TERRY HUI

 


This is one lucky fellow who became friends with son of one of Asia's richest billionaires while attending university in California.   When his friend secured the largest urban development site in North America, Terry Hui was able to capitalize on the opportunity and subsequently leveraged his family's wealth from Taxi's in Hong Kong to now a public company operating in Canada.

PRESS
   photo courtesy of Malcolm Parry  
Terence C.Y. Hui
President and CEO, Concord Pacific Group Inc.

Basis of fortune:  Hui's Concord Pacific Group has two key real-estate holdings: Concord Pacific Place in Vancouver's harbour area; and CityPlace, along Toronto's waterfront.

Notable accomplishment: Manages to stay out of the public eye despite such wealth, much of which is parked in his mother's name. For example, Hui himself only owns about 1% of Concord Pacific while his family, through the First City Place Trust, owns 62.1%. His personal wealth is consequently difficult to estimate.   - National Post   2002

  Photo by Malcolm Parry 2009 November

Terry Hui is adamant he has been misunderstood. Earlier this month, the chief executive of Concord Pacific Group Inc. offered to buy all the outstanding shares of the property developer for $1.70 each, even as the shares were trading at close to $3.

Mr. Hui called it a courtesy bid, noting in April he agreed to buy 37% of the shares from a group of major Hong Kong stakeholders at that price.

Nonetheless, the lowball offer has left some investors dismayed and set off rumours Mr. Hui is planning to take the company private.

"Some people have mentioned the taking-private thing," Mr. Hui said in an interview with the Financial Post. "But we have not initiated steps to take the company private, so it's not true."

But some industry observers are not so sure.

Concord Pacific achieved renown by acquiring two of the largest and most valuable chunks of urban real estate in the country. The crown jewel is Concord Pacific Place in Vancouver, a massive $3-billion development on the old Expo 1986 lands. When completed -- the multi-phased project likely has another 10 years to go -- the 206-acre site will contain more than 50 office towers and condominiums.

The other jewel is a slightly smaller project in Toronto's railway lands near the CN Tower, where Mr. Hui's company is putting up a $1.5-billion complex slated to include 20 condominium towers housing as many as 12,000 people.

"The Toronto project is just getting going, but it's huge," said Harry Rannala, an analyst at Raymond James. "They've been successful in both markets. The land itself is extremely well located, right beside the water."

In both cases, Mr. Rannala said, Vancouver-based Concord Pacific has been prudent. Instead of borrowing massive amounts of capital to finance its plans, it is selling the units before building them. It is also being cautious in its construction schedule, never overloading the market with units at any one time. Such practices mean that return on investment is spread out over time -- about two decades -- but it isn't unduly jeopardized by fluctuations in the market.

The son of Hong Kong  K.M. Hui, who made his fortune in taxis and real estate, Terry Hui earned a master's degree in electrical engineering at Berkeley. He came to Canada in 1985. Two years later, Li Ka-shing, the Hong Kong billionaire who has a majority stake in Husky Energy Inc., set up Concord Pacific, through which he acquired Vancouver's Expo lands from the provincial government. The company is part of a network controlled by the Li and Hui families.

Property companies frequently turn to the public markets to raise financing. The trouble is, they sometimes have difficulty convincing investors of their value. Because of the nature of the business -- earnings tend to come in lumps as buildings are sold -- share prices can be lacklustre.

"Land companies tend to be heavily discounted in the market," Mr. Rannala said. "It's only when you can prove a continuous stream of earnings that investors can be persuaded to pay for it."

Concord Pacific's shares have been climbing, partly because of the company's recent positive financial results. On Friday, they closed at $2.75, up 5. But the rising price may be of limited importance to the company.

According to Mr. Rannala, most of the financing for the major projects is already in place.

"Mr. Hui really doesn't need the benefit of other investors," Mr. Rannala said. "So it comes down to a question of what does it cost to buy out the other shareholders? That is, ultimately, the million-dollar question."

Through his privately held Adex Securities Inc., Mr. Hui acquired 37% of the shares of Concord Pacific in April, including the 15.9% stake held by Mr. Li. Combined with his father's holding, that gives Mr. Hui a 62.5% block of the shares.

The reason his recent share offer seems low, Mr. Hui said, is because the original deal with the big shareholders was put together some months ago, when the shares were trading low. "It takes a lot of time to do the paperwork [and in the meantime] the shares run up," he said, adding he doesn't expect a rush of interest any time soon. "If people tender their shares, sure I'll buy them."   - 21 May 2002   National Post      By John Greenwood         

Adex Securities Inc. entered into agreements to buy 12.3 million common shares of Concord Pacific Inc. for $1.70 each. The shares represent 37% of the issued and outstanding common shares of Concord.  The agreements are with a subsidiary of Li Ka-shing Group's Hutchison Whampoa Ltd.,  Comasia Ltd., Polygrade Ltd. and Long Cheer Ltd.  The transactions are to be completed on or before June 26, 2002. Terence Hui, the president and CEO of Concord, is a director and sole shareholder of Adex Securities. Adex Securities is also considering making a $1.70-a-share bid to all shareholders of Concord through a tender offer.

