Henderson Land wins Sheung Shui site, sells Kowloon Building

Bid is a whoping $2.9b.

According to Barclays, Henderson Land beat 12 other developers to win the bidding for a residential site in Sheung Shui with a bid of HK$2.888bn.

With 555,401sf GFA, the winning bid works out to HK$5,200psf and was 30% above the high end of the surveyors’ estimate of HK$2,800-4,000psf.

Here's more from Barclays:

Adjacent to the Hong Kong Golf Club, the site enjoys a view of the golf club. The higher-than-expected land price was also attributable to its proximity to the future Kwu Tung railway station on the Lok Ma Chau Spur Line, which will link the site to both the rest of Hong Kong and Mainland China.

Although the site carries the unit restriction of at least 515 units, the developer will still be able to build large units of about 1,000sf on the site.

Henderson Land estimated the total investment cost at HK$5bn. Assuming 10% GFA inflation and a 20% margin, the selling price would be HK$10,500psf (on GFA basis), compared with the secondary price of HK$9,300psf at Valais nearby.

The development is set to complete in 3Q19. Another residential site in Tsing Lung Tau, Tsuen Wan, was awarded to Nan Hua International Engineering (the Hong Kong branch of China Metallurgical Group Corp.) at HK$500mn, or HK$3,788psf.

The 52,300sf site could yield a total of 132,042sf GFA. The winning bid was close to the high end of the surveyors’ estimate of HK$3,200-4,000psf.