HK government’s Ap Lei Chau residential site tender gets bids from 14 developers

Located next to South Horizons housing estate, property could fetch as much as HK$11.4 billion

PUBLISHED : Friday, 17 February, 2017, 3:26pm
UPDATED : Friday, 17 February, 2017, 10:34pm

The Hong Kong government’s tender of a residential site in Ap Lei Chau on Hong Kong island has attracted good response, with 14 bids received from local and mainland developers

The waterfront site, which could yield a total gross floor area of 762,091 square feet, can accommodate 1,400 units of 540 square feet in size, and is estimated to fetch prices of HK$7.6 billion to HK$11.4 billion or HK$9,972 per square foot to HK$15,000 per square foot.

Hong Kong developers Cheung Kong Property (Holdings), New World Development, Sun Hung Kai Properties and Wheelock Properties were among those to have submitted a bid before the tender closed at noon.

Mainland developers including China Vanke, Citic’s property unit Citic Pacific, and China Overseas Land Investment also submitted separate bids.

Other bidders include a joint venture formed by KWG Property and Logan Property. Empire Group, owned by Sun Hung Kai Properties’ former chairman Walter Kwok Ping-sheung, also submitted a bid in the form of a joint venture with Henderson Land Development.

Located on Lee Nam Road, the 126,595 square feet site is next to the major housing estate, South Horizons.

According to analysts, there was an increase in buyer and tenant interest in the area after the HK$16.5 billion MTR line opened in December last year, running from South Horizons in Ap Lei Chau to Admiralty via new stations at Lei Tung, Wong Chuk Hang and Ocean Park.

Alvin Lam, director of property agency Midland Realty, said it is a rare opportunity for developers to acquire a site that can be developed as a residential project with full sea view. Lam said developers will bid aggressively for the site, and expected the site could be sold at least for HK$11.4 billion.

This is one of four parcels of land up for tender in February, the largest number of land plots for sale in a single month in the current financial year that ends March 31.

The four sites, including the Cheung Sha Wan business site, are together estimated to be worth more than HK$30 billion.

The Hong Kong Lands Department said on Wednesday that the tender for the 83,184 square foot site on King Lam Street in Cheung Sha Wan was awarded to Super Record, a unit of New World Development.