URA will launch HK$386mil hotel site in Tai Kok Tsui

Projects, Slider 02 Apr 2015
URA will launch HK$386mil hotel site in Tai Kok Tsui

The Urban Renewal Authority will launch a hotel site next month in Tai Kok Tsui, valued at around HK$386 million.

Located between Fuk Tsun Street and Anchor Street and midway between the Olympic and Mong Kok MTR stations, the plot is about 7,800 square feet and has a total gross floor area of more than 70,000 sq ft.

It is expected to be the site of a 23-story three- to four-star hotel with 200 rooms by 2019. It marks the first URA non-residential redevelopment project.

The URA initiated the project in 2008, when it was valued at HK$370 million.

Vincent Cheung Kiu-cho, a surveyor at Cushman & Wakefield, said the plot is likely to sell for about HK$5,500 per sq ft, which translates to about HK$386 million.

The supply and demand for mid-end hotels has been stable, although the fall in mainland visitors has had some impact on the sector. Developers may submit expressions of interest on or before April 15.

Meanwhile, a Kwun Tong redevelopment project under the URA demand-led scheme will proceed after getting 92 percent approval of the plan by property owners.

With a gross floor area of more than 64,000 sq ft for residential use, the project is expected to lead to 115 units by 2022.

Another URA site in Sham Shui Po, secured by Emperor International (0163) on Tuesday, may lead to flats being sold for up to HK$16,000 per sq ft, Emperor executive director Donald Cheung Ping-keung said.

The URA last year acquired the site at an average HK$9,400 per sq ft, a price based on the value of a seven-year-old flat in a building of comparable quality.

Cheung said he is not worried about recent personnel changes at the URA.

Development Secretary Paul Chan Mo- po said Chief Executive Leung Chun-ying has accepted the resignation of URA managing director Iris Tam Siu-ying. A replacement must be found urgently, Chan said.

Chairman Victor So Hing-woh, who triggered Tam’s resignation because of fundamental differences over the URA, said he has the same mission as Tam, but they differ over its execution.

 

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