K Wah wins order for Mid-Levels auction
Lands Tribunal gives go-ahead for forced sale of Hang Hin Mansion flats
K Wah International, a mid-tier developer run by gaming tycoon Lui Che-woo (right), has won government approval to force the remaining owners of flats at Hang Hin Mansion in Mid-Levels East to sell their units.
The developer acquired 92 per cent of Hang Hin Mansion's ownership for HK$281 million in February last year, a level at which it could force the sale of the remaining units through an auction under the acquisition rules.
K Wah filed the compulsory order after failing to reach sales agreements with the rest of the owners and its application was approved by the Lands Tribunal on Wednesday.
The Lands Tribunal appointed a trustee who in turn will hire a property agency or survey firm to handle the public auction. The auction will be held next month, based on the standard procedure.
'We have received the order from the Lands Tribunal,' said Quinly Wan Tsz-mei, a property manager of K Wah Real Estates, a subsidiary of K Wah International. 'We hope the auction will be held as soon as possible.'
Hang Hin Mansion has a site area of 16,000 square feet, which could provide a total gross floor area of 57,000 square feet.
The site will be developed into a low-density residential project as the Planning Department has imposed a height restriction of 12 storeys.
It will become K Wah's only development site once it buys all units in the auction.
K Wah has to boost its land bank after having sold most of J Residence in Wan Chai and the Great Hill in Sha Tin last year.
The developer triggered the auctions for two sites in Ma On Shan and Kowloon Tong in the previous quarter but they were sold to Cheung Kong (Holdings) and Sino Land, respectively.
Hang Hin Mansion is worth HK$456 million, or HK$8,000 per square foot, according to an estimate by surveyor Albert So Chun-hin.
He said the average flat price for the residential project could exceed HK$10,000 per square foot when the development is completed.