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1. Lai Sun media unit enters Macau housing project

1. Lai Sun media unit enters Macau housing project
Raymond Wang, The Standard 19 November 2004

eSun Holdings, a media unit of Lai Sun Group, will join forces with the group's mainland property arm, Lai Fung Holdings, to develop 30 detached houses in Macau, the two companies said.

The 215,200 square foot site for the development, valued at about HK$115 million, is located in the reclamation area between Taipa and Coloane.

eSun will own 60 per cent of the project, and Lai Fung will pay HK$46 million for a 40 per cent stake. The development land is part of a 1.52 million sq ft site intended to eventually house a hotel and TV studios as well. In 2001, eSun acquired the development rights to the land for 25 years, with an option to extend the term to 2049.

eSun said having a partner in the residential project would minimise its financial and business risks while allowing it to retain a 60 per cent interest in the project's upside.

Chief executive Mark Lee said last month the hotel and residential portion would require an investment of more than HK$500 million. At the time, he also suggested the floor area of the residential project might be increased.

Thursday's statement made no mention of that possibility but, if it does occur, land premium negotiations with the Macau government will be necessary.

Lai Fung said last week it had bought two pieces of land with a combined area of 875,000 sq ft in Zhongshan city, Guangdong.

The company posted a nearly 40-fold jump in net profit to HK$173 million for the year ended July 31.

eSun shares rose 14.3 per cent to close at HK$0.52 on Thursday as the market continues to gobble up Macau concept stocks, while Lai Fung shares gained 3.4 per cent to HK$0.246.