Retail properties

MTR Corp breaks ground on HK$2.4 billion shopping mall in Tsing Yi

HK$2.4b Tsing Yi Maritime Square Extension project due for completion by the end of 2017

PUBLISHED : Friday, 12 June, 2015, 9:45pm
UPDATED : Tuesday, 16 June, 2015, 2:36pm

MTR Corporation kicked off a HK$2.4 billion project to build a four-storey shopping centre near Tsing Yi Airport Express station, its first self-developed retail mall in Hong Kong.

A ground-breaking ceremony was held on Friday to start the main construction work for the Maritime Square Extension project. To be completed by the end of 2017, the project involves converting a portion of the adjacent Tsing Yi Lorry Park into the mall.

"The Maritime Square Extension includes a number of initiatives to respond to the needs of the local community and provide them with better connectivity and convenience, including the provision of a new covered staircase and a new footbridge connecting the neighbourhood with future developments," said David Tang, property director of MTR Corporation.

The 130,244 square feet shopping mall will feature an array of shops, restaurants and entertainment outlets as well as an approximately 5,000 square metre scenic roof garden aimed at creating unique shopping, dining and entertainment experiences for the local community and visitors.

A spokesman said MTR, which currently owns 13 shopping malls, will add more in its retail portfolio, including the Maritime Square Extension, HK$7.5 billion Tai Wai Station shopping mall and the Lohas Park package of seven shopping malls that will require a total investment of more than HK$14.88 billion.

While the Tsing Yi mall will be MTR's first self-developed mall, the ones in Tai Wai and Lohas Park will be built by other developers and sold to MTR.

Meanwhile, the Lands Department said nine developers submitted bids for a government tender for a Tuen Mun luxury residential site estimated at nearly HK$4 billion. The positive response comes after Sun Hung Kai Properties won another site nearby for HK$1.32 billion on June 2.

"The response was quite good for such a big site," said Vincent Cheung Kiu-cho, head of valuation advisory services for Greater China at Cushman & Wakefield. He estimated the site could raise about HK$3.77 billion, or HK$4,800 per square foot.

While mainland players stayed on the sidelines, Sun Hung Kai Properties, Henderson Land Development, Cheung Kong Property, Wheelock Properties, New World Development, K & K Property and a consortium of Sino Land, K Wah International, Manhattan Garments and Wing Tai Properties were among the bidders. A joint venture of Emperor International and Grand Ming Group Holdings also submitted a bid.

"Chinese developers prefer sites located in urban areas that are close to railway lines and a waterfront," Cheung said.

The Tuen Mun site, located at Kwun Chui Road near Hong Kong Gold Coast, could yield a maximum gross floor area of 785,300 sq ft. It is expected to fetch between HK$2.7 billion and HK$4.3 billion.

Alvin Lam, a director at Midland Surveyors, said the site could provide 700 to 800 units each with an average size of 800 to 1,000 sq ft.

"The winning bidder will create apartments and houses of different sizes in order to maximise investment returns," he said.