Hing Kong Holdings said profit margins at its joint venture luxury residential project in Tai Po had been squeezed by a sharp fall in property prices, adding it would be sold at near development cost. Managing director Albert Chow Nin-mow said units at Tycoon Place, Wong Yue Tan, would sell at about $7,200 per square foot against a development cost of $6,200 per square foot. The company has a 30 per cent stake in Tycoon Place. After the company's annual general meeting yesterday, Mr Chow said it had offered 10 units for internal sale and expected to launch the public sale by the end of the month. Based on an average price of $7,200 per square foot, he expected the company to generate $550 million from its share of Tycoon Place if all units sold. 'The development should receive support as supply of luxury residential flats remains tight,' Mr Chow said. After the sale of Tycoon Place, Hing Kong would look to alternatives to strengthen its income source, for instance, investing in securities, he said. He said the company had submitted an application to the Town Planning Board about converting three warehouses owned by its substantial shareholder, China Travel Service Holdings, near Hunghom railway terminus into a hotel-serviced apartment block and two residential projects. The three warehouses have a total site area of 70,000 square feet, he said. The company intended to seek a 12 times plot ratio for the hotel-serviced apartment project and 7.5 times for residential use, he said. In Beijing, the company planned to invest up to 300 million yuan (about HK$279.3 million) this year to develop the first phase of a large-scale residential project, he said. He said the Beijing development would be built in three phases with a total investment cost of 1.6 billion yuan. It would provide a gross floor area of three million square feet.