Hung Shui Kiu pilot area in the Northern Metropolis received at least two bids when the tender closed on Friday, including Henderson Land Development (0012) and a consortium formed by China Overseas Land & Investment (0688), Sino Land (0083), and four other firms.
The consortium, HSK New Development Limited, was formed directly or through respective subsidiaries by China Overseas Land & Investment, China Merchants Land (0978), China Resources Land (Overseas), CTG Investment Management Corporation, JD.com (9618), and Sino Land.
The National 15th Five-Year Plan highlights the accelerated development of the Northern Metropolis, while the government's first Five-Year Plan also identifies it as a key priority, the consortium said.
Northern Metropolis's development is expected to bring meaningful opportunities to Hong Kong and serve as an important driver of the city's future growth, it noted, adding that the joint tender submission seeks to contribute to the high-quality development of the Northern Metropolis and support the steady growth of Hong Kong's economy.
The Hung Shui Kiu pilot area consists of three private housing sites and three enterprise and technology park sites, with an area of around 10.5 hectares.
It's expected to provide 3,120 homes, with a residential gross floor area of 182,000 square feet. Its market valuation is estimated at HK$2.9 billion to HK$4.9 billion, or HK$1,600 to HK$2,700 per sq ft.
The tender will adopt the "two-envelope" approach, with 70 percent weighting assigned to the non-premium proposal in relation to the development of industries and the 30 percent allocated to the land premium offer.
The tenderer must tender for the development and operation of one enterprise and technology park site, and can opt to develop and operate the other one or two E&TP sites at the same time. A tenderer willing to tender for and operate more industry sites will get higher marks.
The government will also offer a flexible land premium payment arrangement for the tender. From the announcement of the tender result, the successful bidder can pay at least 25 percent of the land premium within 28 days, while the remaining balance of up to 75 percent can be settled in the next three years, with no interest.
