TNAG-1812-FCO40-2573-Preservation-of-Ohel-Leah-Synagogue-in-Hong-Kong-1988 — Page 56

BCIL also sold a number of properties on Strawberry Hill on The Peak almost immediately after purchasing them from The Land Company.

Initially, The Land Company sold the Strawberry Hill properties to BCIL for an average price per house of $HK5 million.

According to TARGET's information, BCIL re-sold the properties for between $HK5.8 million and $HK6.25 million, or even more, within weeks of taking possession.

This represents a return of at least 16 percent for BCIL. In fact, it is known that BCIL placed all of the 19 blocks of property from The Land Company's portfolio on the market, probably the morning after BCIL had taken posses-

sion.

It is also known that BCIL increased the purchase price of the properties by at least 10 percent, knowing that The Land Company had sold the properties well below the open

Tregunter House:

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market value.

With a Return of 21 percent upwards, which was the Return from the re-sale of Clovelly Court, the re-sale of The Land Company's residential property portfolio could have thrown up a surplus of $HK300 million for BCIL if the company had sold all the properties at the time.

As it was, BCIL made a profit of $HK42 million at the end of 1986 from Clovelly Court, and another $HK42 million from the sale of other properties from The Land Company's portfolio during 1987.

The Land Company's shareholders might well have asked their then Chairman, Mr Simon Keswick, for an explanation as to why the company had sold the property that was obviously worth more than the amount the company received.

Various other slices of the former Land Company's portfolio have been sold off piecemeal since then.

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Another major missed chance for Hongkong Land

Most recent was the disposal of 7 resi- dential properties, out of the original 19, at the end of May this year.

BCIL sold the properties in Mid-Levels to the Kuok group of companies for $HK1.37 billion.

BCIL Managing Director Mr Peter Lucas said: "This gives BCIL a profit of approximately $HK390 million over the original Book Cost of these properties.'

This represents a return of above 40 percent from the properties for BCIL.

The Land Company announced an Af- ter-Tax Profit of $HK1.1 billion for the

Year ending December 31, 1987.

The profit realised by BCIL on the sale of just the 7 Mid-Levels residential proper- ties is equal to more than a third of The Land Company's Profit for last Year.

The Land Company might be good at picking potentially profitable properties, but its ability to sell at the right time and price appears to be wanting.

Tregunter House

Tregunter House is a luxury residential complex situated on The Peak and was developed by The Land Company.

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