Hong Kong property

HNA gets go-ahead to build nine residential blocks in Kai Tak

The site for the residential towers is approved for development of 397,000 square feet of gross floor area

PUBLISHED : Friday, 22 December, 2017, 9:02am
UPDATED : Friday, 22 December, 2017, 9:27am

HNA Group’s plan to build nine low to high-rise residential towers in one of its four land plots at Hong Kong’s former airport site in Kai Tak has been approved by the Buildings Department on Thursday.

Four of the residential blocks will be four storeys high, two will be five storeys and the rest will be between 30 and 32 storeys. Each block will sit on two basement levels, according to the plan approved in October.

The site, known as Kai Tak Area 1L Site 3, is approved for developing a total gross floor area of 397,000 square feet. HNA paid a total of HK$27.2 billion (US$3.47 billion) for the four pieces of land which were acquired over four months since November 2016.

The group said construction work at the four sites, covering 2 million square feet, had started in October, dismissing speculation that some banks have halted further lending to fund its construction activities.

HNA Group says it has ‘sufficient capital’ to finance Kai Tak residential projects

“We want to have different kinds of funding, including investment funds formed by listed arms as well as borrowing from financial institutions,” said Huang Qijun, an HNA Group board member and chairman of the group’s subsidiary, Hong Kong International Construction Investment Management Group (HKICIM), in October.

The four sites will provide a total of 1,900 units across seven high-rise blocks, 12 multi-storey blocks and four villas when development completes. Pre-sales are expected to begin in the third quarter of 2019.

HNA bought the land through HKICIM and another subsidiary, Hisea International, with each entity holding two sites.

HNA’s proposal was one of the 10 building plans approved by the Buildings Department.

Sun Hung Kai Properties was given approval to build four 23 to 35-storey residential blocks on top of a five-level podium at West Rail’s Yuen Long station. Wheelock Properties was allowed to build three 56 to 58-storey blocks above a five-level podium in Tseung Kwan O.