Wheelock to invest HK$10b in new phase of Hong Kong’s Lohas Park development
Wheelock & Co is set to become the largest home supplier in Tseung Kwan O’s Lohas Park in the next six years after winning its third site in the area, which will require a total investment of HK$10 billion.
MTR Corp yesterday announced that Ever Merits Investments, a subsidiary of Wheelock and Co, won the phase nine of Lohas Park development, raising its total land bank to 1.8 million square feet, or 4,630 units.
The government on Wednesday said it is poised to beat its land supply target for the private sector to build 19,000 new flats this year. The latest award of the 1,780-unit Lohas Park site will bring it a step closer to the goal.
“This site should be the largest plot in terms of flat number so far this financial year,” said Victor Lai Kin-fai, chief executive of property consultancy Centaline Professionals.
The land premium for the site, which can yield a total of 1.12 million square feet, was HK$2.85 billion, or HK$2,545 per sq ft, 10 per cent lower than the phase eight, which was sold to Cheung Kong Property in September.
Ricky Wong Kwong-yiu, managing director of Wheelock Properties, a wholly owned subsidiary of Wheelock & Co, said the total investment cost for phase nine would come to HK$10 billion.
Factoring in construction cost and interest expenses, the all-in cost would amount to HK$8,923 per sq ft for phase nine development.
In April, buyers snapped up all 1,648 units, most of which are three to four-bedroom, at the Hemera project above Lohas Park station, at discounted prices of HK$8,100 to HK$10,000 per square foot.
“There should be a business synergy there as we have three sites located close to each other in Lohas Park,” said Wong. “Flats to be built at the site will command sea view and located close to MTR station. Plus, a proposed shopping mall nearby will definitely increase marketability,” said Wong.
He said he believed prices of small to medium-sized flats could rise more than that of the large units being sold in the area.
Together with HK$6 billion in phase five and HK$10 billion in phase seven, Wheelock’s estimated investment in the area will increase to HK$26 billion, according to surveyors.
Lai said Wheelock could control costs better as construction work for the three sites, which are located close to each other, could start simultaneously. “That will save cost,” he said.
READ MORE: Wheelock and Co wins seventh phase of Lohas Park development
Prices for new homes in Lohas Park could go higher once the shopping mall in phase seven – which is also being developed by Wheelock – is completed in 2020.
For phase nine development, MTR stipulates the winning developer to build 1,780 flats in three blocks plus a kindergarten. The project is due to be completed in 2022.
A spokesman for MTR Corp said Lohas Park comprises 13 phases.
