MTR Corp's Tai Wai tender sweetened with cut in land tax

MTR Corp yesterday released the tender terms for the Tai Wai Station residential project as the land premium was cut to a level 18 per cent lower than two years ago in a bid to woo developers.

Under the revised terms, sources said the Land Department cut the land tax to HK$10.36 billion, or HK$3,832 per square foot, compared with the levy of HK$12.7 billion or HK$4,410 per square foot imposed in 2012. The tender, which will close on October 13, came a day after the corporation received an overwhelming response from 23 developers expressing interest in the property.

The site covers an area of 521,107 sq ft and could yield a gross floor area of 2.7 million sq ft. It could provide 2,900 flats and a shopping centre.

MTR Corp proposed to cover HK$7.5 billion or 72 per cent of the land premium in return for ownership of the whole shopping mall, while the developer would own the residential portion of the project.

The winning developer is required to hand over a minimum of 15 per cent of profit to the MTR once 70 per cent of the development cost has been recouped, instead of break even point as previously required.

Separately, Swire Properties released its luxury residential project Arezzo in Mid-Levels West at prices that were as much as 17 per cent lower than the two adjacent towers it launched a year ago. Located at 33 Seymour Road, Swire released the first batch of 50 Arezzo units at an average price of HK$27,159 per square foot, compared to HK$32,837 per square foot set by Agrenta at 63 Seymour Road when it was launched in September last year.