Hang Lung Properties engages mainly in property development for rental and sale income, as well as car park and property management. At an extraordinary general meeting last week, shareholders approved a plan under which Hang Lung Properties would acquire parent Hang Lung Group's stake in Grand Hotel for HK$924.4 million. According to a recent report by KGI Asia, Hang Lung Properties intends to spend HK$80 million to convert the two hotels, in Mongkok and Quarry Bay, into offices and serviced apartments. 'The anticipated rental yield of these two properties after conversion is expected to reach 7 per cent, which is quite attractive,' KGI said. 'Although the two properties cannot provide immediate benefit due to the required time for the construction process, it would further enhance the group's rental income in 2004.' KGI upgraded the counter from 'neutral' to 'accumulate', with a target price of HK$8. Graphic: NOW13gwz
