, and approximately HKD 20 billion to the residential trading opportunities in our core markets. Some of the specific projects and milestones are identified in the boxes shown on this slide.
Looking back at last year, 2021 was another busy year and a productive year. We've been making good progress in all of our core markets. In the Chinese Mainland, the team has been working hard to execute our retail-led strategy, and there are four specific highlights being Zhangyuan, our joint venture with the Jing'an government in Shanghai to restore the historic Shikumen compound, which is connected to its HKRI Taikoo Hui on Nanjing West Road, with phase I opening in July later this year. Taikoo Li Sanlitun, which opened in September and has been our most successful project to date in terms of opening rates, footfall, and sales. Taikoo Li Sanlitun West, which opened in November in Beijing and is a valuable contribution to the Sanlitun business circle.
Significantly, we also signed a strategic cooperation agreement with the Beijing Public Transportation Corporation and the Chaoyang District government to transform a former bus depot and maintenance facility in the north of Taikoo Li. Finally, I'm delighted that last Friday we were successful in acquiring a fantastic new site in Xi'an. I'll elaborate more on that later in these slides. In Hong Kong, EIGHT STAR STREET sales have exceeded expectations with 28 of the 37 units pre-sold, and we've been building a good pipeline of new projects to be completed over the next 4-5 years, including our joint venture with China Motor Bus in Chai Wan. In Miami, all the remaining units at Reach and RISE were sold last year, in addition to the EAST Miami hotel property, which we'll continue to manage under a hotel management agreement.
Finally, in Southeast Asia, 100% of the units in EDEN in Singapore were sold last year, and we took a minority investment in our second residential led project in Thu Thiem in Ho Chi Minh City. Turning to our investment portfolio. Despite the challenging market conditions, our office portfolio in Hong Kong has proven very resilient, delivering stable attributable gross rental income thanks to high occupancy rates, positive reversions at Taikoo Place, which testifies to the continued trend of decentralization, albeit at a slightly reduced pace, and the ongoing flight to quality. On the retail front, we saw signs of a rebound in retail sales in the second half of 2021. Attributable gross rental income increased by 5% on a cash concession basis.
The market conditions remain extremely challenging due to the impact of the pandemic, specifically the latest social distancing measures and the ongoing international travel restrictions. We continue to work closely with our tenant partners, and all our retail malls are reporting high or full occupancy levels. Our staff are doing a fantastic job to keep our malls operating and safe and serving our communities. Across the board in the Chinese Mainland, the picture is much brighter. The overall portfolio contributed 37% of our attributable gross rental income last year. After Hong Kong office, Chinese Mainland retail is now the second largest rental contributor. Attributable gross rental income was HKD 5.4 billion, 25% up on 2020, which was already a strong performance in the circumstances.
Zooming in a bit closer in the Chinese Mainland, occupancy level across all retail centers was high at between 96%-100%. Retail sales were robust and attributable gross rental increased by 29% year-on-year due to strong local demand and appreciation of the RMB. This slide highlights the sales performance by center, which is very pleasing across the board. Overall retail sales growth of 30%, and it's pleasing to see the recovery of our two Beijing malls, where restrictions have been relatively more disruptive. On the office front in the Chinese Mainland, while overall demand was mixed, demand in Shanghai and Beijing was positive and overall occupancy has remained high. The attributable gross rental income increased by 11%. Now, lease expiry profile in both Hong Kong and the Chinese Mainland is well spread out with a diverse tenant base.
In Hong Kong, while demand is still relatively weak, expiries across our total office portfolio this year are limited to 8.4%, which I think is a good position to be until demand rebounds. Moving to new projects, I'd like to start with Qiantan and the opening of our retail project, our 50-50 joint venture with Lujiazui Group in the new Bund district in Pudong in September was a major highlight in 2021. This is our sixth major development in the Chinese Mainland and the third generation of our successful Taikoo Li open lane retail concept. As I mentioned earlier, Taikoo Li Qiantan has been our most successful project to date in terms of opening rate, footfall, and sales.
