Consortium snaps up land for HK$4.55b
A consortium led by Nan Fung Development and Sino Land paid HK$4.55 billion for a 238,164-sq-ft residential site in the New Territories auctioned by the Hong Kong government on Monday.
It was 48 percent above the asking price, and in line with analysts' estimates.
Analysts had expected the Tai Po site in the New Territories to fetch as much as HK$4.6 billion, against a minimum guaranteed bid of HK$3.08 billion.
Sino Land and Nan Fung Group will each take a 35 percent share in a housing development on the site, which they estimate will require an investment of HK$5 billion to HK$6 billion.
The consortium, which bought two plots of land in the same area in a government auction in March, edged out rivals including New World Development and Wheelock Properties.
Chris Mills, the auctioneer representing the Lands Department, said the auction was very competitive, with 40 bids and eight bidders. "But the winning price is very reasonable and unlikely to cause any market fluctuation," said Mills.
Mills said the Land Department will keep assessing and evaluating applications for the sale of government land.
Property developers must submit an offer to buy a site at a price not lower than 80 percent of the government valuation to trigger an auction.
Investors keep a close eye on land auctions in Hong Kong as the government derives much of its income from land sales and because big developers account for a major weighting on the benchmark index.
(China Daily 09/20/2007 page15)
