Vincent Cheung at Cushman & Wakefield: Estimated HKD 16.8 billion Valued Repulse Bay Road Would Not Be Record Breaking High

HONG KONG, April 26, 2012 /PRNewswire-Asia/ -- The tender deadline of the most anticipated land site this season - 110 Repulse Bay Road, is due tomorrow. Vincent Cheung, National Director of Valuation and Advisory of Cushman & Wakefield, Greater China believes that due to the land is located in the traditional luxury residential districts and have sea-view on Repulse Bay and Middle Bay and the estimated below-20-billion gross-value, it will create great interests among the developers. However, the uncertain economic condition and the density of surrounding buildings compared to the site in South Bay Road, degree of privacy is slightly inferior, might have influence on the dueling price. In addition, the successful tender developer will need to bear the responsibility of site formation work which adds burden to the construction cost and period. Thus, it is expected that the floor price would not be record-breaking high, but score a solid second high in the history.

The land covers an area of circa 46,716 square feet, with a plot ratio of 0.9 and total GFA of approximately 42,044 square feet. It is expected that 8-11 villas will be built on the site and the luxury residential project is set to be a benchmark in the area. It is believed that the site will create overwhelming response from local or even mainland developers. Cushman & Wakefield estimated that the value of this land is about HKD 16.8 billion, representing an approximate accommodation value of HKD 40,000 per sq. ft. The gross unit rate is estimated at HKD 60,000-80,000 per sq. ft.

Speaking of another landsite in Kwun Fat Street, Siu Lam, Tuen Mun, Mr. Cheung reveals that even the location offers high privacy, the high construction costs on the development of cars and pedestrian roads outside the construction area and the enhancement of noise pollution control under Environmental Protection Department's regulation and evaluation. However, since the land sits next to the So Kwun Wat landsite which is still on the Application List, the bundle of lands is expected to generate magnificent profits that appealing enough to attract developers. Cushman & Wakefield estimated that the value of this land is about HKD 1.94 billion, representing an approximate accommodation value of HKD 5,000 per sq. ft. The gross unit rate is estimated at HKD 9,000-13,000 per sq. ft.

Appendix: Site valuation and estimated project scale by Cushman & Wakefield

About Cushman & Wakefield

Cushman & Wakefield is the world's largest privately-held commercial real estate services firm. The company advises and represents clients on all aspects of property occupancy and investment, and has established a preeminent position in the world's major markets, as evidenced by its frequent involvement in many of the most significant property leases, sales and assignments. Founded in 1917, it has 235 offices in 60 countries and more than 14,000 employees.  It offers a complete range of services for all property types, fully-integrated on a global basis, including leasing, sales and acquisitions, debt and equity financing, investment banking, corporate services, property management, facilities management, project management, consulting and appraisal. The firm has more than $5.5 billion in assets under management through its wholly-owned subsidiary Cushman & Wakefield Investors.  A recognized leader in local and global real estate research, the firm publishes its market information and studies online at www.cushmanwakefield.com/knowledge. In mainland China, Cushman & Wakefield maintains six market-leading offices in Beijing, Shanghai, Chengdu, Guangzhou, Shenzhen and Hong Kong. More information is available at www.cushmanwakefield.com.