CK Assets Holdings (formerly: Cheung Kong Property Holdings) (1113.HK)

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Li Ka-Shing Buys Canada's Reliance Home for $2.1 Billion

by Scott Deveau
March 31, 2017, 9:56 PM GMT+8 Updated on March 31, 2017, 10:32 PM GMT+8

Li Ka-Shing, Hong Kong’s richest man, is adding to his assets in Canada with the purchase of Reliance Home Comfort from Alinda Capital Partners for C$2.82 billion ($2.1 billion).

The purchase of the water heater and air conditioner firm will be made through CKP (Canada) Holdings Ltd. and is conditional on customary approvals, according to a statement Friday. The acquisition will be made with cash on hand and the assumption of Reliance’s debt, the companies said.

CKP is a unit of Cheung Kong Property Holdings Ltd., of which the Li family trust is the largest shareholder. Reliance will continue to be based in Ontario with the existing executive team managing the business, the companies said.

"I am very happy about the Reliance acquisition. With my close ties in the country, I have always been on the lookout for sizable investments back in Canada," said Victor Li, managing director of CKP.

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Posted on 25 April 2016 at aastocks website :

CK PROPERTY (01113.HK) +0.450 (+0.826%) Short selling $29.88M; Ratio 8.325% repurchased shares again yesterday (24 April). It bought back 3.723 million shares at the highest price of $54.5 per share and the lowest price of $54.2, involving a total of about $203 million.

(Quote is delayed for at least 15 mins.Short Selling Data as at 2017-04-24 16:25.)

This shows that Superman thinks the shares are worth much more than $54.50
Rumoured HK$40 billion sale of The Center could make it Hong Kong’s most expensive building ever
Li Ka-shing’s flagship firm Ck Asset rumoured to be selling Hong Kong’s fifth-tallest building for US$5.15 billion, which would make its city’s most-expensive building ever

By: Peggy Sito
PUBLISHED : Monday, 16 October, 2017, 1:41pm
UPDATED : Monday, 16 October, 2017, 2:27pm

Shares in Li Ka-shing’s flagship property company CK Asset rose by the most in a month on Monday, after the Hong Kong Economic Journal reported it had sold the city’s fifth-tallest building, “The Center”, for a record HK$40.2 billion (US$5.15 billion).

If the deal does materialise, it will be the biggest property transaction in Hong Kong’s history ahead of the HK$23.28 billion sale of the Murray Road site in Central in May.

The stock rose as much as 3.2 per cent in early trading, the biggest intraday jump since September 8, to a three-week high of HK$66.90. It closed up 2.08 per cent to HK$66.15 by lunchtime.

CK Asset was unavailable for comment on Monday.

At 73 storeys, The Center is the tallest commercial building under the company’s portfolio.

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Li Ka-shing’s CK Asset to be Hong Kong’s top property seller with record US$6.4b sales
Hong Kong home buyers have splashed out HK$199 billion to snap up 15,800 new flats in the city to date, Midland Realty data showed

By : Sandy Li
PUBLISHED : Tuesday, 31 October, 2017, 7:30am
UPDATED : Tuesday, 31 October, 2017, 7:30am

Cheung Kong Asset Holdings said its property sales in Hong Kong were set to hit a record HK$50 billion (US$6.409 billion) this year, making it likely to become the top property seller in the world’s most expensive city to live.

“Our sales will climb to a historical high [this year],” said executive director Justin Chiu Kwok-hung on Monday.

The company has pre-sold about 3,000 flats in major projects including Harbour Glory in North Point and Ocean Pride in Tsuen Wan so far this year.

The projected record sales come as Hong Kong home prices surged for the 17th straight month in August amid warnings from regulators of the mounting uncertainties from inflated asset prices. Prices have surged 25 per cent since March 2016.

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CK Asset sells 44 per cent of flats during weekend sale at Shanghai residential project as location, price controls draw buyers
* The project known as Upper West Shanghai sold 484 out of the 1,108 units on offer during three-day weekend sale
* Buyers were attracted in part by government price controls

Zheng Yangpeng  
Published: 7:30am, 19 Jun, 2019

Beijing’s curbs on how much ­developers can charge for homes has helped ­ignite sales, especially at the ­upper end of the market, as buyers snapped up nearly 500 flats at a prime project in Shanghai at ­prices 10 per cent lower than a similar development.

The sale, at CK Asset Holdings’ Upper West Shanghai project, bodes well for other prime projects with artificially low prices, analysts said.

CK Asset, which has two projects underway in Shanghai, netted 4.3 billion yuan (US$621 million) in the three days to Monday by selling 484 units, or 43.7 per cent of the 1,108 flats on offer at Upper West Shanghai, the company said.

The average selling price of 90,000 yuan per square metre is 10 per cent lower than the 100,000 yuan per square metre in a nearby project that sold early last year.

“The prices could be much higher without the government’s price curbs. There is a general rule that a new project cannot sell at an average price higher than similar nearby projects launched earlier,” said Lu Wenxi, Centaline's senior research manager in Shanghai.

The pricing restrictions will have a limited impact on CK Asset, as it acquired the site in 2006 for 3,055 yuan per square metre.

Lu said the Monday result is “not bad” considering the number of flats on offer and the big lump sum required to buy each one.

Property developers sold 25 per cent of the flats they offered in Shanghai last month, a measure also known as a sell-through rate, according to property consultancy CRIC. CK Asset’s result of 43.7 per cent sell-through rate was comparatively high, analysts said.

Shanghai’s property market has been in the doldrums for the past two years, as a large number of new launches in outlying areas has provided potential buyers plenty of options.

