Editorial | New strategy for the Northern Metropolis may be a game changer
The more agile corporate-led strategy, which balances government leadership with market mechanics, could be a blueprint for managing other projects
City leader John Lee Ka-chiu announced plans to set up the company in his policy address last year. The chief executive has also stressed the need for faster progress on the Northern Metropolis plan, which aims to turn 30,000 hectares along the border with mainland China into a hub for innovation and technology, housing and a university town.
Linn said the new company would aim to “achieve financial self-sufficiency”, eliminating the need for regular capital injections from the government.
In acknowledgement of soft market sentiment, authorities are extending the tender period to six months. Successful bidders will also only need to pay 25 per cent of the land premium upfront, with the rest deferred over three years.
Linn said incentives would be introduced to attract more bids after authorities talked to potential participants, including the addition of one more residential site to improve the viability of the land parcel and an extended bidding period.
The measures lower barriers to entry as they address liquidity and risk obstacles that can stall private investment. Immediate revenue is being traded for long-term momentum on the 23-hectare (57-acre) site earmarked for high-end professional services and logistics.