Hysan, Chinachem’s HK$19.8 billion bid wins first plot of land in Causeway Bay to be auctioned by Hong Kong government since 1997
- The price is much higher than expected and shows developers’ confidence in the outlook for Hong Kong’s office market, analysts said
- A joint venture set up by the two developers won the plot on Caroline Hill Road for HK$18,400 per square foot, the Lands Department said on Wednesday
Patchway Holdings (HK), a joint venture set up by Hysan and Chinachem’s Chime Corporation won the plot on Caroline Hill Road for about HK$18,400 per square foot, the Lands Department said on Wednesday. Hysan already owns the Lee Gardens luxury shopping centre in Causeway Bay.
The price tag for the new parcel of land is 15 per cent above market estimates that ranged between HK$11 billion and HK$17.2 billion.
“The project significantly expands the scale of the Lee Gardens portfolio and reinforces Hysan’s leading position in Causeway Bay ... The company believes Hong Kong will remain a major international city and benefit from China’s strong economic momentum,” said Irene Lee Yun-lien, who chairs Hysan Development, in a filing to the Hong Kong stock exchange on Wednesday evening.
Hysan Development, the biggest landlord in the city’s famous Causeway Bay shopping district, holds a 60 per cent stake in the joint venture and will pay HK$11.867 billion for the land, while Chime Corporation controls the remaining 40 per cent. The winning bid was enough to see off competition that included Hong Kong’s two biggest developers, Sun Hung Kai Properties and CK Asset Holdings.
