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1. Sino Land in building swap with chairman

2. Land supply moves `set foundation for growth'

3. KCRC given 77pc rise in retail space

1. Sino Land in building swap with chairman
Joyce Li, The Standard 28 June 2003

Sino Land and its holding company Tsim Sha Tsui Properties have agreed to swap industrial buildings with chairman Robert Ng, the two firms said in a joint statement.

The two listed companies announced the purchase of industrial building Cambridge Plaza in Sheung Shui from chairman Ng for a cash consideration of HK$92.67 million.

Ng, in turn, would acquire stakes in Pacific Trade Centre industrial building in Kowloon Bay from the two companies for the same cash consideration of HK$92.67 million.

``The acquisition and the disposal will enable TST Properties and Sino Land to enhance the control over their industrial property portfolio,'' company secretary for both firms Eric Ip said yesterday.

The 100 per cent acquisition of Cambridge Plaza provided the listed companies with the opportunity to maximise and capitalise on the value of the property, Ip said.

But Sino Land and TST Properties decided to dispose of their non-controlling interests in the Pacific Trade Centre since any further upside in the value of the property would be limited, according to Ip.

Cambridge Plaza, which was originally held by Ng through property investment company Jade Bird, generated an annual rental return of 8.54 per cent.

The building, with a total lettable area of 174,358 square feet and 34 car parking spaces, generated rentals of HK$675,896 in May.

Jade Bird recorded a net loss of HK$2.96 million for the year ended December 31, with net liabilities of HK$12.52 million.

Pacific Trade Centre, held by subsidiary Kotachi of Sino Land and Ng, generated annual rental yield of 8.4 per cent. The building has total lettable area of 252,621 square feet and 59 car parking spaces.

Monthly rental received by Ng was HK$1.34 million last month.

Shares of TST Properties edged up 0.7 per cent to HK$7.15 yesterday, while those of Sino Land climbed 1.04 per cent to close HK$2.425.

2. Land supply moves `set foundation for growth'
Nicole Kwok, The Standard 28 June 2003

The government's efforts in regulating land supply had built a good foundation for Hong Kong's future property market, Cheung Kong (Holdings) deputy chairman Victor Li said.

Li said the government was correct in its direction, as the sector lent major support to the Hong Kong economy.

``The decrease in new supply of land is a very important foundation for a stable and healthy property market,'' Li said yesterday. ``The property market is different from the stock market. The property market takes time to reflect the government's new measures.''

There would be a large demand for flats when the market stabilised, Li said. He agreed with Chief Executive Tung Chee-hwa's ``stabilise and rise'' target, rather than the crazy price rises during 1995 and 1996.

Li revealed that Cheung Kong had held private meetings with the government to discuss ideas on the market.

Meanwhile, Hong Kong Association of Banks chairman Raymond Or said the government's rescue measures would only have short-term impact on the property market.

``Last year's nine measures have stimulated the property market. But in the long-term, the rise in flat prices is dependent on the recovery of the overall economy and unemployment rate,'' Or said.

``I can't see any way to push up flat prices instantly.''

3. KCRC given 77pc rise in retail space
KENNETH KO, SCMP 28 June 2003

The Kowloon-Canton Railway Corp (KCRC) has secured permission to increase substantially the retail space at a large-scale property project at Tai Wai station along Ma On Shan Rail.

In a proposal approved by the Town Planning Board yesterday, the railway company will enlarge the retail floor area to 667,400 square feet, 77 per cent more than the original proposal for 376,700 sq ft.

The residential portion of the project will be reduced to 2.05 million sq ft from 2.29 million sq ft.

The development is expected to provide 2,900 flats in eight blocks of 42 to 52 storeys.

With an average unit size of 707 sq ft, the project aims to house 8,120 people.

The development, covering a 516,670 sq ft site, will include 323 car-parking spaces for residents and 390 parking spaces for the public.

With continuing uncertainty over the future of government land sales, it is not known when the Tai Wai station project will be released for tender for participation from developers.

Meanwhile, Henderson Land Development received the planning board's approval to build a 372-room hotel in How Ming Street, Kwun Tong.

The proposed 37-storey building will provide a floor area of 228,600 sq ft on a 19,000 sq ft site.

The planning board yesterday rejected a proposal by an unknown developer to build a large-scale residential project in Ping Shan, Yuen Long, near the Mai Po marshes.

The applicant sought to rezone substantial recreation and green belt areas of a 13.48-hectare site to residential use to provide 810 flats and house 2,000 people.

The proposed 580,000 sq ft project involves nine blocks of 10 to 14 storeys.

Part of the land is within the wetland buffer area.

Swire Properties' proposal to convert the 17,490 sq ft second floor of Cornwall House in Taikoo Place, Quarry Bay, into retail and restaurant use was also rejected because of concerns about fire safety.