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SCMP Reporter

HONG Kong's major property developers are certain to reap the most from the Government's land supply package due to their financial resources and expertise in large-scale infrastructure, according to property analysts.

  At the top of the pile, property giants Cheung Kong and Sun Hung Kai Properties should fare better than others in gaining a share of the enlarged cake, they said.

  Cheung Kong has successfully demonstrated itself as a specialist in building mammoth-sized residential projects including Kingswood Villas, Laguna City and South Horizons as well as the upcoming Hong Hum Hok Un power station redevelopment.

  Sun Hung Kai Properties has topped others in terms of its 15 million square feet residential land bank and its sophisticated land acquisition and development approach.

  Like Sun Hung Kei Properties, Cheung Kong is also noted for its land acquisition techniques, which do not include aggressive bidding at land auctions.

  They resort to joint ventures with major landlords such as the Kowloon Canton Railway Corporation, the Land Development Corporation and utilities companies.

  ''If the Government is to release large parcels of land in the New Territories and allow developers to contribute to developing infrastructure, Cheung Kong and Sun Hung Kai Properties are expected to benefit most,'' said Seapower research analyst Adrian Au.

  These companies would have a better chance of securing the land, given their track record in large-scale residential development involving infrastructure build-up, he said.

  The Government announced it would release a 200-hectare site in Tin Shui Wai for residential development. Analysts said Cheung Kong's huge Kingswood Villas development in Tin Shui Wai was itself a project based on a joint effort between the Government and the developers in providing infrastructure.

  Swiss Bank Corporation associate director Adrian Ngan said developers had been asking for more land supply over the past few years and their land bank would be replenished significantly.

  But he said companies such as Henderson Land, Sino Land and Hang Lung would have a less advantageous position in the game.

  Sino Land is one of the most active, if not the most aggressive second-line developer, with a clear strategy to acquire sites at land auctions even at prices which look dangerously high.

  It owns a land bank of about 4.6 million sq ft with residential development accounting for 67 per cent.

  Assuming new land supply would mainly come from the New Territories, developers with a substantial reserve of agricultural land and letter B entitlement deeds - purchased from New Territories villagers with land rights - would also benefit, analysts said.

  These companies would have a better chance if the authorities ever allow agricultural land to be used for building purposes, they added.

  Apart from owning an estimated $1.5 billion worth of letter B entitlements, Sun Hung Kai Properties, together with Cheung Kong and Henderson Land, are known to have bought large parcels of agricultural land with a view to turning them into housing projects.

  Hang Lung's land bank is concentrated in less popular areas such as Tuen Mun and Tsuen Wan. Their potential depends on improvements to the transport system in the area.

  Henderson Land owns a residential land bank of about 12.4 million sq ft, scattered around the urban areas and the new towns in the New Territories.

  As an active purchaser of urban sites, the company will supposedly benefit more from the speeding up of approval procedures for redevelopment projects in urban areas.



Big players to gain most from Government package