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HK govt sells Peak site to Wharf, tycoons at record HK$7.25b

Wednesday, February 10, 2021, 14:42

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HK govt sells Peak site to Wharf, tycoons at record HK$7.25b

By Bloomberg

Wednesday, February 10, 2021, 14:42
By Bloomberg

Buildings are seen from Victoria Peak in Hong Kong, on Aug 28, 2019. (PAUL YEUNG / BLOOMBERG)

Wharf Holdings Ltd teamed up with Hong Kong property tycoons to win a premium land site in the luxurious Peak area for a record-breaking price.

READ MORE: HK sells prime residential site for US$1.5b in sign of recovery

The consortium includes a Wharf subsidiary, an entity owned by Sino Land Co’s Chairman Robert Ng, C C Land Holdings Ltd’s Cheung Chung Kiu, Chinese Estates Holdings Ltd’s Chan Hoi-wan and her brother-in-law Thomas Lau. It won the residential land for HK$7.25 billion (US$935 million), a government statement showed late Wednesday.

The higher-than-expected price reflects the developers’ confidence that the city’s luxury home market will rebound after the pandemic. Wharf also bought the adjacent residential site for HK$12 billion in December

The 54,541 square-foot site can produce a maximum of about 144,970 square feet of floor area. The bidding price translates into HK$50,011 per square foot for the prime land plot, the highest on record for a residential site sold in government tenders.

The plot was previously valued by Midland IC&I Ltd at HK$6.8 billion.

The higher-than-expected price reflects the developers’ confidence that the city’s luxury home market will rebound after the pandemic. Prices of high-end residential properties in Hong Kong fell last year as cross-border travel restrictions made mainland buyers scant.

Luxury home prices dropped 8 percent in 2020, more than the 1 percent decline in the mass market, data from Jones Lang LaSalle Inc show.

Wharf also bought the adjacent residential site for HK$12 billion in December.

ALSO READ: Luxury properties from HK to New York are getting cheaper

Bidders in the tender that missed out included CK Asset Holdings Ltd, Henderson Land Development Co, Sun Hung Kai Properties Ltd and K Wah International Holdings Ltd.

Reference