Citic Pacific plans to redevelop its industrial-office property in Kowloon Bay for residential use, aiming to enhance the investment value of its portfolio. Sources said the company had submitted an application to rezone its DCH Motor Services Building in Kai Cheung Road. The property, currently headquarters of its Dah Chong Hong trading arm, is on a 102,624 square foot site. The application is expected to be discussed by the Town Planning Board in September. The move follows indications other landlords in the area also are looking at converting their sites for residential redevelopment. Analysts said the Government was expected to scale down its proposed southeast Kowloon reclamation, reducing the residential portion to house only 240,000, instead of 320,000. That raised the hopes of some developers that their chances of getting their industrial properties in Kowloon Bay rezoned for residential use had improved as the Government sought to fulfil its plan to increase home supply in east Kowloon. It was reported that Wharf (Holdings) planned to apply for rezoning of its industrial-office project on a 166,000 sq ft site in the area for a residential project comprising more than 1 million sq ft. Other big landlords with industrial properties in the area include Sino Land with properties such as Corporation Square and Pacific Trade Centre, while Kerry Properties has a Kowloon Bay portfolio which includes Kerry D.G. Godown and two sites it bought through government tender last year. A government planner confirmed a number of developers had applied for rezoning of industrial-related projects in Kowloon Bay but declined to give details. He said no approvals had yet been granted. Some planners said the Town Planning Board would study the applications carefully. They expected developers would face many obstacles before persuading the board to approve the rezonings. Kowloon Bay is the Government's newly developed district mainly for industrial use. If the Government approved one application, many other developers would follow and seek similar rezonings, the planners said. That could result in a complete change for the area. They said the Government was reviewing the planning of old industrial areas such as San Po Kong and Kwun Tong but no decision had been made. The airport relocation had prompted some landlords in nearby To Kwa Wan to apply for a change of land use for their industrial buildings.