Tuesday, December 1, 2015   

Interest grows in mega project

Raymond Wang

Thursday, November 13, 2003

At least six or seven consortia will bid for the HK$24 billion West

Kowloon Cultural District project next year, Sun Hung Kai Properties

(SHKP) vice-chairman Thomas Kwok said.

Kwok said the company was interested in tendering for the mega-project

and had been studying ways to manage the cultural facilities.

Chief Secretary for Administration Donald Tsang told at a Legislative

Council meeting yesterday that 11 consortia had expressed interest in

the project, to be built on a 40-hectare site.

Tsang said the government would abandon the project if none of the


proposals from the consortia met the development requirements. He said

it was in the public interest that the government intended to build a

world-class cultural district.

But Kwok, after a lease signing ceremony at Two IFC, said he was not


"I am not worried as I believe there will be no less than six or

seven consortia bidding when the project is put for tender next

year," Kwok said.

He said SHKP had been in talks with various well-known large

management firms regarding ways to manage the amenities centre as this

was one of the major concerns.

"I always think a cultural activity needs a new concept because it

could be a loss-making one according to existing methods of operation.

We have been studing many methods that allow the public to benefit but

reduce society's investments."

Kwok did not disclose details of the study.

Separately, Ernst & Young is to take up six floors from the 11th to

18th floor, or about 180,000 square feet, in Two IFC, to become the

biggest tenant in Hong Kong's tallest building.

The world's fourth-largest accounting firm will consolidate its

presence in Hong Kong under one roof by moving 1,500 staff from its

existing offices in Tsim Sha Tsui and Central.

Sun Hung Kai Real Estate Agency executive director Victor Lui said the

accounting firm had committed to an 11-year lease. He did not reveal

the rent.

He said current rental prices of offices at Two IFC had rebounded by

20-30 per cent to HK$35-40 per sq ft.

Lui also confirmed DBS Bank (HK) was a potential tenant of the

88-storey tower, adding that SHKP was in talks with several large

institutions which intended to expand their businesses.

On whether MTR Corp might lease its offices in the skyscraper at

prices too low, Lui said he believed MTR Corp, had already leased many

offices in the building.

"I don't think there is competition between us because they have

their own strategy," he said.

Two IFC was jointly developed by SHKP, Henderson Land Development,

Hong Kong and China Gas and BOC group's real estate unit, Sun Chung


Henderson Land Development deputy chairman Colin Lam said he was

satisfied with the more than 50 per cent occupancy ratio of the tower,

and might adjust rents. He also said Hong Kong and China Gas,

controlled by Henderson, would not raise tariffs in the current

economic environment.

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