Idle Hong Kong seafront site gets new lease of life from private equity firm MBK Partners

A mega waterfront commercial site in Hong Kong’s Quarry Bay that has been left idle for nearly two decades by a now-bankrupt local businessman may finally be poised for a revival. The current owner, Marine Riches, majority owned by Seoul-based private equity group MBK Partners, had applied to amend plans for the site to the Town Planning Board – a move that came amid signs of recovery in Hong Kong’s retail sector and property market. Marine Riches proposed to build a mixed-use development focusing on culture and tourism alongside a residential project, according to the minutes of a meeting released by the Harbourfront Commission on Friday. The meeting was aimed at seeking views of commission members on a section 12A application, which is used to propose changes to land use. The seafront site, comprising two plots totalling 91,838 sq ft on Hoi Yu Street, has undergone multiple planning revisions since the early 2000s. The plots were acquired for HK$1 billion (US$128 million) in June 2024, according to Land Registry records. The plots were originally approved as industrial lots in 2001, with the first landlord, Fine Tower Associates – an entity connected to Pacific Concord Holdings – securing approval to construct a 25-storey industrial building, according to official records. Businessman Wong Sai-chung was the chairman of Pacific Concord, a Hong Kong-listed company from 1987 to 2003, and the managing director of the now-liquidated property developer China Properties Group, which delisted from the Hong Kong stock exchange in 2023. Fine Tower envisioned constructing an “Old Hong Kong” theme park – featuring replicas of historic architecture from Central, Wan Chai and Happy Valley – after learning that the site could be rezoned from industrial use to cultural, leisure and tourism uses. Its application submitted to the Town Planning Board was turned down in September 2003, according to the Post’s previous reporting. Following the setback, the site remained idle for years, used only as temporary car parks. In 2017, Fine Tower began foundation work for the development of an industrial building but public pressure mounted to repurpose the site in line with a harbourfront boardwalk vision. In 2021, the Chief Executive in Council approved an in-situ land exchange to allow for a new development comprising one office block and four hotel blocks with a total of 400 rooms on top of a two-storey retail podium. Fine Tower, however, was already facing financial difficulties before the exchange was completed. The site was valued at HK$4 billion when it was put up for tender by creditors in 2022. Marine Riches purchased the plots in June 2024. Under the new amendment application, more than half of the total cultural, leisure and tourism spaces would be dedicated to a large-scale, privately owned immersive exhibition venue in Hong Kong. Marine Riches said it had secured a content partnership deal with Neon Global, a creator of immersive shows featuring popular intellectual properties – like Harry Potter, Marvel Avengers and Jurassic World – in Asia and across the world. Upon completion, the development was expected to attract around 5,000 visitors daily, on par with the Hong Kong Palace Museum and the M+ Museum, the application said. The project would integrate residential, retail and dining spaces – creating a new hub for residents and visitors – and directly supported the city’s priorities to boost tourism, expand cultural infrastructure, foster creative industries and provide quality housing and public space, according to the application. The application coincides with a rebound in Hong Kong’s retail sales, which saw a 3.8 per cent year-on-year increase in August, marking the fourth consecutive month of growth, aided by the city’s mega-event tourism drive. The city’s residential property market also showed signs of improvement, with lived-in home prices rising 1.3 per cent in September, their biggest gains so far this year. The city’s rental prices, at the same time, inched within a hair of their historical peak, according to data from the Rating and Valuation Department. Marine Riches would also be partnering with a local developer, according to a source familiar with the matter. It was too early to disclose a construction timeline, the source added. MBK did not respond to a request for comment. MBK, founded in 2005 and focusing on investment in North Asia, had over US$30 billion in assets under management, according to its website. Among its notable deals was a buyout of Universal Studios Japan, one of Asia’s largest theme parks, for US$1.4 billion in 2009. It sold all of its stakes to Comcast NBCUniversal in 2017, according to media reports. It also bought five maritime theme parks in mainland China from Hong Kong-listed hospitality group Haichang Ocean Park Holdings for 6.05 billion yuan (US$843 million) in 2021.

Idle Hong Kong seafront site gets new lease of life from private equity firm MBK Partners

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}A mixed-use development focusing on culture and tourism alongside a residential project is being proposed for the Quarry Bay site

A mixed-use development focusing on culture and tourism alongside a residential project is being proposed for the Quarry Bay site