The successful bid “is based on the idea of a bridge, and aims to curate a world-class iconic landmark in Hong Kong, enhance the connectivity between the hinterland and harbourfront in Central, and create a vast amount of green and public spaces,” a spokesperson for the Development Bureau said. “The development is expected to achieve good integration with the surrounding environment and vitalise the harbourfront area.”

A key feature of the design is its height limit, devoid of any building taller than 50 metres (164 feet) on the plot’s western fringe, with nothing higher than 16 metres to the east.

The constraint was to honour a 1971 agreement granted to Hongkong Land Limited, which paid what was then a record price of HK$258 million to lease a plot for 75 years, where the Jardine House tower now stands. The then British colonial government agreed that no building directly to the north of Jardine House would ever obstruct its views. As a result, the height of the General Post Office building, built in 1976 north of Jardine House, was capped at 120ft (37m).

“We are excited to take part in this world-class development, which will form one of the most important and strategic additions to Hong Kong’s CBD,” said Martin Lee Ka-shing, chairman of Henderson Land. “We are confident that the project will generate favourable financial returns to the company.”

Henderson said that the project will be delivered in two phases, with the first phase due to complete by 2027. Phase one will have 270,000 sq ft of office space and 340,000 sq ft of retail, dining and entertainment spaces. Phase two, targeted for completion in 2032, will have 390,000 sq ft of office space and 600,000 sq ft of retail space.

The price tag of the winning bid works out to HK$31,463 per square foot, 37 per cent cheaper than the commercial plot that Henderson paid for at Murray Road in 2017, according to Centaline Commercial.

“Office development at such an iconic location will be highly sought after by both big multinational and mainland Chinese corporations,” said Marcos Chan, head of research at CBRE Hong Kong.

Henderson plans to erect three buildings on the harbourfront to accentuate Hong Kong’s image as Asia’s World City. The block closest to the harbour will be multifunctional, while the other two will be office buildings.

The focal point of the entire design is the old Star Ferry Clock Tower, which will be reconstructed close to its original position to maintain a visual connection with the harbour and Hong Kong’s maritime heritage, according to the land sale condition.

The “two-envelope” approach to awarding tenders was a way to put a cap on land prices, awarding bids on meritorious designs, as well as the highest price. Henderson’s Pacific Gate Development unit attained the highest marks for its premium and non-premium proposals, according to the government’s Tender Assessment Panel (TAP).

Six bids were received for the site, of which four failed to attain the passing mark for both the premium and non-premium proposals in the two-envelop approach, the government said, without naming those that failed.

The tender attracted Hong Kong’s biggest developers: the most valuable developer Sun Hung Kai Properties, Li Ka-shing’s flagship company CK Asset Holdings, as well as tycoon Peter Woo’s Wharf Real Estate Investment Company. The city’s subway operator MTR Corporation submitted a joint proposal with Chinachem Group, while Robert Ng Chee Siong’s Sino Land partnered with the Lo family’s Great Eagle Holdings and China Merchants Group in a joint bid.

Henderson’s bid reflects the developer’s confidence in the Central business district’s prospects, said Cushman & Wakefield capital markets executive director Tom Ko in Hong Kong.