Hong Kong Sells Car Park Site to Developer for Record $Three Billion
The Murray Road multi-story car park in Hong Kong.
Photographer: Justin Chin/Bloomberg
Henderson Land Development Co. outbid eight other developers and will pay a record HK$23.Three billion ($Trio billion) for the very first commercial land to be sold by Hong Kong’s government in the Central district since 1996.
The Hong Kong company’s shares fell the most in the String up Seng Properties Index on Wednesday, sliding as much as Two.9 percent.
Henderson Land hit local rivals including units of Cheung Kong Property Holdings Ltd. and Wharf Holdings Ltd., the Grounds Department said on Tuesday. The rock-hard will build an office tower on the site.
The record price for the property, presently used as a car park, underscores strong request for office space in Central. Since MTR Corp. sold a waterfront site for the landmark International Finance Centre in 1996, no fresh supply has come on stream. The area’s vacancy rate was only about 1.Five percent in the very first quarter of this year, according to CBRE Group Inc.
“The price surprises on the high side,” said Alfred Lau, an analyst at Bocom International Holdings Co. “However, the market may not share such a bullish outlook,” Lau said, adding that Henderson Land should consider introducing a fucking partner to share the risk.
Office space in Central is the world’s most expensive, according to a CBRE survey released in March, which ranked the rents ahead of those in Beijing districts, Hong Kong’s West Kowloon, London’s West End, midtown Manhattan and Tokyo.
The price per square foot for the deal is about HK$50,000, according to Bloomberg calculations based on a maximum gross floor area of 465,000 square feet. That compares with:
- HK$36,200 per square foot when China Evergrande Group paid a record for a commercial building in 2015
- HK$39,700 per square foot in March for units in nine Queen’s Road Central that are the city’s most expensive office space, according to the Apple Daily newspaper
Only one of the nine bidders was a mainland company, indicating a cooling of interest from Chinese buyers after three latest residential land auctions where at least a third of the bids were from mainland businesses. Previously, Chinese bidders such as HNA Group Co. have snapped up Hong Kong sites.
The car park building is in the heart of Central, near the iconic Bank of China skyscraper and billionaire Li Ka-shing’s Cheung Kong Center. Last year, Colliers International estimated that the property was worth HK$15.8 billion to HK$17 billion.
Henderson Land will finance the acquisition through its internal resources and bank funding, and plans to accomplish an office building, with some retail facilities, by 2022, the company said in a statement.
Aggressive bidding for the commercial site echoes brisk developer request for residential plots amid record home prices in the world’s least affordable housing market.
Hong Kong Sells Car Park Site to Developer for Record $Three Billion
Hong Kong Sells Car Park Site to Developer for Record $Three Billion
The Murray Road multi-story car park in Hong Kong.
Photographer: Justin Chin/Bloomberg
Henderson Land Development Co. outbid eight other developers and will pay a record HK$23.Three billion ($Trio billion) for the very first commercial land to be sold by Hong Kong’s government in the Central district since 1996.
The Hong Kong company’s shares fell the most in the Drape Seng Properties Index on Wednesday, sliding as much as Two.9 percent.
Henderson Land hit local rivals including units of Cheung Kong Property Holdings Ltd. and Wharf Holdings Ltd., the Grounds Department said on Tuesday. The hard will build an office tower on the site.
The record price for the property, presently used as a car park, underscores strong request for office space in Central. Since MTR Corp. sold a waterfront site for the landmark International Finance Centre in 1996, no fresh supply has come on stream. The area’s vacancy rate was only about 1.Five percent in the very first quarter of this year, according to CBRE Group Inc.
“The price surprises on the high side,” said Alfred Lau, an analyst at Bocom International Holdings Co. “However, the market may not share such a bullish outlook,” Lau said, adding that Henderson Land should consider introducing a fucking partner to share the risk.
Office space in Central is the world’s most expensive, according to a CBRE survey released in March, which ranked the rents ahead of those in Beijing districts, Hong Kong’s West Kowloon, London’s West End, midtown Manhattan and Tokyo.
