“Rare” Java holdings after the acquisition of Shimao Diwang project 1.188 billion repulse Bay mansions expensive land

2022-07-05 0 By

The rare supply of land in Hong Kong’s traditional Hong Kong Island mansions is still attracting developers.The lands Department announced on February 15 that the winning bidder for the site was Java Holdings.With the highest bid, the price of the land directly won the new land king of Hong Kong.The luxury site at Nam Wan Road, Repulse Bay, rural Construction Lot No. 1203, was granted to Success Energy Limited, parent company of Java Holdings, for HK $1.188 billion with a lease of 50 years.In fact, before the tender, the market was quite optimistic about the land’s valuation, which was in the range of HK $950 million to HK $1.37 billion. This equated to a land price of HK $50,000 to HK $75,000 per foot, which could break the record set by the Peak Man Fai Road project in February 2021.And this price is also in line with market expectations.The site covers about 21,200 square feet and has a gross floor area of about 19,000 square feet. Based on this, the price per square foot of the site is about HK $62,353, a new record in Hong Kong and nearly 25% higher than the previous record of HK $50,010 per square foot for sites 9 and 11 Man Fai Road, The Peak, last year.It is reported that The site is located in The traditional Hong Kong Island luxury residential area and has a view of The sea, close to The Pulse shopping mall and The beach, well-equipped, small project scale and is a rare supply in The southern district, has good development potential.Some surveyors believe that low-density residential buildings can be built on the site at a price of up to HK $100,000 per foot, and the project may take 4-5 years to complete, largely unaffected by objective factors such as the current lack of customs clearance between the Mainland and Hong Kong;Some analysts also pointed out that since the investment amount of the project is not high, three to four houses can be built, and the price per foot is expected to reach HK $120,000 or above upon completion.The developers were also positive. Nine bids were received for the site when the tender closed on February 11.The bidders include SHKP, Sino Land, Jianhao Real Estate, Yingjun, Zhuowa, Ka Wah International, and the King International and Capital Strategies Consortium, most of which have experience in super luxury development.King international (INTERNATIONAL) property manager Chua Said at the time of bidding, the development time of the site will take 5 to 7 years, the long-term prospects of the project.However, it is worth mentioning that the bids from King International and Jianhao Real Estate took into account the sloping site, expensive foundation and miscellaneous items to be disposed of.Java, which won the land with the highest bid, is actually not a “hot” winner. It is indeed a “rarity” in Hong Kong’s land bidding market in recent years.Analysts say the “fierce” bidding in Java may also be due to the scarcity of land, as the last site sold in the region was in 2012.With the seizure, the record reserve price per foot in the region has risen 57%.According to media quoted Java Holdings general manager Chen Kaixin pointed out that the company has confidence in the local property market, the total investment of the project is about 1.6 billion yuan, planned to build 2 to 4 houses.As for future market entry expectations, it can be referred to that behind the site is changshi’s newly built 90 REPULSE BAY ROAD. The transaction price of each unit is close to HK $500 million, and the saleable foot price is about HK $90,000, indicating that buildings in this area are expensive.As for “rare” Java Holdings, according to the company’s financial statements, its annual revenue of HK $603 million in 2020 fell 26%;Profit attributable to shareholders of hk $151 million decreased by 13%;Revenue for the six months ended June 30, 2021 fell 12% to HK $276 million.Profit attributable to shareholders rose 17 per cent year-on-year to HK $65.627m.The increase in profit was mainly due to an increase in rental of investment properties, an increase in fair value appreciation of investment properties and a reduction in financing costs, but was largely offset by impairment losses on listed debt instruments recorded at fair value and included in other full income.As at 30 June 2021, the total amount of pledged bank deposits, bank balances and cash of the Group was HK $3.518 billion and hk $3.38 billion as at 31 December 2020.In terms of super prime development, it currently has the Victoria Harbour Development project (6 lai Ying Street and 8 Lai Ying Street, Kowloon, south-west Hong Kong) and the investment property, 1 Shouson Hill Road East, located in South Deep Water Bay, Hong Kong Island.This high-priced investment super curtilage land also shows that the market is super optimistic.It can be found that there is a shortage of super luxury housing market in Hong Kong, and luxury housing projects in high-quality areas are also easy to “rising tide lifts all boats” under the pursuit of the rich.In addition, super luxury houses are often sold by bidding mode, developers can sell at a good price, and the overall sales cycle can reach several years to more than 10 years.It is worth noting that Java Holdings was one of the major buyers of Shimao’s sale of 22.5% stake in the Horizons Project and the corresponding sales loan in Hong Kong at the end of last year for a total cost of HK $2.086 billion.According to shimao’s announcement, the buyers are Qiyi, GAL and Shao Xiang, which are subordinate companies of Java Holding, Huitai Fung and Sino Land respectively, and undertake 20%, 50% and 30% of the shares and sales loans of the sale project respectively.Prior to that, Java Holdings held a 10 percent interest in the project.In other words, the project was originally the Cheung Sha Wan Land King project in West Kowloon, Hong Kong, which was acquired by Shimao United Sino Land, Hui Tak Fung, Ka Wah International and Java Holdings for HK $17.3 billion in 2014.In response, Java Holdings said that the acquisition provides an excellent opportunity for the company to further increase its equity in the joint venture company to develop the “Harbour Convergence” residential project.The project is located in Kowloon, south-west Hong Kong, with a site area of about 15,748 square metres.In 2014, the consortium was considered to be of high investment value as the site is a rare urban area adjacent to Haiti, with views of Victoria Harbour and access to the West Kowloon Cultural District and the soon-to-be completed West Kowloon High-speed Rail Terminus.It is reported that when Shimao sold the equity, the project has launched the third phase, from the current transaction information, the latest project on January 3, the transaction of a set of Victoria Harbour Hui Phase 3 1 block (1B) 21 building source, the total transaction price is HK $9.06 million, the conversion rate of HK $28770.News: Green west safety transport village mission Hills this batch of 420 sets of housing intention registration list publicity news: White Birch Linxi publicity 31#, 32# building intention registration personnel verification through the list of news: Green West safety transport village mission Hills this batch of 420 houses will be in February 19 for the lottery