A residential redevelopment project in Kowloon’s redevelopment hotbed of To Kwa Wan received 32 expressions of interest, according to an announcement by Hong Kong’s Urban Renewal Authority, which is managing the tender.
The URA is looking to redevelop half of the block at Shing Tak Street and Mau Tau Ching Road into a property with a total floor area of 38,547 square metres (414,916 square feet). The majority or 32,243 square metres of the development will be allocated to 640 residential flats.
The site lies one street away from Horae Plaza, the neighbourhood shopping centre acquired last September for HK$425 million ($54.2 million) by local developer Fairland Holdings, which is upgrading the 1998-vintage mall. According to Fairland executive director Douglas Wu, To Kwa Wan was traditionally known as an industrial district with an ageing population.
“But in recent years, many factories had already moved to other areas and were replaced by residential redevelopment projects,” Wu told Mingtiandi. “The recent extension of the Tuen Ma MTR attracted more interest from developers. The residential projects attracted more young professionals and families to move in and bring in a higher purchasing power and stronger demand.”
Heavyweights Queue Up
The developers that submitted EOIs for the URA project — estimated at HK$2.66 billion to HK$2.9 billion ($339 million to $370 million) — include Hong Kong property heavyweights CK Asset Holdings, Chinachem, New World Development, Sun Hung Kai Properties, Sino Land, Wheelock Properties, CSI Properties, Great Eagle and Emperor International, The Standard reported.
Mainland developers China Overseas Land & Investment, Poly Property and China Merchants Land were also named among those who submitted a bid.
“Based on the principal tender terms approved by the URA Board, shortlisted developers and consortia will be invited to submit tenders for the development of the project,” the URA said.
The agency said it would take into account the 32 developers’ “experience in property developments in the past and financial capability” in relation to the project’s criteria set by the tender review panel.
The URA expects the project, which would also feature a retail component at its podium, to be completed by 2029 or 2030.
To Kwa Wan Transforms
The upcoming project is the latest in a string of URA redevelopment initiatives in To Kwa Wan, which is a key focus of the agency as part of the overall Kowloon East revitalisation plan that includes the old Kai Tak airport area, Wu said.
Last October, a consortium of Sino Land and China Merchants Land won a tender for the Wing Kwong Street/Sung On Street Development Project with a lower-than-expected bid of just under HK$2.39 billion ($300 million).
The winning bid translated to HK$8,571 ($1,092) per square foot of potential floor area, representing a nearly 25 percent markdown to the HK$11,381 per square foot paid by Li Ka-Shing’s CK Asset Holdings to secure its own nearby site in To Kwa Wan after winning a URA tender the previous March.
In February of last year, HKEX-listed Hysan Development and privately held Empire Group agreed to each acquire a 25 percent stake in the URA’s Bailey Street/Wing Kwong Street project in To Kwa Wan from Henderson Land for a combined HK$6.1 billion after Henderson had won the project in a URA tender in September 2021 for HK$8.1 billion.
In December 2021, Kerry Properties won a URA tender for HK$5.58 billion ($716.1 million), giving it the right to develop new homes and retail space on a site between Hung Fook Street and Ngan Hon Street.