News Stories:

Click-on these handy "jump links" to quickly access the news item
you're looking for.

1. Lee's $20b solo bid for hub

1. Lee's $20b solo bid for hub
Raymond Wang, The Standard 2 December 2003

Henderson Land Development plans to bid for the West Kowloon cultural hub project on its own, and is prepared to invest as much as HK$20 billion, according to chairman Lee Shau-kee.

``We are most likely to tender for the project solely, as we are able to finance the mega-project,'' Lee said after the annual general meeting.

He said the project, which would be put up for tender next year, was likely to require an investment of between HK$10 billion to HK$20 billion by the successful bidder.

Lee said his group was not involved in talks with other developers on a possible partnership, adding that it did not matter whether the project was split into phases or awarded to a single developer.

``Financially it won't be a major problem for us, but technically care must be taken because we have to build a quality amenities centre.''

Deputy chairman Colin Lam said the firm would hold talks with consultants and cultural sectors regarding ways to manage the amenities centre, as this was a main concern.

Eleven consortiums had expressed interest in the project before the submission process was extended by three months last month.

Separately, Lee urged the government not to sell land in areas that had an oversupply of unsold residential units such as West Kowloon and Tseung Kwan O when it resumes land sales through the application list next month.

Lee said he supported the government's proposal to lower the plot ratio for residential projects, saying it would ease density levels and improve the general living environment.

The blue-chip developer has almost doubled its sales target for next year following the recent market upturn.

Lee said the firm would launch about 8,330 flats in 14 new residential projects covering 5.08 million square feet in gross floor area next year. In October, the firm said it was planning to launch about 4,600 flats next year.

Lee said Henderson expected to reap between HK$15 billion to HK$20 billion from sales next year, assuming a price of about HK$3,000 per square foot.

The sales target is 10 per cent higher than this year's.

``I see property prices rising by 10 per cent next year following the [full] implementation of the mainland individual visit measures,'' he said.

Meanwhile, Lee said he was interested in taking a stake in China Life Insurance, which is expected to raise up to HK$23.4 billion in its initial public offering in Hong Kong this month.

``I have yet to decide whether to make the [China Life] investment on my own or through the company,'' Lee said.

His family trust bought shares of Picc Property & Casualty when it went public and Lee said the trust now had assets exceeding HK$10 billion.

Lam said Henderson Land would soon announce details on the usage conversion at two industrial sites into hotels by paying land premiums.

He said it was also looking to finalise a decision on premiums for three residential lots, amounting to several hundred millions of dollars, in the first half of next year.

Henderson intends to build 400 to 500-room lower-end hotels to capitalise on the influx of mainland tourists.

Shares of Henderson Land rose 2.9 per cent to close at HK$32 yesterday.