The Hong Kong government scales back retail area in the latest proposals for the former Central Government Offices in Central District. More public space would be allowed in the final revision of plans for the redevelopment.
     The government will give up the idea of building a huge underground shopping mall, shrinking the retail areas to less than a sixth of the previous plan. It still plans to go ahead with a 32-storey Grade-A office tower, with the Securities and Futures Commission and Hong Kong Exchanges and Clearing as tenants

     According to government sources, if the Hong Kong Stock Exchange and the Securities & Futures Commission agree to move in, they still have to pay market rental to the landlord. So it does not really affect the ability to generate profits but it does mean there will be more constraints in the development of this particular site. The two-envelope system adopted for the tendering exercise will enable the government to assess both the price offered by the developers as well as the design offered before a decision is made.

     Analysts said the latest changes would not have much effect on the value of the site. He estimates the project would earn the government about HK$8.6 billion.