TNAG-2661-FCO40-3857-Future-of-Hong-Kong-British-Consulate-General-1992 — Page 39

COLVIN HOUSE

BRIEF SUMMARY OF A POSSIBLE J/V DEVELOPMENT

a.

b.

Site area

Plot ratio

C. Floor area

d. Land premium

e.

Development expenditure

55,400 sq.ft.

15 (non-domestic)

OR

Total gross floor area of 831,000 sq.ft. Total lettable floor area of 648,180 sq.ft.,

assuming 78% efficiency.

16

HK$1,247 million (i.e. HK$22,500 p.s.f. of site or

HK$1,500 p.s.f. of gross floor area permissible)

891

HK$1,401 million (including construction cost

estimated at HK$1,300 p.s.f. of gross floor area, professional fees at 10% on such cost and financing cost at 10% p.a.)

f. Development period

3 years

g.

Apportionment of

(1)

costs

(2)

h.

Apportionment of finished product

(1)

(excluding time required for land acquisition and design and planning of the development)

HMG will bear HK$356 million (28.5%) of the land premium upon obtaining the land grant from HK Govt.

The "Developer" will bear HK$891 million (71.5%) of the land premium and HK$1,401 million (100%) of the development expenditure and will undertake to complete the development.

HMG will be entitled to 150,000 sq.ft. of lettable floor area.

(2) The "Developer" will be entitled to

498,180 sq.ft. of lettable floor area. Based on a rental value of HK$42 p.s.f., the "Developer" would obtain an internal rate of return in the order of 13.5%.

N.B.

All figures are approximate and indicative only; land premium, costs and rent are based on current day levels.