bodyType

customContents

entityId

entityUuid

articlePageQuery

filter

article

articleBaseAdvertisingInfoArticle

articleListArticle

articleSeoArticle

helpersCheckIsPostiesArticle

hooksArticleAcknowledgementGateOverlayArticle

hooksTrackPageViewArticle

hooksContentInterestArticle

articleLinkingDataContent

articleSchemaContent

liveArticle

advertZone

sentiment

contentLock

topics

types

sections

moreOnThisArticles

urlAlias

commentCount

sponsorType

authorLocations

authors

paywallTypes

corrections

displaySlideShow

multimediaEmbed

printHeadline

seriesContainer

socialHeadline

headline

flag

firstTopic

glossary

flattenTypeIds

publishedDate

additionalInfoBoxes

images

image

relatedLinks

relatedNewsletters

__typename

createdDate

sponsor

factSheets

series

disableOffPlatformContent

published

updatedDate

summary

subHeadline

body

keywords

copyrighted

customTimezone

liveContents

Sandy Li

Amoy Properties plans to spend another HK$1.4 billion developing residential sites it acquired in Ho Man Tin and West Kowloon this month.

Managing director Nelson Yuen Wai-leung said the company planned to exploit a downturn in the market to buy more land.

The additional outlay, added to the HK$846 million land cost for Amoy's stake in the two sites bought at a recent government auction, will bring the company's share of investment in the projects up to HK$2.25 billion.

Earlier this month, Amoy bid HK$251 million for its 100 per cent-owned residential site in Ho Man Tin.

It also secured a 1.49-hectare mixed-housing development lot in West Kowloon for HK$850 million. It is in partnership with Hyundai Engineering & Construction, which has a 30 per cent stake in the land. Amoy's share was HK$595 million.

The company has launched an aggressive land-buying spree since its expansion into property development.

This came after parent Hang Lung Development in April announced it was shifting its investment to technology-related projects.

Before the restructuring, Amoy had focused on property investment.

Mr Yuen said Amoy planned to develop a 20-storey residential block, comprising 170 units, each measuring 600 square feet, in Ho Man Tin.

Investment cost would be HK$500 million.

The project was expected to be completed in about 2.5 years, he said.

He said the cost of its mixed residential development project in West Kowloon would be HK$1.75 billion, representing 70 per cent of the total investment cost of HK$2.5 billion.

The development would provide 2,000 units in five blocks of apartments ranging from 610 sq ft to 700 sq ft, he said. According to the tender document, the developers must hand over 30 per cent of the saleable area to the Government for subsidised flats.

Mr Yuen said partner Hyundai would start construction work on the West Kowloon site as soon as possible.

The Korean firm's experience in the building industry would guarantee the project's quality, he said.

The project, due to be completed in about three years, also had provision for 240,000 sq ft of retail spaces, Mr Yuen said.

After taking into account the recent acquisitions, Mr Yuen said Amoy's financial position remained strong. Its gearing ratio was still below 10 per cent after this month's outlays on the two sites.

The company could spend up to HK$8 billion for further land acquisitions, he said.

'We will take advantage of the market downturn to expand our land bank.' Mr Yuen, who is also managing director of Hang Lung, said the parent planned to release two residential developments, worth HK$3.4 billion, to help finance Amoy's future property development and investment projects.

Hang Lung hoped to raise HK$2 billion from the sale of 600 units at the Ma On Shan project - which is due to be released in two to three weeks. The units at Ma On Shan range from 800 sq ft to 1,400 sq ft.

Mr Yuen said three of the 10 units at another luxury residential project, Terrace Garden, Mid-Levels were sold for about HK$20 million each after they were put on the market last week.

Hang Lung was considering releasing all 70 units at Terrace Garden for sale if there was sufficient interest.

The sale of the whole project would generate HK$1.4 billion.

After the recent acquisitions, the company's land bank would cover its development needs for the next four years.

Mr Yuen said property prices had become more affordable compared with two years ago - and he felt they were around the low levels of 1993.

However, for most people buying interest seemed to be low,  perhaps on fear of a further fall in property prices, he said.

He believed buying interest would return once prospective homebuyers regained confidence in the long-term direction and outlook for the residential market.



Amoy exploits downturn in plan for further acquisitions