A consortium formed by New World Development, Chow Tai Fook Enterprises and Singapore businessman Wee Cho Yaw has outbid six rivals to win Tseung Kwan O MTR Station's HK$2 billion residential development.
New World chairman Cheng Yu-tung said yesterday that New World would hold a 45 per cent stake in the consortium and Chow Tai Fook 30 per cent.
The Wee family, one of the major shareholders of United Overseas Bank of Singapore, would take the remaining 25 per cent through its private vehicle Wee Investments.
MTR Corp property director Thomas Ho Hang-kwong said the winning consortium offered profit sharing of more than 25 per cent with the MTRC. He said the railway firm would launch another residential project in Hang Hau Station within two months.
Hampton Victoria Properties director Simon Chow said Wee Investments' move represented Singapore companies' continuing interest in the Hong Kong property market.
He said Singapore developers wanted to diversify their investments as the domestic market had become saturated. Mr Chow said low interest rates would help New World achieve a 30 per cent profit margin after MTRC's share even if the price was at HK$2,500 to HK$2,600 per square foot.