HONG KONG (May 17): Henderson Land Development Co. outbid eight other developers to win a rare site in Hong Kong’s Central district for a record HK$23.3 billion ($4.2 billion). It was the first commercial plot sold by the government in more than two decades.

Hong Kong-based Henderson Land outbid local rivals including units of Cheung Kong Property Holdings Ltd. and Wharf Holdings Ltd., according to a statement released on the Land Department’s website on Tuesday. The site measures about 2,880 square meters and is designated for non-industrial use with a minimum gross floor area of 25,920 square meters.

The record price for the site, currently used as a car park, underscores strong demand for office spaces in Hong Kong’s Central area, where supply is scarce. Since MTR Corp sold a waterfront site to build the city’s landmark International Finance Centre in 1996, no new supply has come on stream. The area’s vacancy rate was only about 1.5%in the first quarter of this year, according to CBRE Group Inc.

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