11-12 Headland Road

Review of Operations – Business in Hong Kong • Land Bank
At 31 December 2010, the Group had a land bank in Hong Kong with a total attributable gross floor area of approximately 21.3 million
square feet, made up as follows:
Attributable gross floor area
(million sq.ft.)
Properties held for or under development 9.3
Stock of unsold property units 1.6
Completed investment properties 9.4
Hotel properties 1.0
Total: 21.3
In addition, the Group held rentable car
parking spaces with a total area of around
2.8 million square feet.
The Group remains optimistic about the
prospects for the Hong Kong property
market and has therefore continued to
engage in the acquisition of old buildings in
the urban areas for redevelopment in
tandem with the Government’s policy
initiative on promoting urban renewal. At
the same time, the Group’s agricultural
land reserve includes significant holdings
in the new development areas as designated
by the Government. Both of these sources
are expected to bring about a significant
increase in the Group’s development land
bank in future years. Since the acquisition
cost of old buildings and the premium
payable for agricultural land-use
conversion compare favourably with the
transacted prices of land sites offered at
public auctions, such approach to land
banking has the advantage of low cost and
therefore a higher contribution to earnings.
(I) Redevelopment of old buildings in the urban areas
A. Newly-acquired projects
As mentioned above, the Group believes that the redevelopment of old buildings in the urban areas will provide a source of land supply
which requires lower cost and hence yields higher margin. Since 2009, a number of old building projects have been acquired and efforts
are continuing to source additional old properties for redevelopment. A summary of the projects which have been acquired is as follows:
Project name and location
A. Projects with ownership fully consolidated:
1. 30-38 Po Tuck Street and
36 Clarence Terrace, Hong Kong (Note 2)
2. 23-33 Shing On Street
Sai Wan Ho, Hong Kong (Note 2)
3. 186-188 Tai Po Road
Sham Shui Po, Kowloon (Note 2)
4. 75-81 Sa Po Road
Kowloon City, Kowloon
Site
area
(sq.ft.)
Expected gross
floor area in future
redevelopment
(sq.ft.)
Expected year
of sales launch
(Note 1)
7,310 61,103 2012
4,699 39,942 2012
8,234 70,242 2011
3,582 32,238 2012
44
Henderson Land Development Company Limited
Annual Report 2010