Hong Kong property

Prime Kai Tak land site expected to fetch ‘aggressive’ bids in latest standoff between local and mainland developers

PUBLISHED : Friday, 10 March, 2017, 2:33pm
UPDATED : Friday, 10 March, 2017, 2:33pm

At least 14 developers submitted bids for a government tender to a residential land site in Kai Tak by the closing deadline at midday Friday.

Surveyors are projecting the site, known as Kai Tak Area 1L Site 2, could fetch between HK$6.1 billion to HK$7.4 billion, or HK$10,000 to HK$13,500 per square foot.

“Mainland developers who has already bought land in Kai Tak will bid aggressively,” Centaline Surveyors’ director James Cheung King-tat said.

The Lands Department will announce the number of bidders later today.

Sun Hung Kai Properties , Cheung Kong Property Holdings, Henderson Land Development, Wheelock, Chinachem Group and K Wah International have submitted separate bids for the Kai Tak site.

Participating mainland Chinese developers include China Resources Land, China Overseas Land & Investment and Vanke Property (Overseas).

New World Development teamed up with China Merchants Land, while Chevalier International Holdings joined Wang On Property in submitting a bid for the tender.

The site, which could yield a total gross floor area of 551,138 sq ft , is located adjacent to another three plots sold to Chinese conglomerate HNA recently.

Cheung said he expects HNA to be among the bidders as the Chinese conglomerate could merge the site with its existing land holdings to create a single development.

Kai Tak, which has been designated for development into a core business centre, has been drawing tremendous interest from the major property developers.

The Kai Tak site is the 11th in the area offered by government tender since 2013.