Amoy Properties and Hyundai Engineering & Construction have beaten seven other bidders to secure a 1.49 hectare mixed residential development site in West Kowloon reclamation for HK$850 million. It is Amoy Properties' second recent acquisition after it paid HK$251 million for a 137,616 square foot residential site in Ho Man Tin at last week's government land auction. Property consultants said the price paid by Amoy and Hyundai was reasonable given they had revised downwards their forecast for the West Kowloon site by more than 20 per cent following Cheung Kong (Holdings') acquisition of a nearby site at a worse than expected HK$1.9 billion in April. The tender sale of the mixed development site in West Kowloon had attracted eight bids when it closed on April 28. Other bidders included Nan Fung Textiles Consolidated, New World Development, Sino Land, Sun Hung Kai Properties, Shui On Construction and Materials, Cheung Kong (Holdings) and Henderson Land Development. The Lands Department said the tender was awarded to the highest bidder. Amoy and Hyundai can build a floor area of 1.28 million sq ft, of which 1.04 million sq ft is residential area and 240,575 sq ft commercial space. The developers must hand over 30 per cent, or 258,360 sq ft of the saleable area, to the Government for subsidised flats. It is the second lot sold under the Government's plan to mix private and public housing into one development. Chung Sen Surveyors director Cheng Wing-ming estimated Amoy and Hyundai had to bear about HK$250 million in construction costs for the subsidised housing section. That would raise the cost of the land acquisition to about HK$1.1 billion. He said the price represented an accommodation value of HK$1,100 per square foot, slightly lower than the HK$1,200 per square foot paid by Cheung Kong for the nearby site it bought for private development. S K Pang Surveyors & Co managing director Pang Shiu-kee said the value for mixed housing development sites which include government-subsidised flats would be lower than private residential sites. Amoy's aggressive move indicated the developer had hastened its land acquisition strategy while the market was down, he said.