Li Ka-shing’s CK Asset pays US$586 million for Hong Kong land parcel subject to government’s minimum flat-size rule
- The plot of land on Castle Peak Road sold for HK$3,522 per square foot, far below the HK$6,500 it was expected to fetch in an earlier failed tender
- An April tender for the parcel – the first subject to the government’s minimum flat size requirement – failed to attract any bids that met the reserve price
CK Asset won a tender for a parcel of land in Tuen Mun for a price lower than market expectations after an earlier tender – the first subject to the government’s minimum flat-size requirement – failed to attract any satisfactory bids in April.
The flagship developer of tycoon Li Ka-shing’s family won the parcel on Castle Peak Road – Tai Lam, Tuen Mun in northwestern Hong Kong for HK$4.6 billion (US$586 million), the Lands Department said on Wednesday.
Henderson Land Development Company, Sino Land, Grand Ming Group Holdings and Sun Hung Kai Properties also bid for the parcel.
The price translates to just HK$3,522 per square foot, “slightly lower than the lower limit of market expectations”, according to Midland Surveyors.
When it was first launched in April, Knight Frank valued the land at HK$6,000 to HK$6,500 per square foot, or HK$7.8 billion to HK$8.5 billion. In July, Knight Frank slashed the valuation to HK$5,000 to HK$5,500 per square foot, or HK$6.5 billion to HK$7.2 billion.