A consortium led by Cheung Kong (Holdings) has agreed to pay the Government a land premium of about $1.5 billion for a residential-hotel redevelopment at the former Cheung Sha Wan shipyard.
The move is the latest sign confidence in the property market is returning as developers seek to lock in premium payments before a recovery.
The deal came less than three weeks after Wharf (Holdings) agreed to pay a premium of about $1.8 billion for its jointly owned residential redevelopment on the former San Miguel brewery plant site in Sham Tseng.
Analysts said the increasing number of land-premium settlements showed developers' confidence had improved.
The Cheung Kong project is next to a similar proposed shipyard redevelopment by Shun Tak Holdings and China Merchants Holdings.
Lands Department deputy director John Corrigall yesterday confirmed the land premium for one of the two shipyard redevelopment sites was settled. He did not elaborate.
The Shun Tak consortium is also expected to accept the offer for its residential-hotel-retail redevelopment, estimated at about $1.5 billion, by today's deadline.
