Ho Tung Gardens has been sold for a record HK$5.1 billion, the Hong Kong Economic Journal reported Thursday.
The property was the site of a historic villa on the Peak built by the businessman Robert Hotung, once considered the richest man in Hong Kong.
The buyer made the purchase using an offshore vehicle, Season Glitter Ltd. He is said to be Cheung Chung-kiu, chairman of developer C C Land Holdings Ltd. (01224.HK).
Cheung, known as the richest man in Chongqing, has been investing in luxury mansions on the Peak and southern Hong Kong Island over the past decade.
The price paid for Ho Tung Gardens works out to HK$82,000 per square foot of gross floor area.
The main building on the site was demolished in 2013 by the seller, Ho Min-kwan, a granddaughter of Hotung, after the government refused to declare it a historic monument.
The purchase entails HK$765 million in buyer stamp duty and HK$433.5 million in double stamp duty, the Land Registry shows.
The buyer may enjoy a refund of HK$980 million if he redevelops the site.
Market observers expect the 124,000 square foot site to be redeveloped into houses that can be sold for HK$100,000 per sq ft upon completion in two to three years’ time.
The land is held under a lease from the government that will expire in 2033.
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