Sun Hung Kai Properties Ltd. (00016.HK) will concentrate on existing development projects in mainland China in the second half of the financial year, instead of buying new projects as land prices in the country are rising, joint chairman and managing director Thomas Kwok said.
After the company purchased the Xujiahui Center project in Shanghai last September, the ratio of its investment in the mainland to overall investment grew to 23 percent, very close to its target of 25 percent, Kwok said in a post-results media briefing on Friday. The company will focus more on its 80 million square feet of land bank in China and build more rental projects, which can generate stable income, he said.
Gross rental income in the mainland rose 56 percent year on year to HK$1.54 billion (US$197 million) for the six months ended Dec. 31. The company’s profit fell 14.79 percent to HK$19.47 billion for the period.
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