SHKP reaches agreement for HK$2.1 billion in land premiums

Olympic Station Development Package 3 (computer graphic).	Top: Cheung Sha Wan Shipyard redevelopment (computer graphic). Bottom: Yunnan Lane in Yau Ma Tei (computer graphic).

SHKP has reached an agreement with the Hong Kong Government's Lands Department for land premiums on seven development sites in the territory.  The aggregate premium payable is HK$2.1 billion.

The sites include:

It is estimated that the total investment in the seven sites will exceed HK$20 billion. The majority of these properties are expected to be complete within three years' time. The residential sites will supply about 9,500 units, while the office / commercial development of Millennium City Phase 5 will provide 710,000 square feet of office space and 570,000 square feet of retail area.

Thomas Kwok, SHKP's Vice Chairman and Managing Director, said 'The fact that we have reached an agreement upon such a substantial sum for land premiums, and are prepared to invest over HK$20 billion in four years, is a clear demonstration of SHKP's faith in the local property market. With strong economic growth on the Mainland, new business opportunities and added commercial momentum as a result of China's entry to the WTO, and low interest rates in Hong Kong, we believe the likelihood of any further slide in the property market is minimal. As such, this was the most appropriate time to finalize the agreement.' Mr Kwok also added that these projects would create many new jobs in the territory.