Land deal record for Lifestyle International

Lifestyle International Holdings, which owns Sogo department stores, has paid a record price for a commercial site in Kai Tak, which has been designated for the city’s first twin towers.
Hong Kong Lands Department has awarded the site to Lifestyle for HK$7.39 billion (US$952.7 million), or HK$6733 a sqft, the highest price ever for a government commercial site. The previous record was for a site in Kwun Tong, which sold for HK$5.8 billion last year, or HK$6630 a sqft, to a JV between Link Real Estate Investment Trust and Nan Fung Development.
Lifestyle finance director Poon Fuk-chuen says the company has been looking for a site in Kowloon to expand its department store business.
“Besides Sogo department store, we will also bring in other commercial, entertainment and dining outlets in the proposed development.” Lifestyle has Sogo stores in Causeway Bay and Tsim Sha Tsui, and the company is headed by Thomas Lau Luen-hung, who holds a 51.69 per cent stake. Sovereign wealth fund Qatar Investment Authority owns 23.05 per cent.
A company spokesman says the Kai Tak site was acquired by Lifestyle in a government tender through its indirectly wholly owned subsidiary Leader Bright. Among the eight bidders, China Overseas Land & Investment was the only mainland company competing alone. Mainland firm Shimao Property Holdings also took part, through a consortium with New World Development and Sino Land. Hong Kong bidders included Cheung Kong Property Holdings and Sun Hung Kai Properties.
Cheung says one of the twin towers could be developed into a mall with entertainment and dining offerings, while the other would be grade-A offices.
As the acquisition constitutes a major transaction of the company, it is subject to shareholder approval requirements. The term of lease for the 14,159 sqm site is 50 years.

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