K & K’s Kino Law optimistic about Hong Kong property market
Pre-sales at 18-flat project in Fu Tei expected to be launched in first half of year
Kino Law Kin-yat, 28, worked in UBS’s investment banking department before joining his family’s Park Hotel Group in 2012.
A year later he founded K & K Property with his father, Law Ka-kuo.
He was previously involved in a range of major property transactions within the family business. He participated in the disposal of the DNA shopping mall in Hong Kong for HK$1.9 billion in 2012 and the sale of the Singapore Park Hotel Clark Quay hotel for HK$1.9 billion and the Singapore Grand Park Orchard hotel for HK$6.9 billion in 2013.
Since its formation, K&K Property has spent HK$6.3 billion acquiring three residential sites in government tenders.
In April 2013, it won a residential site in Fu Tei, Tuen Mun, for HK$53.2 million.
A year later, it secured a residential site in Kowloon’s Kai Tak area for HK$2.91 billion. Last month it won a luxury residential site in Stanley for HK$2.81 billion.
Can you give an update on the progress of the property projects in Hong Kong?
We have five projects so far. Two of them have been completed. They are a 13-house development in Tai Po and another one in Sai Kung.
Since we formed K & K Property with my father, we’ve acquired three residential sites in government tenders.
The other two projects currently under construction are an 18-unit development in Fu Tei and an 800- plus units project in the Kai Tai area. The luxury residential site in Stanley we won just last month is in the planning stage.
Do you have a flat production target?
We plan to build 1,500 to 2,000 units over the next five years. So far, we have 900 units under construction.
What kind of property developments interest the firm most?
At present, we’re focused on residential developments. We’ve built up a diversified land bank which is spread around Hong Kong Island , Kowloon and the New Territories. The product range varies from small to medium-sized apartments to super deluxe houses.
We prefer to bid for sites close to MTR stations. For instance, our project at Fu Tei is just five minutes’ walk to Siu Hong station, while another project is in the Kai Tak area, which will also have a railway station.
Among the three projects, which one will give you most satisfaction?
Every project has a significant meaning to me. Although the 18-flat project in Fu Tei is relatively small, it will sell to 18 families who live there. The project in Kai Tak will be bigger, with more than 800 apartments. The Stanley site brought us a lot of market attention after we won the tender.
Which project will be offered for pre-sale first?
We have applied for pre-sale consent for the project in Fu Tei. We expect it will be launched for pre-sale in the first half of this year. The 18 apartments will have three bedrooms, targeting upgraders in the area.
The project in Kai Tak will likely be available for pre-sale in the second half. The development is mainly comprised of one- to two-bedroom flats.
Will the firm expand into commercial property development in the future?
Yes, we also interested in acquiring commercial and hotel sites in government tenders. In the upcoming land sales programme, there are a large number of commercial sites in the Kai Tak area that will be put on sale.
What makes you interested in the Kai Tak area?
Kowloon East is set to become Hong Kong’s second core business district, where there will be a major supply of office spaces over the next 10 to 20 years. This area will be larger than Central once it is completed.
Besides a large supply of offices, the area will have the cruise terminal, luxury hotels and shopping malls. The area has great potential for development.
Why did your family decide to exit the hotel investments in Singapore?
We saw prices in Singapore reaching a peak level. So, we wanted to cash in our hotels and use the sale proceeds to expand into the Hong Kong property market.
We also have a hotel investment arm with properties in Japan and on the mainland.
Can you tell us about the firm’s financial position?
As a private company, we prefer not disclosing in terms of figures. But I can assure you that we have sufficient capital to finance our development. We have a healthy financial position.
How do you balance your work and life?
As a chief executive of a new company, my staff will see me with my sleeves rolled up when making site visits. I’m also engaged in financing, project design, sales and marketing as well. After work, I like practicing Thai boxing. I once participated in competition as well.
Where do you want to own your dream home outside Hong Kong?
I’d like to have a holiday home on one of the islands in Thailand as I like sunshine and the beach.