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1. MTRC puts up plan for Hunghom extension

2. Lau project may reap about $3b

1. MTRC puts up plan for Hunghom extension
DENISE TSANG, SCMP 5 March 2004

The MTR Corp has submitted a proposal to extend its Kwun Tong line between Yau Ma Tei and Hunghom to fend off a rival's competition, a spokesman said yesterday.

It said it gave the government the preliminary proposal on February 27. Its extension, to Whampoa Garden, would link up with the KCR Corp's proposed $35.5 billion rail line running between Sha Tin and Central.

The government had invited the MTRC to plan the extension, thinking it would help reduce future competition with the KCRC's Sha Tin-Central rail link, tendered in 2002.

"It will provide a point of access to the MTR networks," an MTRC spokesman said.

The MTRC proposal is an alternative to the KCRC's planned people-mover system between Hunghom and Whampoa Garden as part of the Sha Tin-Central project.

The people-mover, an automated rail system, would convey passengers 1.6km from Whampoa to Hunghom station.

The government said it would consider the MTRC proposal after the KCRC finalised the route of the Sha Tin-Central line.

Sources close to the government said the transport bureau favoured the MTRC proposal.

The Whampoa people mover is to be debated at a Legislative Council meeting today. In its Kwun Tong line extension, the MTRC proposes building a 3km extension from Yau Ma Tei station to Whampoa Garden through Ho Man Tin.

Another new station is likely to be built in Ho Man Tin as a train interchange with the Sha Tin-Central link.

The MTRC spokesman said it was premature to predict the completion date of the proposed Kwun Tong line extension, but construction over such a distance normally would take about 3-1/2 years.

He said construction costs would be worked out in a more detailed study later.

Secretary for Environment, Transport and Works Sarah Liao Sau-tung said last month that the Kwun Tong line extension would help reduce the adverse impacts arising from the Sha Tin-Central line, which would poach passengers from the MTRC's harbour-crossing subway lines.

The Kwun Tong line extension was part of the MTRC's ill-fated bid for the Sha Tin-Central rail link in 2001.

The potential competition could be resolved through a possible integration of the two rail companies.

The MTRC, KCRC and their common controlling shareholder, the government, met for the first time last Friday to discuss a merger plan.

The talks are due to be concluded at the end of August.

2. Lau project may reap about $3b
Raymond Wang, The Standard 5 March 2004

Chinese Estates Holdings, controlled by brothers Joseph and Thomas Lau, plans to embark on a solely residential project in Wan Chai estimated to be worth more than HK$3 billion.

The medium-sized developer's plans to change the second phase of the Wan Chai project from office to residential development was recently approved by the Town Planning Board.

Construction costs for the second-phase residential project of more than 200 units are estimated at about HK$800-HK$900 per square foot, the developer said.

``We prefer a residential project in the second phase as the outlook for the residential market is still good, while the office market has recently shown signs of bottoming out,'' executive director Joseph Lau said.

Chinese Estates is developing the project, located at the junction of Tai Yuen Street and Wan Chai Road,in three phases with the Urban Renewal Authority (URA).

The first phase of 652 units, in which Chinese Estates has a 83.59 per cent equity stake, will come on stream this year.

The second phase is due to be completed by the end of next year. The third is expected to open in early 2007.

Construction costs for the whole project, with a total of more than 900 units and 750,000 sq ft in gross floor area, will be near HK$700 million.

Market analysts estimate these units will fetch more than HK$3 billion in revenue, assuming that the units go for HK$4,500 psfand all are sold.

Meanwhile, the URA is inviting developers to submit expressions of interest by Monday for its residential-commercial project in Wan Chai.

Located at the junction of Johnston Road, Ship Street, Tai Wong Street West and Tai Wong Street East, the 28,000-sq-ft site will be put up for tender this year.

Lau said his company is interested in bidding for the project.

The URA estimated the cost of the Johnston Road redevelopment project at HK$650 million, mainly to compensate homeowners, demolition costs and interest, but excluding the construction expense.

The project will generate a total gross floor area of about 218,000 sq ft when completed in 2007.

Separately, Chinese Estates bought back 3.948 million shares at prices ranging from HK$4.675 to HK$4.725 last Friday.

The developer has been buying back shares since 2000 to enhance its asset value, with about 270 million shares repurchased at an average price of about HK$2 each over the past one to two years. The company's share closed at HK$5.20 yesterday.