Shun Ho set to expand portfolio

PUBLISHED : Saturday, 26 June, 1999, 12:00am
UPDATED : Saturday, 26 June, 1999, 12:00am

Property developer Shun Ho Resources Holdings plans to expand its Hong Kong property portfolio.

Executive director Albert Hui Wing-ho said the company had sufficient resources to expand as it had not been hit hard by the property market's correction.

'Our financial results were hit last year due to the drop in rentals and a decline in hotel industry,' Mr Hui said.

However, he said Shun Ho's purchasing power had not been hit.

Shun Ho, which owns investment properties and Ramada Hotel Kowloon, last year posted a $13.23 million net profit, which was down from $78.58 million achieved previously.

Mr Hui said Shun Ho started to reinvest into the market last year in view of the limited downside of property values.

Last year, Shun Ho bought a six-unit luxury property at Mount Kellett Road on The Peak for about $80 million.

It also bought a 60,000 square foot site in Sai Kung that could be turned into a residential development.

The Sai Kung project, providing 43,000 sq ft, would be developed into town houses through an investment of $150 million, he said.

Mr Hui said the company was looking for development project acquisition opportunities worth about $200 million each.

The company's debt to equity ratio was estimated at less than 10 per cent.

Mr Hui said Shun Ho recently secured the Government's approval to raise the plot ratio of its commercial property in Pak Sha Wan, Sai Kung, to 1.5 times from 0.75 times.