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for. 1.
LCQ10: Outline Zoning Plans 2.
LCQ13: Hong Kong Disneyland 3.
LCQ12: Old tree preserved in Kennedy Town housing project
site 4.
Authorities not informed of Kier deal 5.
New World plans tallest hotel 6.
Initial $1.6b due at MTR project 7.
Chairman rules out buy-backs 8.
Kerry banks on green concept
1. LCQ10: Outline Zoning Plans Following
is a question by the Hon Ho Chung-tai and a written reply by the Secretary for
Planning and Lands, Mr John C Tsang, in the Legislative Council today (June 5):
Question: Regarding the coverage of Outline Zoning Plans ("OZPs"), will
the Government inform this Council: (a) of the areas and locations of land not
covered by OZPs and without designated uses; (b) whether OZPs will be drawn up
for the land identified in (a) above in the next three years; if so, of the details;
if not, the reasons for that; and (c) whether the respective total acreage of
land designated for various uses on OZPs can meet the various development needs
in the next five years; if not, how the shortfall will be met? Reply: Madam President,
(a) Hong Kong has a total land area of 109,800 ha. About 54,340 ha are covered
by statutory plans, i.e. Outline Zoning Plans and Development Permission Area
Plans, and another 37,490 ha outside the coverage of statutory plans are designated
as Country Parks. The remaining 17,970 ha include the Frontier Closed Area, sparsely
populated remote areas and some outlying islands. (b) In the next three years,
we will prepare new statutory plans for Cheung Chau and parts of Sai Kung and
Lantau which are not already covered by statutory plans. As a longer-term goal,
we intend to prepare statutory plans for the remaining areas, other than those
designated as Country Parks. We do not have a fixed timetable to complete the
preparation of the remaining statutory plans because there is no imminent need
to develop these areas. (c) We have reserved sufficient land on the statutory
plans to meet the expected development needs of Hong Kong in the short to medium
term. As an on-going process, we do review and make amendments to statutory plans
from time to time in response to changing demands for the various types of land
use. There is also flexibility for the private sector to apply for changes in
land use by way of planning applications or rezoning requests. [Source:
Hong Kong Government, 5 June 2002] 2.
LCQ13: Hong Kong Disneyland
Following is a question by the Hon Emily Lau and a written reply by the Acting
Secretary for Economic Services, Ms Miranda Chiu, in the Legislative Council today
(June 5): Question: Regarding the Hong Kong Disneyland under construction, will
the Executive Authorities inform this Council: (a) of the latest progress of the
construction project; (b) whether they have assessed if the project can be completed
on schedule and if its costs will exceed the budget; if they have, of the results
of the assessment; and (c) whether they know if the Walt Disney Company and the
Universal Studios have plans to construct similar theme parks in the Mainland;
if these companies have such plans, of the details, and whether they have assessed
the impacts of these theme parks in the Mainland on Hong Kong Disneyland and local
tourism? Reply : President, (a) Phase I of the Hong Kong Disneyland project is
progressing on schedule. As at end May 2002, sand filling works for Penny's Bay
Reclamation Stage 1 are almost complete and will proceed to the final stage of
surcharging in mid-June. Construction works of Penny's Bay Infrastructure Contract
1 which commenced in October 2001 are also in good progress (about 17 per cent
completed). We are inviting tenders for Penny's Bay Infrastructure Contract 2
which is scheduled for commencement in August 2002. (b) Overall, the construction
works for Hong Kong Disneyland Phase 1 is on schedule. We expect that the works
to be completed by 2005 as scheduled and the project cost to be within the financial
implications, estimated at $13.569 billion, accepted in principle by the Finance
Committee in November 1999. (c) We understand that The Walt Disney Company does
not rule out any possibility of building another theme park in the mainland in
future. However, it is the priority of both the Government and The Walt Disney
Company to get Hong Kong Disneyland up and running and make it a success. As regards
the business plans of Universal Studios or any other company, we do not normally
comment as a matter of principle. The attractiveness of Hong Kong as a tourist
destination lies in our unique blend of east and west and the mix of cosmopolitan,
heritage and natural attractions, rather than being dependent on any single attraction.
The wide range of tourism development projects that we have in hand will further
strengthen our position as Asia's world city and most popular destination city.
[Source:
Hong Kong Government, 5 June 2002] 3.
