HONG KONG: Blue chip developer Cheung Kong has won the bid to jointly develop a project in Sham Shui Po with the Urban Renewal Authority (URA), beating seven competitors in a tender exercise.

The URA announced on Friday that Grandwood Investments Limited, a wholly-owned subsidiary of Cheung Kong, has won the contract for the joint development project at Lai Chi Kok Road/Kweilin Street and Yee Kuk Street in Sham Shui Po in a public tender exercise.

The project comprises two adjacent sites at Lai Chi Kok Road/Kweilin Street and Yee Kuk Street of about 36,000 square feet. The URA's proposal is to redevelop the sites to provide about 390 residential units, including some 60 flats with elderly-friendly facilities.

In addition, some 4,100 square feet of floor area for non-governmental organizations preferably specializing in services for senior citizens, 50,000 square feet of commercial floor area and 6,200 square feet of public open space will be provided in the project.

Cheung Kong was one of the eight tender submissions received for the joint development project. The URA Board said after the offer made by Cheung Kong met all the tender requirements that it represented the best benefit to the Authority.

A spokesman for the URA said the Authority was pleased to have the opportunity to enter into a joint development with Cheung Kong, which has solid experience in delivering quality developments in Hong Kong.

In another development in the property business of Cheung Kong, Barclays Plc, the UK's second-largest bank, is planning to move its Hong Kong office to the Cheung Kong Center, according to people familiar with the deal.

The London-based bank will relocate into more than 100,000 square feet (9,290 square meters) of office space spanning five floors at Cheung Kong Center in the second half of this year, said two of the people. The space will be at least 25 percent bigger than the 80,000 square feet Barclays currently occupies at Citibank Plaza, they said.

The Cheung Kong Center counts Goldman Sachs Group Inc, Deutsche Bank AG and RBS, among its tenants. Deutsche Bank is relocating from Cheung Kong Center to the International Commerce Center, Hong Kong's tallest building, in Kowloon, across the harbor.

China Daily/Bloomberg News

(HK Edition 01/23/2010 page2)