Land grant to facilitate mega project development

The chairman of the Hung Shui Kiu Industry Park Company, Jeffrey Lam, praised the government's decision to grant an extra 20 percent of land size for the winning tender of the first large-scale development project at the Northern Metropolis. The Development Bureau awarded nearly 11 hectares to HSK New Development Limited, comprising six shareholders, for the project in the Hung Shui Kiu/Ha Tsuen New Development Area.

The company will develop three residential sites, build a smart logistics centre, and handle various remaining sites in the pilot area, returning them to the government later. Two of the "Enterprise and Technology Park" sites will be awarded to Hung Shui Kiu Industry Park Company upon formation, increasing the total land size from 23 hectares to 27.5 hectares.

The decision demonstrates the authorities' commitment to industry development. The newly allocated sites will help establish a regional industrial ecosystem and attract businesses and talents. The winning consortium has diverse expertise, including a long-established developer, large SOE developers, and a logistics operator. JD.com, the anchor tenant, plans to start operations within 55 months, an aggressive timeline compared to the 96-month requirement.

This project will be a crucial test for future land disposals for mega projects, suggesting that future tenders should have a longer lead time and a rolling tender approach to establish the right partnerships and formulate viable business models.