SINO Land has been aggressive at public property auctions, acquiring about 75 per cent of its total land bank from the Hong Kong Government. Despite comparatively high acquisition costs, which may increase the group's risks in the cyclical property market, Sino Land has accumulated 1.35 million square feet in completed properties, which have appreciated far beyond inflation and carrying costs. The group owns a gross floor area of 12.56 million sq ft along with 4,568 car parks around Hong Kong, accounting for 77.1 per cent of its total land bank. The rest is in China and Singapore. About 9.61 million sq ft of the gross floor area is residential and commercial while the industrial portion is 2.95 million sq ft. In January, the group completed a 50-per-cent-owned luxury residential project, Parc Oasis Phase V in Kowloon Tong, with an attributable gross floor area of 82,215 sq ft. So far, 104 units have been sold at $6,100 per sq ft while the remaining 76 are being marketed at $8,200 per sq ft. In addition, all seven blocks of Avon Park in Fanling with a total floor area of 776,314 sq ft were completed in January this year. Half of them were pre-sold at an average price of $3,400 per sq ft and the remainder are being marketed at an estimated $4,800 per sq ft. In addition, eight completions are expected soon including five wholly owned projects - three residential and two industrial - with an attributable gross floor area of 422,970 sq ft. Brokerage South China Securities predicts Sino Land's profit from associates will increase 243 per cent to $1.1 billion because of contributions from three residential projects. Overall rental profit will increase 15 per cent to $408 million. Despite a lack of revenue from the hotel operation, which is expected to be spun off next month, profit in the full year will rise 30 per cent to $2.2 billion. According to the spin-off proposal, the new company will hold 100 per cent of the 615-room City Garden Hotel in North Point, 25 per cent of the 676-room Royal Pacific Hotel at China Hong Kong City, a 4.3 per cent equity interest in Hongkong and Shanghai Hotels and 100 per cent of three restaurants. Sino Land shares are traded on an attractive prospective price-earnings ratio of 9.5 times and an attractive discount of 40 per cent to the fully diluted market net asset value of $14.03 a share.