Property Investment and Development

The Group had started investing in Hong Kong real estate as early as the 1980’s. Over the years, the Group has invested in a number of high-quality real estate projects including commercial buildings, residential buildings, retail store fronts, industrial buildings and land projects. The total area of properties invested by the Group exceeds 100,00 square feet. On the domestic front, Hong Kong’s residential property market has shown strong momentum since the end of 2008, and this upward trend has continued in 2009 and 2010. In 2010, the Group reaped a profit by selling its Daisyfield property in Tai Po.

In 1989, the Group acquired a villa property in Fei Ngo Shan, Sai Kung, Hong Kong. The property has a total site area of approximately 17,000 square feet. With a view to maximizing the value of the property, the Group plans to redevelop the property into a villa called "Devonia Lodge", which will span over a total floor area of approximately 8,000 square feet, Upon completion, Devonia Lodge will feature parking spaces, a podium,a private swimming pool, and a sizeable garden of more than 10,000 square feet. According to the valuation report by an independent valuer, the value of the property, after redevelopment, can bring the Group a premium of about HK$20 million over its current book value.

The Group developed its “City in City” project in Mainland China in 1992. The project, which covers an area of approximately 358,000 square feet, has been developed into a mixed purpose project consisting of Grade A commercial and residential buildings, with a gross floor area of approximately 980,000 square feet. In 1991, the Group developed Keswest Mansion, a sixteen-storey residential building on Tong Mei Road in Mong Kok. All units were sold upon completion which yielded a satisfactory return on investment for the Group.