The MTR Corp awarded the tender of the last seafront site at the 8th phase of Lohas Park to CK Properties for HK$2.96b.
The MTR Corp (0066.HK) invited HK developers to submit the expressions of interest for a waterfront site at the 8th phase of Lohas Park in Tseung Kwan O from 21 to 26 August. Cheung Kong Property (01113.HK) won the tender for HK$2.96 billion, or HK$2,830 per sq. ft, on 7 October. The unit price of this project is the highest among that of purely residential projects in the vicinity.
The project is expected to be finished by 2021.
The project is earmarked for a gross floor area of 179,091 sq ft providing up to 1,430 units in three blocks, mainly offer homes with two or three bedrooms.
The company, is one of pioneering developers of Lohas Park Project, returns to the project after almost eight years. The company begins to replenish its land bank in Hong Kong, it has not been very active in bidding land since 2013.
Cheung Kong Property Holdings Ltd. has outbid five rivals in the tendering for a waterfront site at Lohas Park in Tseung Kwan O.
The firm is returning to Lohas Park, where it was one of the pioneering developers, for the first time in almost eight years.
Cheung Kong is paying HK$2.96 billion, or HK$2,830 per square foot of gross floor area, the highest unit price among purely residential projects in the vicinity.
Including the cost of land, the developer plans to invest HK$10 billion in the area’s Phase 8 residential development.
Executive director Grace Woo Chia-ching said the project will mainly offer homes with two or three bedrooms.
The firm has not been very active in replenishing its land bank in Hong Kong over the past few years. It has won only five plots at tender since 2012.
Analysts expect the project — tendered out by MTR Corp. Ltd. (00066.HK), which will take an estimated 20 percent of profits — to generate a gross profit margin of 28 percent at selling prices of over HK$13,000 per sq ft.