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Sun Hung Kai Properties Limited
Public
Traded as
  • SEHK16
  • Hang Seng Index component
Industry Real estate
Predecessor Sun Hung Kai Enterprises
Founded
1963 in Hong Kong (as SHK Enterprises)
1972 (as SHK Properties)
Founder
Headquarters 45/F, Sun Hung Kai Centre,
30 Harbour Road, Wanchai,
Hong Kong SAR
Key people
Raymond Kwok, Chairman and Managing Director
Products Property development, property investment, property management, hotels, telecommunications, information technology and infrastructure
Revenue HKD 85.3 billion (2018/19 FY)
Number of employees
About 38,000
Chinese name
Traditional Chinese 新鴻基地產發展有限公司
Simplified Chinese 新鸿基地产发展有限公司
Literal meaning Sun Hung Kai real estate development limited company
short name
Traditional Chinese 新鴻基地產
Simplified Chinese 新鸿基地产

Sun Hung Kai Properties Limited (SHKP; Chinese: 新鴻基地產發展有限公司) is a listed corporation and the largest property developer in Hong Kong as of 2019. The company is controlled by the Kwok family trust, largely the Kwok brothers. The Kwok family trust was set up by Kwok Tak-seng, who co-founded the company.

History

Early years

The group was one of many non-British owned companies that overtook the British trading companies or 'hongs' that dominated the financial order in Hong Kong prior to 1997. The predecessor of the group, Sun Hung Kai Enterprises Co., Ltd. (Chinese: 新鴻基企業有限公司), was founded in 1963 by Kwok Tak-seng, together with Fung King-hey and Lee Shau Kee. The current legal person of the holding company of the group, Sun Hung Kai Properties Limited, was incorporated on 14 July 1972 and was listed on the Hong Kong stock exchanges on 23 August 1972.

In 1973, SHKP acquired Hong Yip Service Company Limited. In 1977, SHKP moved its head office to Connaught Centre, Central (now known as Jardine House).

In 1978, SHKP established Kai Shing Management Services Limited (啟勝管理服務), a property manager.

In 1978, SHKP put on sale the first multi-block residential estate, Tsuen Wan Centre (First Phase). Also in 1978, SHKP became one of the 33 constituent stocks listed on the Hang Seng Index.

In 1979, SHKP established Sun Hung Kai Properties Insurance Limited, which was a provider of general insurance.

1980s and 1990s

In 1981, SHKP acquired an interest in Kowloon Motor Bus, a public transport provider. The corporation moved its headquarters to Sun Hung Kai Centre, on an area of newly reclaimed land in Wan Chai, in 1982.

In 1991, SHKP acquired Wilson Parking.

In 1992, SHKP finished the construction of Central Plaza in Wan Chai, the tallest building in Asia at the time of completion. In the same year the company diversified into mobile telephony with the establishment of SmarTone, now one of Hong Kong's dominant mobile providers. This subsidiary was listed in Hong Kong in 1996.

In 1993, SHKP acquired World Trade Centre, Causeway Bay. From the mid-1990s the company undertook property development related to the new airport railway, including sites at the Airport Express Hong Kong Station.

In 1998, Route 3 (Country Park Section) opened.

In 1999, Shanghai Central Plaza commercial building was completed.

21st century

In 2000, SHKP won tender for Kowloon Station Development Packages 5, 6 & 7 – now the International Commerce Centre (ICC) complex. The complex was finished in 2010. The main building became the tallest building in Hong Kong at the time of completion.

On 17 March 2000, SUNeVision Holdings Limited, a subsidiary of SHKP, was listed on the Growth Enterprise Market of the Stock Exchange of Hong Kong.

In 2001, SHKP established the residential leasing division Signature Homes.

In 2002, SHKP set up SHKP – Kwok's Foundation to provide financial support to financially disadvantaged but academically outstanding students, enabling them to pursue university education or to participate in overseas exchange programs.

In 2003, the first phases of YOHO Town in Yuen Long went on sale. The same year, the company signed a land-use transfer agreement with Shanghai Lujiazui Finance and Trade Zone Development Company for Shanghai IFC project.

In 2005, SHKP opened APM, Hong Kong's first late-night retail centre.

In 2005, SHKP acquired Seiyu (Sha Tin) Company Limited.

In 2009, Ma Wan Park Noah's Ark opened, the first Christian theme park in Hong Kong.

In 2013, SHKP acquired a commercial site with 7.6 million square feet of gross floor area in the Shanghai Xujiahui district.

In 2015, SHKP became Title and Charity Sponsor of the first Hong Kong Cyclothon.

