Development Bureau announces tender result for Hung Shui Kiu pilot area under large-scale land disposal
The Development Bureau (DEVB) announced today (August 24) that the pilot area project under large-scale land disposal located in Hung Shui Kiu/Ha Tsuen New Development Area (HSK) in the Northern Metropolis (NM) has the tender assessment completed. With the approval of the Central Tender Board (CTB), the Government decided to award the project to HSK New Development Limited. The successful tenderer scored higher marks than the other tenderer in both non-premium and premium aspects, with an accepted tender price at $1.03 billion.
The six shareholders of the successful tenderer are the subsidiaries of China Overseas Land and Investment Limited, China Merchants Land Limited, China Resources Land Limited, China Tourism Group Corporation Limited, JD.com, Inc. (JD) and Sino Land Company Limited respectively.
The Secretary for Development, Ms Bernadette Linn, said, "The HSK pilot area is the first tender project under large-scale land disposal in the NM, covering a total area of nearly 11 hectares. It is a project of considerable scale with a long investment period. The consortium of the successful tenderer encompasses not only major enterprises that have long participated in local real estate development, but also market leaders that are well-established in other industries with undeniable experience and capability. This demonstrates that a large-scale land disposal project can facilitate co-operation across different business sectors. The six enterprises pool their strengths and join forces to cast a vote of confidence in the NM through concrete actions, setting a new course for the diversified development models in the NM."
The DEVB said that the successful tenderer will be responsible for forming and developing three residential sites, on which some 3 000 flats can be built in total (assuming that each flat is about 50 square metres in size), and also complete site formation to build a smart modern logistics centre on an Enterprise and Technology Park (E&TP) site of permissible gross floor area (GFA) up to 50 950 square metres. The centre will adopt modern and quality design with JD stationing as the leading enterprise. It will commence operation with no less than 15 300 square metres of GFA within 55 months, faster than the minimum requirement of 96 months in the tender documents. The mentioned three residential sites and one E&TP site (namely HSK Town Lot Nos. 18 to 21), with a total area of about 3.6 hectares, will be leased to the successful tenderer for a term of 50 years.
The successful tenderer will also be responsible for forming various remaining sites in the HSK pilot area. Amongst them, two E&TP sites (namely HSK Town Lot Nos. 23 and 24, about 4.5 hectares) and one "Government, Institution or Community" site (about 0.6 hectares) for government facility shall have the site formation completed and handed back to the Government by end 2028. Besides, the successful tenderer will construct an open space, a pedestrian street and a footpath, which need to be completed and handed back to the Government no later than 2030 to 2033 by batches.
Ms Linn said, "After the successful tenderer completes the site formation and hands back the sites to the Government, the Government will grant the two mentioned E&TP sites of 4.5 hectares directly to Hung Shui Kiu Industry Park Company Limited (the Park Company), which is wholly owned by the Government, for development of superstructure and operation. The size of sites granted to the Park Company at a nominal land premium for a term of 50 years will increase by 20 per cent, previously from 23 hectares to 27.5 hectares, which facilitates the introduction of industries with a competitive edge to the NM. This land grant arrangement also enables the Park Company to start working on attracting investments and enterprises for the additional sites, so that enterprises may settle in early after completion of site formation in 2028."
As estimated by the successful tenderer, the implementation of the whole large-scale land disposal project involves an investment of about $16.8 billion, and is anticipated to create over 6 000 employment opportunities.
The successful tenderer will need to enter into a service deed with the Government, submit a performance guarantee and arrange for a bank bond within 14 days, with a view to ensuring the timely implementation of the non-premium proposal and various requirements. As the successful tenderer has not elected to pay land premium in instalments and will settle the accepted tender price in full within 28 days, the Government can receive the full amount of the tender early.
The Northern Metropolis Project Supervision Office established by the DEVB earlier will render full support to the successful tenderer in taking forward the HSK pilot area project to expedite its implementation.
To develop the HSK pilot area, the Government has adopted a two-envelope approach in the tender, with the weighting for premium proposal at 30 per cent and non-premium proposal at 70 per cent. The assessment criteria for non-premium proposal focus on the development of the E&TP sites, including whether strategic industries are developed, whether leading enterprises are introduced, development speed, investment scale, employment opportunities to be created, etc., with a view to attracting high-quality enterprises to establish their presence in the HSK pilot area and promoting the development of industry chains.
The Government launched the open tender on December 30, 2025, which closed on July 3, 2026 with two tenders received. After the Tender Assessment Panel (TAP) assessed the tenders in accordance with the marking scheme in the tender documents, HSK New Development Limited attained the highest marks for both its premium and non-premium proposals with an overall score of 100. The TAP recommended to the CTB to accept the relevant tender, and the recommendation was approved.
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