Nan Fung Wins Commercial Hong Kong Site for Record $3.2 Billion

A Nan Fung Group unit outbid 11 other developers to win property in Hong Kong’s Kai Tak area for HK$24.6 billion ($3.2 billion), the highest amount ever for a commercial site sold by the government.

The site, designated for non-industrial use, has a maximum gross floor area of 177,670 square meters, the Lands Department said in a statement on its website. The price would translate into HK$12,864 per square foot, according to Bloomberg calculations based on official data. 

The Kai Tak auction marked the second big commercial property sale awarded to a local, non-mainland developer this month. While the price was the highest total, other sites have fetched more per square foot. Henderson Land Development Co. outbid eight other developers earlier in May to pay HK$23.3 billion for a former car park in Central, which retains the record on that basis.

The land price is "relatively high", said Patrick Wong, an analyst at Bloomberg Intelligence, "It could be driven by the high price of the Central site sold earlier."

Henderson paid about HK$50,000 per square foot for the former car park on Murray Road, the first commercial land in Central sold by the city since 1996, according to Bloomberg calculations based on a maximum gross floor area of 465,000 square feet.

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