In 2016, SHKP donated land in Yuen Long to Hong Kong Sheng Kung Hui for the construction of an integrated service centre.

In 2019, SHKP won the tender for the commercial site atop the West Kowloon high-speed rail terminus. SHKP's bid of more than HK$42 billion won the 60,000 square metre site, which could be used for office, shopping and hotel developments. The Kwoks family would invest HK$9.4 billion (US$1.2 billion) for a 25% stake in the office towers.

Corruption probe

SHK Executive Director Thomas Chan was arrested by the Independent Commission Against Corruption (ICAC) on 19 March along with eight people linked to the company on the afternoon of 29 March 2012. Co-chairmen Thomas and Raymond Kwok and five others were arrested by the ICAC as part of an extensive corruption probe. Rafael Hui, former chief secretary, was also taken in for questioning. They were later released on bail. The probe caused a 15 per cent fall in the company's share price.

In December 2014, the jury convicted Thomas Kwok and Rafael Hui of the HK$8,500,000 bribery, and Hui was convicted of four more charges relating to misconduct in public office. The jury acquitted Raymond Kwok of all changes.

Governance

Its head office is in the Sun Hung Kai Centre in Wan Chai.

List of chairmen

  1. Kwok Tak-seng (1972–1990); founder
  2. Walter Kwok (1990–2008); oldest son of Kwok Tak-seng
  3. Kwong Siu-hing (2008–2011); wife of Kwok Tak-seng
  4. Raymond Kwok and Thomas Kwok (2011–2014); joint chairmen, younger sons of Kwok Tak-seng
  5. Raymond Kwok (2014– ); youngest son of Kwok Tak-seng

Financing and assets

SHKP was publicly listed in 1972 and is one of the largest property companies in Hong Kong. It develops residential and commercial projects for sale and investment. It employs more than 38,000 people and its services include land acquisition, architecture, construction, engineering and property management. It achieved a revenue of HK$85,302 million in the financial year 2018/19, with a profit attributable to shareholders of HK$44,912 million. The majority of its revenues and operating profit were derived from property sales and rental.

Land bank

As of 30 June 2019, the Group had a land bank in Hong Kong of 58.0 million square feet in terms of attributable gross floor area, consisting of 32.9 million square feet of completed investment properties and 25.1 million square feet of properties under development.

As of 30 June 2019, the Group held a land bank of 65.4 million square feet in terms of attributable gross floor area on the mainland, including 50.6 million square feet of properties under development and 14.8 million square feet of completed properties.

Credit ratings

The Group has always attained the highest credit ratings among Hong Kong developers. Moody's gave the Group an A1 rating and Standard & Poor's gave the Group an A+ rating.

Other businesses

The company also has complimentary operations in the following property-related fields:

  • Hotels
  • Property management
  • Telecommunications
  • Information technology
  • Infrastructure and other businesses

It was once reported in a local newspaper that the company and Cheung Kong (Holdings) are together increasingly dominant in the development of new private homes, accounting for 70% of the market in 2010, up from around half of that in 2003. This concentration, with much of the rest of the market occupied by other very large firms, is attributed to the government's policy of auctioning land inexpensively large blocks, squeezing out small and mid-sized firms, according to the Consumer Council.

Nevertheless, clarification was later made in the letters to editors column in the same newspaper that Sun Hung Kai Properties' overall share of primary residential sales in terms of attributable value from January to July 2010 has been approximately 20% – a figure that has been largely stable over the last few years.

Construction and project management

The subsidiary of SHKP, Sanfield (Management) Limited is the major construction project management company for the corporation's real estate development. Established in 1974, the company headquarter is located at Sun Hung Kai Centre. The company mainly provides construction service to SHKP to build private residential buildings, commercial office towers and comprehensive development. In 2020, it had about 3000 employees.

Sanfield provides a wide range of related services to SHKP and third parties, including landscaping, provision of electrical- and fire-prevention systems as well as leasing of construction plant and machinery. Through an associate and its wholly-owned subsidiaries, the company also supplies ready-mix concrete and precast concrete components to SHKP and external parties. The company is also an accredited corporation for provide construction safety training and engineering training by Hong Kong Labour Department and The Hong Kong Institution of Engineers.

Its major projects include:

International Commerce Centre 200504
International Commerce Centre under construction in 2005.
International Commerce Centre 200911
International Commerce Centre, tallest building in Hong Kong since 2010.

Property management

Hong Yip Service Company Limited and Kai Shing Management Services Limited are two of the main property management firms own by SHKP based in Hong Kong.

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