CLP Holdings and Hang Seng Bank plan to dispose of more non-core properties to cut maintenance costs and unlock one-time gains. The electricity utility had invited proposals from property agents about putting more of its non-core properties out to tender, according to market sources. One of the potential properties which will be up for tender is Silver Waves Court in Mui Wo. The luxury project located at Ngan Kwong Wan Road, provides 17 houses with a total gross floor area of about 20,000 square feet. The occupancy rate is about 80 per cent. The Kowloon and New Territories power utility began selling off non-essential land holdings and buildings in 2003. The first to go were sites in Ho Man Tin and Shamshuipo, which were sold for residential redevelopment. Last year, it earned $178 million from the sale of two residential sites in To Kwa Wan and the Kelvin Tower in Tuen Mun. Dorothy Sit Kwan Yin-ping, chief operating officer of Hang Seng Bank, said: 'It takes time and money to renovate ageing buildings.' Last month, the bank sold the 44-year-old, 22-storey Hang Seng Building that stands adjacent to its new headquarters in Central to a consortium led by Morgan Stanley Real Estate Fund for $2.25 billion. To accommodate displaced staff, the bank leased 15 floors at Enterprise Square Five in Kowloon Bay. Mrs Sit said the old building had become costly to renovate and that it was not necessary for all departments of the bank to be located in core areas. 'We will sell our non-core and ageing properties when the property market gets prosperous,' she said. 'We won't sell property if the property market turns bad. And neither will we release our flagship branches in strategic locations into the market.' The market value of the bank's properties was more than $10 billion, based on the valuation completed at the end of last year. The lender owns many office buildings and shop premises in prime locations. They include the Hang Shun Commercial Building in Yau Ma Tei, which is expected to fetch a high price if it goes on the market. 'The average price of Grade A office space has increased 70 per cent to 80 per cent compared with 2003,' said DTZ Debenham Tie Leung investment department director Kent Fong Chi-kit. 'This makes it attractive for firms to sell their properties.'
