URA gets bids for Kwun Tong project which could net HK$18b investment

Four of the 10 developers invited to tender by the Urban Renewal Authority (URA) have submitted bids for its Kwun Tong redevelopment project, which could see an estimated investment of HK$18 billion.

The bidders for the URA's biggest project include Sun Hung Kai Properties, Henderson Land Development, Wheelock Properties and an unknown party.

"The response is fine given the huge investment involvement. Such a big project will likely only attract bids from big developers," said Alvin Lam, a director at Midland Surveyors.

The URA said it would award the project to the developer who offers the highest profit-sharing proposal, and the winning bidder must also pay a minimum HK$8 billion to the authority. Lam said he expected the entry price to increase to HK$10 billion once the profit-sharing with the URA was taken into account.

Together with an estimated HK$8 billion construction cost, the total investment could be as high as HK$18 billion.

"The higher the cost will increase the investment risk, owing to the fact the residential market is still impacted by the government's cooling measures to rein in home prices," he said.