Henderson Land Development Co. Ltd. (00012.HK) has beaten 17 rival developers to secure a prime site in Tsim Sha Tsui for HK$4.69 billion (US$605.14 million).
The price works out to HK$13,800 per square foot, a record for a commercial plot and 4 percent above market estimates, the Hong Kong Economic Journal reported Thursday.
The firm, controlled by Lee Shau-kee, will invest a combined HK$6.5 billion to develop a Ginza-style shopping complex on the Middle Road site.
Real estate experts said the bidding results reflect developers’ positive outlook on the district. They expect mobility around the site will increase, bringing decent returns to other malls nearby.
The site was formerly a multi-storey car park. It could be developed to yield 339,700 square feet of space.
The Lands Department requires the winning bidder to provide parking space for 345 cars and 39 motorbikes for the site.
Henderson Land vice chairman Lee Ka-shing said the company plans to hold the project as a long-term investment after developing it into a high-end mall, which is expected to be completed by 2019.
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