To Kwa Wan site expected to fetch $300m in tender
Private developer Good Harvest Enterprises is offering a 675,000 square foot site in To Kwa Wan for tender, which closes today.
The plot, formed by two connected sites and occupied by industrial buildings, is suitable for residential development.
Agents expected the land to fetch about HK$300 million, meaning an accommodation value of about HK$500 per sq ft.
The site, at the junction of Sung Wong Toi Road and Kowloon City Road, could provide a floor area of 607,509 sq ft. Approval has been given to build four high-rise residential blocks with more than 1,000 flats on the site.
Developers would need to negotiate the land premium with the Lands Department because of the site's change of land use and increased land value.
The site was re-zoned by the Planning Department from industrial to residential use two years ago as part of the Government's plan to accelerate redevelopment in old industrial areas.
Colliers Jardine's investment department executive director Antonio Wu said an opportunity such as this to secure such a sizeable site in urban areas was rare.
The site would benefit developers because it could be turned into a quality estate-type residential and commercial development with approval from government bodies, he said.
Agents said many developers including Cheung Kong (Holdings) had made inquiries about the site.
Cheung Kong has teamed with New World Development in redeveloping the neighbouring Tien Chu Centre into a residential project.
The developers were said to be spending about HK$5 billion on the project.
Surveyors expected cautious bidding from developers due to the large scale of the project. But they said it provided a good opportunity for medium-sized developers to add to their land reserves in urban areas.
