KCRC Tai Wai project attracts 15 developers
12 residential towers split into two packages to entice big and small firms
Despite a flagging residential market, Hong Kong developers are still showing keen interest in new development sites.
According to Kowloon-Canton Railway Corp, about 15 developers yesterday expressed interest in its tender to develop a large-scale residential project at the company's Tai Wai maintenance centre in Sha Tin.
In a bid to attract developers of various sizes, KCRC has divided the 12-tower residential project into two tender packages to bring down the entry-level investment.
The larger tender package comprises eight residential towers that will house 2,928 flats, a school and a government facility.
The other package is made up of four residential towers that will have 1,376 flats and a school.
Major developers including Cheung Kong (Holdings), Sun Hung Kai Properties, New World Development, Sino Land, Henderson Land Development, Wharf (Holdings) and Wheelock Properties, have signified their interest.
Other developers interested included Kerry Properties, K Wah International, Hang Lung Properties, China Overseas Land & Investment, and SEA Holdings. A consortium formed by Kowloon Development Co and Polytec Holdings International, Manhattan Garments Holdings, and Nam Fung Textiles Consolidated would also bid.
According to the railway company, four unidentified developers among the 15 had expressed interest in bidding for just one package, while the rest intended to bid for both.
Investment was estimated at $14.5 billion and $6.8 billion. Tenders would be awarded in the first quarter next year and the project is to be completed by 2010.
Meanwhile, the government said six developers yesterday submitted bids for 46 former government quarters at 8-10 Caldecott Road in Cheung Sha Wan.
The properties average about 2,730 square feet and all have parking spaces.
They make up more than 90 per cent of total ownership of the 48-unit premises.
Whichever developer wins the auction would be able to force bidding for the remaining properties and push for a redevelopment project.
Centaline Property Agency said any redevelopment, which according to the government lease would have to be of the same size and scale as the existing building, would cost close to $1 billion, or $7,000 per square foot.
Developers that had submitted tenders included Sino Land, New World Development, K Wah and Henderson Land Development.
Raymond Fong Man-cheong, manager of property development at New World Development, said: 'It should not be too difficult to acquire the two remaining units.'
