Strengthens the Group's Focus on Property Development
HONG KONG, Nov. 19 /Xinhua-PRNewswire-FirstCall/ -- Emperor International Holdings Limited ("the Group" / "EIH") (HKEx stock code: 163; ADR Symbol: EPRRY) announced that the Group has reached an agreement with New World Development Company Limited ("New World Development") (HKEx stock code: 17) to jointly develop a commercial and residential complex in North Point, Hong Kong. EIH will hold approximately 75% of the project, with remaining stake to be held by New World Development.
This project marked the first joint property development project between the Group and New World Development following subscription of a 4.67% stake of the Group's issued share capital in October 2006 by Dato' Dr. Cheng Yu Tung, Chairman of New World Development.
Mr Donald Cheung, the Group's Director of Property Department, commented, "We are excited to partner New World Development in capturing valuable opportunities in the property development market. New World Development is one of the leading property developers in Hong Kong, holding vast experience and a solid foundation in the industry.
"Our co-operation not only strengthens EIH's presence in the property market but also helps us to develop our new focus in high-yield residential redevelopment projects," said Mr Cheung.
The site is located at 96-102 Java Road, North Point, approximately 50 meters from the entrance to the North Point MTR station. With an area of 4,555 square feet, the site is to be re-developed into a residential block with a floor of commercial space on the podium. The complex has a total planned gross floor area of approximately 37,400 square feet.
The total land cost of EIH is merely approximately HK$84 million. The site currently comprises old blocks which are scheduled to be demolished in 2007. The redevelopment is expected to be completed by 2009.
There is an overall shortage of land especially on Hong Kong Island and the supply of new flats to the market is limited -- only approximately 2,000 units annually. EIH is excited to have secured the land at such a low cost and is confident that the partnership will deliver a win-win result.
Mr Cheung added: "EIH is committed to offering unique, top-notch residential and commercial spaces complemented by a full range of first-class amenities. While the property project in North Point is the first project between the Group and New World Development, we certainly look forward to more co-operation opportunities in the future."
The development followed the Group's discontinuance of non-core businesses earlier this year and its commitment to directing its resources toward property development and investment where there are possibilities for achieving higher margins and greater growth.
Ms Vanessa Fan, the Group's managing director, concluded: "The cooperation with New World Development marks a major milestone for our business. We believe that the new property project will allow us to expand and strengthen our property development portfolio while generating lucrative returns for the Group and our shareholders."
About Emperor International Holdings Limited
Emperor International Holdings Limited is an investment holding company, which is principally engaged in property development and investment business. It also engages in hotel and financial and brokerage services operations.
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Emperor International Holdings Limited
Sidney Luk
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