Sino Land and Chinese Estates have won the mega Kwun Tong redevelopment project of the Urban Renewal Authority on its second tender.
The Kwun Tong redevelopment programme is the largest project ever undertaken by the Urban Renewal Authority.
The 5.25-hectare town center site which is larger than Tai Koo Shing – is the largest URA project so far. In all six bids were received after amendments to some of the terms were made by URA following on from the failure of the first tender in July.
Sino Land and Chinese Estates did not submit bids in the initial tender. However, yesterday they outbid Cheung Kong Holdings, Henderson Land Development, Sun Hung Kai Properties, Great Eagle and a consortium consisting of Wheelock, New World Development and Nan Fung Development.
The tender requirements for the bid were met by Sino Land-Chinese Estates consortium according to the URA. The actual tendered price was not revealed but the winning bid was said to be below HK$7 billion – and therefore sharply lower than the HK$8 billion entry fee sought earlier but later scrapped.
Sino Land owns 90 percent of the consortium and the rest is held by Chinese Estates, Victor Tin Siu-yuen, according to associate director of sales at Sino-Land Estates.
It has been estimated that the site will require investment of around HK$18 billion, including the construction of 1,700 flats totaling a gross floor area of 1.5 million square feet, shops in a podium, a two-level public transport interchange, a hawker bazaar and a refuse collection point. A public open space of about 67,000 sq ft will also have to be provided.
Alvin Lam Tsz-bun, The Midland Surveyors director, stated that the successful tender would ensure the residential supply target of the government is met, which would in turn relieve pressure on other land tenders to be launched later this year.
After the first-time tender failed, the URA made several amendments. But it stuck to its requirement of 1,700 mid- to large-sized flats, despite many developers wanting to build more small units in line with demand.