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1. Architect who wasn't has designer's eye for form

2. Presses nude newsreader

3. HSBC, Citigroup `to win toll project'

4. New home sites may fetch $20b

5. K Wah to spend bond cash on land

1. Architect who wasn't has designer's eye for form
Danny Chung, The Standard 27 February 2004

John Tsang describes architecture as the perfect blend of science and art, and admits being captivated by it ever since middle school.

But in hindsight, the Secretary for Commerce, Industry and Technology is pleased he did not pursue a career in architecture after graduating from the Massachusetts Institute of Technology in the United States.

``Especially in the 70s, it was very difficult to make a living as an architect, many of my friends studying architecture were good students, but in the end, they became taxi drivers,'' Tsang, who chose instead to become a government administrative officer, said.

Another factor mitigating against a career in architecture was that architects have very long careers - for instance IM Pei is still working past the age of 80, which makes it difficult for those wanting to make a name for themselves.

``At one time I was designing bathroom details continuously for over a year, it was very boring ... I was very worried that after finishing that, I would be assigned to design carparks. On seeing this kind of prospect, I felt a change was needed,'' he said. ``But I still love architecture.''

Casting an eye over the Hong Kong skyline, Tsang says the city has its fair share of ugly ``matchboxes''. Only the HSBC headquarters and Hong Kong International Airport make the grade, with both designs incorporating function and form.

Tsang acknowledges that some of the skyscrapers are attractive, especially looking out at the mass of buildings on Hong Kong Island from Kowloon.

However, he thinks Hong Kong does not have too many outstanding buildings, only ``many matchbox-like buildings''. He pointed out that because Hong Kong is into efficiency, many buildings are all about ``putting it up in the shortest time without further consideration, and as such they became matchboxes''.

He believes a first class building should emphasise function, with the design coming from the interior to the exterior.

For the HSBC headquarters in Central and the Hong Kong International Airport, both designed by British architect Norman Foster - who also won the design for the West Kowloon cultural and arts area - there is nothing but praise from this architect who wasn't. The HSBC building matches his idea of function-specific design. He also praised the airport for its crowd control features. Even new airports overseas are referring to the superior aspects of design for controlling crowds at Hong Kong's new airport, he says.

As for the much-debated West Kowloon plan, Tsang says the roof design could also become a signature of Hong Kong. ``Foreigners coming here will remember the roof.''

Although Tsang enjoys Norman Foster's designs, his favourite architect is the late Frank Lloyd Wright, who crafted New York's Guggenheim Museum and the University of Southern Florida's lake campus.

Among the new generation of architects, Tsang admires Canadian guru of deconstructionism Frank O Gehry. His representative work is the Guggenheim Museum at Bilbao, Spain, which used titanium as the building material.

2. Presses nude newsreader
SCMP, 27 February 2004

Chan Long Newsreader. Picture by Dustin Shum.

3. HSBC, Citigroup `to win toll project'
Jonathan Tam, The Standard 27 February 2004

The government will appoint HSBC and Citigroup as arrangers for the planned securitisation of toll revenues from a bridge and five tunnels, according to an informed source.

Deutsche Bank, Merrill Lynch and UBS are also believed to have submitted bids.

The government plans to raise HK$6 billion by securitising revenue from the Tsing Ma Bridge and five tunnels, including the Hong Kong Cross Harbour Tunnel, to ease the deficit. The tolls generated about HK$1.5 billion in the previous fiscal year.

HSBC is acting as the government's adviser for the securitisation project. The bank has been heavily tipped to win the bidding because the government hopes to sell part of the securitised notes to individual investors and HSBC has an extensive retail network.

The government says it will issue notes with three-year, seven-year and 10-year tranches. It says tranches of between five and seven years will be likely to have a fixed rate and long-term tranches will have floating rates.

Short-term tranches will make up around one-third to a half of the total and will probably be slated for retail investors.

Market watchers say such a mandate is likely to increase HSBC and Citigroup's chances of winning the bids for other planned asset sales.

The government is planning to sell another HK$30 billion of assets in the fiscal year 2004-05 as a part of its five-year HK$112 billion sale programme to solve the deficit.

