New World Development wins commercial site in Cheung Sha Wan for HK$4.03bn

PUBLISHED : Wednesday, 10 May, 2017, 10:19pm
UPDATED : Wednesday, 10 May, 2017, 10:19pm

Hong Kong developer New World Development beat out seven developers with a HK$4.03 billion (US$52 million) bid to win its second plot in Cheung Sha Wan, bringing its investment in the area to HK$11.8 billion in less than three months.

The Hong Kong Lands Department said on Wednesday it awarded the tender for a commercial site at Lai Chi Kok Road near Cheung Shun Street to Good Sense Development, whose parent is New World Development.

“The price is reasonable. We have seen sales of commercial properties in the area become active again recently,” said Vincent Cheung Kiu-cho, deputy managing director for Asia valuation and advisory services at Colliers International.

The price tag of the 44,897 square feet site, which will yield a total gross floor area of 538,760 sq ft, represents HK$7,478 per sq ft.

The successful tender brings New World Development’s total investments in Cheung Sha Wan to HK$11.8 billion in less than three months.

In February, New World Development secured another business site at King Lam Street, Cheung Sha Wan, through government tender for HK$7.79 billion, or HK$7,808 per sq ft. Both sites are close to the MTR’s Lai Chi Kok station.

Other bidders for the latest site near Cheung Shun Street included Sun Hung Kai Properties, Cheung Kong Property, SEA Holdings, Wheelock Properties and a joint venture formed between Sino Land and K. Wah Properties.

As part of the development the winning developer is required to include a child care centre, neighbourhood elderly centre, and a public vehicle car park.

Last week, Sino Land won an industrial site in Wing Kei Road, Kwai Chung for HK$450.8 million.

The site will yield a total gross floor area of 176,906 sq ft.

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