The opening rate in September was 60% with 152 stores and over 2.5 million visitors in the first month of October. We are delighted with the performance to- date. The team is working really hard to establish this new retail destination in Shanghai. We've now reached a 90% occupancy rate with 212 stores open as of last weekend. Taikoo Li Qiantan has provided the perfect showcase for our tenants as well as for digital innovation on the retail side, and we shall be taking every opportunity to accelerate our digital transformation journey. Moving north to Beijing, a smaller but no less significant opening of an urban regeneration project.
Taikoo Li Sanlitun West was 100% pre-leased upon opening in November in advance of the Olympic Games, and is the next piece of the jigsaw as we continue to expand the Sanlitun business circle in the Chaoyang District in Beijing. Looking ahead at the pipeline for 2022 for this year, our next opening scheduled to be in Zhangyuan, where the team is working hard in Jing'an District in Shanghai to prepare for the phase I opening later this summer. I'm pleased to say we've seen strong interest from several major luxury brands, and we're looking forward to bringing this new retail experience to Nanjing West Road in Puxi. The project will open in two stages and it's an exciting asset reinforcement opportunity for us, working closely with our HKRI Taikoo Hui joint venture, which will be directly connected by metro link and at street level.
Finally to Xi'an. I mentioned the recent land auction in Xi'an, where we were successful last week in securing our seventh large scale retail-led project in the Chinese Mainland, which we call Taikoo Li Xi'an. The project's the HKD 10 billion investment in a 70/30 joint venture with a subsidiary of the Qujiang New District in Xi'an. As you can see from the images and the rendering, this is a unique site in the heart of the city and adjacent to UNESCO World Heritage Site. You can see the image there of the Small Wild Goose Pagoda historical and cultural zone. It's really a very special place. The project will be our fourth and largest Taikoo Li retail mall to date, in addition to a luxury hotel, residences, and business apartments.
We shall be bringing all our design and placemaking experience to ensuring that this next generation Taikoo Li project will become a new cultural and tourism landmark in Xi'an. We included this slide to illustrate our commitment to invest in our dual growth engines, both of Hong Kong and the Chinese Mainland. On the right, you can see the Chinese Mainland portfolio with the addition of INDIGO Phase Two, Taikoo Li Qiantan, Taikoo Li Sanlitun West, and now Taikoo Li Xi'an. The Chinese Mainland GFA will increase by 46% over the next few years compared to 2020. The Hong Kong GFA will also increase by 16%, albeit on a higher base. I'd like to talk a little bit about our Hong Kong trading portfolio.
As mentioned earlier, the pre-sales for EIGHT STAR STREET have performed really well, reaffirming the demand for our brand in the premium residential market in Hong Kong. After a relatively quiet period over the last few years, we've been working hard to rebuild a strong residential trading pipeline in our home market. I'm pleased to say that we now have 10 new projects under development in our three core markets. We continue to look for opportunities to extend our residential brand in new markets as well. In Southeast Asia, we've taken minority stakes in two projects in Ho Chi Minh, which have been selling well. We're preparing for the presales launch of our joint venture luxury project with approximately 400 units in South Jakarta called Savyavasa later this month.
On the right-hand side, with two disposed, in 2021, we successfully sold EDEN in Singapore and all the remaining units at REACH and RISE in Miami. Quickly just focusing on the hotel portfolio. 2021 was another very tough year for the hotel industry, no doubt, due to the ongoing effect of the pandemic. While conditions in Hong Kong have been especially difficult, performance in the Chinese Mainland and also in Miami have been better. Our managed hotels delivered a small profit at the EBITDA level last year. In terms of new openings, The Silveri Hong Kong and MGallery will open in phases this year, and our hotel team are working very hard to look for expansion opportunities to grow our footprint for both The House Collective and for the EAST brand through third-party management contracts.
