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Vivian Au

Hong Kong’s development minister has said a Northern Metropolis memorandum of understanding (MOU) signed by 85 business heavyweights is simply a “general expression” of support without commitments to formal tenders, with the financial sector calling for more transparency and dialogue.
Secretary for Development Bernadette Linn Hon-ho said on Sunday the agreement, signed last month, aimed to unite efforts and promote the project near the border with mainland China.
She said the “support” wording of the MOU was “neutral”.
“Would the public overthink this matter?” she said.
The companies have pledged to support and participate in the Northern Metropolis blueprint, which envisions transforming 30,000 hectares (74,130 acres) of land in the New Territories into an economic powerhouse and housing hub.
Linn added the MOU was a “general expression” of support, which could come in various forms such as providing expert opinions or financing.
The minister noted a company’s decision to sign the MOU had no impact on whether it would be involved in project tenders.
“When the tender is released, it is a formal process,” she said.
The businesses pledging their support cover a range of industries, including real estate, infrastructure development, banking and innovation. Among the big mainland names are China State Construction Engineering, China Railway Group, China Merchants Group, China Everbright Group, China Travel Service, Bank of China, China Resources and Alibaba Cloud, a subsidiary of the Alibaba Group that owns the Post.
Major Hong Kong companies include Sun Hung Kai Properties, Henderson Land Development, New World Development, Wheelock Properties, Swire Properties, Great Eagle Holdings and Kowloon Development.
Their involvement could help reduce the strain on public coffers as the private sector would bear HK$10 billion to HK$20 billion in development costs for each plot of land.
Before the MOU was signed, Hong Kong and Macau Affairs Office director Xia Baolong had appealed to developers and tycoons in September not to be onlookers to the city’s economic development, but to walk the talk.


The government has singled out a large-scale land-disposal pilot scheme for the companies, setting aside three parcels of land measuring between 10 and 20 hectares. Bids will cover the construction of private properties and community facilities.
Developers will carry out site formation work and build public facilities including roads for the government under the scheme. In return, they can deduct relevant costs from the land premium and retain private residential sites for profit.
Linn said the main feedback she had received was that the sizes of the three parcels of land were suitable.
She also noted she had met financial sector representatives, who indicated the industry could support the scheme’s financing needs.
Linn said she hoped each parcel of land would be completed in a “single-digit” number of years, which would be clearly outlined in any agreements.
The government earlier said it would invite developers to submit expressions of interest for the three large land parcels this month.
Lawmaker Louis Loong Hon-biu said that the three land parcels were still in the initial planning stage and both the developers and the government still needed to discuss them.
“Developing them within 10 years is not unattainable,” he said, adding that developers still needed to negotiate with the government over the costs it would bear.
He said maintaining dialogue, while ensuring transparency, was vital for both sides.
Asked whether US interest rate cuts would affect the investment appetite of developers, he said there might currently be a slowdown but the impact was not significant.
Lau Chun-kong, a surveyor and managing director of real estate company Colliers Hong Kong, said developers were positive about the future and looking for opportunities.
“Developers will focus on the residential sector,” he said.
He added that the supply of office buildings was currently quite large.
Lau also said the market could absorb the three land parcel projects, but the industry needed to assess whether they would be profitable.


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Hong Kong economy

Secretary for Development Bernadette Linn says an agreement signed last month aimed to unite efforts and promote the project near the border with mainland China. Photo: May Tse

Hong Kong developers to help fine-tune Northern Metropolis pilot land scheme

The government blueprint calls for turning 30,000 hectares (74,130 acres) of land in the New Territories into an economic powerhouse and housing hub. Photo: Eugene Lee

85 business heavyweights pledge to support Hong Kong’s Northern Metropolis

Business leaders display MOUs signed on Friday. Photo: Dickson Lee

John Lee speaks at the signing ceremony on Friday. Photo: Dickson Lee

The Northern Metropolis will be built on land near the mainland border. Photo: Martin Chan

Hong Kong’s third medical school to work closely with Northern Metropolis partners

The Northern Metropolis will house the new medical school and an integrated teaching and research hospital. Photo: Martin Chan

The government task group held its second meeting on Thursday. Photo: Handout

News

Hong Kong

Bernadette Linn says non-binding deal to support megaproject does not require commitments for formal tenders


Bernadette Linn says non-binding deal to support megaproject does not require commitments for formal tenders.
