(Feb 24): Two mainland Chinese companies outbid Hong Kong’s largest developers with a HK$16.9 billion (US$2.2 billion) offer for a rare residential waterfront site, the highest price ever posted in a government land sale. Logan Property Holdings Co and KWG Property Holding Ltd beat 13 other bidders including Cheung Kong Property Holdings Ltd and Sun Hung Kai Properties Ltd, according to a statement Friday from the Hong Kong Lands Department. The site in Ap Lei Chau island, which is connected to Hong Kong island by bridge, was hotly contested by developers keen to build in an area connected to the city’s extensive subway lines in December. "Many Chinese developers were looking to build houses and larger luxury sea-view apartments,” said Thomas Lam, head of valuation and consultancy at Knight Frank LLP in Hong Kong. The Hang Seng Property Index, which tracks the shares of 10 property companies, has climbed 15% this year, compared with an 8.9% increase in the Hang Seng Index.

Source: The Edge Markets February 24, 2017 14:26 UTC