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.
Lam said Tung Chung had potential as a regional shopping and tourism hub as the government had been making an effort to develop tourism on Lantau island.
Since it is located close to the Hong Kong-Zhuhai-Macau Bridge, the hotel, when completed, could attract not only mainlanders, but also residents of Macau and nearby countries, according to Lam.
Shimao said it had submitted bids for the MTR Corp's tender for the property development in Tai Wai and the government's tender for a commercial site in Tsim Sha Tsui but failed to win.
Mainland developers have shown growing interest in the Hong Kong property market as part of a diversification strategy.