More than 10 bids assessed at Yau Tong, MTR
MTR Corporation (00066) Yau Tong Ventilation Building Property Development will be closed on this Friday. The project received 36 Letters of Intent for Development earlier. The Government has determined that the amount of the land premium is not particularly aggressive. Some surveyors stated that the industrial area adjacent to the project is gradually In the transformation, I believe that the auction has a good response, and it is expected to receive more than 10 bids.
The development of the Yau Tong Ventilation Building covers an area of over 43,000 square feet.
A total of 500 units were cut off on Friday
The project is the first railway property development project to be launched in this financial year. It is a pure residential development and occupies an area of approximately 43,304 square feet, with a maximum floor area of approximately 323,300 square feet and approximately 500 residential units. The project will be completed. This is a tender closing on Friday. Earlier acceptance of the letter of intent was satisfactory. Except for large developers such as Sun Hung Kai Properties (00016) and Chang Shi Group (01113), it also attracted a number of small and medium-sized consortiums and Chinese companies to participate, including Minmetals Real Estate (00230) with projects in the same district. .
According to Zhang Qichu, deputy managing director of Valuation International’s valuation and consulting services in Asia, there are still warehouses in the vicinity of the project. There will be many trucks coming in and out, but in the long term the industrial area is slowly undergoing a transition. I believe the bidding response is good and the reference has been approved. The location of Anderson Road in Kwun Tong is opposite to the residential area. He thinks that the land price per square meter is between RMB 12,000 and RMB 13,000.
As for the MTR Corporation’s indication that there is no intention to follow the bidding model of the government and the URA temporarily, the bid price and related terms will not be announced. Mr Cheung pointed out that developers bidding for official sites may not be willing to make arbitrary bids, but they have long been accustomed to the bidding model and restrictions of the MTR project and believe that the entry price will not be excessively aggressive.
Market news earlier disclosed that the amount of land premium for this project was close to RMB 1.515 billion, which was about RMB 4,657 per square meter. The market described it as an attractive price. The bidding model of the project is the same as that of the MTR project in the past. The developer must bid for it separately, and the dividend is fixed at 25%.
As for the successful consortium, it is responsible for dismantling the existing government pumping stations, rebuilding a public footpath and carrying out slope works. The project must be completed by the end of 2025.