Billion Real Estate won a residential site in Tai Po yesterday for HK$4.023 billion, with the price being within expectations.
King Future, a unit of Billion, beat out 12 other parties, including several large developers such as Cheung Kong Property (1113), Henderson Land (0012), Wheelock (0020) and Sun Hung Kai Properties (0016), which partnered with Sino Land (0083) to bid for the site.
Situated in Pak Shek Kok, the plot has a site area of 308,765 square feet and a maximum gross floor area of 1.11 million sq ft, giving a plot ratio of 3.6 times.
The bid is close to the lower end of market estimates of HK$3.78 billion to HK$4.45 billion.
The bid of HK$3,620 per buildable square foot is about 20 percent lower than another plot nearby won by K Wah International (0173) last September.
In 2014, Hong Kong-based Billion acquired a neighboring site on Fo Chun Road for HK$2.54 billion. That site is expected to provide about 800 flats.
Lai Yu-chung, project planning manager of Billion Development and Project Management, said the two sites can create synergy in the district. Lai said the developer had considered the downturn in the local real estate market before making its bid. The site will mainly offer three and four-bedroom units.
Midland Surveyors director Alvin Lam Tsz-pun said the final bid shows the developer was aggressive.
With the two neighboring sites, the developer is more flexible on property design and sale strategies.
Lam noted the deteriorating outlook for property will pressure developers bidding for sites in the vicinity.
Billion Real Estate is a unit of Billion Development and Project Management, founded by Yu Cheuk-yi. Yu is also a substantial shareholder of Lai Sun International (0191), another local developer.
HK$4b Tai Po site sold