New World Development

New World aims for $1.6b in mainland sales

PUBLISHED : Thursday, 13 September, 2001, 12:00am
UPDATED : Thursday, 07 May, 2015, 5:06pm

New World China Land expects to have sold 3,000 residential units, worth up to 1.8 billion yuan (about HK$1.6 billion) in the mainland between July and the end of this year.

Assistant general manager Tommy Cheng said about 40 per cent of the units, representing a gross floor area of more than 300,000 square metres, had already been sold. The projects were in cities including Beijing, Shanghai, Wuhan, Guangzhou, Dalian and Shenyang.

Mr Cheng said New World China had not set its sales target for the six months to June 30 next year but the volume should not be lower than 3,000 units. Profit margins of the residential projects ranged from 20-30 per cent.

New World China was harvesting its investments after concentrating on land acquisition in the past few years. It was also building up its rental portfolio, with a floor area of 500,000 square metres, tapping income of more than 100 million yuan a year. It would have another 260,000 square metres of rental projects finished next year.

New World China executive director Peter Cheng Kar-shing said it would focus on developing its existing land bank of 20.1 million square metres. The company would also consider developing a 290-hectare residential-commercial site in Futian, Shenzhen.

Mr Cheng said the company's interest in the project would depend on the sales terms. If the Shenzhen government required an initial land premium payment, the company's interest would be diminished.

He proposed that the government allow phased payment or a profit-sharing scheme, so as to allow development of the lot by a single developer.