The Federal Republic of Germany is selling its prestige residential property in Hong Kong for at least $232.81 million.
At present, the site on Gough Hill Road, The Peak, is home to German consulate staff.
Under the plan, it will be used for a luxury residential house or a six-storey apartment block.
The German Government is inviting developers or interested parties to submit tenders for the lot by Friday.
A contract is expected to be awarded in early December.
With the limited supply of prestige sites on The Peak, bidding is expected from developers and end-users.
Manhattan Garments International, chaired by legislative councillor James Tien Pei-chun, is tipped to be one of those going for the site.
About 64 per cent of the 72,635 sq ft site will be designated for redevelopment, with the balance reserved for a new consular residence.
With a plot ratio of 0.5 allowed on The Peak, it will provide a gross floor area of 36,312.5 sq ft.
The minimum price has been set at 46.1 million deutschemarks (about HK$232.81 million).
The tender will be awarded to the highest bidder.
The German Government will pay 8.2 million deutschemarks to buy the turnkey residence.
Some potential investors expressed concern about the site, saying the eventual plot ratio might be lower than 0.5.
Under the Building (Planning) Regulation, a plot ratio can be restricted by the Works Branch if the width of a road outside a project is less than 4.5 metres.
Gough Hill Road is three metres wide at the site.
A developer said that given the road width the ratio offered might be less than 0.5 because of concerns over access.