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1. Analysts see fierce bidding for two sites

2. Winsor scales back $1b tower complex

1. Analysts see fierce bidding for two sites
Raymond Wang, The Standard 15 May 2004

Fierce bidding is expected when the government holds its first land auction in nearly two years later this month.

Although market sentiment has been dampened by fears of an interest rate increase and a tighter economic policy in the mainland, property analysts are sticking to their predictions that the two residential lots in Ma On Shan and Sha Tin will fetch as much as 37 per cent more than the combined HK$1.675 billion reserve price.

Centaline Surveyors has predicted the two sites will add HK$2.29 billion to government coffers when they go under the hammer on May 25.

Associate director James Cheung predicted the Ma On Shan site would sell for about HK$1.66 billion, or HK$2,200 per square foot, up 37.5 per cent from the government's reserve price of HK$1,600 psf, while the Sha Tin site could fetch HK$630 million, or HK$2,400 psf, up 33.3 per cent from the opening price of HK$1,800 psf.

Vigers executive director Raymond Ho predicted 13-15 per cent increases from the opening prices.

``As the Tung Lo Wan Hill Road site in Sha Tin is relatively small and the location quite remote, it is expected that interest will be largely from luxury developers,'' Ho said.

The Ma On Shan site will generate greater interest as it is in a high-rise residential area that offers seaviews and is to be developed for medium-density residential use, he added.

The auctions were triggered by K Wah International which bid successfully in April to have the sites taken off the government's reserve list.

K Wah Real Estate managing director Alex Lui estimated total investment of the Ma On Shan project at more than HK$2 billion. Eight blocks of residential towers can be built on the site. The sale price could reach more than HK$3,300 psf, he said. Total investment in the Sha Tin project is estimated at more than HK$1 billion.

The Sha Tin site and the Area 77 lot at Ma On Shan could generate a total gross floor area of about 261,000 square feet and 754,000 sq ft, respectively.

2. Winsor scales back $1b tower complex
Eli Lau, The Standard 15 May 2004

Winsor Properties Holdings has been given approval to build a hotel and office project in Kwun Tong after reducing the height of the two towers by up to seven floors.

The Town Planning Board yesterday approved construction of a 45-storey office-hotel tower on top of a two-storey podium, and a 42-storey office building at 102 How Ming Street. Winsor can develop up to 81,840 square metres of office area and 25,117 sq m of hotel area.

The company had originally planned to build two 49-storey towers on top of four podium levels to create 95,668 sq m of office space and 32,680 sq m of hotel area.

But the board asked that the proposal be revised to lower the height of the buildings to avoid blocking out the ridgelines. In the revised plan, the number of hotel rooms was also cut from 440 rooms to a maximum of 360.

In 2002, the company paid a land premium to convert the site from industrial to commercial use.

Winsor director Lam Wong-bun earlier estimated the construction cost of the mixed project would be more than HK$1 billion.

The company has been active in converting and selling industrial premises in recent years. In 2000, it sold Winsor Centre in Tsuen Wan for HK$900 million and last month sold Comet Commercial Building in Kwun Tong for HK$250 million. The HK$210 million in net proceeds from the recent sale will be used to reduce debt and as operating cash.

Winsor shares fell 3.03 per cent yesterday to close at HK$3.20.