NWD pays $4b for land swap

New World Development (0017) has agreed to pay a land premium of nearly HK$4 billion for a site in Fanling, the first case of paying a premium at standard rates for land exchange in the Northern Metropolis.

The 150,000-square-foot site is allowed to have complexes at a plot ratio of 7.2, compared to just 0.4 years ago, to provide a gross floor area of more than 1.12 million sq ft, sources told The Standard's sister publication Sing Tao Daily.

Based on the latest premium rates - HK$3,484 per sq ft for residential and HK$2,090 per sq ft for non-residential - the site's premium would be nearly HK$4 billion, the daily said, adding that the project will be worth over HK$20 billion when completed. Construction of the development may kick off soon and presales may start in 2027 at the earliest, it added.

The developer declined to comment on the progress of land premiums for individual agricultural land but said it holds around 15 million square feet of agricultural land within the Northern Metropolis.

The Lands Department slashed the standard rates by 21-33 percent in June amid a sluggish market.