Lai Sun Development Co. Ltd. (00488.HK) said it will take two more years before some of its major property developments start to deliver returns.
The developments include a resort project at the Ocean Park, which will be completed by the end of 2017, and a commercial project on Observatory Road in Tsim Sha Tsui, which the company jointly controls with Henderson Land Development Co. Ltd. (00012.HK), the Hong Kong Economic Journal reported Thursday.
Lease agreements for the Observatory Road project are expected to be topped out by the third quarter this year, the company’s deputy chairman Chew Fook-aun.
Lai Sun said net profit jumped 46.06 percent to HK$908 million last year, mainly contributed by one-off gains from revaluation of its investment property assets.
But minus the non-recurring items, the group’s basic earnings actually dropped 48 percent to HK$92.8 million.
The company and affiliate Lai Fung Holdings Ltd. (01125.HK) are restructuring their businesses to focus on investment property development.
Last year, Lai Sun bought two London properties, which are expected to provide a net yield of 5.6 percent.
Meanwhile, Lai Fung has partnered with affiliate eSun Holdings Ltd. (00571.HK) to develop a cultural town at the Hengqin New Area near Macau, which is expected to be completed by early 2018.
This article appeared in the Hong Kong Economic Journal on March 26.
Translation by Vey Wong
[Chinese version 中文版]
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