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Kandy Wong

Kowloon Development said yesterday it had acquired two property development projects from its parent for HK$857 million. 
The company said in a statement the properties were located in Ming Yuen Western Street at North Point and Hun Nan Xin district  in Shenyang, northeastern China. 
Kowloon Development will pay HK$90 million in cash upon completion of the deal, and the balance will be settled in full within a year.  
The consideration for the property project in North Point represents a purchase price of HK$41,319 per square metre, a 20.1 per cent discount from its market value. 
The project located in Shenyang, Liaoning province, had a purchase price of HK$1,073 per square metre, a 37.2 per cent discount from its market value. 
'Given the gradual economic recovery in Hong Kong and the mainland, [as well as] the outstanding pre-sale results of new residential properties, the demand  for premier new units remains,' said chairman Or Wai Sheun. 
The property located in North Point will be developed into a composite residential building. Construction of the project is expected to be finished before June 2011. 
The project in Shenyang will have a combination of residential and commercial use. The foundation work for the first  phase has already commenced. 
Analysts said the company's management has rededicated its energies to the core business of developing and monetising its mainland land bank. 
'The next potential major catalyst for further upgrades is  progress in obtaining government planning approval for the Macau land bank held by [the company's] subsidiary Polytec Asset,' said analyst John Chan at Cazenove Asia. 
'We remain cautiously optimistic that this could happen before end-2009.'
Building blocks
The firm intends to develop the North Point project for residential use
The consideration for the project represents a discount of: 20.1%



Kowloon Development acquires two projects