Mainland Chinese enterprises will play a key role in developing Hong Kong’s Northern Metropolis by sharing financial risks and helping align the megaproject with national strategy, according to real estate and political advisers.
Their analysis followed the award of the blueprint’s first pilot area in Hung Shui Kiu to HSK New Development, a consortium led by five mainland giants and local developer Sino Land on Monday.
Pledging an investment of HK$16.8 billion (US$2.14 billion), the consortium will develop sites totalling 10.5 hectares (25.9 acres) at a low land premium of HK$1.03 billion. It beat the only competitor, a stand-alone bid from Henderson Land Development.
The mainland contingent comprises four state-backed developers – China Overseas Land & Investment, China Merchants Land, China Resources Land (Overseas) and CTG Investment – with decades of experience, alongside e-commerce and technology titan JD.com.
Jeffrey Lam Kin-fung, chairman of the board of directors of the Hung Shui Kiu Industry Park Company – a government vehicle created to drive the district’s development – noted that pooling top players across real estate, construction and hospitality would accelerate development.
“Each of the six companies has a special role to play, which will contribute to the holistic development of the Northern Metropolis,” he said.
While analysts attributed the participation of mainland heavyweights to national priorities, technical expertise and familiarity with the local market, real estate advisers stressed that future tenders would require greater flexibility and longer bidding windows to encourage more competition.
