Mid-tier developer Nan Fung Development has outmanoeuvred eight rivals to win the contract for an estimated $2 billion Urban Renewal Authority (URA) residential project in Tai Kok Tsui.
It is the first time the privately run firm has won a redevelopment project through the URA. For the past four months, the authority has been taking advantage of the economic recovery and pick-up in the property market, successfully awarding three projects - including yesterday's Cherry Street development - to private developers as it seeks to jointly gentrify decaying urban areas.
In April, mid-tier developer Sino Land won the Yeung Uk Road housing project contract, while small player K Wah International Holdings was awarded a residential redevelopment project in Johnston Road, Wan Chai, last month.
'The improved economic environment makes the URA redevelopment projects more available,' Hong Kong Institute of Surveyors government practice and local affairs panel convenor Lau Chun-kong said.
Earlier this month, 22 developers, including Sino Land and dominant players such as Cheung Kong (Holdings) and Sun Hung Kai Properties, expressed interest in the a project at Fuk Wing Street, Shamshuipo.
On Tuesday, the authority invited developers to submit expressions of interest for a project in Po On Road, also in Shamshuipo.
The authority will soon launch its last project for the year, in Reclamation Street, Mongkok.