URA’s project valued at up to 1.35 billion
As the government accelerates its land use, the URA’s Reclamation Street project in Mong Kok will be open for tender from today. Some of the shopping arcades that make up nearly 20% of the project floor area will have to be returned to the URA after their redevelopment. This will affect the attractiveness of the tender. The valuation will be up to only $ 1.35 billion. Closed on December 4.
Invited 40 developers bidding
Landsat 331 to 367, next to Langham Place, is the first residential development in the region in 5 years after New World (00017) won the redevelopment of Bobo Street in 2012 (now SKYPARK) The project has a total floor area of 135,000 square feet and offers 187 units. Yesterday, the URA formally invited 40 developers to bid for the property. According to market sources, the tender terms stipulated a commercial floor area of 16.7% or 22,000 sq.ft., and the redeveloped developers were required to surrender to the URA after the completion of construction. That is, The main source of income for developers is the partial demolition of residential and parking spaces. As a result of market estimates, the floor price of some commercial properties amounts to $ 15,000 to $ 30,000, representing a decrease of more than $ 300 million to $ 700 million in the overall market value of the project.
On the other hand, the URA will raise the threshold for project dividends so as to increase the attractiveness of the projects. According to the news, the terms stipulate that developers should pay dividends of $ 2.4 billion to the URA for the proceeds from sales of flats, with the first 60% of the dividends being 20%, and each subsequent increase of $ 60 million, the dividend payout ratio will increase by 10% with a maximum of 50%. If the project residential floor area of 112,000 square feet, which is the price of 21,000 yuan only from the dividend, expected to URA Kowloon project dividend threshold high.
Zhang Qiumu, Deputy Managing Director of Colliers International Asia Valuation and Consulting Services, said that the URA retained part of shopping malls certainly affected the attractiveness of the project. If the actual price of the new district in the same district is between $ 17,000 and $ 18,000 per site, Land prices expected 11,000 to 12,000 yuan, the valuation of about 1.23 billion to 1.35 billion yuan. However, due to the higher threshold of dividend, that is to say, developers are most concerned about the issue of land premium prices and are relatively easy to count.