MTR Corp's (0066) HK$7 billion residential project in Tseung Kwan O is attracting overwhelming response from developers, with 15 firms submitting expressions of interest for the development rights.
"We are pleased the project is well- received," MTRC property director Thomas Ho Hang-kwong said yesterday after the deadline closed for submissions.
Cheung Kong (0001), Henderson Land (0012), Sun Hung Kai Properties (0016), New World Development (0017), Wheelock Properties (0049), Sino Land (0083), K Wah International (0173), HKR International (0480), Kerry Properties (0683) and China Overseas (0688) are among those interested.
Lohas Park phase 3 is MTRC's newest district project, coming right after its merger with Kowloon-Canton Railway Corp. Formerly called Dream City, it sits atop the future MTR Tseung Kwan O South Station, just north of the Tseung Kwan O Industrial Estate. The new phase would occupy a 146,250-square-foot site, comprising four towers of about 50 storeys to accommodate up to 1.38 million sq ft of gross floor area with 1,648 apartments.
The company winning the development rights will pay a land premium and bear the cost of building a kindergarten, public transport structure and roads. The project is scheduled for completion in 2012. The entire Lohas Park will provide 21,500 flats.
Ho said MTRC is negotiating the land premium with the Lands Department and aims to open it for tender by next month after the premium is set. Surveyors expect the government to charge a premium between HK$3,000 and HK$3,600 per sq ft on the project, compared with HK$2,418 for the second phase of Lohas Park in 2005, and HK$1,541 for the first phase.
The rise in premium reflects the heated market sentiment due to the better-than- expected land auction results earlier this month, analysts said, predicting the finished units will sell for more than HK$6,000 psf.
The Capitol, Lohas Park's HK$5 billion first phase developed by Cheung Kong, will sell its first units soon at HK$5,300 psf on average. Cheung Kong also won development rights for the HK$15 billion phase 2.
MTRC shares jumped 4.5 percent yesterday to close at HK$26.90.