New World Development Joins Forces with SOE China Merchants Shekou to Co-Develop Northern Metropolis
Construction of Roughly 2,000 Homes to Commence in Early 2025
New World Development Company Limited (“New World Development”) and China Merchants Shekou Industrial Zone Holdings Co., Ltd. (“China Merchants Shekou”) announced the signing of the “Cooperation Agreement on Fanling North Project in Northern Metropolis” (“the Agreement”). Under the Agreement, the two parties will jointly develop the largest commercial and residential project in the Fanling North New Development Area, providing no fewer than 2,000 residential units. The construction is scheduled to commence in early 2025 and will complement the development of the boundary commerce zone and the emerging industries base, synergising with San Tin Technopole.
The project cooperation agreement holds significant importance, as it brings together two powerhouses to accelerate the development of the Northern Metropolis. It is also set to inject new energy into Hong Kong's long-term economic development. Witnessing the signing of the Agreement were Mr. Miao Jianmin, Chairman of China Merchants Group; Dr. Adrian Cheng, CEO of New World Development; Mr. Li Baian, Executive Vice President of China Merchants Group; Mr. Ma Siu-cheung, Executive Director and Chief Operating Officer of New World Development; Mr. Zhang Junli, Assistant General Manager, Board Secretary and Director of the Group Office of China Merchants Group; and Mr. Edward Lau, CFO of New World Development; and it was signed by Mr. Jiang Tiefeng, Chairman of China Merchants Shekou and Mr. Sitt Nam-hoi, Executive Director of New World Development.
Accelerates Release of 15M Sqft of Farmland Value
Dr. Adrian Cheng, CEO of New World Development, said, “New World once again partners with an SOE to leverage the strengths of both Hong Kong and Mainland enterprises, in order to jointly develop the Northern Metropolis and greatly enhance its overall development potential. New World has a land bank of 15 million square feet in the Northern Metropolis, much of which is well positioned and adjacent to the San Tin Technopole. We will accelerate the release of the farmland value through different means,
actively support the national planning, and inject energy into the development of the Northern Metropolis.”
Mr. Miao Jianmin, Chairman of China Merchants Group, said, “China Merchants has always paid close attention to the development opportunities of the Northern Metropolis since the announcement of its development plans. China Merchants hopes to fully leverage and utilise China Merchants Group’s internal and external innovation platforms, and the resources and experience in integrated development of cities and industrial zones over the years, so as to contribute China Merchants' strengths to the development and industrial upgrade of the Northern Metropolis. As an important member of China Merchants Group, China Merchants Shekou is committed to becoming the country’s leading city and industrial zone operator, and has been actively cooperating with New World Development for years to seek common development. In reaching a cooperation agreement on the Fanling North project in the Northern Metropolis, both parties will fully utilise their respective resources and experience to build and develop the Northern Metropolis. It is believed that through full co-operation, the two parties will work together to create a new benchmark for cooperation between SOEs and Hong Kong companies, achieve the strategic goal of leveraging complementary strengths, create win-win situations and jointly foster the long-term prosperity and stability of Hong Kong.”
In the Heart of Fanling North with Capacity to Build Over 1M Sqft in GFA
The commercial and residential project co-developed by New World and China Merchants is situated in the Fanling North New Development Area, occupying approximately 150,000 square feet of land. Located by the well-developed Fanling/ Sheung Shui New Town, the project benefits from a well-established railway system, comprehensive transportation infrastructure, well-equipped commercial facilities, and a total buildable floor area exceeding 1 million square feet. Over 180,000 square feet of which is allocated for commercial use. The land has been included in the “Boundary Commerce and Industry Zone” under the “Northern Metropolis Action Agenda”. It is the first new development area to enter its construction phase within the Northern Metropolis, with construction expected to commence early next year. It is expected to provide no fewer than 2,000 residential units, becoming the largest commercial and residential project in the area.
In end-October 2023, the HKSAR Government unveiled the “Northern Metropolis Action Agenda”, which outlines the development positioning of the four major zones in the Northern Metropolis, namely the “High-end Professional Services and Logistics Hub”, the “Innovation and Technology Zone”, the “Boundary Commerce and Industry Zone”, and the “Blue and Green Recreation, Tourism and Conservation Circle”. The vision is to develop the Northern Metropolis into a “New International I&T city”. As announced in the 2024 to 2025 budget early this year, the government plans to issue bonds of about HK$95 billion to HK$135 billion per annum in the next five years to drive the development of the Northern Metropolis and other infrastructure projects.