K Wah International

K Wah pays HK$358m for rest of Hang Hin

PUBLISHED : Friday, 02 March, 2007, 12:00am
UPDATED : Friday, 02 March, 2007, 12:00am

K Wah International, a mid-tier Hong Kong developer, paid HK$358 million in an auction yesterday to buy the remaining units at Hang Hin Mansion in Mid-Levels, 26 per cent higher than the floor price.

The firm, which owns 92 per cent of the complex, paid HK$7,088 per square foot for the remaining units to fend off aggressive bids from Chinese Estates Holdings. K Wah spokesman Alex Lui Yiu-wah had expected other developers to bid, as supply of residential sites in high-end districts was limited. The price was reasonable, he said.

Hang Hin Mansion, at 6 Shiu Fai Terrace, has a site area of 16,000 sq ft that can be developed into a four-storey residential block with a 50,509 sq ft gross floor area.

K Wah may also pay a land premium to the government to relax restrictions so it can develop a 12-storey building with a gross floor area of 68,256 sq ft.

The lack of luxury sites has prompted Henderson Land Development to bid for about 90 per cent of Merry Terrace, also in Mid-Levels, whose majority owners put it up for tender last year for HK$4.2 billion. Wheelock Properties is also bidding, according to a source.