A consortium led by Sino Land Co. Ltd. (00083.HK) has snapped up Hong Kong’s largest redevelopment site, the Hong Kong Economic Journal reported Tuesday.
The site consists of two adjacent plots in Kwun Tong district for which the group paid less than HK$7 billion (US$903.21 million), 12.5 percent below the asking price of the Urban Renewal Authority (URA), the report said, citing unnamed sources.
Sino Land controls 90 percent of the consortium, with Chinese Estates Holdings Ltd. (00127.HK) holding the remainder.
Total investment in the project is expected to be about HK$16 billion.
It is the largest bet by Sino Land on the property market in five years, driven by tremendous potential in Kowloon East and nearby districts, associate director Victor Tin was quoted as saying.
The acquisition made Sino Land the biggest landlord in Kwun Tong.
The consortium plans to develop 1,700 residential units on 1.85 million square feet of gross floor area.
The tender received four bids in July that were all turned down for being too low.
URA then eased the bidding rules, including a requirement for minimum profit sharing plus land cost of not less than HK$8 billion.
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Bar lowered for Kwun Tong redevelopment project