HK Property: Lukewarm response to first large land disposal tender in Northern Metropolis

研报英文原文证据摘录

HK Property: Lukewarm response to first large land disposal tender in Northern Metropolis

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HK Property

Lukewarm response to first large land

disposal tender in Northern Metropolis

Industry Overview

Large-scale NM land tender receives two bids 06 July 2026

The Hung Shui Kiu (HSK) tender, the first of three large-scale Northern Metropolis (NM) Equity

development packages, attracted two bids: a consortium comprising COLI, China Hong Kong

Merchants Land, CR Land, CTG Investment, JD.com and Sino Land, and a sole bid from Real Estate/Property

Henderson Land. Given the long development timeline, the tender is unlikely to affect Karl Choi, CFA >>

near-term housing supply, but could have funding implications for the eventual winner, Research Analyst

particularly Henderson given its relatively higher leverage. Given Henderson’s relatively Merrill+852 3508Lynch3108(Hong Kong)

high net gearing and its exposure to HSK via regular farmland conversions, we believe karl.choi@bofa.com

the company is unlikely to have put up an aggressive bid. The muted response is Fan Tso, CFA >>

Research Analyst

unsurprising, reflecting the significant capital commitment, long investment horizon, and Merrill Lynch (Hong Kong)

need to secure industrial and technology partners. With residential market momentum +852 3508 2875

fan.tso@bofa.com

slowing, we continue to prefer landlords such as Hongkong Land (benefiting from rising

Central office rents) and Link REIT (asset disposals and share buybacks).

Please see Exhibit 3 for a list of

“Dual-Envelope” tender; residential + enterprise sites abbreviations used

The 10.5-hectare HSK package comprises three residential sites (1.82mn sq ft GFA,

3,120 units) and three Enterprise and Technology Park sites (2.96mn sq ft GFA). The