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Hong Kong sells Causeway Bay site for $2.5B
Sale of 159,330 sf property seen as sign of confidence for market
New York Weekend Edition /
TRD Staff
The parcel of land in Causeway Bay (Google Maps)
The Hong Kong government auctioned a parcel of land in Causeway Bay this week for the first time since 1997, and it sold for much more than expected.
Hysan Development Co. and Chinachem Group paid the equivalent of $2.5 billion for the 159,330-square-foot property, according to Bloomberg. Midland IC&I most recently valued the property on Caroline Hill Road at around $1.9 billion.
(May 12): Hong Kong sold a rare land parcel in the Causeway Bay area for a higher-than-expected price, a sign of recovery for the city’s commercial real estate market.
The government sold the site to Hysan Development Co and Chinachem Group for HK$19.8 billion (US$2.5 billion) in a public tender, according to a statement. That exceeds a previous valuation of about HK$15 billion by Midland IC&I Ltd, reflecting optimism from developers that Hong Kong’s office and retail markets will rebound.
The 14,802-square-meter (159,330 square-foot) land plot provides a rare opportunity to build new commercial property in a prime shopping district. It can yield a maximum of 100,000 square meters of floor area. However, the premium site comes with demanding clauses, including retaining a portion for community facilities and 125 public car parking spaces.