Six developers seek piece of the action at Bayside
More developers submitted bids for a residential site on the Tsuen Wan waterfront yesterday on expectations the government might accept a lower offer.
The TW5 Bayside project on top of the Tsuen Wan West MTR station has drawn six bids - from Sun Hung Kai Properties, Cheung Kong (Holdings), Sino Land, Henderson Land, Nan Fung Development and a consortium formed by New World Development, Wheelock Properties and Chinachem Group.
The tender was withdrawn earlier this year as the offers were too low.
'Even though there are more bidders for the site, it doesn't mean the price will be higher,' said Vincent Cheung Kiu-cho, national director of Greater China at Cushman & Wakefield. 'They may want to place a bet to see if they can buy the site at a cheaper price. I don't think their offers will be high.'
Cusson Leung Kai-tong, an equity analyst at Credit Suisse, said: 'They may believe the government will accept a lower offer this time.'
He believed offers would not be too high for the site as land supply is increasing.
Surveyors estimate the site is worth between HK$7.36 billion and HK$8.49 billion.
Cheung said the accommodation value [land price in terms of gross floor area] should be higher than the nearby site acquired by Chinachem Group early this year.
'The Bayside site is on the waterfront and all of the residential towers could enjoy a sea view, while the Cityside site bought by Chinachem is inland,' he said. 'The land price for Bayside should be higher than the HK$3,124 per sq ft paid for the Cityside site,' he said. Cheung said the site was worth HK$8.38 billion, or HK$3,750 per sq ft.
A New World Development spokesmen said the company had joined the tender as it was a large development site in a prime location with sea views.
The site covers 460,699 square feet and is next to Clague Garden Estate.
The winning bidder can build nine towers with a total residential floor area of 1.8 million sq ft, and commercial floor area of 436,480 sq ft.
It can provide a total of 2,384 flats, of which more than half, or 1,235 flats, will be smaller than 538 sq ft.
The site will go to the bidder offering the highest land price.
The number of towers the developer of TW5 Bayside on the Tsuen Wan waterfront can build, providing 2,384 flats