Road King partners Ping An to expand into Hong Kong property

It surprised the market with a come-back win of an MTR Corp tender for a residential plot next to the Wong Chuk Hang station in February, through a 50-50 joint venture with Ping An Real Estate Capital, a unit of China’s second largest insurer Ping An Insurance. The joint venture, outbid 13 developers including some of Hong Kong largest players. Analysts value the site at between HK$8 billion to HK$9.8 billion.

The acquisition came six months after the company won its first residential site in Au Tau, Yuen Long through a government tender for HK$988.88 million in August, 2016. The Au Tau site is wholly-owned by Road King, and could see a total investment of HK$3 billion. Analysts projected the firm require an estated total investment of HK$8 billion in the two projects.

“We may afford to undertake one more project in Hong Kong if the opportunity arises,” said Derek Zen Wei-peu, co-chairman and executive director of Road King, without further elaborating if the company would go solo or join hands with Ping An Real Estate Capital again.

Zen was coy when asked if the aggressive expansion of mainland developers has bid up Hong Kong land prices.

“It is hard to justify whether one’s bid is high or low. Our bid (for Wong Chuk Hang station project) may be slightly HK$1,000 per square foot higher than [our] rivals’.”