New World wins residential site in Cheung Sha Wan for HK$7.79 billion

PUBLISHED : Wednesday, 15 February, 2017, 6:19pm
UPDATED : Wednesday, 15 February, 2017, 6:19pm

New World Development has won a government land site in Cheung Sha Wan after paying a higher-than-expected HK$7.794 billion.

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

When completed, the site will feature a maximum gross floor area of 998,210 square feet

The price is higher than analysts forecasts, which ranged from HK$4.9 billion to HK$7.5 billion.

Competing bidders for the site included developers such as Cheung Kong Property, Sun Hong Kai Properties , Wheelock Properties and China Overseas Land & Investment.

“It reflects developers’ confidence in commercial property market,” said Thomas Lam, head of valuation and consultant at Knight Frank, referring to the winning bid.

Lam expected total investment costs will be about HK$12 billion.