Cheung Kong Wins Hong Kong Residential Building Site in Government Tender

Cheung Kong Holdings Ltd. (1), the Hong Kong developer controlled by billionaire Li Ka-shing, won a building site in the city’s Yuen Long district in a government tender.

The winning bid for the 12,340 square-meter (133,000 square-foot) site was HK$2.41 billion ($309 million), according to a statement on the Lands Department website. Cheung Kong, Hong Kong’s second biggest builder by market value, confirmed in a faxed statement it was the winner bidder.

Hong Kong’s government in November intensified a year-long battle to curb real estate prices by imposing additional property transaction taxes and pledging to increase land supply for medium and small housing units. Home prices have gained about 65 percent in the past two years on record low mortgage rates and an influx of buyers from mainland China.

Successful bidders for the site will be required to build at least 960 apartments with a saleable area of not more than 60 square meters, according to a statement on the Lands Department website. The homes should be ready for occupation by Sept. 30, 2016, the statement said.

To contact the reporters on this story: Kelvin Wong in Hong Kong at kwong40@bloomberg.net

To contact the editor responsible for this story: Andreea Papuc at apapuc1@bloomberg.net

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