Hong Kong MTR draws 28 developer bids for HK$4b Lohas Park project
Hong Kong rail operator received strong initial interest in building a multi-billion dollar commercial -residential project in Tseung Kwan O
The latest phase of MTR Corp's Lohas Park project has drawn the best response in at least 10 years from potential bidders to one of the company's developments.
Twenty-eight expressions of interest were received for the estimated HK$4 billion commercial-residential project at phase seven of the project in Tseung Kwan O, MTR Corp said.
The response underscores developers' eagerness for large developments on rail lines.
Among the developers that expressed interest are Sun Hung Kai Properties, Henderson Land Development, New World Development, Wheelock Properties, Sino Land, Nan Fung Development, The Link Real Estate Investment Trust, China Vanke, Shimao Property Holdings, Lai Sun Development and Far East Consortium International.
Property consultants said the response to the project was the best for MTR Corp in a decade. In January, 27 submissions of expressions were generated by its residential-commercial project in Tin Wing Light Rail Terminus in Tin Shui Wai.
Victor Lai Kin-fai, the chief executive of consultancy Centaline Professionals, said that while the latest Lohas Park phase drew an "an overwhelming response", the most important indicator would be the outcome of the eventual tender.
MTR Corp is expected to announce the schedule and details of the tender soon.
Lohas Park phase seven will comprise 1,250 housing units in two residential towers sitting atop a 478,998 sq ft shopping centre near MTR's Lohas Park station. The commercial project is expected to be completed as early as 2020, with the whole project scheduled to be finished by 2022.
Property consultants estimated the land premium for phase seven could range from HK$3.7 billion to HK$4.3 billion.
"It will include Lohas Park's first shopping centre to serve the local community," Lai said.
Given that the project's shopping centre will involve a long pay-back period, he believes MTR Corp may offer an option for the winning developer to just build the mall and return the ownership to the rail operator after completion.
In October last year, MTR Corp adopted this model when it awarded the commercial-residential project at Tai Wai Station to New World Development.
