City’s Tongzhou Street Project to sell 1.8 billion yuan to be distributed
Urban areas are highly sought after by developers. In March of this year, the Urban Renewal Authority (hereinafter referred to as the URA), which received 38 letters of intent in March, tendered for the demand-led project (Tongzhou Street Project) in Tongzhou Street/Guilin Street in Sham Shui Po. It ends on the 30th of this month. It is understood that if the successful bidder’s future sales revenue reaches 1.8 billion yuan or more, it must distribute the redemption mechanism to the URA according to the mechanism, and calculate the ceiling of the residential floor area of the project to be about 97,845 square feet, that is, the ruling price is about 18,396 yuan. You need to pay dividends.
The Tongzhou Street project is located at 270 to 286 Tongzhou Street and 1 to 5 Guilin Street. It is close to Tongzhou Street Park and about 10 minutes walk from MTR Nanchang Station. When the URA recruited a letter of intent in March this year, the market responded enthusiastically and attracted 38 developers such as Cheung Kong (01113), Xindi (00016), New World Development (00017) and Emperor International (00163), and became the most responsive to the letter of intent. The best URA Sham Shui Po District project.
The URA said yesterday that it will invite 38 developers to enter the tenders and close the tender on May 30. The tender selection team under the URA will review the bids received and submit proposals to the URA Board of Directors.
According to the statistics, the Tongzhou Street project covers an area of about 16,038 square feet, with a total gross floor area of approximately 144,345 square feet. It is expected to be used as a commercial and residential model. The pedestal will provide approximately 46,500 square feet of commercial floor space, which will be required to be returned to the URA for development in the future. Design and fashion base for Sham Shui Po. As for the residential part of about 97,845 square feet, it is expected to provide 209 residential units.
First publication of bid price and name of loser
The Tongzhou Street project is the first URA project to implement the new arrangement for publicizing the tender results data. The URA will announce the bid price and other unsuccessful bidders in addition to the name of the successful bidder and the parent company. The name of the project; After the completion of the signing of the development agreement, the URA will also announce the bid amount for the tender that was not selected in a bid.
Although the URA adopted a new announcement arrangement, it did not affect the bidding requirements for the project. As with other URA projects, the Tongzhou Street project has a dividend requirement. The sales proceeds of the successful bidder group will reach 1.8 billion yuan in the future, that is, the dividend mechanism will be triggered. The first 50 million yuan dividend to the URA will be 20%, and every 5000 thereafter. Ten million yuan is raised by 10%; when the income reaches 1.95 billion yuan or more, the dividend ratio will be 50%. Calculated on the basis of the above-mentioned residential floor area, that is, the average residential property price of 18,396 yuan will be distributed to the URA. In addition, the successful bidder must also set up a series of sustainable development and intelligent systems in the project, such as household electricity and water consumption systems, home health care systems and building management systems.
Zhang Shengdian, Director, Corporate Development Department, Valuation and Property Management of Puerness Holding Group stated that the old district redevelopment projects are attractive and the dividend distribution system also helps share the risk. It is estimated that the Tongzhou Street project will receive 30 bids at a later date and will be completed in the future. After the price of up to 25,000 yuan.