( By Yan Lunle)
Lands Department announced the latest land premium situation, and disclosed Wong Chuk Hang Road land developed by Hareton which is associated company of Swire Properties and China Motor was approved to be use of commercial building after premium of HKD 1.07 billion, benefiting from commercial building activation policy. According to announcement of China Motor in earlier, Hareton will develop this land into a class A office building in 28 layers for long term investment as planned. Sun Hung Kai's Siu Lek Yuen commercial building in Sha Tin will be built into hotel after land premium of about HKD 352 million.
China Motor had developed their bus depots in Hong Kong Island district successively since they lost the bus business in Hong Kong Island since 1998, land of Wong Chuk Hang Road depot which is about 25.5 thousand sq ft among was planned to be developed in 1994, and it was approved by Town Planning Board to be built into hotel in 2005, but the approval was invalid in the end of October 2009 because the construction had never started since then, so the co-partnership company needs to apply for land premium again.
Swire Properties cooperates with China Motor.
In last April, China Motor announced, they cooperated with Swire Properties joining co-partnership company Hareton by each owning half of stock rights to develop the Wong Chuk Hang Road land in Aberdeen. Hareton had been active to explore commercial building on the land, and applied to government for contract terms modification in order to build one office building there, pointed by China Motor. After discussion for many times, Swire Properties finally reached an agreement with government on land premium of nearly HKD 1.06973 billion in this year.
It is known, the project will enjoy many privileges benefiting from commercial building activation policy, such as "premium under actual situation" to relieve premium amount, fixed rate (the average prime lending rates among three banks plus 2%), and amortizing 80% of the land premium yearly in 5 years at the longest. The rebuilt should be done within 5 years. Besides, 34 Wong Chuk Hang Road commercial building developed by K.Wah in same district was approved land premium of HKD 30.93 million with contract term amendment, which will be used for commercial development.
Sun Hung Kai was approved to build hotel after land premium.
Sun Hung Kai's commercial land in Siu Lek Yuen Sha Tin, a boundary of Siu Lek Yuen Road, Yuen Hong Street and Yuen Shun Cir, was also approved land premium at HKD 351.89 million with contract term amendment for the use of " hotel or commerce or warehouse" in the future. They had applied to Town Planning Board for building one hotel in 25 layers (1 layer is basement) on this land in earlier, and it was approved, with buildable floor area in about 344 thousand sq ft and available hotel rooms of 700 units.
