After years, Macau firm opts out of Hong Kong renewal project, seeks US$153m for site
A North Point redevelopment site is being put on the market for HK$1.2 billion (US$153 million) after its owner, which spent years assembling the ageing property, warned that redeveloping it could result in losses of as much as 30 per cent. The sale offers a rare glimpse into the difficulties facing private developers in Hong Kong’s urban-renewal drive, where lengthy acquisition periods,…
After years of effort, a Macau-based firm has decided to withdraw from a redevelopment project in Hong Kong, seeking US$153 million for a 7,680 sq ft site at 77-87 Marble Road. The property, acquired by a consortium led by Excellent Group, faced significant financial challenges, with the owner warning of potential losses of up to 30 percent upon redevelopment.
The site was purchased at a reserve price of HK$600 million, eventually being sold for HK$1.2 billion, which is considered to cover the costs incurred during the acquisition. The lengthy acquisition process, financing costs, and uncertain returns have made private developers cautious in Hong Kong's urban renewal drive. Many developers now prefer government land sales or other opportunities that offer more certainty over development schedules and project execution.
Despite recent improvements in redevelopment economics, with stable construction and financing costs and a stronger residential property market, the North Point property's sale highlights the difficulties faced by developers in completing long-term projects.
Written by urgent.news from South China Morning Post's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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