ANALYSTS say a redevelopment of Telecom House in Wan Chai would not substantially increase revenue.
Telecom has just announced it is considering redeveloping the property, less than two months after its controversial move to slash 16 per cent of its staff over three years.
Credit Lyonnais analyst Benjamin Cheng said while redeveloping the building would not mean any more business opportunities, it was still a good form of investment for the company.
'Even though the market is slow, it would not matter because the company could keep the building for its own use,' Mr Cheng said.
Another analyst said redevelopment would increase the property's resale and rental value.
Hongkong Telecom's redevelopment plan comes in the wake of an emerging trend for public utility companies to move into property development projects.
China Light and Power, in collaboration with Cheung Kong (Holdings), has converted its Hok Un Street power station into a large-scale residential estate.