The securitisation was originally planned to be completed before the end of March to allow the government to book the income in the current fiscal year, but was delayed upon lawmakers' request for clarifications.

Lawmakers approved the plan on February 18.

4. New home sites may fetch $20b
Eli Lau, The Standard 27 February 2004

Residential sites slated for auction from the government's application list could yield close to HK$20 billion - 20 per cent more than previous estimates.

The valuation for the 14 sites is based on property price rises this month.

It compares with property agents' estimates of HK$13 billion to HK$15 billion a month ago.

The 14 lots, totalling 10.5 hectares, were among 17 sites released last month when the government decided to resume land sales after a 13-month suspension.

Centaline Surveyors, which estimated the value of the sites at HK$16.38 billion last month, has revised its estimate to HK$19.66 billion.

``With the optimistic forecast for the home market, developers are likely to offer much more aggressive prices for the sites,'' general manager James Cheung said.

He said home prices have risen by at least 10 per cent since last month, and an increase of about 20 per cent has been reported for luxury apartments.

Most of the plots to be sold are luxury sites. The maximum number of flats that can be built on the 14 sites is 7,800, to be completed by 2007 at the earliest. The remaining three are commercial or industrial sites.

Cheung would not predict how much residential land values would rise for the rest of this year, but he maintained a positive outlook.

``So far we haven't seen any negative factors which will severely drag down the market,'' he said. Prices had been affected following the terror attacks on the United States and the Sars outbreak.

The application list was frozen as part of market stabilisation measures in November 2002. Midland Realty's surveyors and project management department director Ronald Cheung raised his previous forecast for the residential sites by 7.8 per cent to HK$13.9 billion.

For specific sites, he has raised his previous valuation by as much as 27 per cent for the two lots at Repulse Bay and South Bay Road, which he now puts at HK$499 million and HK$163 million respectively.

Both are luxury sites and expected to provide fewer than 20 apartments in total, he said. Chartered surveyor Pang Shiu-kee also estimates the value of sites on the application list to soar by at least 20 per cent this year, boosted by the recovery of home prices.

Developers have submitted several applications since the sites were released, but none has so far met the government's figure. Mid-sized developer Nan Fung Group was the first company to move, bidding for plots at Aberdeen and on the Peak.

Peak Pavilions, 12 Mount Kellett Road, measures around 0.7353 hectares, while the site at Welfare Road in Aberdeen covers 0.6403 hectares. James Cheung estimates the two plots have surged by about 30 per cent and 32.5 per cent in land value, reaching HK$470 million and HK$1.1 billion respectively.

5. K Wah to spend bond cash on land
PEGGY SITO, SCMP 27 February 2004

Mid-tier developer K Wah International Holdings will use proceeds from its $800 million convertible bond to enlarge its property portfolio in Hong Kong and the mainland, according to managing director Francis Lui Yiu-tung.

On Wednesday, the company took advantage of robust market sentiment and low interest rates to issue a five-year note.

But Mr Lui conceded K Wah had no urgent need to replenish its land bank, considering its sizeable holdings in Shanghai.

The company has four projects - three residential and one commercial development - in Shanghai, comprising 7.34 million square feet.

"Our land bank is enough for development up to 2007," Mr Lui said.

With the newly minted cash, he said K Wah would also look at the Hong Kong market.

"We will replenish [our] land bank in Hong Kong if good opportunities arise."

High-end and mass housing projects top its shopping list. Mr Lui said the company was interested in bidding for some of the 17 sites on the government's application list.

With the bond issue, K Wah's gearing will rise to 70 per cent from 40 per cent.

But Mr Lui said the company's financial situation was comfortable: it had $900 million cash on hand and would reap an additional $900 million from sales in Shanghai and Hong Kong this year.

Brokerage JP Morgan expects K Wah's net profit to increase 43 per cent to $160 million this year and 119 per cent to $350 million next year.

The earnings growth would mainly be due to contributions from the three residential projects in Shanghai and a turnaround in its construction materials business, JP Morgan said.