URA offers Hong Kong developers concessions in Kwun Tong redevelopment
The URA has offered a series of concessions - including dropping the HK$8 billion minimum requirement - to woo developers to bid for its single biggest project that will turn Kwun Tong's rundown town centre into a "mini Taikoo Shing".
The Urban Renewal Authority (URA) has offered a series of concessions - including dropping the HK$8 billion minimum requirement - to woo developers to bid for its single biggest project that will turn Kwun Tong's rundown town centre into a "mini Taikoo Shing".
The concession could lower the estimated original investment cost of HK$18 billion.
The URA revised the terms and requirements for the proposed development, a week after the authority withdrew the tender because the bids failed to meet its requirements.
One of the major hurdles for the project, according to market sources, was requiring the winning developer to pay an entry fee of HK$8 billion.
"Now, the URA will allow bidders to propose how much they are prepared to pay for the entry fee plus profit-sharing," said a developer, who is with one of the 10 firms invited by the URA to bid for the project under the revised tender conditions.
"It gives us more flexibility and a lower cost will also reduce the investment risk. For such a massive project, it will take several years to complete."
