Tongzhou Street Project Bidding URA Dividend Threshold 1.8 Billion
The URA actively pushed the land and tendered the project for the Tongzhou Street project in Sham Shui Po yesterday. According to the news, the project’s dividend threshold is 1.8 billion yuan, which is as high as 18,000 yuan per square foot, and 46,500 square feet of commercial portion must be returned to the URA. It will be closed on May 30 (Wednesday).
The URA announced yesterday that it invited 38 developers to bid for the Tongzhou Street project. The project can build up to 144,000 square feet of floor space. However, the tender clause stipulates that after completion of the project, the developer must return 46,500 square feet of commercial floor to the URA as a purpose of the Sham Shui Po design and fashion base. Sales of homes and parking spaces for revenue.
The commercial part is returned to the URA
According to sources, after the sale proceeds of the project amount to a threshold of RMB 1.8 billion in the future, they must start to distribute dividends to the URA at a rate of 20% for the first RMB 50 million, and then increase the dividend ratio by 10% for each RMB 50 million and increase it up to 50%. . If the project uses a residential building with a floor area of approximately 97,800 square feet, it will be approximately RMB 18,000 for the sales dividend.
At the same time, the project is expected to provide 210 people, with a minimum floor area of 260 square feet. It also requires half of the unit area to be between 260 and 480 square feet.
Since the commercial part of the project must be returned to the URA, it will affect the value of the project in disguised form. The current market valuation for the project ranges from 1.17 billion yuan to 1.37 billion yuan, and in terms of residential floor, the floor price of the project is approximately 12,000 to 14,000 yuan.
Another MTR Corporation (00066) Yau Tong Ventilation Building Upper Project will be closed today with a total of 325,700 sq. ft. of residential buildings. About 500 people will be provided with a land premium of approximately $1.515 billion. A 25% fixed dividend will be required. Iron, as well as paying an upfront fee, will determine the winning bid.
Lin Haowen, senior director and valuation and consulting director of Knight Frank, said that in response to the latest market conditions, the project’s valuation will be raised by 5%, the latest is 3.06 to 3.76 billion yuan, and the floor price is about 9,500 to 11,500 yuan. It is estimated that the future price will reach 20,000 yuan. yuan.