Hong Kong Property

Vanke suspension lifted after false news reports

PUBLISHED : Friday, 25 January, 2013, 12:00am
UPDATED : Friday, 25 January, 2013, 4:56am

Trading of Vanke Property (Overseas) shares will resume today after the company said it had not taken part in the acquisition of a government residential site on Tsuen Wan waterfront.

The announcement was made yesterday, a day after Vanke Property (Hong Kong), a subsidiary of mainland developer China Vanke, and New World Development jointly won the TW6 site near the Tsuen Wan West Station for HK$3.43 billion.

Shares in Vanke Property (Overseas) were suspended yesterday morning after news reports claimed the firm was a successful bidder for the TW6 site.

Vanke Property (Overseas) said in a filing on the Hong Kong Stock Exchange that it "has not participated in the bidding for the TW6 Land Lot Development, and has not had any direct or indirect interest in such project".

The listed company said despite being acquired by China Vanke in July last year, with the aim of looking for business opportunities in Hong Kong, time constraints meant China Vanke decided to bid for the site through Vanke Property (Hong Kong).

"China Vanke will consider the possibility of transferring the interest in, or operations relating to, the TW6 Land Lot Development to the company," the document said, adding that no formal decision has been made yet.

Justin Chiu Kwok-hung, executive director of Cheung Kong (Holdings), which also bid for the Tsuen Wan site, said it was not disappointed it failed to win the tender because there were many other sites available for sale.

Chiu said overseas developers bidding for sites showed their confidence in Hong Kong's property market and economy.

"I don't think many mainland developers will come as there are a lot of opportunities on the mainland," he said, adding that Cheung Kong is not worried about competition with mainland developers.

Meanwhile, 16 developers have submitted expressions of interest for a 196,248 square foot site near the Tin Wing light-rail stop in Tin Shui Wai, the MTR Corp said yesterday. The site can yield a total gross floor area of 982,271 sq ft, of which more than 99 per cent is for housing.

Saying that the keen response reflects developers' confidence in the home market, Midland Surveyors director Alvin Lam Tsz-pun forecast that the site will be sold for nearly HK$2.46 billion, or HK$2,500 per square foot based on gross floor area.