XN000022-1978-02-23 — Page 4

THURSDAY, FEBRUARY 23, 1978

RECORD PRICES PAID FOR INDUSTRIAL LAND IN TSUEN WAN

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STRONG BIDDING AT A CROWN LAND AUCTION TODAY SET A RECORD PRICE FOR INDUSTRIAL LAND IN THE FAST GROWING NEW TOWN OF TSUEN WAN.

TWO COMPANIES PAID MORE THAN $40 MILLION FOR TWO LOTS AT KWAI CHUNG - ONE SITE FOR CARGO CONSOLIDATION AND GODOWN PURPOSES AND THE OTHER FOR FLATTED FACTORY DEVELOPMENT,

ABOUT 200 PEOPLE ATTENDED THE AUCTION AT THE PRINCESS ALEXANDRA COMMUNITY CENTRE AND BIDDING WAS SPIRITED FOR BOTH LOTS.

THE LARGER SITE OF ABOUT 2,655 SQ. M. WAS KNOCKED DOWN FOR $27.1 MILLION TO THE TUNISIA CO. LTD. AFTER BIDDING HAD STARTED AT $5.7 MILLION. THE LOT IS INTENDED FOR CARGO CONSOLIDATION OR GODOWN PURPOSES AND IS NEAR THE KWAI CHUNG CONTAINER TERMINAL.

THE SELLING PRICE IS EQUIVALENT TO NEARLY $950 PER SQ. FT. - MORE THAN DOUBLE THE $400 PER SQ. FT. PAID AT THE LAST PUBLIC AUCTION OF INDUSTRIAL LAND IN TSUEN WAN ABOUT TWO YEARS AGO.

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THE FLATTED FACTORY SITE, COVERING 1,478 SQ. M. WAS SOLD TO THE ON CHEONG INVESTMENT CO LTD FOR $13.5 MILLION - OR ABOUT $850 PER SQ. FT. THE SITE IS ALSO LOCATED IN KWAI CHUNG.

THE SENIOR ESTATE SURVEYOR OF THE TSUEN WAN DISTRICT OFFICE, MR. NIGEL BURLEY, WHO CONDUCTED THE AUCTION, SAID AFTERWARDS THAT THE SALE PRICES WERE VERY SATISFACTORY.

+ THE RECORD PRICES REFLECT THE CONTINUING INTEREST IN THE DEVELOPMENT OF THE NEW TOWN AS AN IMPORTANT INDUSTRIAL AREA FOR HONG KONG, HE SAID. THE BIDDING WAS STRONGLY COMPETITIVE AND CLEARLY THERE WERE MANY PEOPLE AT THE AUCTION VERY KEEN TO ACQUIRE INDUSTRIAL LAND IN TSUEN WAN.+

THE BIGGER OF THE TWO LOTS CARRIES A BUILDING COVENANT OF $4.3 MILLION OVER 30 MONTHS WHILE THE FLATTED FACTORY SITE HAS A BUILDING COVENANT OF $2.4 MILLION OVER THE SAME PERIOD.