CK Property bags last waterfront site at Lohas Park

CK Property bags last waterfront site at Lohas Park

Cheung Kong Property Holdings gained more land in Lohas Park in Tseung Kwan O with the land premium at a new high.

The land premium for the site, which could yield a total gross floor area of 1.04 million sq ft, was HK$2.955 billion, or HK$2,830 per square foot – a record for Lohas Park.

The developer outbid five others and won the site in Tseung Kwan O at a HK$2.95 billion land premium, or HK$2,830 per sq ft, the highest among sites in Lohas Park.

The executive director of CK Property, Grace Woo Chia-ching, said HK$10 billion will be invested in the project. The site’s buildable area is more than 11 million sq ft, which will provide at least 1,430 flats in three towers. MTR (0066) required a 15 percent share of profit from the developer.

Earlier accusations that the move has anything to do with  that its chairman Li Ka-shing is pulling investment from Hong Kong and the mainland has been denied by the developer.

MTR Corp said Albany Investments, a subsidiary of CK Property, had won the contract for phase eight of Lohas Park.

“CK Property participated in the tender for the previous four phases but lost out to rivals,” Centaline Professionals chief executive Victor Lai Kin-fai said. “It needed to be more aggressive if it wanted to return to the area, which has become more developed. More importantly, CK did not want to miss the chance of securing the last waterfront site at Lohas Park.”

The phase is closest to the MTR station and has a first-line seaview. With a land premium highest among sites in Lohas Park, Woo said the location makes it one of the best in the area.

Surveyors said the construction cost per square foot is about HK$4,000 and the site is likely to be developed into mid-sized units. The per sq ft price will be above HK$13,000, with the minimum price per unit HK$7 million, a 20 percent increase on other units at Lohas Park.

After CK Property won the phase one development, it later teamed up with Nan Fung Development to develop phases two and three in 2006 and 2007. It was involved in building 8,000 units in the first three phases.

In the past two years, CK Property has been beaten by rivals in the tendering for phases four to seven.

The phase four development went to Sun Hung Kai Properties, phase five and seven to Wheelock Properties and phase six to Nan Fung.

It is the fourth time the developer has made an investment at Lohas Park, starting in 2005.

It acquired the development rights for the first three phases.

Afterward, Sun Hung Kai Properties (0016), Wheelock (0020) and Nan Fung Group joined in by winning sites for development, so yesterday’s move marks a comeback for CK Property at Lohas Park after eight years.

By further extending development in Phase Eight, it will be responsible for a total of 9,447 units, or 58 percent of the flats at Lohas Park.

Wheelock, Sun Hung Kai Properties, Henderson Land (0012), a joint venture from mainland-based Vanke Property (Hong Kong), Sino Land (0083), K Wah International (0173) and Wing Tai Property (0369) and another joint investment led by New World (0017) also bid for the project.

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