HONG KONG: Hong Kong’s Cheung Kong Holdings expected less revenue from the sale of property projects in Hong Kong and on the mainland it would drop to HK$30 billion this year, after last year’s take of HK$40 billion boosted by sale of an office building in Shanghai.
Executive director Justin Chiu Kwok-hung yesterday said the lower forecast reflected the absence of any plans for the disposal of core property assets on the mainland.
The developer last year achieved large gains from the sale of commercial properties including Shanghai’s Oriental Financial Centre – half owned by Cheung Kong – which sold for US$1.16 billion.
Eight residential projects in Hong Kong – comprising more than 3,000 units – will be scheduled for sale this year by the city’s second-largest developer by market capitalisation. The 216-unit La Lumiere in Hung Hom will be the first project offered, followed by the 1,648-unit Hemera in Tsueng Kwan O. On the mainland, Cheung Kong will launch three residential projects in Beijing, Shanghai and Guangzhou.
Cheung Kong chairman Li Ka-shing announced the restructuring of his business empire on January 9. Under the reorganisation plan for Cheung Kong and Hutchison Whampoa, all non-property businesses in the two will be merged into a new entity, Cayman Islands-incorporated Cheung Kong Hutchison Holdings, while the property assets will be spun off into Cheung Kong Property Holdings.
The proposal will be put to a shareholder vote on February 25, Cheung Kong’s lawyers informed the High Court yesterday, adding that the court’s approval of a successful vote would be sought in March.
Cheung Kong shares have risen 19.23 per cent since the restructuring was announced. The stock closed down 0.535 per cent at HK$148.8 yesterday.