The price per square foot for the deal is about HK$50,000, according to Bloomberg calculations based on a maximum gross floor area of 465,000 square feet. That compares with:
- HK$36,200 per square foot when China Evergrande Group paid a record for a commercial building in 2015
- HK$39,700 per square foot in March for units in nine Queen’s Road Central that are the city’s most expensive office space, according to the Apple Daily newspaper
Only one of the nine bidders was a mainland company, indicating a cooling of interest from Chinese buyers after three latest residential land auctions where at least a third of the bids were from mainland businesses. Previously, Chinese bidders such as HNA Group Co. have snapped up Hong Kong sites.
The car park building is in the heart of Central, near the iconic Bank of China skyscraper and billionaire Li Ka-shing’s Cheung Kong Center. Last year, Colliers International estimated that the property was worth HK$15.8 billion to HK$17 billion.
Henderson Land will finance the acquisition through its internal resources and bank funding, and plans to accomplish an office building, with some retail facilities, by 2022, the company said in a statement.
Aggressive bidding for the commercial site echoes brisk developer request for residential plots amid record home prices in the world’s least affordable housing market.
Hong Kong Sells Car Park Site to Developer for Record $Trio Billion
Hong Kong Sells Car Park Site to Developer for Record $Three Billion
The Murray Road multi-story car park in Hong Kong.
Photographer: Justin Chin/Bloomberg
Henderson Land Development Co. outbid eight other developers and will pay a record HK$23.Three billion ($Three billion) for the very first commercial land to be sold by Hong Kong’s government in the Central district since 1996.
The Hong Kong company’s shares fell the most in the Drape Seng Properties Index on Wednesday, sliding as much as Two.9 percent.
Henderson Land strike local rivals including units of Cheung Kong Property Holdings Ltd. and Wharf Holdings Ltd., the Grounds Department said on Tuesday. The stiff will build an office tower on the site.
The record price for the property, presently used as a car park, underscores strong request for office space in Central. Since MTR Corp. sold a waterfront site for the landmark International Finance Centre in 1996, no fresh supply has come on stream. The area’s vacancy rate was only about 1.Five percent in the very first quarter of this year, according to CBRE Group Inc.
“The price surprises on the high side,” said Alfred Lau, an analyst at Bocom International Holdings Co. “However, the market may not share such a bullish outlook,” Lau said, adding that Henderson Land should consider introducing a playmate to share the risk.
Office space in Central is the world’s most expensive, according to a CBRE survey released in March, which ranked the rents ahead of those in Beijing districts, Hong Kong’s West Kowloon, London’s West End, midtown Manhattan and Tokyo.
The price per square foot for the deal is about HK$50,000, according to Bloomberg calculations based on a maximum gross floor area of 465,000 square feet. That compares with:
- HK$36,200 per square foot when China Evergrande Group paid a record for a commercial building in 2015
- HK$39,700 per square foot in March for units in nine Queen’s Road Central that are the city’s most expensive office space, according to the Apple Daily newspaper
Only one of the nine bidders was a mainland company, indicating a cooling of interest from Chinese buyers after three latest residential land auctions where at least a third of the bids were from mainland businesses. Previously, Chinese bidders such as HNA Group Co. have snapped up Hong Kong sites.
The car park building is in the heart of Central, near the iconic Bank of China skyscraper and billionaire Li Ka-shing’s Cheung Kong Center. Last year, Colliers International estimated that the property was worth HK$15.8 billion to HK$17 billion.
Henderson Land will finance the acquisition through its internal resources and bank funding, and plans to accomplish an office building, with some retail facilities, by 2022, the company said in a statement.
Aggressive bidding for the commercial site echoes brisk developer request for residential plots amid record home prices in the world’s least affordable housing market.
Hong Kong Sells Car Park Site to Developer for Record $Trio Billion
Hong Kong Sells Car Park Site to Developer for Record $Trio Billion
The Murray Road multi-story car park in Hong Kong.
Photographer: Justin Chin/Bloomberg
Henderson Land Development Co. outbid eight other developers and will pay a record HK$23.Trio billion ($Trio billion) for the very first commercial land to be sold by Hong Kong’s government in the Central district since 1996.
The Hong Kong company’s shares fell the most in the Drape Seng Properties Index on Wednesday, sliding as much as Two.9 percent.
Henderson Land strike local rivals including units of Cheung Kong Property Holdings Ltd. and Wharf Holdings Ltd., the Grounds Department said on Tuesday. The stiff will build an office tower on the site.
