Hong Kong government doubles deposit for land tenders to HK$50 million after Goldin’s abandoned Kai Tak sale
- The new deposit amount of HK$50 million applies to land valued at HK$400 million or more
- Rule comes into effect immediately
The Lands Department said on Thursday it is doubling the deposit for government sites put up for tender to as much as HK$50 million (US$6.3 million) after a buyer walked away from a winning bid of HK$11.1 billion for a plot of prime land in June.
The rule is effective immediately and the deposit would apply to all land sales with an estimated value of HK$400 million or more. Deposits for sites valued between HK$100 million to less than HK$400 million will range from HK$10 million to HK$40 million.
The tender for the abandoned Kai Tak plot, which opens on August 9, will be the first that requires a deposit of HK$50 million as it is worth more than HK$400 million.
The successful tenderer will also be required to make a part payment amounting to 10 per cent of the winning bid minus the initial deposit within seven working days of being awarded the tender. The balance will have to paid within 28 days.
Under the previous arrangement, the maximum initial deposit was HK$25 million and the winning bidder was only required to make a lump-sum payment within 28 days.