The Hongkong Land Company Ltd, Part One

HF: In 1844, shortly after Hong Kong came under British authority, the Colonial Treasurer reported to the House of Commons Select Committee ‘there does not appear to be the slightest probability under any circumstances that Hong Kong will ever become a place of trade.’

Yet 44 years after this gloomy forecast, the then Governor, Sir William G. des Voeux, quite promisingly described Hong Kong as ‘a city of closely built houses stretching for some four miles along the island shore and rising tier over tier up the slopes of the mountain…and along the whole seaboard are numerous houses, together with docks, great warehouses and other evidencies of a large and thriving population.’

One perceptive citizen, a sagacious bill and bullion broker and real estate dealer from Calcutta, Mr Paul Chater, had already recognized that a thriving population and flourishing entrepot trade would need more land and that it would have to come from the sea. In 1887 he had proposed a bold scheme to reclaim the foreshore between what is now Des Voeux Road and Connaught Road in the Central District, a total of 57 acres. Today the road named in his honour lies on part of this reclamation surrounded by many buildings Hongkong Land, the Company he co-founded, has come to own.

Hongkong Land formed 1889

In those early days established merchant houses or ‘hongs’ as they are still called today, lent the powerful backing necessary for the establishment of public companies providing the community with utility services. These ‘hongs’ then retained a measure of special interest or control in the new enterprise. This special interest in the case of Hongkong Land is still maintained today. Mr Chater formed an association with the firm of Messrs. Jardine, Matheson & Company to promote land investment, and, enthusiastically supported by local investors. The Hongkong Land Investment and Agency Company Limited was duly incorporated on 2 March 1889. Mr Chater and the Senior Representative in Hong Kong of Jardines, Mr J.J. Keswick, became the first Joint Permanent and Managing Directors of the Company. Mr Chater is said to have taken this newly formed company as his pet scheme and to have abandoned his other businesses to devote his whole time to it.

At its first meeting on 18 March 1889 the Board moved swiftly to broaden the distribution of shares and to meet competition. As the original shareholders were non-Chinese and a rival real estate company was about to be promoted by local Chinese businessmen, the Board made a further issue of 25,000 shares, $50 paid-up together with a premium of $50 per share. Half of these shares were offered pro rata to the existing shareholders and the other half to Chinese investors. At the same time, two prominent local Chinese businessmen, Messrs. Lee Sing and Poon Pang, were invited to join the Board. Within the space of a month the Company had doubled its working capital to $2.5 million with a reserve fund of $1.25 million represented by the premium paid on the second issue of shares. The company had been promoted with high hopes and enthusiasm.

1889 the first purchase

The first purchase was ‘the old P&O property,’ Marine Lot No.71, north of Queen’s Road West and east of Sutherland Street. Later in the year the Company acquired Kowloon Marine Lots 3 and 6 9 (later sold to the newly formed Hong Kong and Kowloon Wharf and Godown Company Limited). Nos 17-29 Lyttleton Road and Nos 1-9 Bonham Road. These five properties some $805,000.

Horizon expands to Canton

In part the slow start seemed to be due to the limited scope for real estate investment in Hong Kong and the difficulty this presented the Company in finding outlets for the full use of its resources. To remedy this it was decided to increase the range of operation by permitting investment in any part of the world. In consequence, the Directors made a few half hearted purchases in Shameen, Canton, but these were not very satisfactory and the properties were later sold.

Five buildings in Central

In a massive building effort to develop the Central District properties, five major buildings were completed within a year and a half between June 1904 and December 1905. Concentrated between Pedder Street and Ice House Street, these office buildings, Kings, Alexandra, Royal (Hotel Cecil) and St. George’s were from four to six storeys in height.

Alexandra House Source: Pinterest

Sources: The Hongkong Land Company Ltd: A short history. This booklet was sent to me several years ago and I am sorry to say I cannot remember who by. (Hugh Farmer)

This article was first posted on 28th March 2025.

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