Cheung Kong Property Holdings Ltd. (01113.HK) has outbid five rivals in the tendering for a waterfront site at Lohas Park in Tseung Kwan O.
The firm is returning to Lohas Park, where it was one of the pioneering developers, for the first time in almost eight years, the Hong Kong Economic Journal reported Thursday.
Cheung Kong is paying HK$2.96 billion, or HK$2,830 per square foot of gross floor area, the highest unit price among purely residential projects in the vicinity.
Including the cost of land, the developer plans to invest HK$10 billion in the area’s Phase 8 residential development.
Executive director Grace Woo Chia-ching said the project will mainly offer homes with two or three bedrooms.
The firm has not been very active in replenishing its land bank in Hong Kong over the past few years.
It has won only five plots at tender since 2012.
Woo denied that Cheung Kong’s bid this time was aimed at damping speculation about a withdrawal by the group from Hong Kong.
Analysts expect the project — tendered out by MTR Corp. Ltd. (00066.HK), which will take an estimated 20 percent of profits — to generate a gross profit margin of 28 percent at selling prices of over HK$13,000 per sq ft.
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