2024-05-14 28Hse Editor
The government re-launched the bidding for commercial land in Tung Chung District 57 earlier, and yesterday received 5 bids from K. Wah, Sinochem, SHKP, Chinachem, and Jianhao Properties. Looking through the information, the land was tendered in 2020. At that time, only 3 bids were received, and the final price was not passed. The number of bids received this time is 2 more than that of the previous year. The total floor area of the project exceeds 1.26 million square feet, the market value is about 2.8 billion to 5 billion yuan, and the land price per square foot is about 2,220 to 4,000 yuan.
Li Junjie, Assistant Director of Pujin (Professional Industry Consulting and Valuation), said that the land is located in the new reclamation area of Tung Chung. In the case that the infrastructure has not been fully implemented, it must compete with other commercial buildings in Tung Chung. The market was hit hard, and investment risks naturally increased. He specifically mentioned that under the uncertain economic situation and the epidemic situation, there may be a large gap between the government's reserve price and the developer's bid, which may cause the land to fail again.
On the other hand, in response to the epidemic, the government has selected a logistics site in Tsing Yi with a floor area of more than 2.2 million square feet and converted it into a "square cabin hospital". The Transport and Housing Bureau announced yesterday that another logistics site located next to Container Terminal 8 in Kwai Chung, at the junction of Mei Tsing Road and Container Terminal South Road, will be sold by tender. It will be used for logistics services and public car parks. The site area is about 595,000 square feet, with a total floor area of 1.49 million square feet. The tender will be closed on July 15.
Kwai Chung logistics land tender valued at 4.5 billion to 5.9 billion
Fang Yaoming, senior director of Knight Frank's Valuation and Consulting Department, predicts that the project is large in scale, and it is expected that large developers or logistics operators will enter the bid. He estimated the land at about 4.5 billion to 5.9 billion yuan, and the land price per square foot is about 3,000 to 4,000 yuan. Fang Yaoming said that the land is adjacent to the Kwai Chung Container Terminal, and the use of logistics services will meet the needs and demands of the economy, as well as the future planning and development of the government. However, if it is used as a public parking lot, it can only be used for the surrounding industrial or logistics parking spaces, and may not meet the needs of the surrounding residential residents.
Foreign fund Kwai Chung Industrial Building to build a data center
In addition, some owners have converted their industrial buildings into data centers in response to the rising demand for data centers. Documents from the Town Planning Board show that EDGE, a Kwai Chung industrial building held by foreign fund Anzu Gordon, submitted an application to rebuild a new industrial building last year, and recently submitted an application to rebuild the property into a data center. According to the documents, the applicant plans to develop a 22-storey data center with a plot ratio of 11.4 times, with a total floor area of about 313,000 square feet, which is the same as the application floor for new industrial buildings last year.
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