News Analysis: : One Innovale goes on sale
- First batch of 123 units offered for sale at HK$14,168psf
- A complete sale of One Innovale should yield pre-tax earnings of >HK$2bn
- BUY with HK$40.9 TP
Henderson Land offered the first batch of 123 units at One Innovale -Archway in Fanling for sale at an ASP of HK$14,168psf, largely similar to the secondary market prices of nearby projects.
One Innovale is located opposite Green Code and is an 8-minute drive from Fanling MTR Station. The project is developed in three phases with 1,576 units and GFA of 0.61msf. Superstructure works are underway. Ph 1 is expected to be completed in 4Q22 while Ph 2 & 3 are scheduled for completion in 2Q23.
The site was converted into residential use after the company paid land premium of HK$2.53bn or HK$4,137psf in early 2018. Including construction and interest costs, we estimate all-in cost at HK$10,600psf on saleable area basis. Based on our assumed ASP of HK$14,700psf, One Innovale, if fully sold, should generate pre-tax earnings of >HK$2bn to Henderson Land.