HONG KONG, July 21, 2011 /PRNewswire-Asia/ -- The tender invitation for the land Lots 55A in Tung Chung is closing this Friday (July 22) and is expecting an overwhelming bidding response from developers. Cushman & Wakefield estimated that the value of this land is about HKD 3.554 billion, representing an approximate accommodation value of HKD 2,600 per sq.ft. It is also projected that the site could be developed into a project with ten 42-storey buildings. The gross unit rate is estimated at HKD 6,000 per sq. ft.
Mr. Vincent Cheung, National Director - Greater China, Valuation & Advisory Services of Cushman & Wakefield, reflected that the Tung Chung site takes up a land of over 273,406 sq.ft., which allows a gross floor area of over 1.3 million square feet with a plot ratio of 5. The site could provide at least 2,020 units. To meet the demand for small to medium size residential units, the government has set requirements for the Tung Chung site to provide at least 1,650 units with sizes ranging from 377 sq.ft. to 484 sq.ft.; and 370 units with sizes ranging from 484 sq.ft. to 646 sq.ft. Cheung pointed out that, it was said earlier that the 55A land overlaps with Tung Chung Centre Zoning Outline, and that part of Lot 55A will be reserved for the construction of the adjacent Road L3. The Lands Department clarified that the Zoning Plan was drawn on a scale of 1:5000, while the site plan in tender document was drawn on a scale of 1:2000, thus the latter is a more accurate measurement. Cushman & Wakefield commented that the Government has made clear clarification and therefore, the site boundary itself does not affect the plot ratio and potential gross floor area. The Government also specified that the successful bidder will not be responsible for the maintenance costs of the Road L3. Therefore, the doubt mentioned above will not have any impact on the land valuation.
Mr. Vincent Cheung speculates that Nam Fung Group, who acquired Lots 55B near the site earlier, will be more aggressive than the other developers in bidding. By developing both sites together, design and sales could be synchronized. In addition, Cheung Kong (Holdings) and HKR International, both having residential projects nearby, are also believed to participate in the bidding. However, Chief Executive Mr. Donald Tsang remarked at a recent inspection in Tung Chung, that the Government is planning to build public housing at site 56A. Cheung feels that developers will be more cautious towards the tender invitation and offering price in the bid for site 55A as the public housing development at site 56A recently announced by Mr. Donald Tsang, Chief Executive, will have some impact on the marketing strategies for the adjacent 55A project.
Appendix: Site valuation and estimated project scale by Cushman & Wakefield
| Land Value | HKD3,554,000,000 |
| Buildable Area Sales Price (per sq.ft.) | HKD2,600 |
| Estimated Unit Sales Price (per sq.ft.) | HKD6,000 |
| Number of Small Units (377 to 484 sq.ft.) | 1,650 |
| Number of Medium Units (484 to 646 sq.ft.) | 879 |
| Total Number of Units | 2,529 |
| Number of Blocks | 10 |
| Number of Floors per Block | 42 |
About Cushman & Wakefield
Cushman & Wakefield is the world's largest privately-held commercial real estate services firm. Founded in 1917, it has 234 offices in 61 countries and more than 13,000 employees. The firm represents a diverse customer base ranging from small businesses to Fortune 500 companies. It offers a complete range of services within five primary disciplines: Transaction Services, including tenant and landlord representation in office, industrial and retail real estate; Capital Markets, including property sales, investment management, investment banking, debt and equity financing; Client Solutions, including integrated real estate strategies for large corporations and property owners, Consulting Services, including business and real estate consulting; and Valuation & Advisory, including appraisals, highest and best use analysis, dispute resolution and litigation support, along with specialized expertise in various industry sectors. A recognized leader in global real estate research, the firm publishes a broad array of proprietary reports available on its online Knowledge Center at www.cushmanwakefield.com.
