Sun Hung Kai Properties Limited (SHKP) is a listed corporation and one of the largest property developers in Hong Kong. The company's businesses include property sales, property rental, telecommunications (SmarTone, SUNeVision), hotel operation, transport and logistics, and others. The company is controlled by the Kwok family trust, largely the Kwok brothers.
History Early years The predecessor of the group, Sun Hung Kai Enterprises Co., Ltd. (), was founded in 1963 by Kwok Tak-seng, together with Fung King-hey and Lee Shau Kee. The current legal entity of the holding company of the group, Sun Hung Kai Properties Limited, was incorporated on 14 July 1972 and was listed on the Hong Kong stock exchange on 23 August 1972.
In 1973, SHKP acquired Hong Yip Service Company Limited. In 1977, SHKP moved its head office to Connaught Centre, Central (now known as Jardine House).
In 1978, SHKP established Kai Shing Management Services Limited, a property manager.
In 1978, SHKP put on sale the first multi-block residential estate, Tsuen Wan Centre (first phase). Also in 1978, SHKP became one of the 33 constituent stocks listed on the Hang Seng Index.
In 1979, SHKP established Sun Hung Kai Properties Insurance Limited, which was a provider of general insurance.
1980s and 1990s In 1981, SHKP acquired an interest in Kowloon Motor Bus, a public transport provider. The corporation moved its headquarters to Sun Hung Kai Centre, on an area of newly reclaimed land in Wan Chai, in 1982.
In 1991, SHKP acquired Wilson Parking.
In 1992, SHKP finished the construction of Central Plaza in Wan Chai, the tallest building in Asia at the time of completion. In the same year the company diversified into mobile telephony with the establishment of SmarTone, now one of Hong Kong's dominant mobile providers. This subsidiary was listed in Hong Kong in 1996.
In 1993, SHKP acquired World Trade Centre, Causeway Bay. From the mid-1990s the company undertook property development related to the new airport railway, including sites at the Airport Express Hong Kong Station.
In 1998, Route 3 (Country Park Section) opened.
In 1999, Shanghai Central Plaza commercial building was completed.
21st century In 2000, SHKP won tender for Kowloon Station Development Packages 5, 6 & 7 – now the International Commerce Centre (ICC) complex. The complex was finished in 2010. The main building became the tallest building in Hong Kong at the time of completion.
On 17 March 2000, SUNeVision Holdings Limited, a subsidiary of SHKP, was listed on the Growth Enterprise Market of the Stock Exchange of Hong Kong.
In 2001, SHKP established the residential leasing division Signature Homes.
In 2002, SHKP set up SHKP – Kwok's Foundation. The foundation has actively supported charitable projects, focusing on education and training projects.
In 2003, the first phases of YOHO Town in Yuen Long went on sale. The same year, the company signed a land-use transfer agreement with Shanghai Lujiazui Finance and Trade Zone Development Company for Shanghai IFC project.
In 2005, SHKP opened APM, Hong Kong's first late-night retail centre.
In 2005, SHKP acquired Seiyu (Sha Tin) Company Limited.
In 2009, Ma Wan Park Noah's Ark opened, the first Christian theme park in Hong Kong.
In 2013, SHKP acquired a commercial site with 7.6 million square feet of gross floor area in the Shanghai Xujiahui district.
In 2015, SHKP became Title and Charity Sponsor of the first Hong Kong Cyclothon.
In 2016, SHKP donated land in Yuen Long to Hong Kong Sheng Kung Hui for the construction of an integrated service centre.
In 2019, SHKP won the tender for the commercial site atop the West Kowloon High-Speed Rail Terminus. SHKP's bid of more than HK$42 billion won the 60,000 square metre site, which could be used for office, shopping and hotel developments. The Kwok family invested HK$9.4 billion (US$1.2 billion) for a 25% stake in the office towers.
In June 2024, SHKP was among ten companies to receive the (Building and Construction Information) BCI Asia Top 10 Developers Award.
Corruption probe In 2012, SHKP Executive Director Thomas Chan was arrested by the Independent Commission Against Corruption (ICAC) on 19 March, along with eight people linked to the company on 29 March. Co-Chairmen Thomas Kwok and Raymond Kwok and five others were arrested by the ICAC as part of an extensive corruption probe. Rafael Hui, former Chief Secretary, was also taken in for questioning. They were later released on bail. The probe caused a 15 per cent fall in the company's share price.Wong, Kelvin – Bloomberg News (30 March 2012). Sun Hung Kai Loses $5.8 Billion on Billionaire Kwoks' Arrest. San Francisco Chronicle.
In December 2014, the jury convicted Thomas Kwok and Rafael Hui of bribery, and Hui was convicted of four more charges relating to misconduct in public office. The jury acquitted Raymond Kwok of all charges."Former chief secretary Rafael Hui found guilty." RTHK English News. 19 December 2014. Retrieved 19 December 2014.Lee Yimou; Ko, Lizzie (19 December 2014). "Hong Kong former official, property tycoon guilty in graft case." Reuters. Retrieved 19 December 2014.
