MTR Corporation (0066) drew four bids for its Tuen Mun A16 Station Package Two Property Development on Wednesday, including CK Asset (1113), Henderson Land Development (0012), Sun Hung Kai Properties (0016), as well as a consortium formed by Sino Land (0083), Kerry Properties (0683), China Overseas Land & Investment (0688) and Great Eagle (0041).
David Tang Chi-fai, managing director of Property and International Business at MTR, expressed cautious optimism about the tender, citing Tuen Mun's mature neighborhood, the city's housing demand, and the project's railway station connection.
Tand also noted that MTR plans to roll out the tender of two projects that could offer about 1,000 units each in the next three to four quarters according to market situation.
David Tang.
The Tuen Mun A16 Station Package Two project spans a gross floor area of about 3.03 million square feet, of which the residential area measures nearly 2.69 million sq ft, which could provide about 5,510 units. Its maximum GFA of the commercial part is 334,757.6 sq ft.
Under market estimates, the project is valued at about HK$9.68 billion to HK$12.1 billion, or HK$3,200 to HK$4,000 per sq ft.
For the tender, developers should propose a land premium amount, and the tender will be awarded to the highest proposer, with a fixed profit-sharing ratio of 15 percent.
The winning bidder can also choose whether to operate the commercial portion of the project independently or return it to the MTR.
When asked if the Hung Shui Kiu pilot area's low winning bid of HK$1.03 billion might affect developers' proposed price in this tender, Tang said the two projects differ in scale and content, adding that he believed the market and developers would value the project on their own terms.
