Developer Hang Lung Properties said it would continue to sell its non-core properties in Hong Kong, with the mainland offering better returns and lower risks than the local market.
Speaking at its interim results press conference yesterday, chairman Ronnie Chan Chi-chung said the developer had been looking to sell its older and non-core properties with lower rental income for two years.
But the best opportunities had only come of late.
'After expanding new sources of revenue on the mainland for two years, we are now confident that we can rapidly increase our rental income on the mainland ... [to] cover the loss of income after selling the properties in Hong Kong,' Chan said.
'In the last few months ... we were given some reasonable and attractive offers. We'll continue selling when the prices are good.'
Hang Lung, Hong Kong's third-biggest developer by market value, sold its 28-year-old office building in Cheung Sha Wan for HK$625 million last month, after selling Star Centre in Kwai Chung in May for HK$528 million and parking lots in Park Towers in Causeway Bay for HK$220 million. The latter two, booked in its interim results, generated a profit of HK$220 million.
But Chan said it had no plans to sell prime properties in core areas, including Causeway Bay, Central and Mong Kok.