At this point, I'd like to hand over to Fanny, to take us through the financial highlights and our sustainable development journey. Fanny, thank you.
Thank you, Tim. Next slide. Our total underlying profit in 2021 was HKD 9.54 billion, 25% down from that of 2020. This mainly reflect a reduction in profits from the sale of investment properties. In 2021, we sold our entire interest in EAST, Miami in the United States and some car parking spaces at Taikoo Shing in Hong Kong, generated HKD 2.39 billion profit. Recurring underlying profit recorded a small increase of 1%, reflecting higher retail rental income in Chinese Mainland and reduced net losses from hotels, largely offset by lower rental retail income in Hong Kong and loss of office rental income from Cityplaza One, which was disposed in the later part of 2020. Next slide. Attributable gross rental income achieved a 4% growth. Our Hong Kong office portfolio was resilient.
There was a 5% drop in rental income. Disregarding the loss of rental income from Cityplaza One, attributable rental income was roughly the same as in 2020. Our Hong Kong retail portfolio was recovering. There was an 11% drop in rental income, largely due to amortization of the rental concessions granted in 2020. On cash rental concession basis, attributable rental income was 5% up, reflecting lower cash concessions and higher turnover rent due to the increase in retail sales. Performance of our Chinese Mainland retail was very strong. Rental income increased by 29%, driven by significant increase in the retail sales. Performance of our Chinese Mainland office portfolio was steady. Rental income increased by 11%. Other categories included a 9% increase in the rental income, mainly due to strong recovery in the retail sales in the United States. Next.
On dividend, the key highlight is our target to deliver mid-single- digit annual growth. This will be driven by the profit contributions from our new investments. Second interim dividend was HKD 0.64, representing 4.9% increase from that of last year, making the full year dividend per share up to HKD 0.95, 4.4% increase from that of last year. Next. Our investment property portfolio valuation increased slightly to HKD 267.8 billion. There were HKD 1.95 billion net fair value losses, mainly due to fair value losses in the retail and the office investment properties in Hong Kong, partly offset by fair value gains in our investment properties in the Chinese Mainland and in the United States.
There was no cap rate change in Hong Kong, but there was a 25 basis point decrease in the cap rate for our Guangzhou and Beijing retail properties in the Chinese Mainland. Next. We have very strong balance sheet. Our gearing was at 3.5% at the end of 2021. There was an increase in the net debt from HKD 6.6 billion at the end of 2020 to HKD 10.3 billion at the end of 2021. The increase mainly reflected capital investment in INDIGO Phase Two development, land premium for Chai Wan, and the CapEx for Taikoo Place redevelopment. Next. We have very healthy debt maturity profile and strong pipelines to refinance those maturing in 2022. We also had adequate liquidity headroom. Total cash and undrawn committed facilities amounted to HKD 19.5 billion at the end of 2021.
Our credit rating remained at the same, at A by Fitch and A2 by Moody's. Next. Total capital commitments were HKD 20.6 billion at the end of 2021, of which HKD 14.5 billion was for Hong Kong and HKD 6.2 billion was for Chinese Mainland. The Hong Kong numbers include redevelopment of Warwick House and Somerset House to Taikoo Place and Queensway East developments. The Chinese Mainland numbers include INDIGO Phase Two development and capital expenditure for other Chinese Mainland projects. Next. On capital recycling, so far we have generated HKD 43 billion in cash from the capital recycling exercise. This will be used to fund our new investments. Next. We have established a new venture fund of $50 million, with the objective to invest in startup companies with innovative technologies relevant to our operations.
