Staff reporter
At least four commercial projects, involving about one million square feet in gross floor area, will be built in Sheung Wan, according to Sing Tao Daily, the sister publication of The Standard.
One of the projects, jointly developed by Wing Tai (0369) and CSI Properties (0497), is located on Gage and Graham streets.
It will be developed into a comprehensive commercial property, offering a grade A-level office building, a hotel, retail shops and open public space and green belts, providing up to 433,500 square feet in gross floor area, Wing Tai says in its annual report.
Foundation work on the project is already under way with completion expected by 2025.
This project, also known as the C commercial project, was part of the redevelopment plan for Peel and Graham streets launched by the Urban Renewal Authority that also includes residential projects A and B, and is the largest redevelopment plan in Central and Western.
Wing Tai and CSI reportedly won the tender for the C project in 2017 for HK$11.5 billion, equivalent to HK$26,700 per sq ft.
FOCO at 48 Cochrane Street - a new commercial project developed by CSI earlier - is adjacent to the Central-Mid-Levels escalator and located next to Hollywood Road. The 25-story building provides retail shops and restaurants and has a gross floor area of 32,000 sq ft.
Tai Hung Fai Enterprise has two projects in Central and Western, involving a total gross floor area of 463,400 sq ft.
One of the two is a 20,200-sq-ft project to be spread across three sites - 92-103A Connaught Road West and 91 and 99-101 Des Voeux Road West - with a development plot ratio of 15 times.
The 28-story Connaught Road West building and the two-story property at 91 Des Voeux Road West will be redeveloped and involve a total gross floor area of about 303,300 sq ft, excluding the basement.
The Town Planning Board gave conditional approval in June.
The other project, at 212-232 Des Voeux Road Central, will extend to Wing Lok Street and involve a total gross area of 11,000 sq ft.
It will be redeveloped into a 28-story A-level commercial building with a large reception lobby, drop-off and pick-up areas, making it suitable for large corporations and medical institutions.
In addition, a consortium was planning a rezoning of its property at 380 Des Voeux Road West, currently zoned "Residential (Group A) 6."
An application was lodged for a rezoning that will lead to a 23-story commercial building with a total gross floor area of 22,500 sq ft. However, the plan was rejected by the board in April.
Vincent Cheung, managing director of Vincorn Consulting and Appraisal, said commercial projects have been planned for Central for many years as developers prefer their plot ratio of 15 times, which is much higher than the eight to 10 times of residential property and means more floors can be built within a site.
Besides, developers need to spend two to three years on one project, so that when a property is completed, demand may rebound, especially if a stagnant market recovers at that time, Cheung said.
Alex Leung, senior director at CHFT Advisory and Appraisal, said trading volumes in the property market are now embarking on an adjustment period.
