23 developers have so far expressed their interest in the MTR’s 2,900 unit Tai Wai Station development project,
That’s 8 more developers than when the project was last released two years ago.
Above the Tai Wai station, the project aims to provide 2,900 residential units in eight blocks, as well as 800 parking spaces. It has a gross floor area of about 2.7 million square feet, with more than 75 percent for residential use, and the rest for commercial and school use.
It is however, not just the large developers whose interest has been drawn, but also several mid-sized developers such as Lai Sun Development, Emperor International, Kowloon Development, CSI Properties, Asia Standard as well as Link REIT.
The 2,900 flats account for 15 percent of the government’s annual supply target.
A day after the close of the expression of interest deadline, the MTR released the new terms for the Tai Wai Station tender.
Some of key tender terms include:
New land premium has been set at HK$10.356bn or AV of HK$3,832psf. Compared to the HK$12.7bn land premium set two years back, the land premium has been reduced by 18%.
Retention of retail podium – Under this option, whereby the MTR retains the commercial podium upon completion, the MTR will cover HK$7.5bn or 72% of the land premium. Alternatively, the developer could choose to retain both the residential and commercial portions with no subsidy from the MTR.
Profit sharing – Profit sharing for the project will commence once 70% of the development costs have been recouped. The minimum profit sharing ratio is set at 15%.
Developers have until October 13 to submit their tenders.