Hong Kong to sell second logistics site, sweetens tender terms on market feedback

Hong Kong to sell second logistics site, sweetens tender terms on market feedback

Hong Kong has put up a second parcel of land in Yuen Long for sale, a site earmarked for a multi-storey logistics building, while sweetening the bidding terms. It has also moved the deadline for the first plot to give potential buyers time to consider developing both sites.
The government will sell the 77,737-square metre (836,754 square feet) site located in Hung Shui Kiu and Ha Tsuen by public tender, according to a Lands Department statement late Thursday. Bidding will start on October 18 and close on March 21, it added.
The Hung Shui Kiu lot became available after the department announced in March the sale of a 32,440-square metre site on Fuk Wang Street in Yuen Long for developing the logistics industry. Authorities have now extended its closing date to March 21 from December 27, to make room for investors to submit plans for both sites.
The plot may fetch the lower end of its price range, according to CHFT Advisory and Appraisal. Photo: Handout

Hong Kong is eager to develop the industry and consolidate some brownfield operations displaced by its projects “in a land-efficient manner and providing operators with an opportunity to upgrade their operations,” the Lands Department said.

“The Hung Shui Kiu industrial site is strategically located in the Northern Territories,” said Hannah Jeong, executive director and head of valuation and advisory services at CBRE Hong Kong. With a potential maximum gross floor area of 388,685 sq m, “its large scale is attractive to major logistics players,” she added.

To appease investors, the government has loosened some of the tender terms after listening to suggestions from market players, the Lands Department said.

It requires the winning bidder to surrender 20 per cent of the floor space to the government, instead of 30 per cent, to enhance the financial viability of the project, it said. The plot ratio was also reduced to five from seven, to prevent basement construction bills from hurting the overall development costs.

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One thought on “Hong Kong to sell second logistics site, sweetens tender terms on market feedback

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