The record price for the property, presently used as a car park, underscores strong request for office space in Central. Since MTR Corp. sold a waterfront site for the landmark International Finance Centre in 1996, no fresh supply has come on stream. The area’s vacancy rate was only about 1.Five percent in the very first quarter of this year, according to CBRE Group Inc.
“The price surprises on the high side,” said Alfred Lau, an analyst at Bocom International Holdings Co. “However, the market may not share such a bullish outlook,” Lau said, adding that Henderson Land should consider introducing a playmate to share the risk.
Office space in Central is the world’s most expensive, according to a CBRE survey released in March, which ranked the rents ahead of those in Beijing districts, Hong Kong’s West Kowloon, London’s West End, midtown Manhattan and Tokyo.
The price per square foot for the deal is about HK$50,000, according to Bloomberg calculations based on a maximum gross floor area of 465,000 square feet. That compares with:
- HK$36,200 per square foot when China Evergrande Group paid a record for a commercial building in 2015
- HK$39,700 per square foot in March for units in nine Queen’s Road Central that are the city’s most expensive office space, according to the Apple Daily newspaper
Only one of the nine bidders was a mainland company, indicating a cooling of interest from Chinese buyers after three latest residential land auctions where at least a third of the bids were from mainland businesses. Previously, Chinese bidders such as HNA Group Co. have snapped up Hong Kong sites.
The car park building is in the heart of Central, near the iconic Bank of China skyscraper and billionaire Li Ka-shing’s Cheung Kong Center. Last year, Colliers International estimated that the property was worth HK$15.8 billion to HK$17 billion.
Henderson Land will finance the acquisition through its internal resources and bank funding, and plans to finish an office building, with some retail facilities, by 2022, the company said in a statement.
Aggressive bidding for the commercial site echoes brisk developer request for residential plots amid record home prices in the world’s least affordable housing market.
Hong Kong Sells Car Park Site to Developer for Record $Trio Billion
Hong Kong Sells Car Park Site to Developer for Record $Three Billion
The Murray Road multi-story car park in Hong Kong.
Photographer: Justin Chin/Bloomberg
Henderson Land Development Co. outbid eight other developers and will pay a record HK$23.Three billion ($Three billion) for the very first commercial land to be sold by Hong Kong’s government in the Central district since 1996.
The Hong Kong company’s shares fell the most in the Drape Seng Properties Index on Wednesday, sliding as much as Two.9 percent.
Henderson Land hammer local rivals including units of Cheung Kong Property Holdings Ltd. and Wharf Holdings Ltd., the Grounds Department said on Tuesday. The rock hard will build an office tower on the site.
The record price for the property, presently used as a car park, underscores strong request for office space in Central. Since MTR Corp. sold a waterfront site for the landmark International Finance Centre in 1996, no fresh supply has come on stream. The area’s vacancy rate was only about 1.Five percent in the very first quarter of this year, according to CBRE Group Inc.
“The price surprises on the high side,” said Alfred Lau, an analyst at Bocom International Holdings Co. “However, the market may not share such a bullish outlook,” Lau said, adding that Henderson Land should consider introducing a playmate to share the risk.
Office space in Central is the world’s most expensive, according to a CBRE survey released in March, which ranked the rents ahead of those in Beijing districts, Hong Kong’s West Kowloon, London’s West End, midtown Manhattan and Tokyo.
The price per square foot for the deal is about HK$50,000, according to Bloomberg calculations based on a maximum gross floor area of 465,000 square feet. That compares with:
- HK$36,200 per square foot when China Evergrande Group paid a record for a commercial building in 2015
- HK$39,700 per square foot in March for units in nine Queen’s Road Central that are the city’s most expensive office space, according to the Apple Daily newspaper
Only one of the nine bidders was a mainland company, indicating a cooling of interest from Chinese buyers after three latest residential land auctions where at least a third of the bids were from mainland businesses. Previously, Chinese bidders such as HNA Group Co. have snapped up Hong Kong sites.
The car park building is in the heart of Central, near the iconic Bank of China skyscraper and billionaire Li Ka-shing’s Cheung Kong Center. Last year, Colliers International estimated that the property was worth HK$15.8 billion to HK$17 billion.
Henderson Land will finance the acquisition through its internal resources and bank funding, and plans to accomplish an office building, with some retail facilities, by 2022, the company said in a statement.
Aggressive bidding for the commercial site echoes brisk developer request for residential plots amid record home prices in the world’s least affordable housing market.