The 516,312 sq. ft. (47,967 sq. m.) site, which has a prime location at the heart of Hong Kong’s harbourfront, came with a record-setting price tag of HKD50.8 billion (approx. USD6.5 billion) and earns Henderson a 50-year land grant for the site. The market expectations for the site were between HKD35 – HKD60 billion.
Bids for the site closed back in June this year after a longer than usual six month two-envelope tender period. Notably, however, four of the six submitted bids failed to attain a passing grade, and were discounted, according to the Government’s press release.
With a maximum permissible commercial GFA of 1.6 million sq. ft., the accommodation value for the site works out at HKD31,750 per square foot, lower than the record of HKD50,064/sq. ft. set by Henderson for their purchase of the Murray Road car park site back in 2017.
The site has stringent height restrictions of 50m on the western portion (nearest IFC), and 16m on the eastern portion, which is aimed at maintaining the character of the harbourfront. This coupled with the approximately 269,000 sq ft of public space (dubbed an urban jungle) that must be provided and the pedestrian connection to the Hong Kong MTR station should foster a more vibrant and harmonious use of the site, while preserving Hong Kong’s iconic skyline.
Planning for this site dates back ten years ago to the New Central Harbourfront Urban Design Study, which was completed in 2011. Since then the development parameters and design guidelines were approved and published by the Town Planning Board in 2016 in a planning brief.
According to the Conditions of Sale, Site A, which is the area bounded by Lung Wo Road to the South, Man Yiu Street to the West and Man Kwong Street/Star Ferry Terminal to the North, must be completed by 31 December 2027. Site B, which is bounded by Lung Wo Road to the North, Man Yiu Street and Connaught Place to the West and Connaught Road Central to the South (and includes the current General Post Office and Star Ferry Car Park Developments), is to be completed by 31 December 2032.
Written by Adam Clift; Photo Source: Hong Kong Government
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