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Developer takes first project in Macau

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Mainland-backed property developer China Overseas Land & Investment has made its first foray into Macau, spurred by an upbeat outlook on the city's economy and property market.

Vice-chairman and chief executive Kong Qingping said the $800 million property investment would be solely developed by the red-chip developer.

'There is a room for an increase in property prices,' Mr Kong said.

The company bought a piece of land in Macau with a gross buildable area of about 1.5 million square feet. It will provide about 1,000 units when building is finished by 2006.

The investment was unveiled as the company posted a sharp increase in net profit to $688.91 million for the year to December from $41.74 million in 2002. The jump came mainly from a $300 million write-back from its 30 per cent-owned residential project in Stanley - Regalia Bay - following a sharp recovery in luxury home prices in Hong Kong.

Turnover rose 19.1 per cent to $7.61 billion.

Mr Kong said the Macau project was the company's first investment in the city and it would closely monitor the response before making another move there.

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