28 August 2008
Sold Under Land Ordinance Through Savills By Public Auction Kam Kwok Building and National Building Acquired By Majority Owner At Reserved Price of HK$1.421 Billion
Demolition by 鄧麗欣之戀 from skyscrapers.cn :
The majority owner of Kam Kwok Building and National Building successfully acquired the property under the Land (Compulsory Sale for Redevelopment) Ordinance through Savills by public auction today at the reserved price of HK$1.421 billion.
The property auctioned includes Kam Kwok Building, located at Nos. 210-216 Gloucester Road, and National Building, located at Nos. 12-20 Marsh Road and Nos. 388-390 Jaffe Road.
The total site area of the two separate sites is about 1,482.3 sq.m. (15,955 sq.ft). Currently standing on each site is a 19-storey composite commercial / residential building, completed in 1961.
The majority owner, Henderson Land Development, was the only party registered to make bids at the auction.
Charles Chan, Managing Director of Savills Valuation and Professional Services, said due to the scarcity of land supply, it is not easy for developers to acquire sites through government land auction, making acquisition of older buildings a desirable method to increase their land bank.
Although a minority owner appealed to the courts regarding the auction of the aforementioned property, Mr Chan believes that this will not deter developers from this type of acquisitions because the developers have already factored in these risk factors.
As the number of applications for compulsory sale increases, Charles Chan expects there will be several more properties to be sold through public auction this year.
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CONTACT INFORMATION
Charles Chan
+852 2842 4523
ccchan@savills.com.hk
Amy Ng
+852 2840 4822
atyng@savills.com.hk
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