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Henderson Land
Business

Henderson continues to build up its land bank in Hong Kong, invests over US$1.1 billion in redevelopment projects

  • Land Tribunal approves application from Henderson to buy out a building in To Kwa Wan earmarked for development for HK$962 million
  • In September, Hong Kong’s third largest developer won another redevelopment project offered by the Urban Renewal Authority in the same area for HK$8.2 billion

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The building in To Kwa Wan Henderson Land has acquired for redevelopment. Photo: Handout
Sandy Li
Henderson Land Development, which earlier this month bid a record HK$50.8 billion (US$6.5 billion) for a harbourfront commercial plot in Hong Kong, is gradually boosting its land bank in other parts of the city.
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Hong Kong’s third largest developer by market capitalisation has invested more than HK$9 billion in Kowloon’s To Kwa Wan area since the MTR station opened in June.

Henderson on Tuesday completed the acquisition of a 100 per cent stake in a 61-year-old eight-storey residential building under the Land (Compulsory Sale for Redevelopment) Ordinance through its wholly owned subsidiary Asia Bright Enterprises. The Land Tribunal approved an application from Henderson to force a compulsory sale for the building at a reserve valuation of HK$962 million.

“We will redevelop the building with a focus on small to medium-sized flats,” said Augustine Wong Ho-ming, executive director of Henderson Land.

Augustine Wong Ho-ming, executive director of Henderson Land, attends the compulsory auction organised by JLL on Tuesday. Photo: Handout
Augustine Wong Ho-ming, executive director of Henderson Land, attends the compulsory auction organised by JLL on Tuesday. Photo: Handout

Developers are increasingly seeking redevelopment opportunities in urban areas in view of limited land supply from the government. Fifty-eight applications for compulsory sale orders were under process as of September. These applications have been increasing over the past couple of years, rising from 22 in 2019 to 27 in 2020, government data shows.

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The upcoming project on the site, located at the intersection of Lok Shan Road, Mei Wa Street and Ha Heung Road, will have a total gross floor area of 91,764 sq ft, with the valuation working out to HK$10,438 per square feet, according to JLL, the auctioneer for the compulsory sale.

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