K Wah triggers two Tai Po site auctions
K Wah International has triggered a government auction of two Tai Po residential sites barely two months after being outbid for land it had also triggered for sale.
K Wah had made a minimum guaranteed bid of HK$326 million for former government quarters at Po Heung Street and HK$2.1 billion for a waterfront site at Pak Shek Kok next to the Science Park, the Lands Department said yesterday.
The sites could fetch more than HK$3.56 billion when they go on sale on March 13, according to a surveyor.
'We will continue to trigger sites until we have acquired a sufficient land bank,' K Wah spokesman Alex Lui Yiu-wah said.
The developer had no development sites and triggering auctions for land on the government's application list was the only way to build up its land bank, Mr Lui said.
The Pak Shek Kok site was worth HK$3 billion, or HK$4,000 per square foot, said Charles Chan Chiu-kwok, the managing director for Savills Valuation and Professional Services.
The 214,225 square foot site, which has a 51-metre building height restriction, could provide gross floor area of 752,425 sqft.
Flats nearby sell at HK$5,000 and HK$5,500 per square foot, property agents said.
The Po Heung Street site was worth HK$568 million, or HK$3,000 per square foot, Mr Chan said.
The 29,601 sqft site could be developed into flats and retail space, with a 189,446 sqft gross floor area.
Five-year-old flats in the area sold for about HK$4,000 per square foot, property agents said.
In October last year, K Wah triggered the auction of sites in Ma On Shan and Kowloon Tong.
They were bought the following month by developers Cheung Kong (Holdings) and Sino Land, which paid 35 per cent and 76 per cent respectively above the reserve prices for the sites.