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Victor Li's CK Asset sees core profit rise 16 per cent thanks to strong property sales before market soured
* Hong Kong’s second largest developer said revenue rose 41 per cent to HK$34 billion in the first half of 2019

Sandy Li
Published: 6:48pm, 1 Aug, 2019

Victor Li Tzar-kuoi’s CK Asset Holdings announced a 16.4 per cent increase in core profit for the six months to June, driven by strong property sales in Hong Kong that it locked in before the housing market turned sour.

Underlying interim profit, excluding investment property revaluation and property disposal, came to HK$14.05 billion (US$1.8 billion), up from HK$12.07 billion in 2018.

CK Asset, the second largest developer by market value in Hong Kong, said revenue rose 41 per cent to HK$34 billion for the period.

Net profit dropped 38.8 per cent per cent to HK$15.1 billion because of an absence of sales of investment properties. In 2018, the company recorded asset-disposal gains of HK$11.75 billion, largely generated by the sale of The Center, an iconic office tower in Central, for a record-breaking HK$40.2 billion.

An interim dividend of 52 HK cents per share was declared, up from the 47 HK cents given last year.

CK Asset – which did not launch any new residential projects in the first half of this year – has about HK$60 billion of property sales in Hong Kong ready for booking in the second half, said Raymond Cheng, head of Hong Kong and China property research at CGS-CIMB Securities.

Under accounting rules, developers are required to book the profit only when a project is delivered to buyers.

“Fewer project sales this year will only reflect in its result for the next two to three years,” said Cheng.

Hong Kong’s property market has turned sour lately, with prices of lived-in homes falling 0.8 per cent in June as the protracted US-China trade war and the escalating protests against a now-shelved extradition bill took a toll on sentiment.

“Despite the prolonged global political and economic uncertainty, the local property market remains sound. Changes in global market conditions and Hong Kong housing policies will continue to be determining factors for the property sector,” said chairman Victor Li, who took over as chairman of CK Asset last year after the retirement of his father, the well-known tycoon Li Ka-shing.

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Li Ka-shing’s CK Asset offers to pay US$3.27 billion to buy Greene King, operator of 2,700 pubs, restaurants and hotels in UK
* Deal will see CK Asset expand further into the UK’s pub and brewing sector
* Greene King operates 2,700 pubs, restaurants and hotels in the UK

Georgina Lee  
Published: 9:00am, 20 Aug, 2019

CK Asset Holdings, the flagship of Hong Kong’s richest man Li Ka-shing, is paying £2.7 billion (US$3.27 billion) to buy a string of British pubs, doubling down on its UK investments in its biggest overseas bet in two years.

CK Asset is proposing to pay 850 pence (HK$80.8) per share to buy out the entire issued capital of Greene King, which operates 2,700 pubs, restaurants and hotels in the UK, after having bought 2.9 per cent stake through a wholly owned subsidiary, according to a Monday statement to the Hong Kong stock exchange.

CK Asset Group already owns a small portfolio of pubs in the UK, all of which are leased to Greene King.

The cash consideration presents an enterprise value multiple of 9.5 times Greene King’s earnings before interest, taxes, depreciation and amortisation, which was at £482 million for the 52-week period up to April 28, 2019.

“The group is a long-term and strategic investor in stable, profitable and cash flow generating businesses that benefit from real estate backing. The company believes that the UK pub and brewing sector shares these characteristics,” CK Asset said.

The Greene King purchase is the CK group’s biggest bet since the US$5.6 billion purchase of Australian power provider Duet Group in 2017, according to data compiled by Bloomberg.

Greene King operates under three trading divisions namely “pub company”, “pub partners” and “brewing and brands” across England, Wales and Scotland. For the 13 months ended April 2019 its net profit was £120 million and had revenue of £2.22 billion.

CK Asset said it will also request approval from the London Stock Exchange and other regulators to delist the shares. The deal is subject to shareholders’ approval and other conditions.

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CK Asset discounts its first property launch of 2019 by up to 10 per cent, bowing to a stalling market as Hong Kong’s rallies bite
* CK Asset launches new project Seaside Sonata in Cheung Sha Wan at an average of HK$18,688 per square foot after discounts
* The price is 10.4 per cent cheaper than Henderson Land Development’s The Addition, the most recent project in the same neighbourhood, which launched in March

Holly Chik & Sandy Li  
Published: 7:30pm, 9 Oct, 2019

CK Asset Holdings, Hong Kong’s second-largest developer, will discount its first new property project of the year by as much as 10 per cent as it bows to a stalling real estate market that had been rattled by four months of unprecedented street protests.

The first 180 flats of Seaside Sonata in Cheung Sha Wan, a suburb in New Kowloon served by several subway stations, will be priced at an average of HK$18,688 per square foot, with sizes from 488 square feet to 785 sq ft. The project, comprising 876 apartments in four towers, is scheduled for completion in June 2021.

“Buyers will find this price acceptable,” said CK Asset’s executive director Justin Chiu, pointing to the project’s starting price at HK$14,054 per sq ft as “the cheapest” in the city. “We always consider the market’s sentiment when we set the price.”

The pricing by CK Asset, the flagship company of Hong Kong’s wealthiest man Li Ka-shing, is 10.4 per cent cheaper than Henderson Land Development’s The Addition, which launched in March in the same neighbourhood at an average price of HK$20,850. Henderson launched its project – due for completion in April 2021 – in March, before the spate of street protests crimped retail sales and drove visitors away from the city began in June.

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It seems demand for HK properties is weak as published. To sell the first batch of developments at below cost speaks a lot. Likely the project will only breakeven but highlights the weak HK property market

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