SHKP bags Ap Lei Chau site for $739m

PUBLISHED : Wednesday, 29 March, 2000, 12:00am
UPDATED : Wednesday, 29 March, 2000, 12:00am

Sun Hung Kai Properties (SHKP) outbid 13 developers to acquire an Ap Lei Chau mixed housing development site at a higher than expected HK$739.9 million.

The lot is the first sold under the Government's plan to mix private and public housing into one development.

Analysts said that the price paid by SHKP was 'aggressive' and reflected developers' acceptance of the new plan.

Surveyors predicted a selling price of HK$400 million to HK$600 million.

The Lands Department yesterday awarded the 100,124 square feet lot to SHKP. The sale had attracted 14 bids from developers when tenders closed on December 24.

Bidders included Cheung Kong (Holdings), Nan Fung Development, Amoy Properties, New World Development, Swire Properties, Henderson Land Development and Great Eagle Holdings.

Several smaller players and construction companies Shui On Construction and Materials and Wai Kee Holdings also participated.

According to the Lands Department, SHKP made the highest premium offer among the bidders who had passed initial assessment.

Assessment took into account planning, design and management proposals before the premium offer was considered.

SHKP can build up to 648,000 sq ft of residential floor area and 16,000 sq ft of commercial space on the site.

It has to give 194,400 sq ft of residential area by random selection to the Government, which will sell it, discounted, to low-income families.

SHKP can dispose of the remaining space freely.

The plan aims to ensure the quality of private and subsidised flats is the same.

Tony Chan Tung-ngok, Midland Surveyors director, estimated that apart from the HK$739.9 million premium, SHKP had to pay an extra HK$200 million of construction costs for building floor spaces to be handed over to the Government.

This meant the developer paid about HK$939.9 million in total, in return for 464,000 sq ft for free disposal.

Mr Chan said this represented an accommodation value of $2,000 per square foot, higher than his estimate of $1,300 per sq ft.

He said the result would encourage the Government to release more mixed development sites.