HKR International has diversified its property portfolio into the United States via an option agreement to buy or jointly develop about 3,500 hectares of agricultural land in California.
HKR International, holding company Mingly Corporation and Castro Valley Properties Inc (CVPI) have agreed to buy or develop Castro Valley Ranch in Santa Clara County, California, through Mulgrave International, a wholly owned subsidiary of HKR International.
HKR International is obliged to pay a fixed annual option fee in cash of $13.92 million during the option period. In June the land was valued at $162.33 million against $154.6 million in December 1993.
The CVPI-owned property is used for agricultural and other purposes. The company did not disclose the development plan but said residential units would generate good sales, according to a research report by CVPI.
The report also said the property market in Santa Clara had experienced steady growth in the past decade, due to Northern California's hi-tech industries. The company said the option may not be exercised within the first three years as the terms were based on a five-or 10-year maximum option period.
