Lai Sun Development says it plans to enlarge its mainland investment portfolio to facilitate the proposed spin-off of its China property subsidiary for a Hong Kong listing by the end of this year. Deputy chairman Peter Lam Kin-ngok said the expansion plans would be directed at mainland housing projects aimed at domestic buyers and some infrastructure-related projects in big cities. Mr Lam said the expansion would further boost Lai Sun's China investments of about $3 billion through Lai Fung Co. He said Lai Fung, its investment vehicle, was expected to be floated on the Hong Kong stock exchange in the fourth quarter of this year and would comprise the group's new mainland investments. He said in the long term, income generated from the proposed listing arm was expected to be 50 per cent driven by property sales and the rest from recurrent income. The planned housing project at Jumen Road in Shanghai's Xuhui district - part of the municipal government's city redevelopment plan - comprises a gross floor area of one million square feet. Lai Sun's China division senior vice-president Stephen Yuen Ching-bor said Lai Fung had secured a guaranteed return of 15 per cent from the city government. Investment for the first of the three-phase development would be worth $30 million. The first phase comprises a gross floor area of more than 200,000 sq ft. Mr Yuen said it was the group's first city housing redevelopment. Market prices of similar projects are pitched at about or $650 per square foot and the development cost of these projects is estimated to be about $577 per square foot. Lai Sun is negotiating to invest in a number of infrastructure-related projects, with each costing more than $100 million. Water or electricity supply could be on the list of possible investments. Mr Yuen said several new projects were under way including the $1 billion commercial-office complex at the Metro Station in Guangzhou's Zhongshan No 5 Road and the second phase of Eastern Place in Guangzhou. The Zhongshan No 5 Road project, comprising a gross floor area of 386,782 sq ft, is expected to be completed in December next year but pre-sale is planned this year. The second-phase of Eastern Place - the company's flagship property investment in China - will comprise 512 flats in two towers, with floor area of 3.34 million sq ft. The first phase of Eastern Place, comprising two residential towers, is expected to be completed in July this year. The company's other big development is Hong Kong Plaza in Shanghai. Mr Yuen said the commercial-office-serviced apartment complex, with a floor area of more than 1.27 million sq ft in two 38-floor towers, was scheduled for completion in August this year. He said the sale of the serviced-apartment tower had yielded $646 million. About 30 per cent of office space has been sold out.