Pacific Concord Holdings plans to spin off its Hong Kong and China property division, which has $7.7 billion in assets, to finance its future property expansion. The new property arm, Concord Land Development Co, would acquire property interests and projects in Hong Kong and China from Pacific Concord and chairman Wong Sai-chung. The acquisition would be satisfied by the issue of Concord Land shares. After the acquisition, Pacific Concord would hold 91.9 per cent of the issued capital of Concord Land and the balance would be owned by Mr Wong. Pacific Concord's shareholding in Concord Land would be diluted to 75 per cent after the latter's proposed share offer and listing. Mr Wong refused to disclose the amount to be raised from the flotation, or the cost of the property transfer from Pacific Concord to Concord Land. He said Concord Land Development would hold two property projects in Hong Kong - a 45 per cent stake in a joint venture residential project with Cheung Kong Holdings at Ma On Shan and part of the National Mutual Centre in Wan Chai. The proceeds raised from the disposal of Hong Kong properties would finance future property development, he said. 'We are interested in large scale projects with high yields similar to the Ma On Shan project or something like the second package of the Tung Chung airport railway station,' he said. Concord Land would eventually hold a total of 4.5 million square feet of shopping space in prime locations in Beijing, Shanghai, Suzhou, Wuhan, Shenyang and Guangzhou. A million sq ft of this shopping space had been completed and the balance of 3.5 million was expected to be completed in 1998, he said. Mr Wong said he would personally sell two shopping malls in Beijing and Shenyang to Concord Land but declined to disclose at what price. A total of 280,000 sq ft of shopping mall space in Beijing had been completed and fully let and the space in Shenyang was expected to be completed in 1998, Mr Wong said. Concord Land's most valuable property project would be the Ma On Shan site, worth $2.3 billion, or 30 per cent of Concord's total asset value, he said. The joint venture residential project in Ma On Shan has a gross floor area of 871,884 sq ft and it is expected to be offered for sale in the next few months. Mr Wong expected the proposed listing arm to receive property sales revenues from Hong Kong and a steady rental income from mainland shopping malls.