Mariner's Club set for $500m redevelopment

PUBLISHED : Wednesday, 12 February, 2003, 12:00am
UPDATED : Wednesday, 12 February, 2003, 12:00am

Swire Properties will spend about HK$500 million to redevelop the former Mariner's Club site in Tsim Sha Tsui into a downtown housing project, according to its development and valuations general manager Gordon Ongley.

He said yesterday that the firm was invited by the Mariner's Club to partner it in the project.

The total investment, excluding land premium to be paid to convert the site from government, institution and community use into residential use, would be about HK$500 million, he said.

The Middle Road site could accommodate 361 to 461 flats, or 260,600 square feet of residential space, and about 16,000 sq ft of retail space, with a 10,000 sq ft private club.

Swire would release two smaller scale residential projects for sale this year.

The Orchards, in Quarry Bay, will be completed in June and provide 432 medium-sized units in two towers. It will be ready for sale in the third quarter. A luxury residential development on The Peak offering four 4,500 sq ft houses on 3 Coombe Road, could be launched in the middle of the year.

Sales of remaining units at the luxury Mid-Levels residential project Albany and the mass development Ocean Shores in Tseung Kwan O will continue.

'Value is the key,' Mr Ongley said, adding that both Albany and Ocean Shores were offering good value and the company was not adopting a price-cutting strategy to offload inventory - despite some favourable packages offered at Ocean Shores through a Valentine Day promotion.

He said the best quality units at Ocean Shores could be sold for more than HK$4,000 per square foot. Albany was fetching between HK$7,600 and HK$13,000 per square foot.

Mr Ongley also said weak demand for grade-A offices had forced a possible delay in the redevelopment of the Melbourne Industrial Building and Aik San Factory Building at Quarry Bay.

Swire would review the office market before starting construction of an 800,000 sq ft grade-A office building on the site.

The redevelopment would strengthen the company's Taikoo Place office portfolio.