Kerry Properties targets Hong Kong sites, eyes luxury market as mainland growth slumps

Developer steps up Hong Kong land bids while shifting Mid-Levels rental project to a potential sale to fund new investments

The developer said it acquired three residential sites in Hong Kong in the first half, equal to about 235,000 sq ft of gross floor area, and that it would remain active in government land tenders.

“If you look at the government land auctions and MTR land tenders in the past few months, we have basically bid for all of them...and we will continue to invest very actively in the future,” said Calvin Tong, director and general manager for Hong Kong at Kerry Properties, during an earnings briefing on Monday for interim first half results.

Its gearing ratio fell to 31.3 per cent at the end of June from 33.3 per cent six months earlier, putting the company on track to reduce leverage to about 30 per cent by year-end.

The company had planned to hold the flats because of their rare location and views, but “we received quite a lot of inquiries about whether there was an opportunity to sell,” Tong said.