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1. Henderson insists offer is fair

2. Bold outlook issued on Ho Man Tin project

3. HK accused of pushing too hard for bridge

1. Henderson insists offer is fair
Dennis Ng, The Standard 19 December 2002

Blue-chip developer Henderson Land Development is confident a plan to privatise listed unit Henderson Investment will succeed because its 28 per cent discount is ``reasonable''.

``Both Henderson Land and Henderson Investment are listed companies, we should take into consideration the interests of both sides' shareholders,'' Henderson Land vice-chairman Colin Lam said.

Lam said Henderson Land was confident the deal would go through after it increased the offer price.

Even taking into account the full asset value of HK$10.5, which reflects its stakes in Hong Kong and China Gas (Towngas), Miramar Hotel and Investment and Hong Kong Ferry (Holdings), the discount of 28 per cent was totally reasonable, Lam said.

He said some property stocks carried a discount ranging from 50 per cent to 80 per cent to net asset value.

Henderson Land last month announced it would privatise its investment holding arm Henderson Investment by buying back the shares for HK$7.35 each, or about HK$5.5 billion in total. It later raised the offer to HK$7.60 after independent shareholders complained the offer undervalued the assets. Separately, Lam revealed that the Henderson group pay-freeze would continue for a second year. The group, which includes Henderson Land, Miramar Hotel and Hong Kong Ferry and Towngas, employs about 8,000 people. Lam said Towngas had decided to freeze its tariffs next year to help the public in light of the weak economy. He revealed that Towngas' board of directors would decide on the bonus issue in March next year.

``We need to be careful on the bonus issue if the company's performance is not good, but it still wants to keep the dividend policy,'' Lam said, adding that Towngas had given bonus shares to its shareholders for more than 20 years.

Meanwhile, Henderson Land chairman Lee Shau-kee said he did not expect the 24-hour border crossing to affect property sales. ``Property in the New Territories has been cheap,'' he said, adding that Shenzhen residents could also end up buying flats in Hong Kong.

He said the developer would sell about 9,000 flats next year, which would generate about HK$13 billion in revenue, assuming each flat was sold at HK$1.5 million on average.

Lee predicted that developers might take a further 1 years to dispose of their inventories.

In August, he said Henderson Land would release 9,800 to 10,000 flats, amounting to six million square feet of space, for sale by the end next year.

They could generate about HK$18 billion, he had said at the time.

Henderson China Holdings chairman Lee Ka-kit said yesterday his unit had accelerated its projects in Shanghai after the city won the right to host the World Expo in 2010. Henderson China would spend about 2 billion yuan (HK$1.88 billion) on three building schemes in Beijing, Guangzhou and Shanghai, he said.

2. Bold outlook issued on Ho Man Tin project
Eli Lau, The Standard 19 December 2002

Sun Hung Kai Properties expects to fetch up to HK$12,000 per square foot when it launches its 31-storey art deco-style luxury residential project in Ho Man Tin next year.

The 1 Ho Man Tin Hill Road development had already attracted inquiries from more than 20 prospective home-buyers interested in the four duplex units, Sun Hung Kai Real Estate Agency deputy manager Anita Chan said yesterday.

The prime site development, covering 158,000 sq ft of gross floor area, will have 108 typical flats plus the duplexes. The flats will be between 1,300 sq ft and 1,950 sq ft, and the duplexes between 2,500 sq ft and 3,300 sq ft.

The average price for the flats will be HK$8,000 psf and HK$12,000 psf for the duplexes.

``The construction cost for the project is about HK$3,000 psf, which I think is in line with the average cost for luxury projects,'' Chan said. SHKP's announcement came after Kerry Properties HK$410 million tender for a residential site at 15 Ho Man Tin Hill Road was successful on Monday. The company plans tobuild a HK$700 million luxury high-rise residential development.

SHKP expects the Ho Man Tin Hill Road development to become a Kowloon landmark because of its distinctive look and towering 100-metre presence on the skyline.

Despite the growing number of luxury flats in the area, Chan was confident of attracting high-end residents from Kowloon, Tai Po and Sha Tin. Show flats are expected to open for public viewing in January.

Chan said the company was considering selling a further eight flats at 1 Po Shan Road, Mid-Levels, next year.

Developed by SHKP, the Manhattan Group, Wing Tai Asia and Goodwill Properties, it is expected to be the first luxury project launched for sale on Hong Kong Island since the Leighton Hill development at Happy Valley in 1997.

Separately, HKR International said the internal sale of its Coastal Skyline project would go ahead on Saturday morning, after more than 3,500 registrations were received from potential home buyers. More than 80,000 people visited the Tung Chung development last weekend.

3. HK accused of pushing too hard for bridge
TOM MITCHELL in Guangzhou, SCMP 19 December 2002

Hong Kong is pushing ahead too quickly in its enthusiasm for a cross-delta bridge and has misunderstood Guangdong's position, an academic and government adviser said yesterday.

Zheng Tianxiang, of Zhongshan University's Pearl River Delta Research Centre, said Guangdong supported the idea in principle but had been caught off guard by Hong Kong's new-found enthusiasm for the project.

"Hong Kong is going too fast. There are so many factors to consider," he said. "What is the best way of connecting the region? Should we be building bridges or tunnels, roads or railways? And should a bridge connect just three cities [Hong Kong, Macau and Zhuhai] or four [Shenzhen]?

"We've been researching this project for a long time. Just because Guangdong hasn't finished its research doesn't mean it is against it," said Mr Zheng, who advises the Guangdong and Guangzhou governments and is preparing a report on the bridge proposal. He estimated that the earliest Guangdong could endorse the bridge would be late next year, or in 2004. Then it would have to go to Beijing for final approval.

This month Guangdong Governor Lu Ruihua appeared cool towards the project after meeting Chief Executive Tung Chee-hwa in Guangzhou, saying there were many ecological factors to consider.

Vice-Premier Qian Qichen also recently declined to endorse a timetable for construction of a cross-delta bridge, even though Mr Tung said last week that the central government supported the project.

Mr Zheng said Guangdong's reservations had more to do with Hong Kong's urgency than the bridge itself.

"Hong Kong is very nervous. Its attitude has changed overnight," he said. "After 20 years of doing nothing, now they want to link up so quickly. We can't build the bridge tomorrow.

"The bridge will help Hong Kong, but it won't solve all of its problems."

From Guangdong's perspective, one potential sticking point is how the bridge incorporates - or fails to incorporate - Shenzhen. Most plans mooted to date have envisioned the bridge landing on Lantau, with Shenzhen-bound traffic passing through Hong Kong and the Western Corridor Crossing into Shekou.

But Mr Zheng said this would require two border checkpoints for traffic travelling between Zhuhai and Shenzhen.

With Mr Lu due to retire next month, at this late date he cannot make decisions whose consequences would have to be borne entirely by his successor - former Guangzhou party secretary Huang Huahua.