Wu rules out role in N Metropolis

Themis Qi

Hopewell chairman Gordon Wu Ying-sheung said the developer would not join in Northern Metropolis development efforts but stressed the mega project and land reclamation are needed.

Rarely seen in recent years, Wu, 89, met the media yesterday at Hopewell Hotel in Wan Chai, which had its soft opening last Tuesday after 30 years of planning and construction.

Wu said he hadn't paid much attention to Northern Metropolis developments and pointed to his age for not participating. Beijing has called on developers and companies to support the Northern Metropolis. He declined to weigh in on the property market's trend.

On reclamation, Wu, who said he has been advocating reclamation for over 40 years, added: "Hongkongers have high incomes but live in such packed spaces. They deserve bigger homes."

Hong Kong is pushing forward land creation despite a sluggish market and developers not supporting reclamation. The Kau Yi Chau Artificial Islands project in Lantau was delayed because of high fiscal deficits.

Hopewell Center II - a one million square foot project that includes a 1,000-room conference hotel and a mall - is expected to meet growing demand from the rising middle class in the mainland China and southeast Asia who Wu believes will spend more.

Wu insists Hong Kong's outlook will not worsen if the mainland's economy keeps growing.

Hopewell Hotel's pricing is conservative, with rates set at over HK$1,000 per night, which Wu characterized as "a five-star hotel at four-star price levels."

This strategy for thin profits, Wu said, aims to bring hope to Hong Kong's sluggish tourism sector.

Wu also estimates it may take 12 years to recover the HK$15 billion cost of Hopewell Center II.

Wu said Nam Koo Terrace, its eighth project in Wan Chai, would be his last one and he would retire when it is completed in two years.

With his sons said to have no intention of taking over the business, Wu said everyone has ambitions of their own.

His wife, Ivy Wu Kwok Sau-ping, said Hopewell's assets will be passed on but that no decision has been made how that will happen.

Wu said Hopewell's liquidity flow is stable with a liability-to-assets ratio of 20 percent, thanks to disposals.

Meanwhile, Wu sees no possibility of a worsening of Sino-US ties despite concerns about potential escalation under president-elect Donald Trump.