Henderson Land Development reported Wednesday that it has explained to the government why only one of 25 sales in its widely publicized, price record-breaking Hong Kong development was completed.

Henderson complied with a deadline Wednesday to provide information on the deals at its luxury project, called "39 Conduit Road", including a duplex the company said in October was sold for a world-record HK$88,000 per square foot, said company spokeswoman Bonnie Ngan.

Even though the sales have not closed, the developer included sales of the apartments in its profit for the 18 months ended in December.

"We have replied" to the Lands Department, Ngan said by phone Wednesday, declining to elaborate on the reply.

Teresa Sair, a spokeswoman at the Lands Department, said the government has received the letter, but declined to give details.

Responding to an outcry over rising property prices last year, Hong Kong raised down payments on luxury homes to 40 percent from 30 percent and clamped down on marketing techniques.

The completion of sales of 24 units at 39 Conduit Road has been extended by between two and four months from February, at the request of buyers, the company said.

"Currently, there are no reasons to believe that the sale of said 24 units will not proceed," the company said.

Lee said in October that the sale of the record-price duplex was "100 percent real," maintaining earlier this month that all 25 transactions at 39 Conduit Road were genuine.

The Lands Department sent a second letter to Henderson on March 25 after the developer said it verbally agreed with the buyers to delay the completion of the sales, according to an official statement.

Anticipated revenue from the 25 homes amounts to HK$3.28 billion, while net income from the apartments would reach HK$973 million, the developer said.

During the past 18 months, Henderson spent HK$18 billion buying old buildings to redevelop, it said.

Henderson's shares fell 4.2 percent Wednesday to close at HK$54.70. The stock has dropped 6.3 percent this year, after more than doubling in 2009.

Bloomberg News

(HK Edition 04/01/2010 page2)