SOURCES in the property market say the rise in prices of sites for residential development in Yuen Long is exceeding expectations as a result of the Route Three project. Sources expect the transport situation in Yuen Long to improve and some companies areparticularly bullish about property prices in the area. Analysts say residential prices in Yuen Long are about $2,700 a square foot, while prices in urban areas are around $5,000 a sq ft. The improvement in transport following the completion of Route Threeis expected to help narrow this gap.- ECONOMIC JOURNAL REGISTRATION for 192 residential units in Block 8 of Phase 5 of New World's Discovery Bay development closed yesterday. A spokesman for the company says the units were more than 200 times oversubscribed. The average price of units is $3,300 a sq ft. Meanwhile, more than 50 per cent of the units in Block 9, which is being offered in an internal subscription, have been sold at an average price of $3,200 a sq ft. New World will also put a luxury residential property in Robinson Road, Mid-Levels, on public salein the near future. Sino Land plans to put a 27-storey residential development in Tai Po on public sale in the near future.- ECONOMIC JOURNAL PROPERTY market sources say Hon Kwok Land has bought a site in Tsim Sha Tsui for $176 million. The site has an area of 4,500 sq ft and a plot ratio of 11. It will be used for the development of a commercial property with a total floor area of 49,500 sq ft.The company has also bought a site in Mongkok for $120 million. This site has an area of 4,300 sq ft and will be used for the development of a combined commercial and residential property with a total floor area of 38,000 sq ft. Herman Fung, managing director of Hon Kwok Land, has confirmed the purchase of the two sites and says development of the two properties is expected to be completed by March 1996. Mr Fung also says the US$50 million raised by the company's convertible bond issue will be used to increase Hon Kwok's land reserves in Hong Kong.- ECONOMIC JOURNAL TAK Sing has announced that its chairman, Ma Kai-cheung, has reduced his holding in the company by 10 million shares.- ECONOMIC TIMES FAR East Holdings International has announced that chairman Deacon Chiu has raised his holding in the company by 4.99 million shares. This is equivalent to 1.79 per cent of the company's issued capital.- ECONOMIC TIMES CHUANG'S Consortium International has announced that it will appoint Chuang's Property Agency Ltd to manage the leasing of the 24-storey Chuang's Tower at 376-382 Lockhart Road, Wan Chai.- ECONOMIC TIMES CROWNHAMPTON International, at its AGM yesterday, approved a proposal to change its name to Sum Cheong International Ltd. With regard to developments in the coming year, Sum Cheong will concentrate on its construction and mining operations in the Asia-Pacific region, while reducing operations relating to the area of trade.- SING TAO ACCORDING to information from the Land Registry, Goldmay Development bought a site at 486-488 Jaffe Road, Wan Chai from Sureluxe Investment Ltd for $106 million on November 1. Property sources say the site has an area of 1,776 sq ft and is the current siteof an old six-storey building. The site has a plot ratio of 15 and the realisable floor area of the building following redevelopment is 26,640 sq ft. Meanwhile, a site at 464-468 Jaffe Road, which is currently being developed, is expected to be offered forsale by Henderson Land in the near future.- SING TAO THE application and registration procedures to operate telecommunications networks in China have changed recently. A former senior official of the Ministry of Posts and Telecommunications, in Hong Kong yesterday, says Champion Technology's application to operate a mobile phone network in Sichuan will not be successful as the Chinese Government will not approve it. He also says a number of Hong Kong companies bidding for the second fixed telecommunications network in Hong Kong are claiming they have mainlandpartners. But the ministry has never received any applications from mainland enterprises to participate in this venture. Without the approval of the ministry, mainland enterprises are not authorised to invest in telecom projects in Hong Kong. Meanwhile, Shirley Ha, deputy chairman of Champion Technology, says the company's mobile phone project in Sichuan is not a joint venture and has abided by the rules and regulations set out by the Chinese Government, adding that the project is proceeding smoothly.
With regard to the mainland partner co-operating with Champion Technology in the bidding for the second network in Hong Kong, Ms Ha says the Chinese Government was informed of Champion's intentions before the mainland partner was invited to join the consortium.- ECONOMIC JOURNAL CHINA Overseas has announced that it has issued convertible bonds valued at US$125 million. If the bonds are oversubscribed, Nomura International - the securities house arranging the issue - has the right to issue an additional US$25 million worth of bonds, bringing the total value of the bond issue to US$150 million.- ECONOMIC TIMES IHD Holdings has sold 3,000 shares in American Global Assurance (Holdings) to Ali Tan, one of the insurance company's shareholders, for $78.57 million. The shares were sold at an average price of $26,190. The buyer has the right to buy the remaining 5,400 shares in the company, held by IHD, at the same price. If all the shares are sold, IHD will gain $22 million.- ECONOMIC JOURNAL THE issue of covered convertible bonds on listed companies by finance houses has not only been welcomed by investors but has also attracted the attention of other listed companies. According to data provided by the stock exchange, Cheung Kong Holdings has acquired convertible bonds for Hutchison Whampoa issued by finance houses, while Sun Hung Kai Properties has acquired covered warrants for SHKP.- ECONOMIC TIMES RAYMOND Wong, managing director of Tian An China, says the delay of the sale of some of its properties on the mainland, which was caused by the austerity drive, will not have a major impact on the company. He confirmed that a commercial property in Nanjingand two commercial projects in Xiamen, which were originally scheduled for sale at the end of the year, would instead be sold early next year.- ECONOMIC TIMES WONG Shi-ling, chairman of Leading Spirit, has increased his holding in the firm by 6.48 million shares - 1.53 per cent of the issued capital.- ECONOMIC TIMES ACCORDING to sources in the property market, a mainland state-owned enterprise has bought two adjacent sites at 244-250 Hennessy Road, Wan Chai, for $204 million. The enterprise's headquarters will be built on the site. Total investment will be $260 million.- ECONOMIC TIMES WANG Yake, managing director of China Everbright, says the company has reached an agreement with a mainland enterprise for the joint acquisition of the assets of an iron pipe moulding company in Handan, Hebei province. The $150 million investment should enhance China Everbright's profitability. It is understood that China Everbright will carry out a rights issue to raise capital for other mainland assets and the expansion of its shareholder base. Also, China Everbright is discussing buying a stake in a HongKong listed company.- ECONOMIC JOURNAL
