Pokfulam project keeps Cheuk Nang on profit track
Cheuk Nang Properties' (Holdings) profits have been boosted by the sale of phase one of its Villa Cecil development in Pokfulam, according to chairman Cecil Chao Sze-tsung.
He said the company had generated $230 million in proceeds from the sale of eight of its 10 villas in phase one.
The sales had contributed 'significant' profit to the company and the proceeds would be booked in the present and the next financial year, he said.
The company needs to invest another $220 million for construction of Villa Cecil's second phase and Cheuk Nang Lookout on The Peak, Mr Chao said after the company's annual meeting yesterday.
He said Cheuk Nang's financial position remained strong and it had no need to raise funds from the equity market.
Yesterday, the company offered Villa Cecil phase two and Cheuk Nang Lookout for sale through agents.
Mr Chao expected Villa Cecil phase two to sell for $7,000 per square foot while the three houses at Cheuk Nang Lookout would fetch about $12,000 per square foot. Villa Cecil comprises 24 units measuring 3,000 square feet to 4,000 sq ft.
He said about 75 per cent of the space in Cheuk Nang's office development, Cheuk Nang 21st Century Plaza in Wan Chai, had been leased, including the 10 per cent used by the company.
Rentals were $10 per square foot to $11 per square foot a month, he said, adding that the company planned to raise its rental income, at present insignificant, to 70 per cent of total earnings in the next five years.