So far, 20% of the funds have been deployed in five global real estate tech companies. This provides access to cutting-edge technology. Over the past four years, we have over 60 tech trials across organization, driving significant transformational and strategic changes in our various operating areas. Next. In relation to sustainable development, a key highlight is that in 2021, Swire Properties became the first real estate developer in Hong Kong and the Chinese Mainland to have our 1.5 degree Celsius aligned science-based targets approved by the Science Based Targets initiative. Next. On our net zero journey, we have made good progress. In 2021, we have reduced 23% of our absolute Scope 1 and 2 carbon emissions against the 2019 baseline, and such contribution was contributed by the various initiatives as highlighted in this particular slide. Next.
Following the success of Sino-Ocean Taikoo Li Chengdu, since July 2021, the entire Taikoo Hui development has become 100% powered by renewable electricity, making Swire Properties one of the first real estate developers in Guangdong Province to accomplish net zero. On energy management, we have lots of activities, including the rolling out of AI-enabled cloud-based smart energy management platform to ensure energy optimization in all our operation, as well as the applications of other innovative technologies. All this help us to reduce our electricity use intensity of our global portfolio by an impressive 35% against the baseline. Next. To achieve our aggressive sustainable development targets, we can't do it alone. While tenants' engagement is very critical, in 2021, we launched a smart waste reduction pilot. This program has achieved 41% waste diversion weight, which is a big success.
We also continue to expand the Green Kitchen Initiative. Now we have 51 F&B tenants operating green and sustainable kitchens and restaurants in our Hong Kong and Chinese Mainland portfolio. We also launched a Green Performance Pledge to deepen the landlord and tenants partnership from fit-outs through the tenants' daily operation with the objective to reduce energy, water, and waste generation. Started in 2021, we ran the GPP for 14 tenants, representing nearly 10% of our occupied lettable floor area in our Hong Kong office portfolio. Our target is to have 50% of our office tenants participating in the GPP by 2025. Next. Green financing is an important part of our SP strategy. As at the end of 2021, approximately 30% of our current bond and loan facilities come from green financing.
Our target is to have at least 50% of the bond and loan facilities from green financing by 2025. Our high-quality green finance report is well recognized. In 2021, Swire Properties was named as one of the top 10 green bond issuers globally by the Climate Bonds Initiative. Over the past two years, we have placed a greater emphasis on health and wellness in our communities. A great example is our Taikoo Li Sanlitun, which became the first shopping mall in the world to obtain WELL Core Platinum certification. We also established a Zero Harm commitment, a pledge to eliminate hazards and create a safe environment for all our employees, partners, and wider communities. In 2021, we have also made substantial improvement in reducing the lost time injury rate of our employees in their daily works.
With that, I would like to pass it back to Tim for the prospects. Thank you.
Thank you, Fanny. Thank you very much. So just to conclude, a couple of slides just to look at the prospects and summary of the outlook for the year ahead. I mean, clearly the situation in Hong Kong remains very uncertain, and managing the disruption related to the pandemic is the key challenge. Most recently dealing with the implications and the impact of the fifth wave, which have stalled the recovery in the retail sector. I'm pleased to say that in recent weeks, our team has worked hard to support the government and acted swiftly to assist tenants during this very difficult period. We are determined to do our part. Our focus has been very much on the need to provide rental relief to scheduled premises which are closed. We'll provide that support until the 20th of April.
We're working closely with our retail and F&B tenants on a case-by-case basis to help them through this challenging period, so that we can emerge together stronger. We've also provided hotels for quarantine accommodation and for community isolation facilities. We've donated testing kits to the most vulnerable and those in need in the community. At the same time, we've been providing shopping incentives in our malls to increase the vaccination rates. We will continue to promote the government's vaccination pass initiative. In summary, just wanted to finish on these five key points. Our Hong Kong office portfolio in Pacific Place and Taikoo Place has been resilient. Despite new competition, occupancy remains high. The recovery of the retail sector in Hong Kong has been negatively impacted by the fifth wave.
