Exclusive | HNA pays HK$5.53 billion for its third land parcel at Kai Tak site
With its latest purchase, HNA’s shopping bill in Kai Tak amounted to HK$20 billion in three months
HNA Group, which owns hotels and golf courses in addition to its control of Hainan Airlines, has bought its third parcel of development land at Kai Tak, bringing its total shopping bill at Hong Kong’s former airport site to HK$20 billion in three months.
The Chinese company’s unit Top Genius Holdings paid HK$5.53 billion for Kai Tak Area 1L Site 1, according to a Wednesday announcement by Hong Kong’s Lands Department. A spokesman at HNA confirmed to the South China Morning Post that the property and aviation group was behind the purchase.
“It’s no surprise, as the market has been expecting HNA to continue its buying spree in Hong Kong,” said Vincent Cheung Kiu-cho, executive director of valuation and advisory services for Asia at Colliers International.
HNA’s winning bid translates into HK$13,000 per square foot, about 27 per cent higher than the price struck in December by casino tycoon Lui Che-woo’s K Wah International, which paid HK$5.87 billion, or HK$10,220 per sq ft, for its second parcel at Kai Tak.
The latest price is also a 10 per cent premium over market valuations, establishing a benchmark for the area, valuers said.
“HNA has pushed land prices to a new level in Kai Tak,” said Cheung. “The area’s market price is unlikely to fall below HK$10,000 per sq ft at the next tender.”
With its latest purchase, HNA now controls three parcels of land in Kai Tak, equivalent to an estimated 1.5 million sq ft of residential gross floor area.