Qianhai land for sale to HK firms

    Updated: 2014-12-05 07:47

    By Zhou Mo in Shenzhen(HK Edition)

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    The Qianhai special economic zone in Shenzhen will sell two plots of land to "authentic" Hong Kong enterprises this month to increase the SAR's participation in the zone's development and construction.

    Compared with previous land sale operations, the latest pair of plots to be sold has higher conditions for bidders in such aspects as its time of establishment in Hong Kong, experience in development and the number of properties they own.

    "The land sale seems to be a targeted operation," said Ken Kan, director of Agency Services at the Shenzhen branch of Colliers International - a commercial real-estate services company based in Seattle.

    "Bidding conditions this time are the most beneficial for enterprises in Hong Kong, as non-local ones are basically unable to meet the requirements," he said.

    Hu Can, planning construction head at the Qianhai Authority, said the exact date for the sale has not been confirmed, but it will be "in the near future".

    Since July last year, the Qianhai Authority has launched 14 land sales with a total floor area of 341,000 square meters. They included six plots secured by companies that are listed or registered in Hong Kong, including Tencent and China Resources.

    Qianhai land for sale to HK firms

    However, as their main operations are on the mainland, they are not considered as Hong Kong enterprises.

    "In general, Hong Kong enterprises' enthusiasm towards Qianhai land sales is not high. Among Hong Kong enterprises, only New World Development Company Ltd has taken part in bidding for land in Qianhai so far," Kan said.

    In July last year, New World joined hands with mainland real-estate giant Vanke in bidding for two plots of land in Qianhai, but was unsuccessful.

    Kan pointed out that lack of knowledge about Qianhai is one of the main reasons for the lukewarm attitude of Hong Kong enterprises.

    "Compared with mainland companies, Hong Kong enterprises have less understanding of the special zone and its value. Therefore, they are not as aggressive as their mainland counterparts in this aspect," he said.

    But Qianhai needs Hong Kong developers, he said. "Hong Kong developers hold an advantage in commercial operation and property management of office buildings. Qianhai will benefit if it can build on Hong Kong's experience in these aspects."

    In April, Zhang Bei, director of the Qianhai Authority, pledged that Qianhai will increase its land supply to Hong Kong enterprises. More than a third of the land in the zone will be sold to SAR companies, he said.

    sally@chinadailyhk.com

    (HK Edition 12/05/2014 page8)

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