Wing Tai’s Le Nouvel Ardmore sold for $4,200 psf

The unit at Le Nouvel Ardmore has been sold to a company owned by Mr Cheng Wai Kin, the brother of Wing Tai Chairman Cheng Wai Keung. Without disclosure of the actual unit size, we estimate that the price works out to approximately $4,200 psf on an average unit size of 3,940 sq ft.

We have raised our ASP assumption more aggressively to $4,000 psf for both Ardmore Park projects, consequently increasing our RNAV by 10 cents a share.

The launch of Foresque Residences in May was met with rather robust demand, in our view. To-date, around 180 units have been sold at an ASP of $1,100 psf, about 10% higher than our assumption of $1,000 psf.

Despite uncertainties brought about by policy overhang, the demand for well-located, high-quality projects such as Foresque Residences is expected to persist.

Wing Tai continues to be selective in acquisitions and has been a notable absentee in recent Government Land Sales (GLS) tenders. Given that the results of recent tenders suggest that land prices are moderating, we expect to see more participation from the group for attractive sites in the upcoming tenders.