Chinese Estates Holdings to continue focusing on luxury projects
Chinese Estates Holdings said it was planning to launch a residential project in Sai Wan in the second half of the year and the firm would continue concentrating on luxury projects.
"Our development strategy would be the same as before. We will focus on our existing projects. Since the land and construction costs in Hong Kong are high, we will continue to develop projects in luxury residential areas," Lau Ming-wai said in the firm's annual general meeting yesterday.
He said the company would launch its redevelopment project at 1 South Lane in Sai Wan in the second half. The 28-storey building is scheduled for completion in 2015.
It is the first time Lau Ming-wai attended the company's annual meeting as chairman after his father, Joseph Lau Luen-hung resigned from the post after being convicted in Macau in March of bribing officials.
Joseph Lau was sentenced to five years and three months in jail by a Macau court for offering a bribe to a government official in return for five sites in Cotai. The sites were developed into the La Scala luxury residential project.
Lau Ming-wai said it was still difficult to estimate the loss from the development of La Scala.
"The case is under a legal process with the Macau government. We don't need to make provision at this stage," he said. "The construction of the project is at an early stage. Even if we terminated the construction contract, the compensation amount would be less than the original amount," he said.
The company had said it would return all deposits for pre-sold units at La Scala. Lau said: "We returned the deposits out of kindness. It is not related to the court case."