Seven lay bids for KCRC project
The first residential project tendered this year by Kowloon-Canton Railway Corp (KCRC) attracted bids from seven leading property developers yesterday.
Seventeen developers had shown interest in the project, including smaller firms such as Chun Wo Holdings, SEA Holdings and Kowloon Development.
However, the small developers stayed away from the 2,528-unit Wu Kai Sha project, to be built along KCRC's Ma On Shan Line, because of the estimated $9 billion investment needed for the project.
The winning bidder is required to pay $340 million up front to KCRC and guarantee an additional $300 million in profit sharing, according to one of the bidders.
The developer will also be responsible for the land premium, which can be paid to the government in three tranches.
The Lands Department has set the premium for the project's first phase of 1,008 units at $2.03 billion while the second- and third-phase premiums will be determined through talks with the developer.
The developer can also negotiate a one-time payment option with the Lands Department.
The seven bidders are Cheung Kong (Holdings), Sun Hung Kai Properties, Henderson Land Development, New World Development, Sino Land, Hang Lung Properties and a venture between Kerry Properties and Wheelock Properties.
Wheelock Properties sales and marketing director Ricky Wong Kwong-yiu expected the investment, including land premium, to add up to $9 billion.
'The project is profitable according to current market prices,' said Mr Wong, who added that Wheelock's stake in any joint venture with Kerry would be more than 50 per cent.
The 1.85 million square foot project comprises seven residential towers and a shopping podium.