As I said, we are committed to supporting our tenants through this period, and supporting the wider community where and whenever we can. We will be prepared for the recovery when it comes. We're positive about the retail outlook in the Chinese mainland, and we're exploring opportunities to expand our footprint. Following the recent successes at Taikoo Li Qiantan in Shanghai, we're really looking forward to getting started on our seventh project in Taikoo Li in Xi'an. We have a balanced portfolio with strong fundamentals, and we're well-positioned for growth. We have an ambitious pipeline to invest approximately HKD 100 billion in our three core markets over the next 10 years. On that note, I'll conclude. Thank you. I think we'll have a little bit of time for the Q&A.
Thank you, Tim and Fanny, for the presentation. We now proceed to the Q&A. Please submit your questions in English in the question box at the bottom right of your screen. Please pose no more than two questions at a time. Now, I will read out the first question, which is about our investment in Xi'an. Why did you choose Xi'an despite a preference for investment in tier one cities? Did local government invite you to invest?
Okay, well maybe I'll take that one, Fanny. So as I mentioned, you know, we're very excited about this opportunity in Xi'an. Our strategy in the Chinese mainland has been to look for opportunities in tier one cities and emerging tier one cities, but also to look for locations which have special or unique qualities. We think that this site in Xi'an really fits that bill. The city has a large population. It has specifically a very large student population. We think this site is ideally suited for our fourth Taikoo Li in the Chinese mainland. So I think you know, we've had a really encouraging experience with our recent opening at Taikoo Li in Shanghai, in Qiantan.
We've learned a lot over the last 10 years about this evolving concept, and we think Taikoo Li concept is ideally suited for Xi'an.
Thank you, Tim. Moving to the next question is from Kyle, from BofA. It's about our HKD 100 billion investment program. How does Swire come up with the HKD 100 billion investment program? And how about the financial capacity or projects already lined up? Does Swire intend to do a lot more disposals to fund the investments?
Fanny, do you want to take this question?
Okay. Thank you, Kyle, for the question. How do we come up with the HKD 100 billion investment? I think, in many previous meeting that we had. We always mentioned about we have been working with, quite a lot of investment pipelines in our core market, Hong Kong, Chinese mainland, and also exploring opportunities in Southeast Asia. So it shouldn't come up too much as a surprise to, the market then. We do have a strong pipeline, and, I think amongst the pipeline, we are confident that, HKD 100 billion investment will be very likely to happen, particularly in the next five years, which we hope to deliver the result for that. Do we have the financial capability to do so? I think, the answer is quite obvious.
In this slide, I mentioned that over the past five years, we generated HKD 43 billion cash from our capital recycling program in order to strengthen our balance sheet so that we can have the capacity to put the money into the new investment opportunities. On top of that, I think, capital recycling will still be our active part of our active asset management strategy. Of course, magnitude will be largely reduced now that we have substantially disposed of quite a lot of the non-core investment.
I think with our balance sheet, we can still take care of the HKD 100 billion investment within our capacity, and we will still be aiming to have all these investments completed within our goal to achieve our current investment-grade credit rating, and also continue to deliver the mid-single-digit dividend growth to shareholders.
Thank you, Fanny. The next question is about our dividend policy. It's by Mark from UBS. As we guided a mid-single-digit DPS growth per annum, does it mean the 50% payout ratio policy no longer remain valid?
Fanny, do you want to take that one as well?
Okay. Thank you, Mark, for your question. I think we still stick to the roughly approximately 50% of our underlying profit to be distributed out. Another way to look at that is, I think we are confident that the new investment will be able to generate sustainable profit contribution so that it can support the mid-single-digit dividend growth in the future.
Thank you. The next question is from Ken, from Citi. There are two parts in the question, so I will first read out the first question. What is your outlook of your Chinese mainland mall tenant sales performance for 2022? Are you seeing mall tenant sales as peaking out in the fourth quarter in 2021?
