[ET Net News Agency, 22 February 2018] Daiwa Research has examined Henderson Land's
(HLD)(00012) recent purchase of two sites from the HNA Group.
The research house concluded that the price paid by HLD was cheaper than prevailing
market prices after taking into account various factors, but it was not a stressed sale
price.
Given that HLD has ample landbank, Daiwa thinks the move suggests that HLD is determined
to secure major prime sites in urban areas. It sees Kai Tak having the potential to become
a new luxury residential area, for which achievable prices could have a very wide range
(HKD20,000-50,000/sq ft are possible), depending on marketing and execution.
Daiwa said HLD is currently already the largest owner of both older buildings and
farmland in the industry, and is not lacking in landbank. Hence HLD is determined to
further boost its market position in the industry.
Given that HLD already has several major projects in various districts in urban areas
such as Hunghom, Tai Kok Tsui and Midlevels, securing two prime sites in the Kai Tak area
should offer strategic value to the group, the research house added.
It retained its "buy" call on HLD, with a target price of HK$63.5. (KL)