Sprint on to bid for Mong Kok's 'Sneaker Street' site

PUBLISHED : Tuesday, 24 July, 2012, 12:00am
UPDATED : Tuesday, 24 July, 2012, 12:00am


More than a dozen developers have expressed interest in the Urban Renewal Authority's commercial and residential project in Mong Kok's 'Sneaker Street'.

An authority spokesman said yesterday that the authority had received 18 expressions of interest for the project. The authority's board will convene a tender review panel to shortlist qualified companies. They will then invite those developers to submit tenders for the project.

Among those submitting expressions of interest were Henderson Land Development, New World Development and Emperor International Holdings.

Midland Surveyors' director Alvin Lam Tsz-pun estimated the project was worth HK$2.88 billion.

'The response to the project is not bad. I believe the residential floor area is worth about HK$5,500 per sq ft. The retail space on the ground floor is valuable and worth HK$70,000 per sq ft,' Lam said.

Other surveyors put the site's value at between HK$3.05 billion and HK$3.66 billion.

Vincent Cheung Kiu-cho, national director of Greater China at Cushman and Wakefield, believes the site is worth HK$3.66 billion.

'The residential space is worth about HK$7,200 per sq ft. I believe it could fetch HK$9,000 to HK$11,000 per sq ft when the project is released on the market,' Cheung said.

'The profit margin for the residential space may not high. But the project's retail space is valuable. It's worth HK$43,800 per sq ft. I believe the winning bidder will sell the retail shops on strata title, which could generate higher profit.'

The 26,673-square-foot site near the Macpherson Playground is bounded by Sai Yee, Nelson and Fa Yuen streets. It could house a project with a commercial floor area of 53,346 sq ft and a residential floor area of 186,712 sq ft. It is expected to supply a total of 290 flats, half of which are about 500 sq ft.

Sai Yee Street is also known as Sneaker Street for its sports shoe shops and some of the retailers were affected by the project. The authority said the winning bid would have to incorporate a sports retail element to enhance the local character. Sportswear retailers that moved out over the last few years could choose to return when the project was complete.