K Wah aims for HK$2b income from two projects
K Wah International, a mid-tier developer run by gaming tycoon Lui Che-woo, expects to book about HK$2 billion of revenue from sales of units in two residential projects this year.
K Wah booked no income from residential projects last year as new accounting rules allow developers to book only revenue from completed units. This resulted in turnover last year coming mainly from rents at Shanghai K Wah Centre.
This year, the developer would complete Great Hill in Sha Tin and J Residence in Wan Chai, which generated HK$2.8 billion from sales of uncompleted flats last year, K Wah Real Estates general manager Wilson Chan Yuk-sing said.
He did not say how much of that would be booked as revenue for this year, only saying K Wah was confident of achieving HK$2 billion in sales from Hong Kong projects.
K Wah also had a project in Shanghai scheduled for completion this year, Mr Chan said, without disclosing how much revenue was generated from pre-sales.
He expected Great Hill, a luxury residential project, to be the focus of K Wah's property sales this year. Most of the 122 units were sold in the first half of last year, leaving 22 typical units, 24 duplex units and eight houses worth more than HK$1.2 billion unsold.
The price of the typical units has been raised 10 per cent from last year, to between HK$9,600 and HK$11,000 per square foot.
At J Residence, the asking price for four remaining special units is about HK$14,000 per square foot.
Earlier this month, K Wah won a court ruling allowing it to force the remaining homeowners at Hang Hin Mansion in Mid-Levels East to sell their units.
It has since appointed Savills Valuation and Professional Services to handle the auction, to be held late next month or in early March.
The 16,000 square foot site could provide a total gross floor area of 57,000 sqft and has the potential to be developed into a luxury residential project.