Wheelock Properties (Hong Kong) Ltd., a subsidiary of Wheelock & Co. Ltd. (00020.HK), has become the largest landlord in Hong Kong’s Tseung Kwan O district after winning the tender for a site in a new town development.
The company paid a land premium of HK$1,874 per square foot of gross floor area for the plot in LOHAS Park earmarked for the fifth phase of a new town project, the Hong Kong Economic Journal reported Thursday.
Wheelock Properties boosted its Tseung Kwan O land bank 2.96 million square feet of gross floor area, large enough to supply more than 3,500 residential units.
That eclipsed the land holding of Sun Hung Kai Properties Ltd. (00016.HK), Hong Kong largest property developer, by 57 percent.
Total investment for the new site is estimated at HK$8 billion to HK$9 billion.
About 1,600 residential units can be built on the site, according to the tender by MTR Corp. Ltd. (00066.HK), which sold the land.
Surveyors expect the development to cost HK$10,000 to HK$12,000 per square foot of gross floor area.
The figures compare with HK$8,000 to HK$8,300 per square foot of usable floor area in the second-hand market in the new town’s first three phases.
Competition for sites is expected to tighten among Hong Kong’s leading developers including Sun Hung Kai, Cheung Kong Holdings Ltd. (00001.HK) and Wheelock in the latter part of the new town project, experts were quoted as saying.
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