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Sole bidder Cheung Kong to run Metropolis complex
1. Sole bidder Cheung Kong to run Metropolis complex Cheung
Kong (Holdings) is the only bidder in the tender sale for The Metropolis commercial
complex in Hunghom. The Kowloon-Canton Railway Corp (KCRC), owner of the complex,
is expected to formally announce soon that Cheung Kong - its joint-venture developer
- has won the tender. Cheung Kong executive director Justin Chiu Kwok-hung would
not say yesterday if it had won but expected a result to be announced soon. The
tender covers the completed 1.04 million square feet, phase-one development of
The Metropolis with a 690-room hotel, a 344,340 sq ft retail centre and a 15-storey
office block. Mr Chiu said Cheung Kong intended to hold the complex for rent and
investment. The hotel would be operated by the group's Harbour Plaza chain. Bidding
interest was weak when the tender closed on May 6, which analysts attributed to
a clause which gave Cheung Kong and KCRC the ultimate right to buy back the hotel
and retail portions at prices above bid offers. Surveyors estimated the value
of the complex at HK$3 billion. Acquisition of The Metropolis is seen as part
of Cheung Kong's aggressive expansion of its property portfolio in Hunghom. The
group bought two neighbouring sites in the same area for a total of HK$1.74 billion
at public auctions last year and planned to build hotels of up to 2.44 million
sq ft. Meanwhile, Cheung Kong announced yesterday it had linked with HSBC to provide
a new mortgage scheme for residential projects to attract first-time buyers. The
scheme provides mortgage finance for up to 90 per cent of a property's value,
with repayment of principal deferred for three years. During that time borrowers
will have to make interest payments only. HSBC head of mortgages Lawrence Law
said the scheme would relieve buyers' down-payment and mortgage repayment burdens.
The interest rate for the 90 per cent mortgage would be 2.5 per cent below the
prime lending rate. Mr Law said the scheme was restricted to Cheung Kong projects.
Mr Chiu said the HSBC scheme would be available to buyers of Banyan Garden in
Cheung Sha Wan, Sky Tower in To Kwa Wan and Princeton Tower in Sheung Wan. He
estimated that a buyer of a HK$2 million flat would see mortgage expenses reduced
by a total of HK$240,000 in the first three years as a result of deferred repayment
for a 90 per cent loan. [Source:
SCMP, 30 May 2002] | 
