However, the improved economic sentiment and gradual take-up of vacant space during the second half of the year helped reduce downward pressures on rental rates. The retail sector experienced improved sentiment this past year. The Group's retail space is located primarily in Causeway Bay, the retail hub of Hong Kong island. The luxury residential leasing market remained slow in 1999 due largely to weak demand from the scaled back expatriate community. Superstructure work is scheduled to commence in the third quarter of this year.
Further work is currently on hold pending market conditions.
Newton Grove residential project, piling work is in progress. Garden Terrace was completed, generating cash proceeds and profit for the Group. The Group is undertaking steps to integrate the Internet and recent telecommunication advances into its property operations with respect to increased efficiency and new growth opportunities. To enhance shareholder value, the Group periodically repurchases its ordinary shares when they are significantly undervalued. The Group did not repurchase any ordinary shares in 1999.