Sun Hung Kai Properties 0016

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Exclusive: Hong Kong probes $2.5 million payment in Kwok case: source By David Lague

HONG KONG (Reuters) - Hong Kong's anti-graft agency is looking into payments totaling more than U.S. $2.5 million to a former top public servant as part of the city's corruption investigation involving two billionaire brothers who run Asia's largest property developer.

Hui and the Kwok brothers were arrested on suspicion of corruption on March 29 and released on bail without charges being filed. The three men, friends since childhood through Macau family connections, have been ordered to report back to ICAC headquarters later next month, when they are expected to extend their bail agreement, the source said.

In 2005, he declined to move into the colonial mansion on Victoria Peak reserved for the chief secretary, opting to stay instead in his modern, 5,000-square-foot apartment. The luxury flat overlooking the Happy Valley racecourse that he and his wife call home is in the Leighton Hill complex, a Sun Hung Kai development.

That prompted criticism at the time that Hui would be conflicted in his public role on any matters related to the Kwoks. On taking office, Hui pledged to pay HK$160,000 ($20,600) per month in rent to remain in the apartment.

As chief secretary, Hui's connections with Sun Hung Kai came under public scrutiny after he took on the role of overseeing Hong Kong's billion-dollar West Kowloon cultural district, a project on which the company had bid.

Hui, whose nickname is "King Strategist", provided both political and business advice to Sun Hung Kai over the years, a boon for a developer in a city where the government controls the land supply. He was also trusted by the Kwoks' mother, according to sources close to the family.

"He's a very smart guy with many tricks, with a great grasp of details and flexibility," said James To, a democratic lawmaker, who has dealt regularly with Hui over 20 years of public service.

Upon completion of its investigation, the ICAC will send the evidence to Hong Kong's justice department, which then decides if it will prosecute.

http://www.reuters.com/article/2012/04/ ... IZ20120424

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Sun Hung Kai's Walter Kwok says brothers hired Hui

* Sun Hung Kai brother denies involvement in probe-report
* Walter says "no idea" what Hui was doing at SHK - paper
* Says Hui not a consultant to him, or mother - statement

By Alex Frew McMillan

HONG KONG, May 2 (Reuters) - Walter Kwok, the eldest brother of the family that runs Sun Hung Kai Properties, on Wednesday moved to distance himself from Rafael Hui, the former Hong Kong official arrested in connection with a bribery probe involving Kwok's younger brothers.

Kwok, ousted from the company's top spot in 2008, said in a statement provided to Reuters that he was not involved in the hiring of Hui, who was Hong Kong's No. 2 official from 2005 to 2007. Raymond and Thomas Kwok -- joint chairmen of Sun Hung Kai -- were arrested on March 29, along with Hui, by Hong Kong's anti-graft agency.

"Hui was employed by my two brothers and he was not a consultant to me or my mother," Kwok said in a statement issued through a spokeswoman.

Kwok also moved to address a lingering issue involving his ownership stake in Sun Hung Kai, the Hong Kong-based conglomerate started by his father that has a market worth of more than $31.6 billion as of Wednesday.

Kwok said in the statement that he has a document showing that he is entitled to a one-third stake in the trust that controls Sun Hung Kai Properties. Kwok was removed from the trust, which owns 42 percent of the company, in 2010.

Kwok claims he is authorized to view the structure of the trust after winning arbitration in Switzerland but that his family is blocking him from accessing the documents by saying he is using outdated paperwork.

"I want to clarify that the legal document has no expiry date at all," Kwok said in the statement. "According to my legal adviser it remains valid."

Kwok's ownership stake in the company gained fresh attention in March with the arrrest of his brothers and Hui.

Hong Kong's anti-graft body, the Independent Commission Against Corruption (ICAC), arrested Raymond and Thomas Kwok on March 29, along with Hui, a close family friend and adviser to the company.

Part of the bribery investigation focuses on payments from Sun Hung Kai-linked entities totalling more than $2.5 million to Hui before and after his time as the city's No. 2 government official, according to a Reuters report last month .

Raymond and Thomas Kwok have denied any wrongdoing. Hui has not responded to attempts to reach him for comment.

Walter Kwok, who was not arrested, has denied that he is involved in the bribery investigation.

"As a matter of fact, I am not involved," he said in a South China Morning Post article on Wednesday, when asked why he was not investigated by the ICAC.

Walter Kwok was chairman of Sun Hung Kai at the time Hui was advising the property developer, but told the Post that he did not know what Hui's job was.

"He did not have an office in Sun Hung Kai Centre," the newspaper quoted him as saying. "He was not an executive staff [of Sun Hung Kai properties]. I really have no idea what he was doing."

Hui became a non-executive director of Kowloon Motor Bus in 2004, a company majority owned by Sun Hung Kai. While that is the only official role Hui has played at Sun Hung Kai, sources familiar with the matter say Hui has been a long time adviser and consultant to Thomas and Raymond Kwok over decades.

Sun Hung Kai said on March 20 that Thomas Chan, the executive in charge of land purchases for the developer, had been arrested by the ICAC.

