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1. K Wah expects $900m for two residential releases

1. K Wah expects $900m for two residential releases
KENNETH KO, SCMP 24 May 2003

K Wah International Holdings expects to reap HK$900 million in the next two months from the release of two joint-venture residential projects.

Deputy managing director Alexander Lui Yiu-wah said The Cairnhill in Tsuen Wan was due for sale next month, followed by a project in Sham Tseng.

He said tight cost control meant the two sites, bought in 2000, could still generate profits, despite the property price fall of the past few years.

K Wah expects to reap HK$600 million for its 25 per cent stake in The Cairnhill, a joint venture with Cheung Kong (Holdings) and Sino Land. The Sham Tseng development is projected to generate $300 million for K Wah's 50 per cent stake.

Deputy chairman Francis Lui Yiu-tung said the company had recorded satisfactory property sales and generated HK$1.5 billion from The Palace, in Broadcast Drive, and La Costa, in Ma On Shan, since their launches last year.

The group had about HK$700 million cash on hand and would look at suitable investment opportunities, he said after the group's annual general meeting yesterday.

Alexander Lui said K Wah was eyeing medium-sized private development sites in urban areas of Kowloon and Hong Kong Island as government land sales remained frozen.

On its China business, Francis Lui said the group was focusing on one office project and three residential developments in Shanghai, involving a total investment of about five billion yuan (HK$4.71 billion).

The Shanghai K Wah Centre office development, 35.75 per cent owned by K Wah, would cost 1.6 billion yuan and was due for completion in 2005.

He said the first phase of the residential project in Shanghai's Zhabei district would be released for sale next year, followed by the other two residential ventures.