SUNDAY, JULY 4
HO Tat-ching, vice chairman and managing director of Hang Seng Bank, says that despite the proposal on the revised fees for the Western Cross Harbour Tunnel, the issue is still pending in the Legislative Council and banks are still in support of the project in principle. Some Legco members have questioned the fairness of the fees to be charged by the tunnel owners, raising fears among banks which made verbal commitments to financing the project. - WEN WEI PO A LARGE number of industrial buildings in Kwun Tong have been approved for redevelopment. These include a plot on Kwun Tong Road held by SHKP. Sources say a 36-storey industrial complex will be built on the plot. Sino Land has two redevelopment plans for the area, each of which involves a 21-storey industrial complex. Sources say that despite increasing prices, strong demand will support the cost of industrial development in the area. - SING PAO TWENTY flats in a luxury Repulse Bay development which recently changed hands for $360 million will be on sale again today. The price for each flat is estimated to be $4,500 to $5,000 a square foot. The buyer of the Repulse Bay flats is said to be the same Sino-Hongkong partnership which bought the 25th floor of the Shun Tak Centre for $100 million earlier this year. - SING PAO SHKP will put a luxury residential development in Ma On Shan on sale in the near future. Sources reveal this will make Ma On Shan the focus of the market in the near future. The price for the development is estimated to be $4,200 to $4,400 a sq ft. Each of the 10 blocks on sale offers a sea view, with the average size of units being 900 to 1,000 sq ft.
Sources say two major developers have proposed that a light rail system linking Ma On Shan and built-up areas in the New Territories be built. Once this plan goes through the residential property market of Ma On Shan should receive a boost. - SING PAO MONDAY, JULY 5 LAM Chor-wah, managing director of Innovative International, says the company will develop satellite navigation systems in co-operation with China's Ministry of Electronics. These projects will be developed in Tianjin and Bo An. The total investment in the project will be US$10 million, with each side having a 50 per cent stake. The Chinese side will provide the necessary technology.
Innovative is also in discussions with the state body responsible for the import and exports of motor vehicles on the establishment of a repair centre in Beijing. The Hongkong company will have an interest of less than 50 per cent. A deal should be signedin August or September this year. - EXPRESS NEWS HON Kwok Land, which has a core business of property development and investment, will spend at least $400 million in the second half of this year for sites for commercial and residential developments in Hongkong. Sources estimate the company will have generated $500 million through the sale of four properties in Hongkong this year, to be recorded in the 1993-94 accounts. - MING PAO THE managing director of Hongkong Bank's mainland operations says China's austerity programme will not have a major impact on the bank's mainland business. He says the operations of foreign banks on the mainland are restricted to foreign currency dealing while the tightening of credit is only related to the yuan, hence it will have little affect on the bank's mainland operations. Foreign banks are not allowed to offer loans for imports to the mainland so Hongkong Bank's business will not suffer from the blow dealt to imports by the austerity programme. - MING PAO FRANCIS Leung, managing director of Peregrine Investments, expects many petrochemical companies in the US, Japan and Singapore to take an interest in the share offer by Shanghai Petrochemical. According to Mr Leung, the US petrochemicals industry is well developed and has limited growth potential. By contrast, the demand for petrochemicals on the mainland is growing and, as a result, the share offer by Shanghai Petrochemical is attracting the interest of US investors. - HK ECONOMIC JOURNAL HIGH-GRADE office blocks in Admiralty have been the most actively dealt in that sector over the past couple of months. Among office blocks in the area Peregrine Tower stands out because in recent months 14 floors have changed hands and some have even been resold. In some cases new owners split floors into smaller units and resold them at a profit. - SING TAO FRANCIS Yuen, managing director of Seapower International, says Seapower Resources will establish a joint venture investment banking business in Beijing in co-operation with an official unit in the city. The company is also seeking a partner in Shanghai to develop a securities brokerage. Mr Yuen says developments for companies under Seapower International will focus on strategic partnerships. Examples of this include the sale of a stake in Seabase International to Top Glory Development and the purchase of a stake in Summa Promet by Seapower International in co-operation with a mainland partner.
Mr Yuen says Paramount Printing will follow this pattern and seek partners in Guangzhou, Shenzhen and Zhuhai for joint mainland development. Paramount has signed an agreement with an official unit in Guangzhou to publish a magazine within two or three months, and Paramount's printing plant will be relocated to the mainland. - WAH KIU YAT PO FOLLOWING the purchase of the Ritz Carlton Hotel and an office block in Tsim Sha Tsui, Lai Sun Development will receive a rate of return on its investments of six to seven per cent. Hung Hing-cheun, a director of Lai Sun Development, says the recent sale of 37 Repulse Bay Road and a residential property on the south of the island have generated $860 million for the company, meaning it now has ample cash. Regarding the future development of the company, Mr Hung says rental income will reach $600 million following the complete leasing of Causeway Bay Plaza 2. Revenues from property sales in the second half should realise $300 million. - WAH KIU YAT PO NEW World Development and a property developer in Wuhan earlier established a joint venture for the construction of three luxury developments: a hotel, high-rise apartment blocks and shopping malls. Construction of the shopping malls has been completed with an investment of 240 million yuan (about HK$321 million). New World and the Wuhan developer signed an agreement on February 12 to sell the main office block of the Wuhan International Trade Centre in September this year. The joint venture is 70 per centowned by New World, with the remainder held by the Wuhan developer. - WAH KIU YAT PO THE ninth floor of Wing On Square in Tsim Sha Tsui East will be sold in units, with price estimates ranging from $7,500 a sq ft upwards. The floor will be divided into 15 units with the smallest unit being 1,177 sq ft and the largest 2,340 sq ft.