Sun Hung Kai Properties (0016) has won the second commercial site on Anderson Road in Kwun Tong for HK$296 million, following yesterday's successful tender for the development of the first commercial site in the West Kowloon Cultural District.
The Lands Department announced yesterday that the tender for a site, lot 1077 in survey district No.3, off Anderson Road, Kwun Tong, Kowloon, has been awarded to the highest tenderer, Topco, a subsidiary of SHKP, on a 50-year land grant at a premium of HK$296 million.
The site area is about 57,373 square feet with a maximum gross floor area of 110,290 sq ft and the earlier market valuations for the land ranged from HK$3,355 to HK$5,500 per square foot, with the total value ranging from about HK$370 million to HK$600 million.
Based on the project's maximum gross floor area of 110,290 sq ft, the land price per square foot is about HK$2,684, which is 20 percent lower than the market valuation and 51 percent much lower than the first commercial site on Anderson Road, which was awarded to Link REIT (0823) in late August this year at a price of HK$5,501 per square foot.
Victor Lui Ting, deputy managing director and executive director of SHKP, said that they are very pleased to get the site and the company will invest in a total of about HK$1 billion in the future and build a shopping mall there.
The tender for the site closed last Friday and a total of four tenders were received. Other bidders included the subsidiaries of Sino Land (0083), Link Holdings (8237) and CK Asset Holdings (1113).
Lot 1077 lies off Anderson Road in Kwun Tong. SING TAO