Thank you, Ken. Well, I think as you mentioned in the presentation pack, retail sales in the Chinese mainland have been very robust last year, certainly over the last 12 months. We've seen a 30% growth year-on-year. I think you're right, we saw a slight slowdown in the second half, particularly in the fourth quarter, largely due to you know, sporadic outbreaks of the pandemic of COVID-19 in the Chinese mainland. The government has moved very swiftly to address those. We've seen a pretty quick rebound each time there has been a lockdown in each of the cities in which we operate. We're still optimistic about the outlook for this year.
We still see strong growth opportunities in the Chinese mainland across all our retail centers.
The second question from Ken is that, for Two Taikoo Place, how is the pre-leasing status, and what's your target committed occupancy by end of the year?
Thanks, Ken. Well, I mean, we're making really good progress in Taikoo Place. Two Taikoo Place will be handed over in the second half of this year. It's too early at this stage to give you much more information on further commitments. We announced, you know, the really exciting news of a major financial tenant last year as an anchor for Two Taikoo Place. Despite the softer market in the first quarter of this year, we're seeing plenty of activity, plenty of interest in Two Taikoo Place, I think, which reflects the ongoing trend of decentralization. It reflects the ongoing flight to quality to our, you know, very high quality buildings.
I think, you know, the interest in Taikoo Place is only growing as tenants and occupiers' interest in wellbeing and smart buildings increases. I think we still remain very optimistic that we'll achieve, you know, our targets by the year- end, and we should have more information for you at the interims.
Thank you, team. Moving on to next question is by Avery from JP Morgan. Given gearing is at such low level, apart from the HKD 100 billion investments, does the management has any plans to do share buybacks?
Yeah, thank you. Fanny, do you want to take this one as well?
Yeah. Thank you, team. Thank you for the question. Yes, our gearing is very low, and we have the capacity to do HKD 100 billion investment. Share buyback is always one of the choice of capital deployment, which is in our agenda. Our preference is to put money into the new investment pipeline so that it can generate a sustainable profit contribution in the future, and in turn, to support our mid-single digit annual dividend growth. I think this is still in the pipeline or in our well agenda to consider the share buyback, but we prefer to put money into the new investment first. As Tim mentioned, that's about hopefully in the first five years the HKD 100 billion investment pipeline, most of that will be spent on the new investment.
I think that is our overall position on the capital allocation.
Yeah. Thank you, Fanny. I think, you know, just to add to that, I think it, you know, is reflective of the confidence that we have and the quality of the pipeline of projects that we've identified. As Fanny says, our focus at the moment is to deliver and to execute on the HKD 100 billion investment.
Thank you, Tim. In the interest of time, we will take two more questions. This question is from Simon from Goldman Sachs. Given the current COVID-19 pandemic situation, how would you quantify the potential impact of rental concession?
Thank you, Simon. Well, I think it's still too early to say what the situation is in 2022. As I mentioned earlier, we moved swiftly to provide support to the tenants that we felt, you know, needed the most support, those who face closures, mandatory closures, in the first quarter. I think, broadly, our assumption is that, based on what we know today, the concessions in 2022 will be approximately 50% of the concessions that we granted last year. As I say, the outlook is still uncertain and will remain, you know, very. We'll work very closely with our tenants to support them through this period of time.
Thank you, Tim. We have the last question. With the strong performance of the retail market in China, especially from luxury brands, do you see opportunities to upgrade your malls?
I think, thank you for the question. I think, you know, our retail malls in the Chinese mainland are very well positioned in each of the cities in which we operate. They've all established themselves as retail destinations. We're seeing, you know, good opportunities, as you say, to upgrade them. I think, you know, a portion of our malls will definitely be upgraded. We have strong relationships with, you know, all the major luxury brands.
You know, as I mentioned earlier, I think the successes in Taikoo Li Qiantan have really kind of accelerated our ambition to, you know, upgrade and continue to improve the quality of our malls in the Chinese mainland in response, you know, to the consumer demand, and we're seeing really strong demand for luxury goods.
Thank you, Tim and Fanny. That concludes our briefing today. Thank you for joining us.