The government has awarded Hong Kong’s first Northern Metropolis district-development tender, covering Hung Shui Kiu, to HSK New Development, a consortium led by China Overseas, for HK$1.03 billion. The project is being presented as an early test of a model that brings private-sector resources into large-scale area development.
The winning consortium is expected to invest about HK$16.8 billion in the project and generate more than 6,000 jobs, including in construction, logistics operations and commercial management.
The government said the bid price was not the sole consideration in selecting the winner. It placed greater weight on the bidder’s ability to introduce strategic industries, create jobs and develop industry chains, rather than simply carry out property development.
RTHK reported that HSK New Development has six shareholders: China Overseas Land and Investment, China Merchants Land, China Resources Land, China Travel Service, JD.com and a subsidiary of Sino Land. Ming Pao described the winning entity differently, as a company formed by five Chinese-funded companies and Sino Land, so the precise ownership structure is not fully clear from the reports.
Financial Secretary Paul Chan described the successful tender as a milestone for Northern Metropolis development. He said the district-development approach could mobilise private-market resources, use commercial flexibility and expertise, speed up development, align projects more closely with users’ needs and reduce the government’s cash contribution.
Chan said the government would maintain communication with the market before considering tenders for other Northern Metropolis areas when appropriate. Authorities are also examining financing options for Northern Metropolis projects, including syndicated loans, bond issuance, infrastructure financing, securitisation and related financial services.
The reports do not give a timetable for further tenders or details of how the projected investment will be allocated. Specific strategic industries, facilities and employment plans for Hung Shui Kiu have also not been set out in the supplied reports.