Macau developer abandons Hong Kong redevelopment, sells assembled site for HK$1.2 billion

A Macau-led developer consortium is abandoning a North Point redevelopment project and putting the assembled site on the market for HK$1.2 billion (US$153 million), warning that proceeding with construction could trigger losses of up to 30 per cent.

The consortium, headed by Macau developer Excellent Group, spent years piecing together the 7,680 sq ft site at 77-87 Marble Road before securing a compulsory-sale order in July 2025 for the 61-year-old property. It won the site at auction for HK$600 million after no rival bidders emerged, but had already spent more than HK$800 million acquiring individual units over an extended period.

Years of costs force retreat

Market sources said the HK$1.2 billion asking price merely "covers the cost" after factoring in years of financing expenses that accumulated during the lengthy acquisition process. Cushman & Wakefield has been appointed to market the property, which can be redeveloped for residential, commercial, hotel or student accommodation uses, with expressions of interest due by September 28.

Land Registry records show the site is owned by a consortium led by Excellent Group, whose founder Lo Shing-chung is listed as a director in Companies Registry filings. The North Point project marked the group's first major development venture in Hong Kong after entering the market in 2018. Excellent Group did not respond to requests for comment.

Rare insight into redevelopment hurdles

The sale offers an uncommon window into the obstacles facing private developers in Hong Kong's urban-renewal drive, where protracted acquisition timelines, mounting financing charges and uncertain profit margins can undermine projects even as the residential market shows signs of recovery. The project's difficulties highlight how making urban redevelopment financially viable remains challenging despite improving market conditions.

Source: South China Morning Post