Property investor and developer Kowloon Development expects strong business growth over the next two years, driven by sales of residential projects and a newly acquired stake in developer Polytec Asset Holdings.
'[The company] will post strong growth in the years 2006 and 2007, rather than a slight increase,' chairman Johnny Or Wai-sheun predicted yesterday.
One reason for his confidence, said Mr Or, was a bullish outlook for sales of its luxury residential development, Mount Davis 33, in Sai Ying Pun. Mr Or said he was confident the project would perform well when it goes on sale next month despite the increase in interest rates to a five-year high.
'The market has shown huge demand for quality residential projects like this one. Even though interest rates have been on the rise, our sales department received good responses to the project. Therefore it would be easy to achieve an average price of $6,200 per square foot,' he said. The 89 units in the redevelopment venture with the Urban Renewal Authority would generate revenues of $500 million, said Mr Or, with land and construction costs having amounted to about $3,000 per square foot.
Executive director Dickson Lai Ka-fai said the remainder of the commercial and residential project La Bais Du Noble in Macau would also be sold this year.
The company, meanwhile, believes the 56.84 per cent shareholding it acquired in October last year in Polytec Asset - which owns properties in Macau and Hong Kong - would start contributing to profit this year.