Applied eyes US$80m in early resort sales

PUBLISHED : Thursday, 17 August, 2006, 12:00am
UPDATED : Thursday, 17 August, 2006, 12:00am

Applied International Holdings, a computer software maker aiming to turn into a property developer, said its resort venture in the British Virgin Islands will generate up to US$80 million from preliminary apartment sales next year.

The Hong Kong-listed company earlier pocketed US$30 million by selling a 50 per cent stake back to its wholly owned venture, Quorum, which then sold the stake to Instersle, a New York-based property developer, for US$21 million.

Quorum plans to borrow US$150 million over the next three years to develop hotel, yachting, golfing and swimming facilities, Applied said.

'We will have pre-sales of 40 to 60 apartments in the second quarter next year and revenue of about US$50 million to US$80 million in the first year,' said Raymond Hung, the managing director of Applied.

Mr Hung said Applied bought the site in 1994 for US$10 million and invested US$6 million on basic construction work. He said the site would be developed into a resort and become one of Applied's core projects in the next six to seven years.

'The site is enough for us to build 500 apartments, ranging from 1,800 to 4,000 square feet for US$1 million to US$6 million each.'

He added that the firm would continue to seek overseas sites that could be developed into resorts.

Applied shares rose 3.77 per cent to close at 55 HK cents yesterday.