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1. Way cleared for $30b Yau Tong Bay project

2. Show up or we'll drop harbour appeal: Chu

3. Yau Ma Tei high-rise flats snapped up at a premium

1. Way cleared for $30b Yau Tong Bay project
Raymond Wang, The Standard 18 March 2004

A consortium led by Henderson Land looks set to proceed with a mammoth HK$30 billion housing project in Yau Tong Bay now that reclamation work for redevelopment of the old shipyard sites has been granted environmental approval.

The much-awaited project will comprise 38 residential towers to be built on a nearly 2 million-square-foot site, of which about 1.3 million sqft is existing land and the balance of more than 600,000 sqft is to be reclaimed.

Henderson Land, headed by property tycoon Lee Shau-kee, said yesterday at its interim results that the planned development will total a gross floor area of about 9.7 million sqft, of which about 1.7 million sqft is attributable to the company.

It is understood the consortium includes New World Development, Wharf Holdings and several small landowners or shipping firms.

Henderson said the redevelopment of the old shipyard sites at Yau Tong Bay in Kowloon East has obtained the environmental permit for the relevant reclamation work. It added that the construction start date is pending government approval on land-use modification issues and payment of the relevant land premium.

The project has a market value of about HK$30 billion, based on prevailing flat price levels of more than HK$3,000 per square foot in Kowloon East, property agents said.

Henderson Land, Hong Kong's No3 property developer by sales, said it is mainly focused on application for land-use conversion of its agricultural land holdings and in continuing negotiations with the government on fixing land conversion premium for certain agricultural land lots, including a site at Wu Kai Sha, Sha Tin.

Henderson Land posted a worse-than-expected half-year result yesterday despite a mild improvement in development margins. Henderson, which owns more than 4.5 million sqft of residential and commercial property in Hong Kong, announced a net profit of HK$1.05 billion for the six months ending December 31, up 12 per cent from a restated HK$935.55 million in the year-ago period.

Property analysts had predicted the blue-chip developer's half-year profit rose to HK$1.2 billion. An interim dividend of 35 cents per share was declared, the same as a year ago. During that period, about 1,000 units were sold for total sales proceeds of about HK$2.1 billion.

Henderson Land is one of 20 developers which have been shortlisted for next month's tender of the Urban Renewal Authority's Tsuen Wan redevelopment project.

Its affiliate Henderson Investment reported a net profit of HK$822 million for the fiscal first half ending in last December. This is up by 6.22 per cent from HK$774 million (restated) over the previous corresponding period. An interim dividend of 11 cents per share was declared.

Henderson China Holdings, the property arm of Henderson Land, announced a narrowed net loss of HK$31.72 million for the fiscal first half ending in last December, compared to a net loss of HK$104.5 million (restated) a year ago. An interim dividend of 3 cents per share was declared. Shares of Henderson Land rose 2.47 per cent to close at HK$37.4 yesterday.

2. Show up or we'll drop harbour appeal: Chu
Paris Lord, The Standard 18 March 2004

Harbour activist Winston Chu yesterday challenged the public - show that the Society for the Protection of the Harbour should proceed with an appeal by attending a rally this Sunday.

Among the factors to test the strength of public opinion were the numbers of supporters who turn up, plus the opinions of legal experts, society chairwoman Christine Loh said.

Unless thousands of people join hands along the waterline between Central and Wan Chai and show ``genuine'' and ``enthusiastic'' support, the society will not appeal, Chu, its former chairman, told MetroNews. ``We need to know what the public feels about it.''

It is now up to the public, and if they decide not to attend the rally, court action is pointless, he added.

The society took the government to the Court of First Instance last month for a judicial review into the HK$3.79 billion Central reclamation phase III project.

It disputed the Executive Council's role in approving plans for the 18-hectare reclamation, saying that under section 12 of the Town Planning Ordinance, Exco was given no plan-making powers and only the Town Planning Board could make or amend plans.

The plans should be sent back to the board for the review, the society has said.

The government argues the reclamation is necessary for the Central-Wan Chai bypass which it claims will reduce traffic congestion, and other ``essential infrastructure'' including an extension of the Airport Express train tunnel.

Loh wrote to the Executive Council on Tuesday, asking that the Central reclamation cease temporarily and informing it the Department of Justice had been asked for permission to appeal directly to the Court of Final Appeal.

Housing, Planning and Lands Permanent Secretary Carrie Lam last week urged the society to set aside its differences and build a consensus with the government.

The 16-member Citizen Envisioning @ Harbour coalition has also recommended the society drop any appeal, saying the time, effort and public money are better spent on building a consensus for future development.

The Sunday rally, being organised by the Action Group on Protection of the Harbour, starts at 3pm at Edinburgh Place.

3. Yau Ma Tei high-rise flats snapped up at a premium
ERNEST KONG, SCMP 18 March 2004

A flurry of sales and speculation activity at a 41-storey residential project next to the old Yau Ma Tei vegetable wholesale market has caused a stir in the shabby district, characterised by low-rise and aged buildings.

The two-tower project, 8 Waterloo, is selling at an average price of $4,911 per square foot, according to the developer. Upper-level flats with good views are selling for more than $6,000 per square foot.

Comparable buildings in Yau Ma Tei go for about $3,000 per square foot.

The development is a joint venture between Sun Hung Kai Properties (SHKP) and the Urban Renewal Authority.

More than 350 of the 576 units in the development were sold through an internal sale that started on February 26, despite the fact the building is still under construction and a model show flat had not yet been set up in a shopping mall.

The developer has released 16 units for public sale today, but real estates agents said more than 100 flats in the project were on sale in the secondary market.

"The asking prices are generally more than 10 per cent above the primary market price," said Centaline Property Agency senior manager Michael Wong.

Demand has been spurred by 8 Waterloo's proximity to the Yau Ma Tei MTR station and the shortage of new residential projects in the district, with only a few built in the past two years.

Also boosting speculator interest in the development is a scheme that allows buyers to pay 20 per cent over four months after they have paid an initial down payment of 10 per cent on signing the sales and purchase agreement.

The change of ownership processing fee is also only 1 per cent, compared with 2 per cent to 3 per cent at many new projects.

Real estate agents said SHKP had accepted only lot purchases of eight units, or whole floors, during the internal sale.

Real estate agents had to gather buyers to buy a whole floor at a time.

SHKP general manager Eric Chow Kwok-yin said the requirement on lot size was introduced to prevent agents competing to sell the same units.

Twenty per cent of buyers had registered under company names and more than half were end users, he said.

The project comprises two- and three-bedroom units ranging in size from 540 square feet to 790 sq ft. Residents will have access to a clubhouse that is open around the clock.