In "Hong Kong Property," KERRY won the residential land on Shau Kei Wan East Street for HKD 1.38 billion, with a floor price exceeding HKD 9,300, surpassing the valuation cap

The Lands Department announced today (16th) that a piece of land located at No. 860, Shau Kei Wan East Street, Hong Kong, has been granted to Fine Century Holdings Limited (parent company: KERRY PPT (00683.HK)) for HKD 1.383899 billion, with a lease term of fifty years. The company was the highest bidder.

The land is adjacent to the MTR Shau Kei Wan Station and the tram terminus, with a site area of approximately 14,500 square feet. The residential floor area cap exceeds 130,000 square feet, but the total floor area cap is calculated based on the method that requires a minimum of 3 floors to be non-residential, reserving approximately 43,000 square feet for non-residential floor area, reducing the residential floor area cap to 105,000 square feet, with a total floor area of about 148,000 square feet, resulting in a floor area price of approximately HKD 9,343 per square foot.

The tender for the land closed last Friday, receiving 8 bids. According to the land sale regulations, the residential floor area cap for the site is approximately 130,700 square feet, but the government also requires that the minimum of 3 floors must be for non-residential use, with the floors above being for residential use, and must be calculated according to a specified formula. Based on this estimate, the site is expected to have a buildable floor area of approximately 148,100 square feet for commercial and residential development.

Comprehensive market forecasts estimate the market value of the site to be approximately HKD 790 million to 1.19 billion, equivalent to a land price of approximately HKD 5,300 to 8,000 per square foot