Site may cost Henderson HK$4.95b

Homeowners in neighbouring Mid-Levels blocks Merry Terrace and Merry Court may be in line for a HK$4.95 billion offer from Henderson Land Development for an en bloc redevelopment of the site into a luxury residential project.

If the offer is accepted, it could work out at prices per unit in the 44-year-old Merry Terrace ranging from HK$9.8 million to HK$20.3 million; and in the 37-year-old Merry Court ranging from HK$12 million to HK$14 million.

Sources familiar with the latest bid to redevelop the site, which is close to Caine Road Garden, said Henderson had appointed an agent to negotiate with the homeowners.

A spokesman for Henderson said the company did not have much to say at this stage.

But the South China Morning Post understands the offer on the table for units in Merry Terrace is a price of HK$14,000 per square foot and for units in Merry Court, HK$10,556 per square foot - conditional on acceptances from at least 90 per cent of owners, which will allow the developer to apply for a court order seeking the auction of the remainder.

That would amount to an all-in price to Henderson of HK$4.95 billion based on the current gross floor area of the two housing estates.

Additional development plot ratios could leave the land cost of the combined sites at about HK$7,590 per square foot, the sources said.