Rising land prices in Hong Kong have prompted Chevalier International Holdings to focus on development projects in second-tier mainland cities, the company said yesterday.
The construction and engineering services firm, which bid unsuccessfully for two urban redevelopment projects this year, now sees Hong Kong development projects as 'too risky', according to chairman and managing director Chow Yei-ching.
'The credit-tightening policy on the mainland has created more business opportunities for us, as we have sufficient capital [to build without borrowing],' Mr Chow said.
The firm is eyeing a number of residential and commercial projects in secondary mainland cities, he said.
It has recently invested about $300 million in two joint-venture residential projects in Chengdu and Hefei, scheduled for completion in three years.
The company yesterday reported a 66 per cent growth in net profit to $125.11 million for the six months to September. Turnover increased 16.3 per cent to $1.79 billion from $1.54 billion.
