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1. Hung Hom call within 3 months: New World

2. Developers bow to pressure on project

3. More consultation further delays review of heritage conservation policy

1. Hung Hom call within 3 months: New World
Staff reporter, The Standard 23 March 2004

New World Development (NWD) expects to reach a decision on whether to demolish the Hung Hom Peninsula project within two to three months, managing director Henry Cheng says.

Speaking after NWD's special general meeting yesterday, he said the company is still in talks with its partner, Sun Hung Kai Properties, on whether to redevelop the project, which was constructed under the government's Private Sector Participation Scheme (PSPS).

Cheng declined to comment on whether they would pocket bigger profits by rebuilding.

He said the government had yet to start negotiations with NWD over the settlement of Kingsford Terrace, another PSPS project in Ngau Chi Wan.

The company would reserve the right to take legal action if the government was unable to offer reasonable compensation.

Sales of the two PSPS developments, jointly developed by the private sector and the government, were put on hold after the government suspended all subsidised flats sale in 2002 as part of measures to stabilise slumping home prices.

Meanwhile, chairman Cheng Yu-tung said shareholders had approved the company's rights issue proposal yesterday. In February, New World had announced it planned to issue 987.9 million to 1.03 billion rights shares at HK$5.40 apiece on the basis of two rights shares for every five held, to raise HK$5.33 billion to strengthen its capital base and financial position.

2. Developers bow to pressure on project
PEGGY SITO, SCMP 23 March 2004

Developers planning to tear down the Hunghom Peninsula housing estate for redevelopment have softened their stance on paying more land premium for the property.

The change came after the housing minister insisted developers might have to pay more in premiums if they rebuilt the premises into a luxury project on the Hunghom site.

New World Development managing director Henry Cheng Kar-shun said: "If the redevelopment proposal involved a change in the land lease, it was possible that [we] needed to pay [an extra] land premium."

Hunghom Peninsula is owned by NWS Holdings, a unit of New World Development, and Sun Hung Kai Properties.

Mr Cheng said the amount the developers would need to pay would depend on the government's calculation. But he said that, in his understanding, more land premium would only be required if the redevelopment resulted in a bigger floor area than originally permitted.

Last Thursday, Mr Cheng said the company and its partner Sun Hung Kai Properties planned to demolish Hunghom Peninsula and replace it with a high-end residential development.

He said the redevelopment would cost about $5 billion, which included $864 million in land premiums. Mr Cheng at the time said he believed no premium would need to be paid.

But his claims were immediately rejected by Secretary for Housing, Planning and Lands Michael Suen Ming-yeung. Mr Suen said over the weekend that he did not support the idea of demolishing the newly built housing block.

Mr Cheng yesterday said the company would discuss the redevelopment with Sun Hung Kai Properties, and make a decision in the next few months. He said the idea of redeveloping the project arose a month ago, when the housing market picked up.

3. More consultation further delays review of heritage conservation policy
ELAINE WU, SCMP 23 March 2004

Proposed changes to the heritage conservation policy have been delayed further with a second-phase consultation, which means it will not be released until early next year, officials said.

Home Affairs Deputy Secretary Leo Kwan Wing-wah told legislators yesterday that his bureau needed time to consult with other government departments before providing concrete proposals.

A public consultation is seeking people's views on what buildings and areas they want protected and how the government should go about it. After the process ends on May 18, Mr Kwan said there would be a second-phase consultation with the results due early next year.

Views from the Housing, Planning and Lands Bureau would also be sought to ensure that the proposals were feasible.

"The government's position is that there is a need for a new policy," Mr Kwan told the home affairs panel. "When this new policy is in place, it would be one for the entire government."

But panel legislators criticised the administration for acting too slow. They said the consultation now could have included detailed proposals.

"I'm disappointed at the consultation document," said legislator Ma Fung-kwok, a former member of the cultural and heritage commission. "I was hoping there would be more concrete plans."

For a more effective consultation, Mr Ma said the government should have immediately addressed issues such as who would pay for conservation projects and how they would be done.

Secretary for Home Affairs Patrick Ho Chi-ping has called for a review of the heritage conservation policy because the Antiquities and Monuments Ordinance, which was enacted in 1976, is outdated.

It only allows the government to declare a single building as a monument based on its historical significance and architectural merit. But when declaring a building's surrounding area or a street, the government's hands are tied.

There are 78 declared monuments in Hong Kong, of which 60 are historical buildings. The newest monument on the list is the 70-year-old Morrison Building at Hoh Fuk Tong Centre in Tuen Mun, the first time such a move was made without the owner's consent.