Facelift on cards for Cosmo

Business | Gary Poon 4 Dec 2018

Far East Consortium (0035) is looking at redeveloping the Cosmo Hotel in Wanchai as it believes the property's value could soar from HK$1 billion to HK$10 billion, the group's managing director Chris Hoong Cheong-thard said.

He said the company as yet does not have a detailed redevelopment plan in place as the hotel contributes stable profits but he believed the group's total assets value would surge if the redevelopment took off.

Hoong also said that out that overnight visitors have increased following the launch of the Guangzhou-Shenzhen-Hong Kong Express Rail Link and Hong Kong-Zhuhai-Macao Bridge.

The Cosmo Hotel opened in October 2005 next to the former Xinhua News Agency Hong Kong branch, which was redeveloped to become the group's Dorsett Wanchai Hong Kong.

Hoong also believes that Hong Kong's property prices will not drop significantly.

He said the group's interim revenues did not reflect HK$150 million earned from property sales.

He also disclosed that the group chairman David Chiu Tat-cheong and Chow Tai Fook (1097) wish to turn I-Cable communication's (1097) fortunes back into the black, following their investments in the company a year ago.

He emphasized that the most valuable asset of the I-Cable is its broadband network and believed the company will have more collaboration opportunities with China Mobile (941).

Far East Consortium has developed its overseas business proactively in recent years. Hoong said it not only can reduce the pressure from Hong Kong property business but also foreign government offer more benefits. The developer's share price surged 2.47 percent to HK$3.74 yesterday.

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