ebulletin

October 20, 2024
Hung Shui Kiu site to be sold for the development of logistics facilities

A site at Area 39A and 39B, Hung Shui Kiu and Ha Tsuen in Yuen Long will be sold by open tender from October 18, 2024, to March 21, 2025, the HKSAR Government announced earlier. The site, Hung Shui Kiu Town Lot No. 10, is located within the Hung Shui Kiu/Ha Tsuen New Development Area, and occupies about 77,737 sq m. It is earmarked for the development of Multi-storey Buildings for Modern Industries (MSBs), for logistics purposes.

Its maximum gross floor area is 388,685 sq m, of which no less than 20% must be handed over to the Government after completion. The Government or its appointed agency will manage the floor space and lease it to brownfield operators displaced by government development projects.

The Government highlighted that the site’s Conditions of Sale have been adjusted based on market feedback. The adjustments include a lowering of the plot ratio from seven to five to avoid basement construction costs impacting on overall cost-effectiveness. The proportion of floor space which must be handed over to the Government has also been reduced, from around 30% to 20%.

The Government added that it will continue to adopt the two-envelope approach, as in the sale of the site located on Yuen Long Fuk Wang Street and Wang Lee Street.

Under this approach, tenderers must submit two envelopes containing non-premium proposals and premium proposals, respectively, so that the Government can consider non-premium factors, such as how MSBs might drive the development of industries and facilitate consolidation of displaced brownfield operations.

Separately, the Government announced that the tender period for the aforementioned Yuen Long site will be extended to March 21, 2025, matching the tender closing date of the Hung Shui Kiu lot.

Explaining the move, the Government said that as both the Hung Shui Kiu and Yuen Long lots are designated for modern logistics use, there were views in the market that it would be better if the industry and investors were able to consider the two sites concurrently.

Land sale documents for the Hung Shui Kiu lot is available on the Lands Department website.

Hung Shui Kiu new town