Hon Kwok Land Investment will bid for a 32,500 square foot godown-office site in Tuen Mun at a public tender on Friday. The site is the last of five such government lots in the area. Managing director Herman Fung Man-hei said Hon Kwok was interested in the godown-office site after securing a similar 22,900 sq ft site in Tuen Mun for $17.2 million in July. The company's parent, Chinney Investments, bought a 19,780 sq ft godown-office site in the same area last October. Mr Fung said Hon Kwok paid an accommodation value of about $150 per sq ft for the site while Chinney paid about $140 per sq ft. Chinney would first develop the site it bought last year at a construction cost of $10 million - producing a gross floor area of about 98,000 sq ft. Mr Fung said the site Hon Kwok bought in July was still in the planning stage. He said godown-office space was designed to meet demand for mixed-use premises under the same roof. For instance, a construction company might need both office and storage space in the same building for efficient business operations. 'We expect godown-office development has potential for growth because the area is just opposite the cargo handling basin in Tuen Mun,' Mr Fung said. 'We will bid for the upcoming site which will close for tenders on Friday. But we have yet to decide whether to bid for the commercial-residential site in Tsuen Wan, despite a strong demand for residential projects.' The commercial-residential lot is a 11,000 sq ft site in Shiu Wo Street, Tsuen Wan, which closes for tenders on Friday. Mr Fung said priority would be given to holders of Letter A or Letter B land exchange certificates. Hon Kwok, however, had no land exchange entitlements, a factor which was likely to hamper its chances of winning the site, he said. Both the Tuen Mun and Tsuen Wan sites are relatively small in lot size, involving a smaller investment outlay. They are expected to attract interest from small to medium-sized developers. Likely bidders include K Wah International, which also bought a 14,000 sq ft godown-office site in Tuen Mun last year. Analysts said the Tsuen Wan site was conveniently located and near the MTR station so bidding interest could be quite strong. The launch of New World Development and HKR International's new residential project Discovery Park in the area attracted an enthusiastic buying response, with selling prices reaching $5,000 per sq ft. Mr Fung said the sale of Discovery Park reflected a strong demand for new residential supply in the area.