Kerry steps up building plans for flats projects
Kerry Properties is to increase its development activities in the next two to three years with a focus on the residential sector.
The announcement came as the company said it expected to pay the Government a land premium of $500 million for a proposed Mid-Levels residential project.
The premium, for the Ava Mansion development, represents an accommodation value of about $3,500 per square foot and is in line with market expectations.
Edward Kuok Khoon Loong, who was named as new chairman at the company's annual general meeting yesterday, said that Kerry's emphasis would be on stepping up development in the next two to three years.
Mr Kuok, who moves up from deputy chairman and joint managing director, will replace Allan Ng Poh Meng as chairman on June 30. Mr Ng was resigning to pursue his own business interests, the company said yesterday.
Kerry Properties is part of a group of companies controlled by Robert Kuok, the single largest shareholder in South China Morning Post (Holdings).
After the annual meeting, Edward Kuok said the group was in negotiations for some development properties.
He did not elaborate but said Kerry's expansion would focus more on residential properties.
Ava Mansion, is one of Kerry's Hong Kong residential projects. The 142,926 square foot development is next to another of the company's projects, the Branksome apartments in Mid-Levels.
The company made use of unutilised plot ratio to maximise the land use of the Branksome site and planned to build the Ava Mansion tower with ancillary car parking and recreational facilities on the site.
With $1.4 billion in cash and $1.55 billion in an undrawn loan facility, Edward Kuok said Kerry had sufficient capital for new development. He said there were no plans to sell shares.
