A consortium led by China Overseas Land & Investment (0688) and Sino Land (0083) has been awarded the Hung Shui Kiu pilot area in the Northern Metropolis for HK$1.03 billion, the Development Bureau said.
The consortium, HSK New Development Limited, is 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 tender adopted 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 consortium scored higher in both metrics than the other bidder, Henderson Land Development (0012), the bureau said in a statement on Monday.
It unites experienced local real estate giants with established leaders from other sectors, demonstrating that the project can successfully foster collaboration across different business sectors, said Secretary for Development Bernadette Linn Hon-ho.
By joining forces, these six enterprises with undisputed experience and capabilities cast a concrete vote of confidence in the Northern Metropolis, paving the way for its diversified development model, Linn said.
The development, the first pilot area under large-scale land disposal in the Northern Metropolis, 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.
