Property investment company Paliburg Holdings will make no provisions for the decline in the value of property sites it purchased at last year's peak prices, according to chairman Lo Yuk-sui.
Analysts' attention has focused on Paliburg's $5.5 billion purchase of a luxury property site in Stanley last year. At the same auction, Cheung Kong Holdings and Hutchison Whampoa bought a Hunghom residential site for $6.06 billion.
Earlier this year, Li Ka-shing's Cheung Kong and Hutchison made a combined provision of $1.5 billion for the decline in the value of the Hunghom site.
Mr Lo - also chairman of Regal Hotels International Holdings - was speaking at the topping out ceremony of the 1,100-room Regal Airport Hotel Chek Lap Kok.
Mr Lo said no provision would be made by Paliburg for a loss in value of the Stanley site, even though it paid $12,800 per square foot - way above its present value.
The property would be put on sale early next year.
Commenting on property sales in the second half of the year, Mr Lo said Paliburg would not cut prices.
