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Sandy Li

Hang Lung Development is in discussions with Standard Chartered Asia, which is acting as financial adviser to Century City International Holdings, over a possible acquisition of the financially-troubled group's assets.

 'We met the bank the day before yesterday but cannot disclose more details now,' chairman Ronnie Chan Chi-chung said.

 Standard Chartered Asia is responsible for formulating a plan to help ease Century City's liquidity problems. The bank declined to comment on the issue yesterday.

 'We have looked at almost all properties available for sale on the market but there is nothing I can say today,' Mr Chan said yesterday, after the annual general meetings of Hang Lung and its two subsidiaries - Amoy Properties and Grand Hotel Holdings.

 Mr Chan's statement came after widespread speculation property tycoons Chen Din-hwa and Li Ka-shing were interested in acquiring the assets of Paliburg Holdings, Century City's property arm.

 Mr Li last week denied the rumours, saying his company had not been involved in any negotiations with Paliburg.

 Century City holds 68.1 per cent of property developer Paliburg Holdings, which in turn controls 74.8 per cent of Regal Hotels International.

 Mr Chan said Hang Lung would take advantage of the depressed market and would be actively pursuing acquisitions of residential sites and investment properties worth up to $10 billion.

 He said Hang Lung would increase its market share in the residential sector to 5 per cent from 4 per cent, or as much as possible in the next five to seven years.

 To strengthen its rental income, Amoy Properties was also looking for investment properties with attractive yields, he said.

 Amoy has cash reserves of more than $2 billion, he said.

 Hang Lung's main development income this year would come from the sale of a joint-venture residential development at the airport railway's Tung Chung Station, Mr Chan said.

 He said rental income would become a substantial source of income.

 Hang Lung has a 20 per cent stake in the Tung Chung phase one development.

 Amoy's rental income would be boosted if it managed to acquire some investment properties this year, Mr Chan said.

 At present, Amoy was generating about $200 million in monthly rental income, he said.

 The group's financial position was very healthy and Hang Lung had debt of only $4 billion, he said.

 Hang Lung was negotiating with the Government over the land premium payable on its residential sites in Tsuen Wan and Blue Pool Road in Happy Valley, Mr Chan said.

 He said Hong Kong's worst times were over and expected the economy to return to positive growth next year.

 'I am not that pessimistic on the economy.'  Positive signs had shown in tourism and the property market, Mr Chan said.

 But a slowdown in exports might have an effect on the economy, he said.



Hang Lung in talks for assets of Century City