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1. Western project seen as a big draw

1. Western project seen as a big draw
PEGGY SITO, SCMP 20 May 2005

A $2 billion residential redevelopment incorporating up to 1,000 flats in Sai Ying Pun in Western district is expected to lure big and medium-tier developers when the Urban Renewal Authority (URA) invites expressions of interest today.

The project, which covers a site area of about 38,000 square feet at First Street and Second Street, will provide a gross floor area of about 425,000 sqft for residential and commercial use.

"This investment scale will attract interest from big and smaller developers," Midland Realty chief analyst Buggle Lau Ka-fai said, citing a lack of urban home supply as a key factor for attracting bidders.

Medium-sized developer KWah International is among those lining up.

The company's senior property manager, Wilson Chan Yuk-sing, said the project could be developed as a residential project of 600 to 1,000 flats.

He said the size of the project was attractive in terms of economic scale, adding that the company would submit an expression of interest.

"That can allow us to build a clubhouse of 20,000 sqft [that will be exempted from gross floor area calculations]," Mr Chan said.

Clubhouse facilities are excluded from gross floor area calculations under building rules, but the floor area of such facilities cannot exceed 5 per cent of the project's size.

Analysts said the project would attract buyers because of the thin new supply in Western.

The latest new development in the area, the Merton - a joint-venture redevelopment in Kennedy Town owned by New World Development and the URA - drew a strong sales response when it was offered in January.

The Sai Ying Pun project will also include an 11,800 sqft residential care home for the elderly and about 7,500 sqft of landscaped open space.

The URA said it would shortlist qualified parties and invite them to submit a formal tender shortly.