Shimao Property Holding won a large commercial office development site in Qianhai for 2.43 billion yuan (HK$3.07 billion) at a government auction yesterday, about 25 per cent below the previous auction in August in terms of the per-square-metre price. The winning bid was just 10 million yuan above the floor price of 2.423 billion yuan. The sale was the third auction in the Qianhai economic zone, now Shenzhen's most expensive area. It was one of two sites restricted to bidders from Hong Kong-registered companies and located in the Qianhai Shenzhen- Hong Kong Modern Service Industry Co-operation Zone. According to the land sale documents, bidders must be firms registered in Qianhai for supply chain management, commodity exhibition and exchange, product design and development and related trade. Their parent companies must be incorporated in Hong Kong with revenue for the last financial year of no less than five billion yuan. The price tag represents a value of 16,153 yuan per square metre and the site will generate a total gross floor area of 150,000 square metres. It was 25 per cent lower than the 21,669 yuan per square metre China Resources Land paid for a commercial site in Qianhai in August. But it was on par or slightly higher than the 16,167 yuan per square metre and 15,948 yuan per square metre. Shenzhen-based developer Excellence paid for two Qianhai commercial sites in July. Excellence bought the first and second commercial sites for a total of 12.36 billion yuan. Vincent Cheung Kiu-cho, national director for Greater China at Cushman & Wakefield, said the price was reasonable. "The sale outcome was not as exciting as the site involved a large lump sum payment and the land sale was highly restricted to limited bidders," he said. Inclusive of land costs, he estimated total investment in the project would be 4.8 billion yuan. A company spokesman at Shimao said the developer would not rule out the possibility of inviting a joint venture partner to develop the site. "We have no experience in supply chain management business and we may seek a partner in the field," said the Shimao spokesman, without giving the amount of capital outlay for the project. The second commercial site went to Shenzhen Hong Kong Supply China Management for a higher-than-expected price of 1.63 billion yuan, or 25,468 yuan per square metre. The second site was about 63 per cent higher than the 998 million yuan starting price after eight developers exchanged 317 bids.