Sino Land in race for hotel site in Hung Hom
Four bids were submitted yesterday in tenders for a hotel site in Hung Hom and two for a residential site at Mui Wo on Lantau Island, the Lands Department said.
A representative for Sino Land said the company had submitted bids for the sites.
'The market response to the Hung Hom site is expected,' said Charles Chan Chiu-kwok, managing director of Savills Valuation and Professional Services. 'It is a large hotel site. There are only three to four developers who could afford the development.'
He said the site was worth HK$2.7 billion or HK$4,000 per sq ft.
The Hung Hom site one is on the waterfront of the Hung Hom reclamation area, at the junction of Hung Luen Road and Wa Shun Street, covering 168,200 square metres. A hotel could be built with a total gross floor area of 672,700 sq ft.
About 17 per cent of the floor area would be retained for government quarters and a public transport interchange.
The site at Mui Wo on Lantau could be developed into a low-density residential project.
Such a project could have a total gross floor area of 49,400 sq ft. Under the land lease, the number of flats is limited to a maximum of 50.
Chan was surprised that the Mui Wo site received only two bids. Recently, Swire Properties won a tender for two low-density residential sites at Cheung Sha on Lantau for HK$360 million, or more than HK$5,500 per sq ft.
'I believe the site in Mui Wo could sell for up to HK$123.5 million, or only HK$2,500 per sq ft,' he said. 'The sites owned by Swire Properties are located on the waterfront and have the potential to be developed into a luxury residential project.
'But the site in Mui Wo is not in a good location. It is unable to be developed into a luxury residential project.'