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Old July 10th, 2012, 06:12 AM   #1
hkskyline
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HONG KONG | Tai Wai Station | Pro

MTR drops Tai Wai tender on costs
The Standard
Tuesday, July 10, 2012







MTR Corp (0066) has withdrawn its tender for the site atop Tai Wai Station as the three bids for the plot came in below expectation.

The move was prompted by fears that the company would fail to recoup the development cost of the site if any of the three was accepted.

Cheung Kong Holdings (0001), Henderson Land Development (0012) and Sun Hung Kai Properties (0016) bid for the site.

The plot has a gross floor area of 521,100 square feet and a buildable area of 2.88 million sq ft, which could provide up to 2,900 units.

Developers have to pay a steep land premium of HK$12.7 billion, though MTR will be responsible for a third of it in return for mall operation rights and half the property rights.

MTR will review the development terms and hopes to invite fresh tenders within this fiscal year.

Midland Surveyors director Alvin Lam Tsz- pun believes similar new projects around the site and market uncertainty prompted the withdrawal.

He suggested that the MTR break the plot for tender so that less investment costs are involved.

Meanwhile, Henderson Land released the price list of its Sai Ying Pun project High West, with the first 70 units priced at an average of HK$14,293 per square foot. Of its 133 units, 103 are one-bedroom flats sized at 405 to 537 sq ft.

Cheung Kong will launch two-bedroom units at The Beaumount this week at the earliest after selling some 800 three-bedroom flats at the Tseung Kwan O project. The average price at HK$6,000 psf will be around 7 percent higher.
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Old July 11th, 2012, 03:25 PM   #2
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MTR Rejects Bids to Develop Tai Wai Project on Cost Concerns
Bloomberg
Jul 9, 2012 8:50 PM GMT+0800

MTR Corp. (66), Hong Kong’s rail operator, failed to find a partner to develop a property project atop a station after rejecting all bids filed by developers as too low.

The rail company “would be exposed to a substantial risk of not recovering the costs of the development” had it accepted any of the three tender offers received for the Tai Wai station project, according to a statement on its website today. MTR, which didn’t identify which developers submitted bids, may tender the project again by the end of the fiscal year, it said.

Property buyers in Hong Kong need to “think carefully” before purchases because interest rates can’t be lowered any further, Financial Secretary John Tsang said this week. The number of home transactions in Hong Kong fell 35 percent in June from a year earlier after a 14 percent drop in May, according to Land Registry statistics.

MTR fell 0.6 percent to HK$26.95 in Hong Kong trading today before the announcement. The stock has increased 7.2 percent this year, compared with the 5.4 percent gain in the city’s benchmark Hang Seng Index.

Hong Kong’s residential housing prices have jumped more than 80 percent since early 2009 on the back of record-low mortgage rates and a lack of new supply.
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Old September 11th, 2014, 06:26 PM   #3
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MTR Tai Wai housing project back on market
11 September 2014
South China Morning Post

Developers expected to be cautious on tender that was dropped in 2012 because of low bids

The MTR Corp will reopen bidding for the Tai Wai Station residential project, two years after its tender was pulled.

The project was withdrawn in 2012 because of a lack of interest and the bids were too low. Only Henderson Land Development, Sun Hung Kai Properties and Cheung Kong (Holdings) submitted bids then.

A spokesman for the railway operator said the project would be released for tender soon. Developers could submit their interest by Monday.

“The investment cost of the project would remain high,” said Alnwick Chan Chi-hing, the head of valuation and professional services at consultant Knight Frank. “But developers would still be interested because of the good location. They would probably form joint ventures to bid for the project.”

The estimated investment cost of the project was HK$29 billion in 2012.

“The new land premium levy charged by the government may be lower than the HK$12.7 billion, or about HK$4,410 per square foot, for the site two years ago,” said Alvin Lam Tsz-pun, a director at Midland Surveyors. “But the developers still need to afford the construction cost and profit-sharing with the MTR. It is still a heavy investment.”

Construction costs have risen sharply over the past two years. It costs at least HK$4,500 per square foot to build mass residential homes.

Since the Tai Wai project is complicated, the construction cost may be even higher.

In March, MTR property director David Tang Chi-fai said the company was revising the terms of the tender of the project because the development involved a big investment and complicated construction work.

“Developers are still cautious on large projects,” Lam said. “You can tell from the tender of the Urban Renewal Authority’s Kwun Tong redevelopment project last month. The authority had to relax the terms.”

He said developers’ interest in the Tai Wai project would depend on the land premium amount and the tender terms. “Since the government released plenty of sites in the New Territories for sale in recent years, the developers’ offer would be conservative,” he said.

The site covers an area of 521,107 sq ft and could yield a gross floor area of 2.7 million sq ft. It could provide 2,900 flats and a shopping centre.

It is one of the few large-scale development projects released for sale this financial year and would help the government meet its target of providing enough land for 18,800 private flats during the year.

MTR awarded the 1,600-flat Tseung Kwan O project to Sun Hung Kai Properties in April.
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Old September 17th, 2014, 08:10 PM   #4
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Land premium cut for Tai Wai station tender
The Standard
Wednesday, September 17, 2014







MTR Corp (0066) and the government have tempered the terms of the second tender for Tai Wai residential project, in an apparent bid to prevent another failure.

The government slashed land premium for the Tai Wai station plot by 19 percent to HK$10.3 billion, or around HK$3,800 psf, within surveyors' estimates of between HK$9.5 billion to HK$10.8 billion.

During the first tender for the site in 2012, developers got cold feet at the HK$12.7 billion land premium required.

The railway operator also relented, by offering bidders two options.

In one, it promised to shoulder up to 70 percent of the development cost, or HK$7.5 billion, provided that the developer keeps only proceeds from residential development. The offering is more generous than the HK$4 billion that the MTRC promised to fund two years ago.

Developers can opt for plan B if they do not want to relinquish the commercial space, measuring 667,000 square feet, and may submit both plans in the bidding.

Either way, the rail firm will take at least 15 percent of profit generated.

It said the terms were revised based on market conditions, allowing developers to follow their investment strategies.

Wheelock Properties (0020) believes the tender will not be dropped this time, citing the more friendly terms.

It said excluding commercial development, the two-million-square-feet residential gross area means a lower threshold for bidders.

The firm, which did not bid in 2012, has submitted an expression of interest, but has not decided whether it will bid for the site jointly with other companies.

The tender for the project started yesterday and will last until October 13.
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Old January 8th, 2015, 08:23 PM   #5
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Tai Wai site with drawbacks sets record
8 January 2015
The Standard Excerpt





A Tai Wai residential plot was clinched by Wang On Group (1222) for HK$773 million, lower than estimates.

The mid-size developer beat seven local peers, including Sino Land (0083) and K Wah International (0173), after acquiring two nearby sites in Ma On Shan during the second half last year.

The plot is near Tai Wai railway station on a small hill but faces a mortuary and crematorium. It has a site area of 70,000 square feet that yields a gross floor area of about 148,000 square feet.

The price translates to HK$5,221 per buildable square foot, a record high in the district. It is more than 85 percent higher than another Tai Wai plot tendered out in April, costing just HK$2,800 per sq ft.

Wang On sales and development director Gary Wong Yiu-hung said it would build 400 small to mid-sized flats, at a total investment of HK$1.6 billion, on the site.

The selling price may top HK$16,000 per square foot, but he feels confident it will be well received amid solid demand for smaller sized flats. Sales could start as early as 2018, he added.
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