Six vie for Central harbourfront site

Site 3 of the New Central Harbourfront attracted at least six tenders.

The site was valued at between HK$37 billion and HK$56.5 billion, or HK$23,000 to HK$35,000 per square foot.

The bidding result is expected to be revealed on November 12.

Thomas Lam, executive director at Knight Frank, said the number of tenders is ideal, suggesting that major developers are positive about Hong Kong's future economic development.

The bid has a little chance to fail since it is under a two-envelope approach, said Lam, adding that the government had better explain the winner's project plan and the reason for winning the bid to remove market worries.

Under the two-envelope approach, the total investment in the project is expected to reach HK$55 billion to HK$65 billion with a long-term yield of 3-4 percent, said Lam. The payback period will be about 25 to 30 years.

CK Asset (1113), New World Development (0017), Henderson Land Development (0012), and a consortium formed by Sino Land (0083), China Merchants Land (0978), and Great Eagle (0041) were among the bidders.