Four consortia have submitted bids for a redevelopment project in Hong Kong’s Kwun Tong district that may require up to HK$18 billion (US$2.32 billion) investment.
The project, which involves two mega zones in the district, covers a total area of 234,200 square feet of land that can be developed into more than 1.85 million square feet of floor space.
The bidders include Henderson Land Development Co. Ltd. (00012.HK), Sun Hung Kai Properties Ltd. (00016.HK) and Wheelock Properties (Hong Kong) Ltd, the Hong Kong Economic Journal reported Wednesday. Cheung Kong (Holdings) Ltd. (00001.HK) and New World Development Co. Ltd. (00017.HK), however, chose not to participate, it said.
According to the terms and conditions set by the city’s Urban Renewal Authority (URA), it will fund the construction of and later operate the public transport hub, retail space and hawker market in the base area that measures of total of 350,000 square feet. The residential area of the project, meanwhile, will occupy 1.5 million square feet in four towers that will provide 1,700 home units.
Surveyors said a requirement to hand back the lucrative retail space to the URA, while other parts of the project involve huge investment, has pushed many small to medium-sized developers away.
The residential units are expected to be priced at about HK$13,000 to HK$14,000 a square foot after completion.
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