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Developers keen on two sites put up for tender

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Two residential sites, in Shouson Hill and Peng Chau, opened for tender last week attracted a strong response from developers, luring nine and 30 bidders respectively by the time tenders closed yesterday.

The luxury residential site at 8-12 Deep Water Bay Drive, Shouson Hill, drew nine bids from developers including China Overseas Holdings, K Wah International, New World Development, and Manhattan Group, despite predictions that the winning bidder for the land will have to pay as much as HK$7.44 billion.

'Nine bids are quite a lot, given that the lump sum is likely to be high; I believe some developers have formed consortiums to bid for the site together,' said James Cheung King-tat, a director at Centaline Surveyors. 'It is in a prime location because it is in a luxury residential area.'

Cheung estimates the site will sell for HK$7.44 billion, or HK$30,000 per square foot in terms of the maximum gross floor area of 248,132 square foot. He believes the winning bidder will be a ble to breaek even if it sells the flats to be built on the site for something over HK$36,000 per square foot.

Estimates from three other surveying firms polled by the South China Morning Post ranged from between HK$4.46 billion to over HK$6.2 billion, or HK$18,000 to HK$25,000 per square foot.

The site was triggered for public tender after the government received a guaranteed minimum bid of nearly HK$3.59 billion, or HK$14,489 per square foot.

There are three 14-storey buildings on the land - former government quarters named Glendale that were completed in the late 1980s.

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