Property unit prepares to kick off maiden mainland project
Pacific Century Premium Development (PCPD), the property arm of PCCW, plans to start work on its first mainland luxury residential-commercial project this year, redeveloping a Beijing telephone exchange belonging to China Netcom Group.
Jack So Chak-kwong, PCCW group managing director, yesterday said China Netcom had 40 exchange buildings in the capital, adding that the company intended to redevelop 20 of them, half a dozen of which are in the city's central business district.
Construction of the first redevelopment project would kick off this year, he said. It would be turned into a luxury residential and office project with a total gross floor area of 200,000 square feet.
Benjamin Lam Yu-yee, chief operating officer of PCPD, said China Netcom had a property portfolio of 28 million square metres.
'The project in Beijing will be a prototype for our property development in future,' he said.
PCPD will also redevelop a PCCW telephone exchange building in Sheung Wan into a 150-unit residential project with gross floor area of about 100,000 sq ft.
Soaring luxury residential prices lifted PCPD's net profit for the year to December to $487 million, up from $3 million a year earlier.
Turnover rose 28.8 per cent to $5.83 billion compared with $4.52 billion a year earlier. A final dividend of seven cents will be paid.
Shares of PCPD remained unchanged at $2.425 yesterday.
The company's key cash generator, Residence Bel-Air which is part of the Cyberport development in Pokfulam, generated sales exceeding $18.76 billion from 1,760 units last year.
Mr Lam said depending on the granting of occupation payments, about 900 units, would be booked for this financial year and 260 units put up for sale by the middle of next year.
PCPD chief executive Robert Lee Chi-hong attributed the strong results to robust demand for luxury residential properties and a buoyant real estate market. 'With favourable market conditions for premium residential properties, as a niche developer focused on high-quality developments, PCPD is well positioned to tap potential in the property market and benefit from positive market trends,' he said.
