Shimao-led bid wins tender for hotel site in Tung Chung

A venture led by Shanghai-based Shimao Property Holdings outbid five Hong Kong developers to win the government tender for a hotel site in Tung Chung for HK$1.83 billion, in line with the range of analysts' estimates.

"[We] had submitted bids for Hong Kong government tenders before but it is the first time we won," said a company spokeswoman.

Shimao teamed up with mainland commercial developer Mingfa International to develop the project. "Shimao will have a bigger share," she said, refusing to disclose the equity distribution between the two parties.

The Tung Chung site, the only new plot in the land sales programme this year, has a gross area of 138,900 sq ft and a plot ratio of 4.4, giving it a maximum gross floor area of 613,500 sq ft. It was expected to fetch between HK$1.5 billion and HK$2.4 billion, and to provide an estimated 1,100 rooms.

Hong Kong developers Sino Land, Sun Hung Kai Properties and Regal Hotels International also submitted bids.

Alvin Lam, a director of Midland Realty's valuation department, said with the price of HK$2,998 per buildable square foot, the bid was in line with market expectations.