The ICAC has declined to comment while the probe continues.

Shares of Sun Hung Kai ended the morning session up 0.6 percent on Wednesday in Hong Kong, lagging a 1.3 percent gain in the benchmark Hang Seng index. The stock has lost 15 percent since the arrests of Thomas and Raymond Kwok.

Walter Kwok said he would entertain a return to the company if invited by the board of directors. "I will consider," he said, according to the newspaper.

The eldest brother remains a non-executive director of the company, but according to its website, he did not attend any of the four board meetings held during the last financial year.

Sun Hung Kai declined to comment on Wednesday.

http://www.reuters.com/article/2012/05/ ... DF20120502

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SHK PPT (00016): Century Gateway to receive sales document next week
2012-05-03

Victor Lui, executive director of SHK PPT (00016), said Century Gateway, a property project atop Tuen Mun West Railway station, will offer specialty flats with a gross floor area of 2462 sqf. The planned price is set at $70 mln, representing an average selling price of $27,000 psf.

Allen Woo, acting assistant general manager, said the sales documents for the project have not been received yet. Offering of the project will start next week when the sales approval is obtained.


Source: AAStocks Financial News

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SHK PPT (00016) records rise of 27%, 28% in flow, turnover in eight malls during May Day Golden Wk
2012-05-02

SHK PPT (00016) announced its eight malls (including Sheung Shui Plaza, Mikiki, WTC More, etc.) recorded rise of 27% YoY in passenger flow to 3.25 million, and rise of 28% YoY in turnover to $189 million during the May Day Golden Week (April 28 to May 1).

In particular, Sheung Shui Plaza recorded passenger flow of 660,000, an increase of more than 29%, with turnover of $53.5 million, an increase of 32%.

Mikiki, a mall located in San Po Kong, recorded passenger flow of 270 000, with turnover of $8.4 million.

Source: AAStocks Financial News

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Sun Hung Kai Properties Suspended From Trading; No Reason Given

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*DJ Sun Hung Kai Properties: Walter Kwok Arrested By Antigraft Agency Over Bribery Investigation

Source: Dow Jones Newswires

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DJ MARKET TALK: SHKP Off 2.8%; Opportunities At Below HK$90 - DBSV

1410 [Dow Jones] SHK Properties (0016.HK) is down 2.8% at HK$90.05; the stock dipped below HK$90 earlier (intraday low HK$89.95) for the first time since the ICAC probe news first broke out at the end of March.

The stock already fell 1.8% Friday which came on news of ICAC's arrest of ex-chairman (now a non-executive director) Walter Kwok, which came a month after his younger brothers Thomas Kwok and Raymond Kwok, who pushed the elder brother out to become joint chairmen, were arrested in the same case.

DBS Vickers says that the stock's near-term performance will remain news-driven, but as long as no more senior management members get involved in this alleged bribery case, "we see some trading opportunities if the share price falls to HK$90 or below."

It adds, the upcoming launch of Century Gateway in Tuen Mun could serve as a barometer of whether business is as usual for SHKP.

Source: Dow Jones Newswire

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DJ MARKET TALK: SHKP May Stabilize But N/T Pressure Remains - Citi

0821 [Dow Jones] SHK Properties (0016.HK) may stabilize after falling 5.6% over the past three sessions due to news of ICAC's arrest of its ex-chairman Walter Kwok in connection with an alleged bribery offence.

Citigroup says the arrest's impact on SHKP will be small, given he no longer has any executive role in the company.

Still, the house adds that while it believes SHKP's strong fundamentals should drive the stock to be a long-term leader in the Hong Kong property market, shares could come under pressure in the near term, and trade at a relatively deep discount, until the ICAC concludes its investigation.

SHKP ended Tuesday down 1.4% at HK$89.00; its intraday low of HK$89.25 marked the lowest level since the ICAC probe news first broke out at the end of March.


Source: Dow Jones Newswire

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Walter Kwok, the former chairman of Sun Hung Kai Properties, has won a court case in Liechtenstein, allowing him to read documents that belong to the Kwok family trust, which holds more than 40 percent of the blue-chip developer, according to those close to the ex-chairman.


Source: THE STANDARD

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DJ MARKET TALK: Now's The Time To Get Into SHKP As It's Cheap - CS

1018 [Dow Jones] STOCK CALL: "Now's the time" to get into SHK Properties (0016.HK), says Credit Suisse, as the stock is still cheap, with an implied yield on investment properties at 8% and its Hong Kong land bank at less than HK$3,000/sq ft by assuming its China land bank is zero.

"We believe SHKP's 21% correction so far has reflected most of the future negative newsflow."

The house adds SHKP's traditionally tighter valuation was driven by its higher ROIC profile; to allow a potential slippage in its return profile, it lowers its target discount from 22% to 25% resulting in a new target price of HK$126.80, from HK$131.60 previously;

It keeps the stock at Outperform. SHKP is last up 1.1% at HK$88.15.

Source: Dow Jones Newswire