Mainland developer China Vanke wins HK$3.4b Tsuen Wan West site
A joint bid of HK$3.4b by China Vanke and New World Development has won the last prime waterfront site near Tsuen Wan West station
China Vanke, the mainland's biggest property developer by market value, has made its first foray into Hong Kong's property market by acquiring a residential site on the Tsuen Wan waterfront in partnership with New World Development.
The consortium beat seven players, including Hong Kong's heavyweights Cheung Kong (Holdings) and Sun Hung Kai Properties, to win the tender for the West Rail Tsuen Wan West station project at a cost of HK$3.43 billion, or HK$5,088 per buildable square foot.
The winning bid was 10 to 27 per cent above analysts' estimates, which ranged from HK$2.7 billion to HK$3.12 billion.
Analysts said the China Vanke deal signals that mainland players could gradually challenge the dominance of local tycoons in the city's property industry.
Ringo Lam Chun-chiu, valuation director at the surveyors AG Wilkinson & Associates, said: "It is a sign that the mainland's big property players have started implementing active strategies in Hong Kong."
Vanke Property (Hong Kong), a subsidiary of China Vanke, will take a 20 per cent stake in the winning consortium, with the rest owned by New World.