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1. News of first land sale expected today

2. Hang Lung's `jewel' to reap $10b

3. Historic Kom Tong Hall saved

1. News of first land sale expected today
Staff reporter, The Standard 20 February 2004

The Lands Department will announce the first land sale of the year as soon as today, after it reviewed and accepted a developer's offer to draw a luxury residential plot on The Peak from the application list, government sources said last night.

The government was still in discussions with developers last night after receiving their fresh bids, which were ``very close'' to the government's minimum price for triggering an auction for the low-density lot at No12 Mount Kellett Road, sources said.

The site is expected to fetch more than HK$500 million, representing an accommodation value of nearly HK$12,000 per square foot, surveyors have predicted.

A Lands Department spokesman said it will only announce a decision on the land sale if and when an offer is accepted. The government will also inform the developer whether its bid is accepted within 14 days after receiving it. But the government has said the earliest auction would not be until April.

The lot is being drawn from an application list of 17 sites made available last month after the government decided to resume limited land sales. It had suspended land sales in November 2002 in an attempt to stop falling property prices. Under the application list programme, developers can trigger an auction by submitting a bid that must match or exceed an undisclosed minimum price set by the government.

Property investment firm Chinese Estates Holdings, controlled by Joseph Lau, has submitted a third tender to draw four residential plots from the government reserve list after two failed attempts, sources said. Chinese Estates was not available for comment. The lots - the one in Mount Kellett Road, two in Kowloon Tong and one in Aberdeen - may sell for more than HK$2 billion, Midland Surveyors director Ronald Cheung said.

The Aberdeen site is estimated to have a market value of nearly HK$1 billion, based on an accommodation value of about HK$1,700 psf. The two lots in Kowloon Tong are expected to fetch about HK$700 million.

Separately, a two-storey detached house on The Peak put up for tender by telecom giant PCCW is expected to draw an enthusiastic response when the tender closes today, according to sales agent FPDSavills (Hong Kong).

The 8,165 sqft house at 24 Middle Gap Road is likely to fetch HK$150-200 million, or HK$18,000 psf to HK$25,000 psf, surveyors predict.

2. Hang Lung's `jewel' to reap $10b
Raymond Wang, The Standard 20 February 2004

Hang Lung Properties will begin harvesting profits from its projects in fiscal 2004, with one of the biggest contributors being The Harbourside, the 1,122-unit development above the MTR's Kowloon Station.

Executive director Terry Ng said yesterday an internal sale of 70 Harbourside units this week had generated about HK$900 million and the earnings can be booked into its financial accounts immediately. The average sale price was HK$9,000 per square foot.

Ng said the whole project, comprising a gross floor area of 1.5 million sq ft, should reap more than HK$10 billion over the next three to four years. ``We are bullish about the real estate market outlook and are not in a hurry to sell the project, which will be rolled out in stages,'' Ng said.

Hang Lung will offer another batch of 30 upper floor units facing Victoria Harbour for public sale today, at an average price of HK$9,067 psf. They are expected to generate an income of almost HK$400 million.

``We will consider putting more flats on the market to meet demand if they are well received,'' Ng said.

The company expects earnings to grow by 56 per cent a year over the next three years.

Daiwa Institute of Research is upbeat on Hang Lung's prospects and has a target price of HK$14.2 for its shares, or 27.3 per cent more than the closing price of HK$11.15 yesterday.

Hang Lung Properties posted a 0.8 per cent rise in interim profit of HK$526.9 million for the six months ended December 31 from HK$522.8 million a year earlier.

``The most important swing factor for the developer remains the sale of its coming projects - especially The Harbourside - as we expect that to be a main profit contributor to its fiscal 2004 earnings,'' a Daiwa report said. The brokerage assumes an average selling price of HK$6,860 psf for the project.

SHK Financial Group has a target price of HK$12.8 and a ``hold'' rating on the stock pending further project acquisitions.

It said The Harbourside units could fetch an average price of about HK$8,000 psf.

Separately, Hang Lung Properties said it will redeem HK$562.5 million worth of convertible bonds with a scheduled maturity in 2007 on March 27. The bonds can be converted into 62.5 million shares, representing 2 per cent of the company's enlarged issued share capital. On February 13, the aggregate outstanding bonds were valued at HK$2.45 billion.

In order to avoid redemption of the bonds, bondholders should convert the bonds into ordinary shares on or before March 18.

The company can redeem part of the bonds with cash and interest on the condition that the market price of the company's shares is above HK$10.35 for 30 consecutive days.

The company issued HK$3.45 billion worth of convertible bonds in 2002 with a conversion price of HK$9 per share and maturity in 2007.

3. Historic Kom Tong Hall saved
KLAUDIA LEE, SCMP 20 February 2004

The Mormon Church has kept Kom Tong Hall surrounded by scaffolding, which was erected in 2002 to facilitate the mansion's planned demolition. Picture by David Wong

Historic Kom Tong Hall has been saved from demolition by a deal reached after marathon 16-month negotiations between its owner, the Mormon Church, and the government.

It is understood that the 90-year-old, grade two-listed mansion will be declared an official monument.

Heritage and conservation experts say the building's preservation demonstrated the public's important role in saving Hong Kong's heritage, especially given the weakness of official heritage policies and legislation.

News that the church had applied to tear down the Castle Road mansion as part of an undisclosed redevelopment sparked an outcry from residents' groups and heritage experts.

Pon Siu-hong, vice-chairman of the church's Hong Kong Public Affairs Council, yesterday confirmed it had reached an agreement with the government, but the details will only be announced tomorrow.

Only declared monuments are protected by the Antiquities and Monuments Ordinance, with the three-tiered grading system purely for the government's reference.

The negotiations started in November 2002, when the government said it would seek to save Kom Tong Hall by compensating the church.

Local historian Ko Tim-keung said the incident exposed the grading system's inadequacies.

"Why was such an important building [only] rated as a grade two-listed building in the first place?"

He said the incident demonstrated the importance of public pressure in preserving heritage.

"If nobody had protested against the planned demolition, it would have been torn down," he said.

Lister Cheung Lai-ping, chief executive of the Conservancy Association, also said the victory sent a message to the public that their voices counted when it came to preserving Hong Kong's precious heritage.

Ms Cheung said current heritage policies should be changed to provide more protection.

"We can't always resort to this method [public pressure] to save our heritage," she said.

She expressed disappointment over the "vagueness" of a consultation paper on heritage preservation released by the government on Wednesday. Critics have said the paper concentrates too much on broad principles and provides no concrete suggestions.

Andrew Tse, the great-grandson of Ho Kom-tong, the tycoon who built the hall, welcomed the news yesterday. He had earlier appealed to both parties to preserve the building.

Mr Tse said he hoped the 9,000sq ft red-brick house would be restored to its original form and perhaps turned into a museum so the public could visit and appreciate it.

He is the grandson of Elizabeth Ho Pak-lin, the eldest daughter of tycoon Ho.