A unit of HNA Group outbid Hong Kong developers including Cheung Kong Property Holdings with an HKD 8.84 billion (USD 1.1 billion) offer for government land in the former Kai Tak airport area, the highest price tag in three-and-a-half years.
It was the most hotly contested land tender this year, as a rebound in home prices is underway, attracting 20 bidders including Hong Kong’s Henderson Land Development Company, and mainland buyers such as China Vanke.
The Kai Tak purchase works out to about HKD 13,490 per square foot, according to Bloomberg calculations based on government data.
The deal is the latest overseas foray for HNA, which has been on a USD 34 billion dealmaking spree over the past year.
The company operates airlines, hotels and tourism businesses and is pursuing an aggressive expansion to capitalize on the surge in Chinese outbound traffic which will reach 200 million annually by 2020.
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