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Major developers frustrated by their failure to
persuade the Hong Kong government to put up more land for auction are resorting
to private tenders to secure luxury development sites in urban areas.
Cheung Kong (Holdings), Sino Land, Henderson Land, Sun Hung Kai Properties and
New World Development were recently invited to bid on a low-rise luxury
property in Island South. Property analysts believe it could fetch HK$1
billion.
The private tender for Southside Villa at 9 Shouson Hill Road closed Wednesday.
The property belongs to the family of the late SH Ho, who was one of the
founders of Hang Seng Bank.
Neither the developers nor the sales agent, Jones Lang LaSalle, were available
for comment.
The redevelopment potential of the 121,000-square-foot site has attracted keen
interest. Seven three-story blocks containing 42 units measuring 2,089 square
feet each occupy the site.
Since the government issued a new ``application list'' of sites in March,
developers have been unable to initiate even a single auction. Bids for prime
sites in North Point and The Peak failed to meet or exceed the government's
floor price.
But on Tuesday, the Lands Department made it easier, in theory, to obtain an
auction.
From now on, any offer of at least 80 percent of the minimum price for a
property on the list will be enough to trigger an auction, though an offer that
at least meets the minimum will be required to win the property.
Meanwhile, both mid-tier and major developers have shown keen interest in buying
a HK$1.35 billion office development still under construction in Island East.
DTZ Debenham Tie Leung has been appointed to sell 633 King's Road, a Grade A
office complex in Quarry Bay, through private negotiations. Current owner
Magnificent Estates hopes to sell to a single buyer.
The office block is an ideal location for corporate headquarters since
advertisements and corporate logos can be put on its external walls and roof,
DTZ Debenham Tie Leung said.
The 32-story building under construction is slated to contain gross floor area
of more than 300,000 square feet. Completion is expected next year.
Alvin Yip, investment director of DTZ Debenham Tie Leung, said it was rare for a
Grade A office building, strategically located in Island East, to be put up for
sale. For that reason, it should attract many big corporations and
organizations.
``The market is seeing more end-users changing their policies from leasing to
buying,'' Yip said.
raymond.wang@singtaonewscorp.com
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