Henderson Land says $8 bln harbourfront project won't put it under financial pressure

Henderson Land Development Co

04/11/2021 12:25

HONG KONG, Nov 4 (Reuters) - Hong Kong developer Henderson
Land Development Co Ltd  0012.HK  said on Thursday a planned $8
billion investment in the Central harbourfront development would
not put it under financial pressure and it would maintain its
dividend payout policy. 
    The company voiced its confidence in Hong Kong after winning
a HK$50.8 billion ($6.5 billion) tender on Wednesday to develop
a new iconic landmark site in Central, the city's major central
business district, comprising office, retail and entertainment
spaces and an urban park. 
    Henderson said its gearing ratio will rise to "a reasonable
level" of more than 30% from 20%, but there will be no impact on
its dividend payout policy - a concern voiced by analysts - as
it has stable rental income and strong cash flow.
    Together with construction fees, Henderson Land plans to
invest a total of HK$63 billion in the development, which is
expected to be completed in phases after 2027. 
    "Hong Kong is a world-class financial hub; office towers in
the core Central area will always be highly sought after by
international financial institutions and multi-national
companies, so it will definitely bring good returns," Henderson
co-chairman Lee Ka Shing told reporters on Thursday.    
    Hong Kong's office market is showing tentative signs of
recovery after the pandmic, according to analysts at global
commercial real estate firm Cushman & Wakefield.

($1 = 7.7821 Hong Kong dollars)

 (Reporting by Joy Leung; Writing by Clare Jim; Editing by
Kirsten Donovan)
 ((clare.jim@thomsonreuters.com; +852 2912 6653; Reuters
Messaging: clare.jim.thomsonreuters.com@reuters.net))