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Sophia Wong

Kerry Properties has bought a luxury residential site in Ho Man Tin from CLP Holdings for HK$410 million.

It is the first major private land transaction following the government's decision last month to suspend public land sales and tenders for rail-related projects until the end of next year.

Sources said Kerry Properties had outbid at least two rival bidders, including privately-run Yu Tai Hing Company and a consortium of Sino Land and Manhattan Realty.

Kerry Properties announced yesterday it had won the tender for the site at 15 Ho Man Tin Hill Road - CLP's former Ellyridge staff quarters.

It estimated the total development cost at HK$700 million, which represents an accommodation cost of HK$3,145 per square foot and an average development cost of HK$5,370 per square foot.

Kerry Real Estate Agency executive director Chu Ip-pui said: 'The well-located site provides spectacular views. We plan to build a luxury residential project worth HK$7,000 per square foot upon completion.'

He said the group was keen to acquire luxury residential sites but the supply of quality sites was scarce.

'We were interested in the acquisition even before the government unveiled the property stimulus package and had been in negotiation with the owner through private treaty for quite a long time,' he said.

Early this year, Kerry Properties paid HK$120 million to snap up Chung Nam Industrial Building in Tsuen Wan, which can be converted into 200,000 square feet of residential floor area.

In June, it teamed with Sino Land to win development rights for the Mass Transit Railway Corp's HK$3.5 billion Hang Hau Station residential project in Tseung Kwan O.

Knight Frank investment director Simon Chow Chi-ping said the price Kerry Properties paid for the Ho Man Tin site was higher than expected, reflecting the good quality of the site.

'The high price was due to the uniqueness of the site, not the market sentiment,' he said.

The aggressive attitude adopted by Kerry Properties might not spread to other investment properties being tendered for sale, he said.

Estate agents had earlier estimated the site's market value at between HK$235 million and HK$300 million. The site occupies 26,078 sq ft and has a buildable floor area of 130,340 sq ft. Permission has been granted to develop a 42-storey residential tower.

Mr Chow said he expected larger units exceeding 1,000 sq ft could be worth HK$6,500 per square foot or more.

Meanwhile, the tender for the Hotung family's Tung Ying Building in Tsim Sha Tsui - another major private transaction - will close today. Mr Chow said the commercial building would draw the interest of only a few investors or developers due to its cost.

The 17-storey Tung Ying Building at 100 Nathan Road was built in 1966 on a 33,644-square-foot site. It has a total gross floor area of 377,757 square feet. Surveyors estimate it could be worth more than HK$1.2 billion.

Kerry Properties is part of the Kerry Group, the largest shareholder in SCMP Group, publisher of the South China Morning Post.



Kerry outbids rivals for Ho Man Tin site