Billion closes $10.5b Kitec deal

A consortium led by Billion Development and Project Management plans to acquire Kowloon Bay International Trade & Exhibition Centre for about HK$10.5 billion from Hopewell, The Standard's sister newspaper Sing Tao Daily reported.

This is expected to be the largest property transaction year-to-date if the deal is confirmed. With a gross floor area of 1.77 million square feet, the per-sq-ft price will be about HK$5,900.

The consortium has arranged syndicated loans for the acquisition and has worked out two renewal plans.

The 14-story Kitec has a site area of about 239,800 sq ft. If it is redeveloped, the gross floor area can be 2.87 million sq ft, with a plot ratio of up to 12 times. The per-sq-ft rent at Kitec is around HK$20.

Apart from redeveloping the property into a Grade A commercial building, the consortium may also apply to the Town Planning Board to rezone the site for residential purposes, the sources said, adding that the new buyers value the large site area of the project and the sea view.

The consortium is said to include Sino Land (0083) and CSI Properties (0497), the report said.

Billion Development, Sino Land and CSI Properties won the tender for a commercial plot at the junction of Cheung Yip Street, Sheung Yee Road and Wai Yip Street in Kowloon Bay for HK$3.04 billion in 2015.

The plot has a site area of 40,849 sq ft and a maximum gross floor area of 490,188 sq ft.

Meanwhile, the Urban Renewal Authority said the contract for the development of the Oak Street/Ivy Street Development Project in Tai Kok Tsui has been awarded to K&K Property, with a tender amount of HK$618.1 million.

The URA earlier invited 39 property developers to submit tenders for the project following an expression of interest exercise. The URA received a total of 14 tenders from these 39 property developers when the submission of tender closed on May 20.

The project, which covers a site area of 6,662 sq ft, was commenced in March 2018. Upon completion, it will provide a maximum total gross floor area of 59,965 sq ft.

The URA will also invite interested developers to submit expressions of interest for the development of the Bailey Street/Wing Kwong Street Development Project in To Kwa Wan today.