Swire to redevelop CMB's North Point site into flats
Swire Properties will spend $200 million to develop a China Motor Bus-owned site in North Point into a mid-sized residential project.
According to surveyors, the firm is likely to invest the sum in construction costs for developing the site on Kam Hong Street into an 180,000 square foot residential project.
The site formerly housed the bus company's staff quarters. Levelling of the previous construction, which started last year, has been completed.
Earlier this year, the Buildings Department approved the development on the site of a 49-storey single block tower for both residential and commercial use. China Motor Bus will reimburse the development cost to Swire Properties subject to a limit of $299 million.
The bus company will also pay Swire Properties a fee calculated on the higher figure of $55 million, or 25 per cent of the project's sales in excess of $840 million.
Charles Chan Chiu-kwok, executive director of property consultant Chesterton Petty, expected the project to comprise about 200 apartment units with an average size of about 800 sq ft. He said the selling price would be more than $8,000 per square foot.
Swire Properties and China Motor Bus jointly hold a 25,500 sq ft industrial site in Wong Chuk Hang, in respect of which they have applied for a change to residential use.