JD.com, Sino Land win HK$16.8B Northern Metropolis project
JD.com, Sino Land and four mainland developers secured a 50-year development grant for an 11-hectare site in Hong Kong’s Northern Metropolis, with a total investment of HK$16.8 billion ($2.1 billion).
JD.com, Sino Land and four mainland developers have secured the rights to develop an 11-hectare site in Hong Kong’s Northern Metropolis, with a total investment of HK$16.8 billion ($2.1 billion). The consortium won the tender with a bid of HK$1.03 billion, according to an announcement by the Hong Kong Development Bureau on Monday.
Project Overview
The award grants the consortium a 50-year lease for three residential sites expected to produce more than 3,000 units and a tech park site that can yield 50,950 square metres (548,421 square feet) of gross floor area. The project is part of the government’s Northern Metropolis initiative and will be managed under a two-envelope process that evaluates both technical and financial aspects.
Consortium and Bid Details
The joint bid was submitted by JD.com, Hong Kong builder Sino Land, China Overseas Land & Investment, China Merchants Land, China Resources Land (Overseas) and CTG Investment. The Development Bureau said the successful tenderer scored higher than the other bidder under both non-price and price assessment criteria. Henderson Land Development placed the only competing offer for the project, according to previous local media accounts.
| Feature | Value |
|---|---|
| Total investment | HK$16.8 billion ($2.1 billion) |
| Bid amount | HK$1.03 billion |
| Site area | 11 hectare (27 acre) |
| Residential units | >3,000 |
| Tech park GFA | 50,950 sqm (548,421 sq ft) |
| Required operating GFA | ≥15,300 sqm within 55 months |
Tech Park and Logistics Centre
Sino Land will build an intelligent logistics centre on the tech park site in the Hung Shui Kiu-Ha Tsuen New Development Area, with JD.com serving as the anchor tenant. JD’s JD Property division and JD Industrials unit already operate warehouses and distribution centres across China. The consortium must begin operating at least 15,300 sqm of gross floor area in the logistics centre within 55 months.
Vincent Cheung, managing director of Hong Kong-based Vincorn Consulting and Appraisal Limited, said the consortium’s ability to bring JD.com into the project was a key factor behind its success. He added that JD.com’s experience in logistics, e-commerce, supply-chain management and digital platforms would strengthen Hong Kong’s local logistics and e-commerce ecosystem.
Evaluation Criteria
The government weighted non-price elements 70 percent and price elements 30 percent. Non-price criteria focused heavily on the tech park site, including strategic-industry development, anchor tenant attraction, development speed, investment scale and job creation. Cheung said the tender award is likely to set a precedent for industrial land tenders across Northern Metropolis projects, with bidders’ ability to drive broader industrial development and deliver economic benefits potentially carrying substantial weight.
JD’s Hong Kong Expansion
JD’s win comes as the company has rapidly expanded its presence in Hong Kong. Last month, JD agreed to acquire the Silka Seaview Hotel in Kowloon from Far East Consortium International for HK$750 million ($95.6 million) and plans to convert it into student accommodation. In December, JD struck a deal to acquire half of the 27-storey China Construction Bank Tower in Central district from Lai Sun Development and its parent company Lai Sun Garment for HK$3.5 billion ($449 million), earmarking the property as its local headquarters. In August, JD announced the completion of its acquisition of local grocery chain Kai Bo Food Supermarket.
JD had not responded to Mingtiandi’s request for comments by the time of publication.
