Local, mainland majors eyeing Kowloon project

The Urban Renewal Authority has received a total of 32 expressions of interest or EOI from both local and mainland developers for a redevelopment project in Kowloon City, which has a valuation of up to HK$2.9 billion.

The site on Shing Tak Street/Ma Tau Chung Road has an area of 4,283 square meters and will provide approximately 640 residential homes with a total gross floor area of 38,547 sq m.

Its market valuations range from HK$2.66 billion to HK$2.9 billion, or from HK$6,400 to HK$7,000 per square foot.

Local developers including CK Asset (1113), Sun Hung Kai Properties (0016), Sino Land (0083), Wheelock Properties, Chinachem, New World Development (0017), CSI Properties (0497), Great Eagle (0041), Emperor International (0163) are said to have expressed their interest.

And Chinese state-owned peers including China Overseas Land & Investment (0688), Poly Property (0119), and China Merchants Land (0978) were also seen to have submitted the documents to showcase their interest.

The project, which is scheduled to be completed by 2029/2030, is one of the URA's pilot projects to redevelop buildings under the Civil Servants' Co-operative Building Society Scheme.

It will improve the local environment by widening the pavements and providing street-level building set-back and greeneries, and will enhance walkability in the area, the URA says, adding it will shortlist qualified developers and consortia from the submissions - taking into consideration their experience in property developments in the past and financial capability to undertake the project - and will invite them to submit tenders for the development.

It is not rare that a project receives more than 30 expressions of interest but the number of bids submitted later might be significantly lower. All the developments the URA awarded last year received over 30 EOI but the number of tenders for each project ranged from seven to nine. The Kwun Tong Town Centre Development Areas 4 & 5 project that failed to be tendered out in February attracted 24 EOI earlier but only one developer bid for the site when the tender closed in January.

Still, this project is located in an urban area and close to the Sung Wong Toi MTR Station and when completed, flats on the middle and upper floors can enjoy open views, said Alvin Lam Tsz-pun, director at Midland Surveyors.

Coupled with fewer sales restrictions, Lam expects it to be more popular than the Tsuen Wan site for the starter home project whose tender was withdrawn earlier.