The Bailey Street/Wing Kwong Street development project in To Kwa Wan was previously acquired by Henderson Land for 8.189 billion yuan and will be developed in cooperation with the URA.
The Chief Executive Officer of the URA, Wei Zhicheng, published a blog today (12th), stating that after the completion of the project, the URA and Henderson Land will jointly operate and manage the commercial part of the project for a period of 10 years. The Construction Bureau will own 30% of the equity.
Wei Zhicheng explained that the Bailey Street project has other connected development projects that will be completed at different times in the future. Therefore, the 10-year joint operation period allows the URA to participate in the operation and decision-making of the commercial and district facilities in the project to promote the community The integration of planning also refers to the number of projects returned to bids and the results of winning bids, reflecting that the relevant requirements do not have a significant impact on the bids of developers.
In the future, To Kwa Wan will set up a pedestrian shopping street that runs through different projects.
(Photo of URA)
In 2016, the URA started to implement an overall planning strategy in the To Kwa Wan community using the "community development" model.
Wei Zhicheng said that the Bailey Street project is the largest project in the "community development" and will provide about 1,150 residential units after completion.
URA set up a 10-year operation period
Wei Zhicheng said that after the Bailey Street project is completed, the URA and Henderson Land will jointly operate and manage the commercial part of it for a period of 10 years.
According to the terms of the cooperative development agreement, the URA will hold 30% of the equity in the commercial part of the project in the future, and its estimated total revenue, together with the bid amount of the project, will be valued at more than 9 billion yuan.
He explained that since the eight connected development projects including the Bailey Street project under the "community model" will be developed and completed at different times, the URA has set a 10-year joint operation period for the commercial part of the project, which will enable the city The Construction Bureau can participate in the operation and decision-making of commercial and regional facilities in the project, and promote the integration of community planning and sustainable development.
He also said that although the planning and design requirements of the project are relatively high, the number of returned bids and the results of bids for the projects reflected that the relevant requirements did not have a significant impact on the developers’ bids. The situation of large-scale projects returning to bids is similar.
The market valuation of the project and the floor area per square foot are both within the median of the market valuation range, which is in line with market expectations.
The Bailey Street/Wing Kwong Street project in To Kwa Wan is the largest residential project of the URA after the Kwun Tong Grand Plaza.
(Profile picture)
The Hongfu Street project will invite a letter of intent for cooperation and development
Wei Zhicheng said that the Hung Fook Street/Yin Han Street development project has completed the clearance, resettlement and site leveling, and the preparations for the relevant bidding procedures are in the final stage. It is expected that a letter of intent for cooperative development will be invited in a short time.
The site area of Hung Fook Street is about 4,600 square meters. After redevelopment, it is expected to provide about 750 small and medium-sized residential units.
Henderson Land's nearly 8.2 billion won the URA’s To Kwa Wan Bailey Street project at a land price of 11,400 yuan per square foot. The URA’s Tai Kok Tsui Huai Shu Street Project became the first private residential building to use concrete ``assembly and synthesis'' URA To Kwa Wan Bailey Street A total of 6 bids have been received for this project
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