Shimao Property Holdings Ltd. (00813.HK) is pouring HK$4 billion (US$514 million) to HK$5 billion into a hotel development in Tung Chung.
The company won the site for HK$1.83 billion in a public auction last year in a joint bid with Mingfa Group International Co. Ltd. (00846.HK).
The planned 1,200-room hotel is expected to generate a 5-6 percent return, the Hong Kong Economic Journal reported Tuesday, citing Shimao Property chairman Hui Wing-mau.
Construction is scheduled to start this year.
Shimao completed 23.32 billion yuan of contracted sales in the first five months, about 32.4 percent of the full-year target of 72 billion yuan.
About one-third of its inventory of completed units, worth up to six billion yuan, has been sold.
It is aiming to clear another 10-15 percent of inventory this year.
Vice chairman Jason Hui Sai-tan expects housing prices and sales in the mainland to post mild growth this year.
He said home prices in Shenzhen could surge 30 percent this year, with Beijing and Shanghai seeing double-digit growth in prices and sales volume.
Translation by Vey Wong
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