Hong Kong's Northern Metropolis gets mainland developers and JD.com as major partners

Pooling expertise from state-backed developers and technology giants will accelerate the delivery of Hong Kong's Northern Metropolis while spreading financial exposure across multiple partners, real estate and political advisers said following the first tender award.

The HK$16.8 billion Hung Shui Kiu pilot project, awarded Monday to a consortium of five mainland Chinese enterprises and local developer Sino Land, secured just one competitor, a solo bid from Henderson Land Development. HSK New Development will develop 10.5 hectares at a land premium of HK$1.03 billion.

Mainland giants bring decades of experience

Four state-backed developers, China Overseas Land & Investment, China Merchants Land, China Resources Land (Overseas) and CTG Investment, form the mainland contingent alongside e-commerce and technology company JD.com. All possess decades of experience in their respective sectors.

Jeffrey Lam Kin-fung, chairman of the board of the Hung Shui Kiu Industry Park Company, the government vehicle created to drive district development, said bringing together top players from real estate, construction and hospitality would speed up execution. "Each of the six companies has a special role to play, which will contribute to the holistic development of the Northern Metropolis," he said.

Strategic alignment drives participation

Analysts attributed mainland participation to national priorities, technical expertise and familiarity with the local market. Their involvement helps align the megaproject with broader national strategy while sharing financial risks, advisers noted.

Real estate advisers cautioned that future tenders would need greater flexibility and longer bidding windows to encourage more competition, given the limited response to the inaugural tender.

Source: South China Morning Post