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Mainland-led consortium pledges HK$16.8 billion for Hong Kong Northern Metropolis
The Hung Shui Kiu pilot area in Hung Shui Kiu will be developed across 10.5 hectares at a low land premium of HK$1.03 billion.
Mainland Chinese enterprises are set to play a key role in developing Hong Kong’s Northern Metropolis, with advisers pointing to their willingness to share financial risk and support alignment with national strategy, according to SCMP Economy.
The outlet reports that the blueprint’s first pilot area in Hung Shui Kiu was awarded to HSK New Development, a consortium led by five mainland giants and local developer Sino Land, pledging HK$16.8 billion (US$2.14 billion) to develop sites totaling 10.5 hectares.
SCMP Economy says the project’s land premium is HK$1.03 billion and that the consortium won against the only other bid, a stand-alone proposal from Henderson Land Development.
Advisers cited the mainland developers’ experience and market familiarity, while real estate advisers said future tenders may need more flexibility and longer bidding windows to encourage broader competition, with Jeffrey Lam Kin-fung of a government development vehicle saying pooling major firms would accelerate progress.