Property Investment (ex Japan)
The Group's property Investment ex Japan business is managed by Property Investment Department ("PID") based in Hong Kong. To-date, PID has invested in Hong Kong office development projects and office investment in Guangzhou, China. The Head of PID also oversees the Japan investments, and PID acts as a bridge in liaising investors (both offshore and onshore Japan) in investing in the Group's property business in Japan.
The following are investments made by PID.
Hong Kong Property Investments
The Group’s third Hong Kong property project is located in Kwai Chung Town Lot No. 517 at Tai Lin Pai Road, Kwai Chung, New Territories, Hong Kong. The Hong Kong Government has since assigned the number 83 to the site and the address of the site is No. 83, Tai Lin Pai Road, Kwai Hing.
On 13 July 2016, the Group, as part of a consortium led by First Group Holdings Limited, won a government tender to develop this commercial site. The developer for the site is First Lands Development Company Limited, a company wholly-owned by the consortium. The Group has an aggregate effective equity interest of HK$50 million (approximately US$6.4 million) or approximately 11.9% in the consortium. The site is being developed into a commercial office building slated to be completed by 2019.
The Group’s second Hong Kong property redevelopment project is located at No. 650 Cheung Sha Wan Road in Hong Kong.
On 9 April 2014, the Group, as part of a consortium led by First Group Holdings Limited, won a government tender to develop this commercial site. The Group has a proportionate share of around 13.3% or HKD80.0 million (around USD10.4 million) in the consortium. The site is being developed into a commercial office building slated to be completed by 2017. Following the pre-sale done in early 2017, the building will be named “China Shipbuilding Tower” (“中國船舶大廈”) upon completion.
The Group’s first investment into Hong Kong property redevelopment project was a project at 35 Hung To Road in Kwun Tong, Kowloon East, Hong Kong invested in 2010 which was successfully completed in 2013. The building was named “Fun Tower” upon completion. The Group invested US$2.2m and realised US$8.3m including cost, gain and fees from this investment. The success of this project reflects the quality of the Group’s business partners and gave the Group confidence to embark on more of such projects in Hong Kong and other countries in Asia.
China Office Investment
In Guangzhou, China, the Group invested in 14 office units in China Shine Plaza with a total gross floor area of 1,320 sqm in 2007. The value of the investment has risen since 2007 and the Group has disposed of 10 units with realised gain since 2014. The balance units are currently being leased to non-related third parties.