Henderson Land Development, controlled by billionaire Lee Shau-kee, has reported an underlying 18-month profit, which included proceeds from the world's most expensive apartment.

Underlying income, which excludes the valuation changes of investment properties, in the 18 months ended December 31 was HK$6.09 billion.

Including revaluation changes to its investment properties, Henderson said 18-month profit was HK$14.3 billion. Henderson is announcing 18-month income after changing its financial year to end in December instead of June.

Henderson's earnings included sales of luxury apartments at 39 Conduit Road in Hong Kong's Mid-Levels district, one of which it claimed to be the world's most expensive.

Henderson has until Tuesday to reply to a government request to explain the sales at 39 Conduit Road after only one out of the 25 transactions at the development was completed.

One of the 24 that wasn't completed was the duplex which Henderson said in October was sold for HK$88,000 a square foot, the world's most expensive on that basis, according to company spokeswoman Bonnie Ngan.

Sales of the 25 apartments were included in the 18-month revenue of HK$15.2 billion, Henderson said. Revenue from the 25 homes reached HK$3.28 billion. Net income from the apartments would reach HK$973 million, the developer said.

The completion of sales of the remaining 24 units has been extended by between two and four months from February, at the request of buyers.

"Currently, there are no reasons to believe that the sale of the 24 units will not proceed," the company said.

The Lands Department sent a second letter to Henderson on March 25 after the developer said it has verbally agreed with the buyers to delay the completion of the sales, according to an official statement.

During the 18 months, Henderson spent HK$18 billion to buy old buildings to redevelop, it noted. The company now has 30 projects that are expected to provide a total attributable gross floor area of about 4 million square feet, or 6,000 homes.

Lee said in December he planned to spend HK$10 billion on property in coming months and another HK$10 billion on government land premiums for its Wu Kai Sha project.

It will pay a final dividend of 70 Hong Kong cents a share.

Bloomberg News

(HK Edition 03/31/2010 page2)