offer serviced apartments
Cheung Kong (Holdings) intends to turn three storeys of its
Harbourfront Landmark development in Hung Hom into serviced
The floors, in the main building of the
three-tower project, were supposed to be developed into a shopping
plaza under the original plan.
``Earlier, we heard the developer
intended to turn the shopping area into offices for Hutchison
Whampoa staff,'' a source said. ``The latest plan is for serviced
Harbourfront Landmark, a joint venture
with Hutchison Whampoa, has 324 units, ranging from 1,903 square
feet to 2,500 sq ft, in three 72-storey towers.
The source expressed reservation over
reports claiming that Cheung Kong planned to turn the shopping
area into a hotel - an extension of its nearby Harbour Plaza
``There are no facilities at
Harbourfront Landmark to support clients' accommodation if they
take the hotel option,'' the source said.
Cheung Kong could not be reached for
The developer is required to seek Town
Planning Board approval if it wants to change from residential use
to serviced apartments or hotel use.
Luxury flats at the 233-metre
development, the tallest residential building in the world, have
attracted interest from mainland tycoons and investors. About 15
per cent of some 120 units have been sold so far.
Tower Three, which comprises 102
apartments of either 1,891 sq ft or 2,156 sq ft with three or four
bedrooms, is now available for lease.
About 20 units in Tower One and Tower
Two are also available for rent at about HK$30 psf.
Separately, Cheung Kong senior sales
manager Joseph Lau yesterday estimated the company would reap HK$2
billion from the sale of all 662 serviced apartment units at its
Metropolis project. He said the company planned to launch standard
units for sale at around HK$4,500 psf. -
8 January 2003 Hong
Cheung Kong (Holdings)
is kicking off its aggressive leasing campaign by giving away a
HK$304,000 Mercedes-Benz sedan to three-year term tenants of its
Laguna Verde apartments in Hunghom.
However, property agents
said the effective rent charged by Cheung Kong was still slightly
higher than the secondary market, despite the various sweeteners
given to tenants.
Cheung Kong executive
director Justin Chiu Kwok-hung said average rents at Laguna would
be about HK$30 per square foot a month but some presents and
coupons would be given to tenants.
He said the developer
would release 20 units at Tower 16 of Laguna Verde phase four,
which was almost complete, for lease.
It has reserved 100
large units in phase four and 120 units in phase five for lease.
More than 100 units from the neighbouring Harbourfront Landmark
will also be reserved for lease.
For the first 20 Laguna
Verde units, tenants will receive a Mercedes C200K sedan if they
rent a unit for between HK$46,000 and HK$50,000 per month for
three years. If units are rented at HK$42,500 to HK$46,000 for one
year, they will receive an 18-carat gold lady's watch worth
HK$99,500. Flats at HK$37,700 to HK$40,700 on a one-year lease
will entitle tenants to a HK$26,000 Bang & Olufsen television
and stereo system.
Coupons worth HK$3,300
will be available for use in ParknShop stores, restaurants at
Harbour Plaza Hotel in Hunghom, newspaper subscription and laundry
services. Cheung Kong also will be responsible for expenses such
as water, electricity and rates.
Agency manager Ken Lee said Laguna Verde apartments were rented at
HK$23 to HK$24 per square feet in the secondary market.
After stripping the
value of presents, coupons and other benefits, he estimated the
net rent charged by Cheung Kong was about HK$25 to HK$26 per
square feet, slightly higher than second-hand rentals, he said.
However, Mr Lee
said the package would be attractive to corporate clients, who
under the scheme need not handle various expenses.
- 2001 December 13 South
China Morning Post
Kong makes buy-back vow with flats
(Holdings) is offering to buy back flats for 98 per cent of their
selling price from purchasers at its Laguna Verde complex in
The three-year guarantee
reflects intense competition in a sluggish market.
It is the latest of a
series of increasingly generous incentive offers aimed at speeding
up sales after several months of listless trade.
Other incentives include
immediate cash rebates, mortgage subsidies and low interest rate
Cheung Kong executive
director Justin Chiu Kwok-hung said the buy-back scheme
demonstrated the developer's confidence in the project and its
Last year, Henderson
Land Development offered a one-year buy-back scheme for Parkland
Villa in Tuen Mun, while Cheung Kong offered a seven-month
guarantee for Monte Vista in Ma On Shan.
Analysts said the latest
incentive was an attempt to drum up buyer confidence and boost the
moribund property market.
