2024-05-14 28Hse Editor
No enthusiastic conditions were seen after 6 bids were received, and there was a big gap in valuation
The tender for the Caroline Hill Road project in Causeway Bay, a large commercial site, closed yesterday and received 6 tenders. However, the scale of the land this time is huge, with a floor space of up to 1.076 million square feet that can be built with a valuation of 11 billion to 17.2 billion yuan. The epidemic has plunged the retail industry into a cold winter, and it has also changed the business model of business. Many companies have reduced office space. In addition, the project has a number of additional conditions for the provision of public facilities and conservation, which may result in a gap in valuation between the government and the consortium. Some surveyors have bluntly stated that the land is at risk of being out of mark. reporter Yan Lunle
Caroline Hill Road’s commercial land is expensive and it is located in the core retail area of Causeway Bay. However, it did not happen at the right time and was launched on the market before the epidemic had ended. This affected the land valuation to a certain extent and increased the risk of losing bids. The project closed the tender yesterday, and the Lands Department announced that it had received 6 tenders, but the number was too small. The bidding consortium includes Cheung Kong, SHKP, Wheelock Properties, Link, and the regional landlord Hysan and Chinachem entered the bid, and Sino Land also cooperated with Life International (the parent company of Sogo Department Store SOGO), Kerry and Zhongyu Place the land into the bid.
Hysan and Chinachem
Cai Hongxing, chief executive of Chinachem Group, said yesterday that this cooperation with Hysan in the bidding is mainly for optimistic about the economic prospects of Hong Kong and will continue to bid for commercial and residential land in competitive locations in the future. Although there were many commercial landmarks and increased supply in the past, commercial projects in various districts have different sources of customers. Its partner Hysan has also successfully developed many office and retail projects in Causeway Bay. It is believed that as the global economy gradually recovers, commercial projects The event recurs, and the demand for office buildings in various industries in Hong Kong remains strong.
Link CEO Wang Guolong said that Hong Kong is Link's base and core market. This tender reflects full confidence in Hong Kong's prospects. This time, he entered the bid as a sole proprietor. At the same time, he also seeks joint venture partners and is open to the joint development model.
It can be built 1.07 million square feet and the valuation is up to 17.2 billion
The land of the project is located opposite to Phase 6 of Leighton Dowley Park, close to Hysan's commercial building kingdom. It covers an area of approximately 159,000 square feet and can build up to 1.076 million square feet of floor space, including the construction of 3 government properties with net floor area. No less than 20,800 square feet, each of which is a child care center, day care center for the elderly, district health center and related parking facilities. The relevant expenses are paid by the government. In addition, it is necessary to build a public car park with 125 parking spaces and provide a public open space of not less than 64,584 square feet, but the two sites do not need to be included in the construction area. As for the store-related floor area, it should not exceed 107,640 square feet.
The project is not for sale and the development period ends on September 30, 2029. The current market valuation is between 11 billion and 17.2 billion yuan, and the land price per square foot is about 10,000 to 16,000 yuan. Although the land is located in Causeway Bay, Zhang Qiaochu, the managing director of Hongliang Consulting and Appraisal, is not optimistic. He believes that office rents in the area have fallen sharply, and the vacancy rate is as high as 9%. And the land is partialFrom the core area of Causeway Bay, the estimated value is 11 billion yuan, which is the lower limit of the market.
Non-disposable, need to build government facilities
In addition, the land sale regulations require the winning consortium to conserve ancient trees and retaining stone walls, increasing development costs. In addition, developers need to build a pedestrian bridge led by private owners to connect the Lee Garden Phase VI held by Hysan Development. He believes that consortiums other than Hysan may be more cautious in bidding, which increases the risk of bid failure. But he also pointed out that if it is properly shaped, the project is also expected to become the second Times Square. On the other hand, there will be new office supply in Central, Wan Chai, Admiralty, etc. in the future, which will bring additional competition and will also affect the cost of land.
According to the information, the commercial site of Caroline Hill Road involves the former headquarters of the Electrical and Mechanical Services Department and the surrounding recreational land. In 2018, it was divided into two parts for development by the Planning Department. The southern site will be allocated as a new district court complex for the relocation of Wan Chai The District Court and the Land Tribunal on Gascoigne Road in Kowloon and other facilities, and the northern site is the project for this tender.
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