After years, Macau firm opts out of Hong Kong renewal project, seeks US$153m for site

The sale of a North Point redevelopment site in Hong Kong for US$153 million highlights the challenges faced by private developers in the city's urban renewal efforts. The property, which spans 7,680 square feet at 77-87 Marble Road, has been on the market after its owner spent years assembling the aging asset, estimating potential losses of up to 30 percent from redevelopment.

Excellent Group, led by Macau developer Lo Shing-chung, acquired the 61-year-old building in 2018, spending over HK$800 million in the process. Despite initial plans to redevelop the site for housing, the high costs led the group to conclude the acquisition was necessary to "finish" a project that had dragged on for years with mounting interest expenses.

The recent compulsory-sale order in July 2025, which resulted in the HK$1.2 billion asking price, is seen as reflective of the difficulties many developers encounter in Hong Kong. With lengthy acquisition periods, financing costs, and uncertain returns, it's rare to see a site sold after a consortium has consolidated ownership, according to market observers.

Many prefer government land sales or other opportunities that offer greater certainty in development schedules and execution.