There are fears of
further discount sales as developers step up marketing for their
large backlogs of flats.
Cheung Kong is offering
Laguna Verde buyers a cash-rebate scheme of up to 17 per cent of
their property's price to be refunded in three years. Buyers
taking this option are not eligible for the buy-back scheme and
need to pay a 5 per cent price premium.
The buy-back and rebate
packages are available for the last 175 units for sale at Laguna
Cheung Kong has retained
more than 100 units for lease. It will release 23 units at an
average price of HK$4,245 per square foot on a first-come,
first-served basis on Saturday.
Under the buy-back
scheme, buyers need a 30 per cent down-payment but Cheung Kong
will be responsible for the monthly installments of the 70 per
cent bank mortgage for the first three years.
Under the cash-rebate
scheme, Cheung Kong will rebate cash to buyers every month at an
annual rate of 5.65 per cent of the purchase price for the first
Mr Chiu said the
buy-back scheme could be used only for quality projects with the
potential for capital appreciation. As the market had stabalised,
he said Cheung Kong was very likely to extend this scheme to other
Mr Chiu said it had
raised by 3 per cent to 5 per cent the prices of flats at Tower
Five of its Caribbean Coast project in Tung Chung.
Most of the 2,100 units
at Laguna Verde phases four and five have been sold for about HK$6
At Caribbean Coast, 952
units have been sold since its recent launch with sales revenue of
HK$2.06 billion, according to the developer.
Fortune Realty managing
director James Tin Kwok-keung said Cheung Kong's packages were
aimed at keeping property prices stable and boosting confidence.
The rebate scheme would
mean an effective 10 per cent price cut, which was in line with
the downturn for middle-end properties after the terrorist attacks
on the United States, he said.
Today Sino Land
will offer Horizon Place in Kwai Chung in a public sale. Tomorrow
New World Development and Henderson Land will announce the sale of
Sereno Verde in Yuen Long, while Sun Hung Kai Properties is
preparing the release of Park Central in Tseung Kwan O.
China Morning Post
Cheung Kong (Holdings)
has taken significant strategic steps in expanding its property
empire in Hunghom after clinching a large commercial site at
yesterday's Government auction.
Analysts said the
Hunghom site could pave the way for a joint development or
possible links with a neighbouring commercial lot on the
waterfront bought by Sino China Enterprises in August.
Sino China is believed
to be linked to Li Ka-shing's property giant.
Cheung Kong made no
mention about a possible combination of the two sites and deputy
chairman Victor Li Tzar-kuoi said it still had legal matters to
settle with Sino China regarding Cheung Kong's involvement in the
The two sites, sitting
on reclaimed land in Hunghom Bay, were widely seen to fit in with
Cheung Kong's business strategy of expanding its presence in the
consultant Nicholas Brooke said: "Cheung Kong has clearly
made the area their territory. It has put a stamp on Hunghom."
While the prevailing
unfavourable market conditions and the significant development
costs had affected confidence, Mr Brooke said Cheung Kong's
acquisition would prove to be a good investment in the long term.
The site auctioned
yesterday is north of the waterfront site sold in August and east
of The Metropolis commercial complex - a joint venture between
Cheung Kong, its associate Hutchison Whampoa and the
Kowloon-Canton Railway Corp.
Analysts said the two
sites, combined with The Metropolis, could create a commercial
property portfolio of 3.84 million square feet near Hunghom
Station - comparable to Wharf (Holdings') Harbour City complex in
Tsim Sha Tsui.
The Metropolis phase
one, just completed, comprises a 700-room hotel, a 15-storey
office tower, 360,000 sq ft of retail space and 200 parking spaces
- totalling 1.04 million sq ft. Phase two will have two towers of
serviced apartments with 377,000 sq ft to be finished by the first
half of next year.
Properties director Simon Chow said the Hunghom site auctioned
yesterday was strategically important to Cheung Kong because it
would be easier to link this site by footbridge or tunnel to The
Metropolis than linking The Metropolis directly with the
waterfront site bought by Sino China.
He said the waterfront
site was suitable for the development of a large-scale shopping
centre which required more car-parking facilities than the site's
The site sold yesterday
with a provision of a 175,453 sq ft public car park which would
help provide sufficient car-parking spaces as a complementary
facility, he said.
