Property stocks are a better bet than property, says tycoon Lee Shau-kee
Henderson Land chairman Lee Shau-kee says buying shares in real estate firms would be a wiser investment than acquiring actual property
Hong Kong's third-richest tycoon, Lee Shau-kee, says property stocks are now a better investment choice for people in the city than real property and that profits from property shares could "double" in two to three years' time.
The Henderson Land Development chairman has previously been touted as Asia's Warren Buffett, although his record as a market predictor is somewhat mixed.
Hong Kong property-related stocks were a clever buy because prices were attractive and there was always the chance of a spin-off, with the payback better than leasing real property, Lee said yesterday at the annual general meeting of Hong Kong and China Gas, known as Towngas, of which he is also chairman.
He acquired US$250 million in five-year senior notes from Guangzhou-based developer Country Garden last month and said it was a good investment.
Towngas said ECO Environmental Investments, a wholly owned subsidiary specialising in new energy businesses, would be its main growth engine.
Managing director Alfred Chan Wing-kin said the contribution of new energy to the company's profit would increase quickly. Last year, it accounted for only 8 per cent of total profit.