[ET Net News Agency, 9 November 2017] Macquarie Research said the farmland conversion
price paid by Sun Hung Kai Properties (SHKP)(00016) for the 14 Village project (Shap Sze
Heung), as disclosed by media, is much lower than the research house's expectation,
implying gross margin at more than 40% when this mega project commences sales in three to
four years.
Macquarie estimated the NAV impact at HK$11.5bn or HK$4/share for SHKP. The implication
for the overall sector is very positive as the HK government, under the new Chief
Executive, seems more generous in negotiating conversion premium.
It noted that other farmland owners such as Land Development (00012), New World
Development (00017) and CK Asset (01113) should benefit. (KL)