List of chairmen
Kwok Tak-seng (1972–1990); founder Walter Kwok (1990–2008); oldest son of Kwok Tak-seng Kwong Siu-hing (2008–2011); wife of Kwok Tak-seng Raymond Kwok and Thomas Kwok (2011–2014); joint chairmen, younger sons of Kwok Tak-seng Raymond Kwok (2014– ); youngest son of Kwok Tak-seng
Business development Projects
In 1996, SHKP was the lead developer which had bid the sum of HK$5.5 billion to acquire the rights to develop Hong Kong's second-tallest building, the International Finance Centre. The MTR Corporation was a partner in the venture. Sun Hung Kai Properties, owns 47.5 per cent of the development, Henderson Land Development, whose chairman Lee Shau Kee sits on the SHKP board, took a 32.5 per cent stake in the project. SHKP also built the International Commerce Centre, the tallest building in Hong Kong.
Internal sale opacity In 2005, the developer was criticised for the lack of transparency in its public sale of residential properties to speculators and end-users. The company was accused of the practice of "internal sales" of uncompleted units, the absence of sale price-lists, and also for hyping sales for flats in its The Arch development in West Kowloon by announcing inflated prices (per square metre) achieved. A buyer apparently paid HK$168 million, or HK$31,300 per square foot, for a penthouse. Sweeteners were allegedly given (discounts given to the same purchaser on other units bought), but were excluded from the calculation. This allowed SHK to raise prices of the next batch of 500 units by 5–10 percent. But SHKP has denied the allegations.
Sibling fallout On 18 February 2008, SHKP announced that Walter Kwok, chairman and chief executive, would take a "temporary leave of absence for personal reasons with immediate effect". Walter Kwok announced that he would take a "personal holiday", handing over his duties to his two younger brothers.Press Release:Leave of absence of Chairman and Chief Executive Sun Hung Kai Properties, 18 February 2008
The Standard reported that the elder Kwok was removed from his position by his mother, who is the controlling shareholder of the company, to protect the family interests. The journal revealed that Walter's mistress of 4 years has been wielding increasing power in the business, and causing friction with his brothers.Staff reporter, "Lover feud splits Kwok brothers" , The Standard, 19 February 2008
The day after SHKP's announcement, its stock price declined against the general market. Corporate communications issued a second statement insisting that the business would not be affected and that Walter would resume his functions after his leave of 2 to 3 months. Walter's mistress, named by the press as Ida Tong Kam-Hing (唐錦馨), had apparently introduced property transactions valued at HK$4 billion to the Group or to the Kwoks' private investment vehicles. Company spokesmen stated that no person named Ida Tong was employed by the Group."Walter will return, says SHK" (新地﹕郭炳湘將重返公司", Ming Pao, 20 February 2008Staff reporter, "My ex-wife fell for a Kwok" , The Standard, 20 February 2008
On 29 February, tycoon and fellow board member Lee Shau Kee confirmed that Mrs. Kwok forced the leave of absence upon Walter over Ida Tong during the last board meeting.
On 16 May 2008, Walter filed a writ with the High Court which claimed that Walter reached an agreement with his mother and two brothers in February that he would return to his duties if certain conditions were met. Walter alleged that his two brothers violated the agreement by attempting to remove him despite having fulfilled the predefined criteria, including procuring at least two medical opinions showing he is fit to return. Walter secured a last-minute injunction to delay the vote, to allow more time for discussions.Benjamin Scent, Katherine Ng & Stephanie Tong, "Sensational accusations fly as SHKP chairman takes his fight to court" , The Standard, 16 May 2008 On the sidelines of the dispute to remove Walter as chairman and CEO, Walter and his brothers claim the other(s) made major management decisions unwisely and without consultation.Benjamin Scent, "Fallout over Chan appointment" , The Standard, 16 May 2008Katherine Ng, "ICC rents caught in Kwok feud" , The Standard, 21 May 2008
Financing and assets SHKP was publicly listed in 1972 and is one of the largest property companies in Hong Kong. It develops residential and commercial projects for sale and investment. It employs more than 38,000 people and its services include land acquisition, architecture, construction, engineering and property management. It achieved a revenue of HK$85,302 million in the financial year 2018/19, with a profit attributable to shareholders of HK$44,912 million. The majority of its revenues and operating profit were derived from property sales and rental.
Land bank
As of 30 June 2019, the Group had a land bank in Hong Kong of 58.0 million square feet in terms of attributable gross floor area, consisting of 32.9 million square feet of completed investment properties and 25.1 million square feet of properties under development.
As of 30 June 2019, the Group held a land bank of 65.4 million square feet in terms of attributable gross floor area on the mainland, including 50.6 million square feet of properties under development and 14.8 million square feet of completed properties.
Credit ratings
The Group has always attained the highest credit ratings among Hong Kong developers. Moody's gave the Group an A1 rating and Standard & Poor's gave the Group an A+ rating.
Real estate development projects
Hong Kong (residential)
Hong Kong (commercial)
ICC The International Commerce Centre (ICC) in West Kowloon is the tallest building in Hong Kong, standing at 490m with 118 storeys. The development was also chosen as one of the world's top 125 most important works of architecture by Architectural Record in commemoration of the magazine's 125th anniversary.
The tower opened in 2011. While most of the building is leased out as office spaces – ICC provides 2.5 million square feet of office space – the building also houses the Sky100 Hong Kong Observation Deck on the 100th floor as well as restaurants on the 101st floor, with the former providing a 360-degree view over the Victoria Harbour at 393 metres above the sea level. The Ritz-Carlton hotel occupies the building's 102nd to 118th floor. The world's highest swimming pool is located on the top floor as part of the hotel.
The building also has LED lights on its facades for a light show, which has set a Guinness World Record for the "largest light and sound show on a single building". The show occurs twice a night, and can be viewed along both sides of the Victoria Harbour.