'Banks are confident in our future', says chairman of SHKP after the developer secures US$2.6 billion syndicated loan
By Sandy Li sandy.li@scmp.com
/ https://www.scmp.com/business/article/3003718/banks-are-confident-our-future-says-chairman-shkp-after-developer-secures?utm_medium=partner&utm_campaign=contentexchange&utm_source=EdgeProp |
Sun Hung Kai Properties, Hong Kong's biggest developer by market value, said it had signed a five-year HK$20 billion (US$2.55 billion) syndicated loan for general working capital for business development.
The credit arrangement is in line with the group's policy of extending the maturity profile of their loan portfolio and arranging substantial committed facilities for future development.
"This facility has gained strong support from the banking community, a reflection of their confidence in SHKP's future," said Raymond Kwok Ping-luen, chairman and managing director at SHKP.
The company also revealed that its contracted sales have exceeded HK$51 billion since the start of the financial year beginning July 1.
"We will continue to launch new projects for sale," Kwok said.
Upcoming project launches include Phase One of 18 Stubbs Road, Cullinan West III, Phase Two of Mount Regency and Phase One of the Hoi Wing Road residential project.
Kwok said in the statement the sales will generate strong and continuous cash flow.
Since 2018 the company has spent HK$42.63 billion on three residential plots, becoming the single largest purchaser of land at government tender.
SHKP won two lots in the Kai Tak area, the site of Hong Kong's former international airport. These include the mixed-use site known as Area 1F Site 1 for a record HK$25.16 billion, or HK$17,776 per square foot in May, 2018.
SHKP secured its second lot in Kai Tak, known as 4C Site 3, for HK$11.26 billion, or HK$17,360 per square foot in January, 2019.
A month later, it won another residential site in Pak Shek Kok, Tai Po for HK$6.31 billion, or HK$6,646 per square foot.
SHKP earlier said the three sites involve a total investment of HK$72 billion, inclusive of land costs. "Our rental income business also continues to show healthy performance. Total gross rental income from our property investments reached a record high of more than HK$12 billion for the first half of the current financial year," Kwok said.
Raymond Kwok (centre), chairman and managing director of Sun Hung Kai Properties, is flanked by senior executives at the companies' 2018/19 interim results announcement on February 17, 2019. Photo: Dickson Lee
By the end of 2023, the group's mainland property investment portfolio will expand to more than 25 million sq ft from about 13 million sq ft currently, he said.
On Wednesday the company reported a 31.2 per cent fall in underlying profit for the six months to December because of a change in accounting policy.
Its interim core profit, excluding revaluation gains on investment properties, was HK$13.73 billion during the period, compared to HK$19.97 billion last year.
This article originally appeared in the South China Morning Post (SCMP), the most authoritative voice reporting on China and Asia for more than a century. For more SCMP stories, please explore the SCMP app or visit the SCMP's Facebook and Twitter pages. Copyright © 2019 South China Morning Post Publishers Ltd. All rights reserved.
Copyright (c) 2019. South China Morning Post Publishers Ltd. All rights reserved.
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