Hong Kong's Northern Metropolis Project Sees Unique Developer Collaborations
Hong Kong's development chief has expressed satisfaction with the collaboration between property developers and industry operators in bids for the Northern Metropolis pilot project, emphasizing that the consortiums reflect a diversity aligned with the government's objectives.
Secretary for Development Bernadette Linn Hon-ho made these remarks on Saturday, despite the government only receiving two bids for the flagship Hung Shui Kiu project when the tender closed a day earlier. The two bids came from different entities, showcasing a mix of traditional developers and industry operators.
Henderson Land Development submitted a stand-alone bid, while Sino Land partnered with five companies: China Merchants Land, China Resources Land (Overseas), China Overseas Land & Investment, CTG Investment, and Chinese e-commerce firm JD.com.
Linn noted that this approach differs from previous tenders for residential or commercial sites, which often attracted "homogeneous" bidders. She highlighted that one bid for the development area, covering both residential and industrial plots, was submitted by a consortium of "highly diversified" enterprises working together as a bidding team.
"They include not only property developers engaged in development projects, but also companies with real experience in operating industries and businesses," she said.
The Development Bureau stated on Friday that the tender assessment panel would begin work immediately, with a target of awarding the tender by the end of August.
The Hung Shui Kiu tender is the first site under the government's new large-scale land disposal model for the Northern Metropolis, a multibillion-dollar project aimed at boosting housing supply and developing technology and innovation industries near the mainland China border.
This tender is being closely watched as a test of whether the government can persuade developers to take on a broader role in delivering its economic development agenda. Other major developers, including Sun Hung Kai Properties, New World Development, and CK Asset Holdings, did not take part.
The 10.5-hectare (26-acre) site comprises three residential plots and three enterprise and technology park sites, with capacity for about 3,120 homes and 280,000 square metres of industrial floor space.
Unlike traditional land sales, bids are assessed under a two-envelope system, with 30 per cent weighting given to the land premium offered and 70 per cent to non-price factors, including proposals for technology park development and plans to attract strategic industries, investment, and jobs.
Linn said bidders were required, as a basic condition, to complete site formation for three industrial plots and construct at least one industrial building. She added that higher scores would be awarded if a consortium built additional industrial buildings, accelerated construction timelines, or introduced priority industries sought by the government.
Linn also mentioned that the government had gazetted the Northern Metropolis Development Ordinance on Friday and submitted a bill to the Legislative Council to facilitate the flow of people, goods, data, and capital across the border. The bill will undergo its first reading next Wednesday, with the administration aiming for approval before the end of the year, she added.
She also said the Environmental Protection Department would introduce a target-oriented noise control framework in the Northern Metropolis to allow extended construction hours.
Key Points of the Northern Metropolis Initiative
- Collaborative Bidding: The project encourages collaboration between property developers and industry operators.
- Diverse Consortiums: The bids include a mix of traditional developers and companies with real-world operational experience.
- Two-Envelope System: Bids are evaluated based on both price and non-price factors.
- Industrial Development Requirements: Bidders must meet specific industrial development criteria.
- Legislative Support: A new ordinance and bill aim to support the Northern Metropolis initiative.
- Environmental Considerations: Noise control measures are being introduced to accommodate extended construction hours.
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