Hong Kong Sweetens Tender Terms for Second Logistics Site Sale in Response to Market Feedback, Aims for Land-Efficient Industry Development

Hong Kong plans to sell another logistics site, improving the tender conditions based on market response. The victorious bidder will need to give up 20% of the floor space to the government for financial stability, a decrease from the previous 30%. The plot ratio has also been lowered to decrease the expense.

The Lands Department stated that Hong Kong is enthusiastic about advancing its industry. It plans to effectively manage the relocation of some brownfield operations displaced by its projects, offering operators a chance to enhance their processes.

"The industrial location at Hung Shui Kiu is advantageously positioned in the Northern Territories," stated Hannah Jeong, the executive director and chief of valuation and advisory services at CBRE Hong Kong. With the possible maximum gross floor area reaching up to 388,685 sq m, "its substantial size appeals greatly to significant logistics firms," she further commented.

In an effort to pacify investors, the government has relaxed some of the bid conditions after considering recommendations from market participants, according to the Lands Department.

The successful bidder is obliged to give up 20% of the floor area to the government, a reduction from the previous 30%, in order to improve the financial feasibility of the project, according to the statement. The plot ratio was also decreased from seven to five, to avoid escalating the total development expenses due to basement building costs.