UK site added to CMB's portfolio

PUBLISHED : Tuesday, 22 February, 2000, 12:00am
UPDATED : Tuesday, 22 February, 2000, 12:00am

China Motor Bus (CMB) has paid about $380 million for an office property in London to continue its expansion into the property sector.

Company director Henry Ngan said the purchase from the British Airport Authority would reap $25 million in rentals a year.

The property - Albany House - is in the St James' Park area adjacent to St James' Park Underground Station.

It consists of an 11-storey main tower and a five-storey block on a 21,500 square foot site.

Mr Ngan said London Regional Transport had leased the building as part of its headquarters on a full repair and insurance lease for 25 years, subject to an upwards only rent review every five years.

Mr Ngan said CMB also planned to expand its Hong Kong property portfolio, with a proposal to redevelop its quarters in North Point into residential housing.

The proposal would see the 17,800 sq ft Kam Hong Street site transformed into a residential building of 180,000 sq ft.

Mr Ngan said the company was in talks with the Government on land premium payment for the planned redevelopment.

The company is also studying possibilities of redeveloping the Chai Wan bus depot for residential use. However, Mr Ngan said the site had been eased to New World First Bus as a depot for 18 months.

No redevelopment plan would go ahead until the lease expired, he said.

CMB is developing a 864-unit residential development, known as Les Saisons, in Aldrich Bay, in conjunction with Sun Hung Kai Properties and Swire Properties.