News Analysis: New project offered for sale
- Grand Mayfair I in Yuen Long goes on pre-sale
- Project’s appeal lies with its strong transportation connectivity
- Decent profit contribution expected
A consortium equally owned by Sino Land, K.Wah International, and China Overseas Land offered 168 units at Grand Mayfair I for pre-sale at an ASP of HK$17,608psf.
Grand Mayfair is located next to the Kam Sheung Road MTR station from which it takes 30 mins to Central via subway. The Station will be linked to the proposed Northern Link, and ensures strong transportation connectivity, a key selling point of this development.
Developed in phases, Grand Mayfair will provide a total of 2,200 units with GFA of 1.24msf. Grand Mayfair I is scheduled for completion in 2024.
The consortium was awarded the development rights to Grand Mayfair back in May-17 with a winning bid of HK$8.33bn or HK$6,734psf. Including construction and financing costs, we estimate total development costs at HK$13,500psf. Based on our estimated ASP of HK$18,500psf and allowing for profit shared with Kowloon-Canton Railway Corporation (KCRC), Grand Mayfair should yield attributable pre-tax earnings of c.HK$1.7bn to Sino Land if fully sold.
We currently have BUY rating on Sino Land with HK$12 TP