Hutchison property projects in China to generate 'little' income in short term

Hutchison Whampoa says revenue from its multi-billion dollar property investments in China will remain insignificant next year until the completion of new projects.

Peter To, the deputy managing director of Hutchison's property investment vehicle Hutchison Whampoa Property (HWP), said this was despite the fact that the group's two major commercial complexes in Shanghai and in Chongqing would start to generate income next year - but contributions would still be insignificant.

'The bulk of earnings from these real estate investments will come after their completion in a few years,' Mr To said.

The two projects included the office-retail complex Westgate Mall, otherwise known as Meilongzhen Plaza, in Shanghai's Nanjing Road. According to Hutchison Whampoa's annual report, the project would provide a total gross floor area of 861,120 square feet in a 10-storey shopping arcade and an office tower.

Mr To said the whole project would be a long-term investment.

Hutchison Whampoa and Cheung Kong each have 21 per cent stakes in the project, with the remainder owned by Hong Kong company Tem Fat Hing Fung (Holdings) and Shanghai Meilongzhen (Group) Co.

The Chongqing development, Metropolitan Plaza, would provide a total gross floor area of 1.86 million sq ft, Mr To said.