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
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
All rights reserved.