K. Wah International is expected to book HK$2.5 billion and 2.2 yuan from the sale of the remaining units of the Great Hill and Shanghai Westwood Phase Two by the end of this year, according to a company senior executive.

The Hong Kong-based property developer has already cashed in HK$700 million by selling out 24 units including 1 penthouse, said Ken Wong, the associate director of finance. The remaining 30 units including 7 houses are expected to be sold by this year.

Meanwhile, Shanghai Westwood Phase Two has been planned to be launched in the third quarter and completed by the end of this year.

Referring to the slowdown of mainland's property market, Chairman Lui Che-woo said it is normal as property prices went up in 2007. Yet, he believes there are strong and constant demand for property on the mainland and it is a good chance to acquire new lands.

The company is actively looking at cities of Shanghai, Guangzhou, Tianjin and Qingdao. "We are quite prudent and conservative in land acquisitions but we will actively seek opportunities in both mainland and Hong Kong," said Lui.

The company is interested to join land auction in Hong Kong but will wait until more lands are launched for sale, Lui added.

Currently, a total capital of more than HK$8 billion is available for the company's development in future and it is managing more than 10 projects. It hopes to balance its portfolio between investment properties and residential properties.

The rent of company's newly-developed investment property J Senses in Wan Chai is amounted to HK$16 million, Wong said. Ninety-five percent of the dining and shopping complex are already leased.

Lui said demand for Hong Kong's property market has been still big but supply is very limited. However, as the property prices went up considerably between 2007 and 2008 due to construction costs, it is normal that Hong Kong's property market is slowing down recently.

The company has about 25 million sq ft in total gross floor area (GFA) for development in the next 5 years and 10 million square feet in total GFA to put to market over the next 3 years.

(HK Edition 05/28/2008 page2)