Henderson Cyber, a joint venture between Henderson Investment and Hong Kong & China Gas, is targeting HK$1 billion from its listing on the Growth Enterprise Market (GEM), according to sources. Proceeds are to be used to finance the company's expansion in telecommunications and Internet services as well as the development of Internet-data centres, the sources said. Henderson Cyber applied last month for a listing on the GEM, and Colin Lam Ko-yin, vice-chairman of Henderson Investment, said the unit would probably list in the second half of this year. Sponsors for the flotation would be HSBC Investment Bank Asia and Credit Lyonnais Securities (Asia), the sources said. The recent correction in technology stocks would not affect the flotation of Henderson Cyber as it was a long-term investment, Mr Lam said. The first Internet data centre, consisting of 30,000 square feet in Well Tech Centre, San Po Kong, would be offered for lease in about three months to generate recurrent income for Henderson Cyber, he said. Henderson Investment plans to transfer all its telecoms, information-technology, Internet and related businesses to Henderson Cyber after a group revamp. Mr Lam was speaking after the annual general meeting of Hong Kong Ferry (Holdings), an associate of Henderson Investment. He said Henderson Investment was in the final stage of negotiations with a United States technology investor to jointly develop a wireless-fixed telecoms network service (FTNS) in Hong Kong. 'We hope to finalise the details for co-operation in about two weeks,' he said. Henderson Investment would take a majority stake in the FTNS investment, he said, with an initial investment of up to HK$300 million in the service which is to be launched in January. On the property front for the group, Mr Lam said Henderson Land Development was interested in bidding for the 3.6 hectare luxury residential site, which housed the former British Military Hospital in King's Park Rise. While some developers and analysts urged the Government to divide large development sites into smaller lots for sale to enhance competition, he said it was difficult to apply the measure to all sites the Government decided to put on offer. For example, he said it was not appropriate to split the King's Park Rise site into smaller lots in view of the site's shape and location. Henderson Land planned to release about 1,000 units for sale in the next three months despite weakened interest following last week's land auction, he said. But he expected that prices for large units of 800 sq ft to 1,000 sq ft would be under pressure. General manager for sales Donald Cheung Ping-keung said the group would release 68 completed flats of Metro City phase two in Tseung Kwan O for sale tomorrow on a first-come, first-served basis. The average price was slightly above HK$3,000 per square foot, similar to that at a recent sale of Metro City phase three units.