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1. KCRC seeks developers' interest in key project

1. KCRC seeks developers' interest in key project
DENISE TSANG, SCMP 3 January 2005

The Kowloon-Canton Railway Corp (KCRC) has invited developers to express their interest in a development project at Wu Kai Sha station on the newly commissioned Ma On Shan rail line, hoping to ride a marked upturn in the local property market.

Tendering for the project is scheduled for the first quarter of the year.

The move comes three weeks after MTR Corp solicited developers for its Tseung Kwan O Area 86 development. Seventeen developers have signalled an interest in bidding on that project.

"The KCRC obviously is capitalising on the market's vibrant sentiment," said Pang Shiu-kee, managing director of SK Pang Surveyors.

"Developers are keen to stock up their land banks, as can be seen from the response on the MTR project."

The KCRC has given property developers three weeks in which to respond with statements of interest in the Wu Kai Sha development, which encompasses the construction of 2,528 flats with an aggregate floor space of 168,650 square metres plus another 4,000 sqmetres of commercial space. The site area measures 34,151 sqmetres.

The project is the first of four along the Ma On Shan rail line, which opened barely two weeks ago and runs from Tai Wai to Ma On Shan town.

Unlike the MTR, which has offered to pay 50 per cent of any land premiums on its Tseung Kwan O project, the KCRC has offered no sweetener to entice developers.

KCRC chairman Michael Tien Puk-sun expressed confidence that the response from developers would be strong, citing the project's prime location as a draw.

Property surveyors have said the site could cost a developer $2,500 per square foot, compared with an average sale price of Ma On Shan flats that stands at $3,500 to $4,000 per square foot.

"The Wu Kai Sha project has a sea view while land supply at Ma On Shan is limited. I believe it will be popular with developers," said Mr Pang, adding that the larger companies would be particularly interested because of the large scale of the project.

Holding the property development rights to the entire 11.4km Ma On Shan rail, the KCRC will share in the profits of the development, which will help recoup the $10 billion the company has invested in the line.

The three other developments along the route are located at Che Kung Temple and Tai Wan stations, and the Tai Wai maintenance centre.

Almost 11,000 flats in total are planned along the rail line, with completion of them all not expected until after 2007.

Tendering for the Tai Wai station development will commence in the fourth quarter.