Chun Wo’s One-Stop Project Development Strategy Successfully Secures a Land Parcel In Ma On Shan For HK$2.14 Billion By Way of a Joint Venture
Chun Wo Development Holdings Limited has successfully secured a tender for a parcel of government land located at Yiu Sha Road, Whitehead, Ma On Shan, Sha Tin, in Hong Kong’s New Territories at a bid price of HK$2.14 billion by way of a joint venture, marking a new milestone in the Group’s property development business in Hong Kong.
The bidding was conducted through a joint venture by Chun Wo and China City Construction (International) Co., Limited. Chun Wo owns a 10% interest and will be responsible for the management, design, construction, sales and property management services of the overall project development, which realises its one-stop project development strategy. Since Chun Wo boasts comprehensive advantages in construction, the Group is able to control its construction and project costs effectively despite the general industry condition where the proportion of construction costs often exceeds the proportion of land cost in the total development costs. This edge is one of its important factors in winning the tender.
The total investment in the project amounts to more than HK$4 billion. The Ma On Shan land parcel is located at Lot no. 601, Sha Tin Town. It has a site area of approximately 253,000 sq. ft. and a plot ratio of about 1.53 times, with a buildable GFA of approximately 387,500 sq. ft. The parcel, overlooking the sea in Whitehead, is the last residential land parcel in Ma On Shan Whitehead district, Sha Tin, which the government can offer to public.
It enjoys a prime geographic location and overlooks three different spectacular views including Tolo Harbour, Starfish Bay and the recreational adjacent green space. The Group plans to develop quality low-rise to mid-rise residential projects with sea view on the land parcel, with a preliminary plan of building more than 400 residential units. The project is expected to commence pre-sale in early 2017 at the earliest and to be completed by mid-2018, targeting the buyers who are interested to look for a high quality residence and place high priority on a naturally scenic living environment.
Mr. Dominic Pang, Chairman of Chun Wo, said,
“Attracted by our considerable construction resources and extensive technical expertise, Chun Wo has been approached by many developers to collaborate in the development of projects. Chun Wo carefully evaluates these cooperation opportunities and deeply believes that this opportunity presents an ideal way to participate in large-scale projects at a lower cost with reduced risks. Looking ahead, we will continue to carefully consider bidding for new projects which match the Group’s experience, resources and capabilities. We aim to develop Chun Wo into a top regional construction and property development company in Asia and to constantly enhance the Group’s revenue and profitability.”