A consortium containing six enterprises, including 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 entire project is projected to involve about HK$16.8 billion in investment and will create over 6,000 jobs, the consortium said.
The winning bidder will complete the site formation and develop three residential sites, which are expected to offer more than 3,000 units.
It will also develop a smart modern logistics centre on an enterprise and technology park (E&TP) site after the completion of site formation, featuring a total gross floor area of 50,950 square meters.
With JD.com joining as the leading enterprise, operations covering at least 15,300 sq m of GFA will begin within 55 months, faster than the minimum requirement of 96 months in the tender documents.
JD Logistics (2618) will introduce its self-developed robotics technology equipment and capabilities to Hong Kong for the first time, along with a smart park system integrating artificial intelligence and digital management, the consortium said.
The three residential sites and one E&TP site will be granted to the consortium on 50-year leases, spanning around 3.6 hectares.
Besides, the consortium is responsible for forming various remaining sites within the pilot area, of which two E&TP sites and one government, institution or community site must have their site formation completed and be handed back to the government by the end of 2028.
The government will grant these two E&TP sites of 4.5 hectares to the wholly government-owned Hung Shui Kiu Industry Park Company for development of superstructure and operation, said Secretary for Development Bernadette Linn Hon-ho, adding that the size of sites granted to the company at a nominal land premium for a term of 50 years will increase by 20 percent, previously from 23 hectares to 27.5 hectares, which facilitates the introduction of industries with a competitive edge to the NM.
Jeffrey Lam Kin-fung, chairperson of the board of directors of the Hung Shui Kiu Industry Park Company, said the move demonstrates the government's commitment to advancing industrial development in the Northern Metropolis, adding that the company will actively solicit business and attract investment to facilitate the swift establishment of enterprises once the site formation is complete.
Daryl Ng Win-kong, chairman of Sino Land, said that the company is committed to bringing high-value industries and a quality living community to the Northern Metropolis, providing more housing and employment opportunities while enhancing connectivity between Hong Kong and cities across the Greater Bay Area.