Cheung Kong has been in
talks with the railway company to buy out its stake in The
Metropolis. But Mr Brooke suggested it might not be a good time
for the railway company to sell its stake in view of subdued land
The acquisitions come
amid a new round of expansion by Cheung Kong and Hutchison in
Hunghom where they have built up a strong property presence since
Hutchison built the
88-block Whampoa Garden housing development where it still owns
1.7 million sq ft of shopping space. Cheung Kong is building the
25-block Laguna Verde residential project, a joint venture with
Hutchison owns the
Harbour-front twin-tower office complex and neighbouring Harbour
Plaza Hong Kong hotel in the district.
Cheung Kong and
Hutchison are jointly building the 324-unit Harbourfront Landmark
residential development, which rises to about 70 storeys, on a
site they bought for HK$6.06 billion at auction in 1997.
Cheung Kong also reached
agreement four years ago with the railway company to build a
88-storey hotel above the railway tracks in Hunghom Station.
project was cancelled.
China Morning Post
Hongkong Electric and its ultimate parent
Cheung Kong (Holdings) want to redevelop a car-park building
within the South Horizons housing estate at Ap Lei Chau into a
It is the electricity
provider's second attempt to change the land use of the site.
Previously it intended
to change the land and its neighbouring electricity transformer
centre to residential use but withdrew the plan amid pressure from
The new proposal is to
convert the 68,029 square feet site into an 850-room hotel
It could provide a total
floor area of 635,087 sq ft with a plot ratio of 9.3 times. The
Town Planning Board is expected to discuss the proposal within two
proposal was for two 60-storey residential towers with more than
China Morning Post
(Holdings) is in final discussions with a United States investment
fund to sell about one-third of its banner residential project
Costa del Sol in Singapore, according to executive director Justin
of a better Singapore property market this year, Mr Chiu said
Cheung Kong could look for opportunities to expand its land bank
there. It now owns two residential projects and one commercial
project - all due to be completed within the next few years.
said Singapore, whose legal structure and flow of information was
similar to Hong Kong, offered an attractive opportunity for the
group to expand overseas.
"It is a
good opportunity for us to look for some more investments in
Singapore now. The market is showing signs of stability after a
drastic fall - a perfect time for us to add to our land
banks," Mr Chiu said.
He said Cheung
Kong, which focuses on developing high-end property projects, was
looking at several residential projects, mainly redevelopments.
Crest, a 248-flat project, was the first redevelopment in
Singapore in which Cheung Kong and associate Hutchison Whampoa
were involved. The 50-50 consortium acquired two nearby plots
between 1998 and 1999, and applied for a higher plot ratio.
Annie Loke May
Ann, general manager of Property Enterprises Development, a
property management company for Cheung Kong in Singapore, said
Cairnhill Crest had a land cost of S$370 million (about HK$1.57
billion) and was due to be completed in 2004.
residential project for Cheung Kong is Costa Del Sol, a 906-flat
development that is about one-third pre-sold.
Mr Chiu said
Cheung Kong was preparing legal documents to sell another
one-third of this project to an institutional fund house. The
potential buyer was willing to offer a higher-than-market selling
price for two blocks comprising about 300 units in Costa Del Sol.
sale price of Costa Del Sol is S$600 to S$1,000 per square foot.
The sale would probably be concluded in the first half this year.
Costa Del Sol
was the first project Cheung Kong won in an auction in 1997.
Chairman Li Ka-shing and Cheung Kong jointly paid S$682 million to
secure the site for development. Cheung Kong now owns a 76 per
cent interest in Costa Del Sol, with Hutchison owning the
Mr Chiu said
the recent relaxation on buyers' down-payments by the Singapore
Government had helped to stimulate the housing market,
particularly public housing, which accounts for 80 per cent of the
residential market. Cheung Kong was among parties that had asked
the Government to adopt a flexible payment scheme.
Singapore can pay a down-payment of a minimum of 10 per cent,
against the previous 20 per cent, and mortgage 80 per cent of the
flat sale price. The additional 10 per cent is financed by
property companies, but home-owners need to pay this back before
they can secure an 80 per cent mortgage.
Mr Li invested
in a consortium to build the Suntec Plaza in Singapore in the
recently won commercial project One Marina Boulevard in
partnership with Hongkong Land and Keppel Land. The partnership
paid S$462 million, or S$282 per square foot, for an office and
shopping mall complex due to be completed in 2005
- 2002 January 23 BUSINESS