Sun Hung Kai’s Plan To Build 2 Shorter Commercial Bldgs Gets Nod
HONG KONG – The Chinese territory’s Town Planning Board has given the green light to Sun Hung Kai Properties for the construction of 2 commercial buildings above West Kowloon’s high-speed rail terminus, reported Mingtiandi on Monday (23 August).
On Friday, the city’s Town Planning Board approved with conditions Sun Hung Kai Properties’ plan following 2 design revisions. This paves the way for the developer to carry out the HK$70 billion (US$9 billion) project located on Hong Kong’s biggest-ever commercial land parcel.
Notably, Hong Kong’s largest developer by market capitalisation is permitted to construct 2 commercial towers with a height of 122 metres (400 ft) and 148 metres (486 feet) on a 643,000 sq ft site.
While it reduced the building height by 11 metres compared to the first submitted proposal, it allows Sun Hung Kai Properties to construct a commercial complex that is almost 50 percent higher than the originally approved concept.
“SHKP welcomes the decision of the Town Planning Board, and will submit building plans as soon as possible for the full implementation of the project,” commented the developer.
However, the Town Planning Board did not yet reveal what conditions the developer needs to meet before the development can start. The developer believes that the government agency will post the conditions “in a few weeks’ time” on a government website.
Previously, Sun Hung Kai Properties acquired the plot in West Kowloon for HK$42.23 billion (then US$5.4 billion) during a government land auction in November 2019.
The original concept, which was approved in 2010, comprised 3 commercial buildings of up to 100 metres (328 feet) each. However, the developer said the original concept was out of date by last year’s standards. Hence, it proposed a more vertical concept in 2020.
Apart from reducing the development’s height, the developers also boosted its ESG credentials in the final version. For instance, the new design will feature “high-quality green public spaces and walkways” that will be incorporated with the nearby West Kowloon Cultural District that will benefit local residents. It will also come with 8,500 sq m of public open space, as well as an outdoor observation deck on the tallest building’s highest level that will be open to the public free of charge.
The development, which is estimated to be valued at US$9 billion, is a joint venture (JV) between Sun Hung Kai and its affiliates plus mainland Chinese insurer Ping An, which bought a 30 percent interest in the project’s office component in April 2020 for HK$11.27 billion (then US$1.45 billion).