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Henderson Land Development

From Alfawiki
Henderson Land Development Co. Ltd.
Company typePublic
IndustryProperty development, investment, construction, hotel and department store management, financial services, infrastructure projects
Founded1976
FounderLee Shau Kee
Headquarters
Hong Kong
,
Hong Kong
Area served
Hong Kong
Key people
Lee Shau Kee (Chairman 1976–2019), Peter Lee and Martin Lee (Chairmen 2019–present), Colin Lam (Vice-Chairman)
ProductsProperty development, project management, construction services, hotel and department store management, financial services, investment holding, infrastructure projects
OwnerLee Shau Kee (approx. 70.17% shares as of June 2015)
Websitewww.hld.com

Henderson Land Development Co. Ltd. () is a publicly traded property developer in Hong Kong and is included in the Hang Seng Index. Its primary operations encompass property development, investment activities, project management, construction services, hotel and department store management, financial services, investment holding, and infrastructure projects. It stands as the third-largest real estate developer in Hong Kong by market capitalization. The company remains under the control of Lee Shau Kee, who owned roughly 70.17% of shares as of June 2015.

History

Established by Lee Shau Kee, Henderson Land was listed on the stock exchange in 1981 through Sun Hung Kai Securities. The initial public offering featured an unusual payment arrangement: investors paid HK$1 per share upfront, followed by another HK$1 installment after six months, and a final HK$2 payment at the end of the year.

In 2006, the State Administration of Foreign Exchange (SAFE) imposed a penalty on Henderson for violating foreign exchange regulations involving HK$565 million. To seek mitigation, the company engaged Shenzhen Zhaotian Investments, led by Tian Chenggang—the son of former vice-premier Tian Jiyun. Ultimately, Henderson was fined 2.33 million yuan (equivalent to HK$2.9 million). Later, a legal claim for a HK$43 million consultancy fee filed by Tian Chenggang against Henderson’s CFO was dismissed in 2015 due to insufficient documentary proof.

Chairman

  1. Lee Shau-kee (1976–2019)
  2. Peter Lee and Martin Lee (2019–present)

Vice-Chairman

  1. Lo Tak-shing (1981–1993)
  2. Lo Tak-shing, Peter Lee, and Colin Lam (1993–2005)
  3. Lo Tak-shing, Peter Lee, Colin Lam, and Martin Lee (2005–2006)
  4. Peter Lee, Colin Lam, and Martin Lee (2005–2019)
  5. Colin Lam (2019–present)

Subsidiaries and associates

As of 31 December 2014, Henderson Land held substantial equity interests in major associates including Towngas (41.51%), Miramar Hotel and Investment Co., Ltd. (45.08%), and Hong Kong Ferry (33.33%).

Henderson Investment

By the end of 2014, Henderson Investment ("HI") was a listed subsidiary with a 69.27% ownership stake—an increase from 67.14% in mid-2006—previously holding group investments in Hong Kong Ferry, Miramar Hotel Group, and Towngas. Despite its asset base, shares of HI consistently traded below their net asset value.

Privatisation attempt

In November 2002, Henderson Land proposed to privatize HI via an all-cash offer priced at HKD 7.60 per share—representing a 40% discount to net asset value—but the attempt failed as over 14% of minority shareholders opposed the deal. A subsequent bid in November 2005 offered one Henderson Land share for every 2.6 HI shares (later revised to 2.5), valuing HI at an approximate 18% discount to NAV. Although backed by major investor Templeton Investment, this offer was narrowly rejected by minority shareholders with a 10.94% opposing vote, exceeding the legal blocking threshold.

Miramar and HK Ferry

After trading was halted in March 2007, rumors circulated about a potential buyout bid. Instead, the company made an offer of HK$12.1 billion to purchase key assets from Henderson Investment, mainly involving stakes in Miramar Hotel and Hong Kong Ferry. Following this transaction, Henderson Investment distributed HK$5 per share to its shareholders. Considering a special distribution of HK$10.35 billion related to its 73.5% ownership, Henderson’s effective net cash expenditure amounted to roughly HK$1.75 billion.

Towngas

On 3 October 2007, the company announced plans to gain control over Towngas by acquiring the 39.06% interest held by its subsidiary Henderson Investment for a total of HK$42.86 billion, paid through cash and convertible notes. Minority shareholders in Henderson Investment, who owned 30.73%, were slated to receive 204.1 million shares of Henderson Land along with HK$1.19 billion in cash. Market analysts generally regarded the proposal as beneficial for the company; however, David Webb criticized it for not including a control premium for minority investors and characterized the move as a back-door privatisation that would reduce Henderson Investment to almost a shell entity.

To address concerns from minority shareholders, particularly Elliott Capital, Henderson raised the cash offer to HK$2.24 per share on 7 November. By 7 December 2007, Henderson had secured sufficient shareholder approval to finalize the acquisition.

Sunlight REIT

On 8 December 2006, the company spun off and listed a portfolio of 12 office and 8 retail properties in Hong Kong under the name Sunlight Real Estate Investment Trust (REIT). The listing price fell by 6.5% on its opening day and declined further by 16.2% by March 2007 amid investor unease regarding financial structuring within the REIT.

The projected distribution yield stood at approximately 10%, making it the highest among Hong Kong REITs at that time; nonetheless, investors expressed concern that yields might decrease once yield-enhancing strategies such as interest rate swaps expired. To encourage investment, Henderson Land offered a temporary waiver on dividends. Yields were anticipated to decline further in 2010 and again in 2012 as rental contracts reverted to market rates. The underperformance of Sunlight REIT was a factor behind Regal Hotels International postponing its own REIT launch plans.

Beverly Hill

Beverly Hill () is a premium private housing estate located in Happy Valley, Hong Kong, developed collaboratively by Henderson Land Development and Hang Lung Properties in 1988. The estate comprises ten residential towers, each rising 37 storeys, situated along the steep terrain between Broadwood Road and Link Road.[1][2]

International Finance Centre

Henderson Land partnered with Sun Hung Kai and MTR Corporation in developing the International Finance Centre complex, which included Hong Kong’s tallest building at the time of its completion in 2003.[3] This iconic waterfront development also became the location for Henderson Land’s corporate headquarters.

39 Conduit Road

Situated in Hong Kong's prestigious mid-levels, 39 Conduit Road is an upscale residential project. Shortly after its debut in October 2009, the developer achieved a record-breaking sale by offloading a five-bedroom duplex on the so-called "68th floor" for HK$439 million (approximately US$57 million), marking a global high of US$9,200 per square foot.

The structure features an unconventional floor numbering system, skipping 42 floors such as 14, 24, 34, 64, and all levels from 40 through 59; notably, the floor above the 68th is labeled as the 88th. This approach drew criticism from the Democratic Party for potentially deceiving purchasers, whereas the Consumer Council recognized it as a typical industry practice but advised caution regarding exaggerated numbering. Lee Shau Kee defended this strategy by stating it aligns with buyer preferences.

248 Queens Road East

This commercial tower comprises 40 storeys and was finalized in 1998.

See also

External links

  1. ↑ Beverly Hill
  2. ↑ Lua error in Module:Citation/CS1/Configuration at line 2123: attempt to index field '?' (a nil value).
  3. ↑ Cite error: Invalid <ref> tag; no text was provided for refs named ifc2
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