Chairman's Statement (Continued)
In September 1998, the ground floor to third floor of the Company's bus depot at Chai Wan Inland Lot 88 have been leased to New World First Bus Services Limited at a market rent for a period of three years.
INLAND LOT 8849, TSAT TSZ MUI ROAD, (ISLAND PLACE), NORTH POINT
The joint venture company, which is 40% owned by the Group and 60% owned by Swire Properties Limited, has completed the development. As at November 1998, 738 out of 784 residential units and 23 out of 25 floors of the office building have been sold. The four storey retail centre with a gross floor area of 150,167 sq. ft. and a carpark with 288 car parking spaces have been kept by the joint venture company
for investment purposes. The spaces in the retail centre are close to fully leased. Leasing of the two unsold floors in the office building is progressing.
INLAND LOT 7550, NO. 625 KING'S ROAD, NORTH POINT
Construction of the office building on Inland Lot 7550, which is 50% owned by the Group and 50% owned by Swire Properties Limited has been completed. The development comprises a 26 storey office and retail tower with a gross floor area of 298,956 sq. ft. and a carpark with 84 car parking spaces. As at October 1998, two and a half office floors have been leased and negotiations are in progress with a number of potential tenants.
ABERDEEN INLAND LOT NOS. 338 AND 339, WONG CHUK HANG ROAD, ABERDEEN
The foundation work for an industrial building on Aberdeen Inland Lots 338 and 339 with a site area of 25,500 sq. ft., which is 50% owned by the Group and 50% owned by Swire Properties Limited, has been completed. The development of the lots for industrial use was suspended in 1997. Market conditions will be kept closely under review, and the site is currently rented out as a carpark.
SHAU KEI WAN INLAND LOT NO. 843, ALDRICH BAY
The site, in which the Group has a 20% interest, Swire Properties Limited has a 50% of interest and Sun Hung Kai Properties Limited has a 30% interest, was acquired at a price of $1,677,000,000 at a public tender in May 1998. The site, which has a site area of approximately 75,950 sq. ft., will be developed for residential use and is scheduled to be completed in 2001. General Building Plans have been submitted to Government for a development of four blocks of up to 48 stories and of approximately 880 units.
INLAND LOT 7105, NORTH POINT
The Company plans, subject to Government approval and payment of a premium, to redevelop for investment purposes Inland Lot 7105 in North Point with a site area of 17,870 sq. ft. into a commercial and residential complex. The total gross floor area of the development will be approximately 180,000 sq. ft.
FUTURE OUTLOOK
Although the Group's franchised bus operations ceased on 1st September, 1998, the Group's business includes substantial non-bus operations comprising interests held through its associates in property investment and development. In recent years, non-bus assets and non- bus related profits have accounted for an increasingly significant part of the Group's assets and profits. The Group will continue to expand its on-going property developments and will consider other investment opportunities in both property and other areas. However, given the adverse and uncertain market conditions, the Board will continue to adopt prudent measures and will carefully evaluate every investment opportunity presented to it.
APPRECIATION
On behalf of the shareholders and my fellow Directors, I would like to thank our loyal staff for their hard work and dedication to serving the travelling public and the Company during the past year.
NGAN Shing-kwan Chairman
Hong Kong, 17th November, 1998
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