Concord chief boosts stake to 46 per cent
Considering bid for rest of developer

Terry Hui, the president and chief executive officer of Concord Pacific Group Inc., has raised his holding in the real estate developer to 46 per cent.

And he said yesterday he is considering making an offer of $1.70 a share for the rest of the Vancouver-based company.

Several fund managers seemed perplexed by Mr. Hui's proposed offer, and that confusion appears to have spooked the market. Concord Pacific's share price dropped by 20 cents yesterday, closing at $1.75 on the Toronto Stock Exchange.

The fund managers pointed out that Mr. Hui's proposal was well below the current trading value of Concord Pacific on the TSE. It is also less than half the book value of the company, which one manager estimated at $4.30.

The managers also pointed out that Mr. Hui is floating his idea a few weeks before Concord Pacific starts to roll out a major development in Toronto that is expected to make a substantial profit for the company.

Concord Pacific "will have 1,700 [condominium] closings this year," said Tim McElvaine, chief investment officer for Cundill Group of Toronto, which holds about 9.5 per cent of the shares outstanding. "That could add earnings of $1 a share."

Concord Pacific is developing Concord Pacific Place in Vancouver, a network of 60 condominiums, office towers and retail plazas that has been described as the largest urban development site in North America.

It is also poised to sell the first condominiums in the railway lands development in Toronto.

"I've no idea what [Mr. Hui is] doing," one fund manager said yesterday.

Another declined to comment. "It's too early to speculate on what Mr. Hui is doing," she said.

The events were set in motion by a news release announcing the deal in which Mr. Hui, though his Adex Securities Inc., will buy out the four Hong Kong companies that currently hold a 37-per-cent position in Concord Pacific, giving him and his family a 46-per-cent stake.

The sellers include Hutchison Whampoa Ltd., a holding company owned by Hong Kong magnate Li Ka-shing that holds 16 per cent of the shares outstanding, and three unrelated companies.

Mr. Hui then announced that he "is considering making a $1.70-per-share bid to all shareholders through a tender offer."

And that's when the other shareholders started to scratch their heads.

"All shareholders will rely on the board to reflect carefully on an underlying value of over $4 a share," Mr. McElvaine said. "If there's a public offer, the board will have to give its opinion."  -  April 5, 2002    Globe & Mail    

Terry Hui, the Concord Pacific president, CEO and putative majority shareholder, and Arthur Erickson are reportedly in final negotiations to have the feted architect design a landmark tower for False Creek North. Expect an announcement within two weeks for an ultra-posh condo development slap-dab on the waterfront. Erickson's name and reputation should add cachet to million-dollar-plus buyers who would otherwise have to visit Saudi Arabia to see the architect at his latter-day monumental best.    - by Malcolm Parry       Vancouver Sun        24 May 2002

  
VANCOUVER LIFE 
TM by MALCOLM PARRY
Terry Hui joined the melee at fellow property titan Thomas Fung's annual chow-down.   - Malcolm Parry   Vancouver Magazine  Summer 2002  


TORONTO:  On the residential side, the most significant development is occurring on the railway lands near the SkyDome, known as the CityPlace lands.  When complete, CityPlace will include 5.4 million sq. ft. of development, with 20 residential towers with 6,000 condominium homes for 10,000 to 12,000 people. The first four phases of the CityPlace residential high rises have already sold out. The first buildings are in final construction with an expected completion date of April 2002. 

RESULTS
Concord Pacific Group. announced its financial results for the six-month period ended June 30, 2002. The Company reported revenue of $88.3 million for the first six months of 2002 from the sale of 296 condominium units in the QuayWest development at Concord Pacific Place in Vancouver. Both revenue and net earnings of the Company for the first six months of 2002 were significantly higher than the first six months of 2001 due to the completion of the QuayWest development. No buildings were completed during the first six months of 2001 and revenue in that period was principally derived from the sale of inventory available for sale and completed during 2000. Net earnings for the first six months of 2002 were $13.2 million compared to a loss of $0.2 million for the same period in 2001.

Concord Pacific Group Inc.
From Canada Newswire, BCE Emergis e-News and CCN Newswire March 29, 2002 - Print Edition, Page B15  (CCN CPN - TSE)

 

Year to Dec. 31 2001

Year ago

Revenue

33,193,000

102,138,000

Net profit

3,148,000

6,185,000

Net profit/share

0.09

0.19

Cash flow

(66,556,000)

(8,787,000)

 


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