TNAG-2661-FCO40-3857-Future-of-Hong-Kong-British-Consulate-General-1992 — Page 36

THE "NAAFI" SITE

BRIEF SUMMARY OF A POSSIBLE J/V DEVELOPMENT

a.

Site area

b.

Plot ratio

C.

Floor area

d.

Land premium

150,695 sq.ft.

12.7604 (non-domestic) plus 1.1945 (domestic)

OR

Total commercial gross floor area of 1,922,919 sq.ft.

and residential gross floor area of 180,000 sq.ft. Total commercial lettable floor area of 1,499,877 sq.ft.,

assuming 78% efficiency, and 80 flats each of 2,000 sq.ft. net.

HK$3,239 million (i.e. HK$21,500 p.s.f. of site or

2510

e.

Development expenditure

HK$3,505 million

Hi

E.

Development period

3.5 years

g. Apportionment of

(1)

costs

(2)

h.

Apportionment of finished product

(1)

(2)

HK$1,540 p.s.f. of gross floor area permissible)

(including construction cost estimated at HK$1,300 p.s.f. of commercial gross floor area and HK$750 p.s.f. of residential gross floor area, professional fees at 10% on such cost and financing cost at 10% p.a.)

(excluding time required for land acquisition and design and planning of the development)

HMG will bear HK$729 million (22.5%) of the land premium upon obtaining the land grant from HK Govt.

The "Developer" will bear HK$2,510 million (77.5%) of the land premium and

HK$3,505 million (100%) of the development expenditure and will undertake to complete the development.

HMG will be entitled to 150,000 sq.ft. of commercial lettable floor area and the total number of 80 flats.

The "Developer" will be entitled to 1,349,877 sq.ft. of commercial lettable floor area. Based on a rental value of HK$45 p.s.f., the "Developer" would obtain an internal rate of return in the order of 14%.

N.B. All figures are approximate and indicative only; land premium, costs

and rent are based on current day levels.