Cecil Chao

Peak site expected to bring in $120m

PUBLISHED : Friday, 15 January, 1999, 12:00am
UPDATED : Friday, 15 January, 1999, 12:00am

Cheuk Nang Properties (Holdings) executive chairman Cecil Chao Sze-tsung expects the firm to generate $120 million from the sale of a luxury residential site on The Peak.

The company is offering a 24,000-square-foot site at Severn Road for tender. The site was bought at a land auction in 1992 for $33 million.

Mr Chao said the asking price had taken into account $20 million it had invested in site formation.

'We have to sell our properties to support earnings, even though the market is weak,' he said.

The company had obtained approval to build three luxury houses on the site.

The tender will close for submission on February 18.

Mr Chao recently said the company's revenues from property sales would be halved to $100 million this year, due to the depressed market. The site has a plot ratio of 0.5, with the government lease stipulating that a maximum of 9,900 sq ft can be developed.

An interested buyer could ask Cheuk Nang to develop the site and hand over the project after completion, Mr Chao said.

He said the company had decided to sell the site following the sale of a luxury house at Deep Water Bay Road, owned by another company, for $250 million, or $15,481 per square foot, last month.

Mr Chao said construction of the Peak site had been delayed and the company had secured an extension for completion until 2001, due to a slope problem.