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SCMP Reporter

The Peak home of Hotung family patriarch Eric Hotung has been sold for $778.88 million in one of Hong Kong's biggest residential property deals.

 The identity of the buyer is unknown but is understood to be a locally listed company.

 The property - at 6-10 Black's Link - was sold by tender yesterday. It covers 69,535 square feet and includes a house with a gross floor area of about 12,000 square feet and an extensive garden, agents said.

 Its developable area is 35,000 square feet, meaning the buyer paid an accommodation value of $21,000 per square foot.

 Agents said the cost of any luxury houses built on the site could be as much as $25,000 per square foot.

 The winning tender was slightly less than the reserve price of $780 million, equivalent to an accommodation value of $22,000 per square foot.

 Mark Hahn, director of CY Leung & Co, one of the companies handling the sale, said the accommodation value of the winning tender was only marginally lower than expected.

 He said the price achieved by the sale would have a positive effect on the market.

 'The buyer must be optimistic,' he said.

 Mr Hahn said considerable interest had been shown in the property before and during the tender process.

 The deal rivals the sale last year of a property at 27 Repulse Bay Road, bought for $733 million by the mainland-backed Oriental Land Co.

 At the time, this was the largest single-block residential transaction carried out in Hong Kong.

 Yesterday's deal also ranks alongside the purchase last year of two luxury homes by Pearl Oriental Holdings for a combined price of more than $900 million.

 In November, Pearl, a listed property trader, bought a 28,000 sq ft property on Severn Road for $540 million.

 Previously, company chairman Wong Kwan paid $375 million when he purchased Skyhigh, a luxury Peak residence on Pollock's Path once owned by Yoahan International chairman, Kazuo Wada.

 Since then, Mr Wong has announced plans to spend millions to redevelop both sites.

 According to Mr Hahn, similar redevelopment is probably planned for the Hotung residence.

 'Mr Hotung paid the government a premium a number of years ago and he sold the house with an unrestricted lease,' Mr Hahn said.

 The property had a plot ratio of 0.5, giving the new owner a developable area of about 35,000 square feet.

 According to agents, the site would be perfect for luxury townhouses or private residences.

 The Hotung family, which established its name through Sir Robert Hotung, the first compradore of Jardines, is no stranger to large property deals.

 In the United States in February, Eric Hotung paid $46 million for Senator Ted Kennedy's six-bedroom mansion near Washington, DC.

 The Kennedy house is on the banks of the Potomac River and includes nine bathrooms, a tennis court and a swimming pool.

 Mr Hotung outbid two other parties, offering $7.7 million more than the $38.27 million asking price.



Hotung home on The Peak sells for $778m