Trans Tasman buys second HK development site

By Chris Hutching

Friday 17th September 2004

Trans Tasman Properties is buying a second development site in Hong Kong in keeping with its avowed strategy of seeking new opportunities in Asia and quitting mature investments in this country.

The company has the benefit of local Hong Kong wisdom in the form of Lu Wing Chi who is a director of Trans Tasman as well as managing director of majority shareholder SEA Holdings, registered in Bermuda and listed in Hong Kong.

The conditional $111 million purchase of the 2250sq m site at 97 Po Kong Village Road, Kowloon is from a subsidiary of Hong Kong Stock Exchange-listed company Chinney Investments and is conditional on its shareholder approving the deal in the next three to four months.

The development site is located near the former Hong Kong International Airport and has been zoned for residential and commercial development including 20,250sq m of residential apartments, 160 carparks and 1950sq m of retail and commercial tenancies.

Development is expected to begin in the first quarter of 2005 for completion in late 2006.

The purchase is the second major acquisition in Hong Kong following the recent announcement of the unconditional purchase of a 2ha development site in Sha Tin Town, New Territories for $112 million.

At the same time as it has been building up its portfolio in Hong Kong, the company has been shedding properties in Auckland and last week reported a contract for the sale of its 2010sq m site at 28 Shortland St, Auckland, to Dae Ju Housing for $13.75 million, about 5% above Trans Tasman's book value (after costs).

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