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UPDATE: Sun Hung Kai unit clinches tender for Hong Kong's priciest land

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UPDATE: Sun Hung Kai unit clinches tender for Hong Kong's priciest land

Listed diversified developer Sun Hung Kai Properties Ltd., through its Super Great Ltd. subsidiary, won the 50-year land grant to the most expensive land parcel in Hong Kong after it successfully placed an estimated HK$25.16 billion bid, the South China Morning Post reported.

Hong Kong's Lands Department said the winning tenderer outbid four other parties to clinch the roughly 16,556-square-meter New Kowloon Inland Lot No. 6568 site in the Kai Tak area of Kowloon. Unsuccessful bidders include subsidiaries of CK Asset Holdings Ltd. and Henderson Land Development Co. Ltd., and two separate consortiums involving Sino Land Co. Ltd., Kerry Properties Ltd., K. Wah International Holdings Ltd., Lifestyle International Holdings Ltd., Wheelock Properties Ltd., New World Development Co. Ltd. and China Overseas Land & Investment Ltd.

The nonindustrial plot in the former Kai Tak airport site has minimum and maximum gross floor areas of 78,897 square meters and 131,495 square meters, respectively. Factored into both measurements is the space allocated for residential care homes and senior day centers, the government agency noted.

According to a statement by Sun Hung Kai, a deposit of HK$25.0 million was paid at the time of the tender submission, with the balance to be paid within 28 days of the acceptance of the tender by the Lands Department. The developer is expected to inject a total of about HK$40 billion for the site, which can yield a gross floor area of 1.42 million square feet, according to the May 15 SCMP report.

The land premium will be funded by a mix of the group's internal resources and bank borrowings, the winning developer said in its statement.

Meanwhile, projections for soon-to-be-tendered plots in the Kai Tak area have also received a boost in light of Sun Hung Kai's impending record purchase, SCMP added. Vincent Cheung Kiu-cho, deputy managing director for Asia valuations and advisory services at Colliers International, was cited in the report as expecting the said plots to cost HK$20,000 per square foot.