Kwoks in Canada property venture
SUN Hung Kai's Kwok family has entered into a joint venture with one of Canada's largest companies to develop a 20-hectare commercial and residential site in Vancouver valued at C$1.2 billion (about HK$7.04 billion).
Canadian Pacific announced the deal after months of negotiations between its land-owning subsidiary, Marathon Realty Co, and ''a privately held company owned by the Kwok family''.
''Our strategy was always to enter into a joint venture with financially strong partners,'' Marathon Realty general manager Graeme Stamp said.
''The Kwoks will participate in the overall project, but the terms of the agreement will be kept private and confidential.'' Industry sources said the deal was made because the Canadian company had a strong land bank but lacked cash to develop it.
The development would be second in size only to Li Ka-shing's Pacific Place project on Vancouver's former World Expo site.
The Hong Kong-related developments are at opposite ends of the city-centre peninsula, and will occupy more than 20 per cent of the entire area once completed.
The Kwok joint venture involves about 2.1 million sq ft of commercial space including a 400,000 sq ft hotel with a 400-berth marina and seaplane complex.
The residential segment, which is believed to be the focus of the Kwok family investment, totals nearly 2.7 million sq ft and is estimated to be worth ''up to C$500 million'', according to Mr Stamp.
The joint venture also involves building a 1,500-seat entertainment centre at a cost of between HK$180 million and HK$240 million, and creating nearly 17 acres of waterfront parkland.
Neither Sun Hun Kai officials nor Kwok family representatives were available for comment on the deal signed by Thomas Kwok in Vancouver last week.
However, the deal is reported to gives the family a 50 per cent interest in the overall project and an 80 per cent interest in the residential development.
Marathon Realty has spent more than HK$60 million on the site and has approval for nearly half of the 2,200 residential units.
Marathon Realty estimates it will take more than 15 years to complete the Coal Harbour project, with the first phase of residential units on the market next year.
Construction will include 10 phases, with properties priced between C$200 and C$350 per square foot, including about 400 rental units and 370 government-required social-housing units.
A Canadian Mortgage and Housing Corporation report shows that Vancouver's apartment and condominium market will remain ''balanced to under-supplied'' this year, with only 1,555 units complete and not occupied at the end of July.
