Concord Land Development Co, the property arm of Pacific Concord Holding, says it has accumulated five agricultural sites in the New Territories which will provide sufficient land for its developments for the next five years. Executive director Kwan Kai-cheong said the land bank enabled it to stabilise its Hong Kong property development earnings. He also said after-tax profit generated from its joint-venture residential development, Vista Paradiso, in Ma On Shan would be fully booked in its accounts by next year. Applications to change the land use of the agricultural sites to residential were being processed. One of the sites was in Yuen Long, but Mr Kwan refused to identify others out of concern that land owners nearby would raise prices. 'We will focus on developing large-scale residential projects similar to the Vista Paradiso in Ma On Shan rather than a single building,' he said. The company preferred to acquire land by private negotiation because it was cheaper than public auction. The cost of the agricultural land had been low and the proposed developments on the sites would be profitable even if completed units sold at $3,000 per square foot. The company had cash reserves of between $3 billion and $4 billion, which was enough to finance land premiums payable to the Government for rezoning the sites, as well as development costs of its projects in the mainland. Concord Land would need to invest about 400 million yuan (about HK$372.23 million) for the first phase of its massive residential development in Puxi, Shanghai. The development, which could provide 22 million sq ft of housing, was due to be completed in five to eight years. The second phase of the development would be financed by the cash flow generated from the pre-sale of the first phase to be offered. First-phase units would be released for pre-sale by the end of this year, at 500 yuan per sq ft - double the overall development cost, he said. Meanwhile, construction of Concord Land's four million sq ft of retail space in Shanghai and other areas would be completed by 2000. Annual rental income of about 1.6 billion yuan was expected from the premises.