LCQ12: Old tree preserved in Kennedy Town housing project site
Following is a question by the Hon Choy So-yuk and a written reply by the Acting
Secretary for Housing, Ms Elaine Chung, in the Legislative Council today (June
5): Question: The Civil Engineering Department is carrying out site formation
works for a large housing development project at Lung Wah Street, Kennedy Town
and the Government has previously agreed to preserve an old banyan tree at the
centre of the project site. However, during a recent visit to the site, I found
that many main branches of the tree had been trimmed away and there were no facilities
(such as fences) erected around the tree to protect it from being damaged by the
works. In this connection, will the Government inform this Council whether: (a)
the works contract signed with the contractor has specific provisions requiring
the contractor to take measures to protect the tree; if so, of the details of
such provisions; (b) it has assessed the extent of the damage caused to the tree
so far by the works; and (c) the Civil Engineering Department has deployed officers
to inspect if the contractor has taken sufficient measures to protect the tree;
if so, of the dates and conclusions of such inspections; if not, the reasons for
that? Reply: Madam President, The Civil Engineering Department has made clear
in the contract the Government's intention to preserve the old banyan tree and
stipulated specific provisions for its protection. These provisions include the
employment of a landscape architect to supervise the tree protection works, erection
of a protective fence around the tree and implementation of a number of precautionary
measures to avoid damage to the tree. The contract also requires the appointment
of an independent botanical scientist to monitor the health of the tree. The contractor
has fulfilled these requirements. The protective fence was erected in February
2002. The tree was pruned at an early stage of the contract in March 2002 to allow
the construction of retaining walls to preserve the tree. The pruning was carried
out carefully in the presence of the independent botanical scientist. The health
of the tree has not been affected. The project is under the supervision of resident
site staff. Daily inspections are carried out to ensure that the tree is being
protected in accordance with the contract. Furthermore, the botanical scientist
pays a visit every month and his last report at the end of April 2002 was that
the tree remained healthy. [Source:
Hong Kong Government 5 June 2002] 4.
Authorities not informed of Kier deal
Government officials have demanded that Wai Kee Holdings, which owns disgraced
contractor Zen Pacific Contractors, give details of its purchase of a 50 per cent
stake in Kier (Hong Kong) after the deal was exclusively revealed in The Standard.
Senior Works Bureau officials confirmed they were first aware of the buy-in after
reading The Standard story on Monday. They said the Works Bureau had written to
Wai Kee, Zen Pacific and Kier (Hong Kong), the local subsidiary of Britain's Kier
Limited, seeking an explanation. Works Bureau principal assistant secretary for
professional services Helius Ng said yesterday: ``We have just read it in the
newspaper. They should have informed the government. They have not told the government
anything whatsoever.'' Ng added that under government regulations, Wai Kee, Zen
or Kier should have informed the Works Bureau about the planned deal. ``The companies
should have informed us and sought our approval to see if we agree. Up to now,
neither Wai Kee, Zen or Kier has informed us of anything. ``We were very surprised
by the story,'' Ng said. Ng heads the unit which oversees Works Bureau policy
towards construction contractors and consultants, monitors the performance of
approved contractors and vets tenders before they are submitted to the central
board. He said among the key issues the Works Bureau needed to clarify was whether
the Wai Kee-Kier deal involved any change in the board of directors or a financial
restructuring. Highways Department project manager for major works Robert Lloyd
said: ``Highways Department has not been informed formally of the sale/buy-in
to which you refer. At present Kier is in Group C in the Works Bureau's contractors
list. We have, at the moment, no reason to believe that the change in structure
will affect Kier's tendering opportunities since Kier is a separate legal entity.
We need details of the sale/buy-in before commenting further.'' These comments
contradict those made by Kier director John Dodds on Monday. He told The Standard:
``To the best of my knowledge the deal has been completed and we have advised
our clients and staff.'' This would have included Works Bureau, the Kowloon-Canton
Railway Corporation and the Mass Transit Railway Corporation (MTRC). Ng would
not be drawn on whether the failure by Wai Kee, Zen and Kier to contact Works
Bureau would affect subsequent approval of the deal. He said officials would have
to await the response from the companies before making a decision. Kier is currently
awaiting the results of bids for a raft of contracts. These include a HK$115 million
Water Supplies Department (WSD) deal to help supply water as part of the redevelopment
of Kai Tak airport and a HK$46 million WSD contract for a reservoir at Sheung
Wong Yi Au. The issue is particularly sensitive because Zen Pacific is banned
from bidding for Works Bureau contracts following its involvement in a Housing
Authority scandal over shoddy piling on a housing project in Sha Tin. One industry
insider told The Standard Wai Kee bought the 50 per cent stake in Kier to maintain
its access to category C contracts that are worth more than HK$300 million. ``Zen
Pacific as a contractor in Hong Kong is pretty much finished as regards government
contracts. The tie-up with Kier overcomes that obstacle,'' he said. Wai Kee also
owns Leader Civil Engineering, another civil works contractor it set up in 1996,
but Leader does not have a class C licence. In another sign of Zen Pacific's demise,
switchboard staff at the corporate headquarters greet callers with the name Leader,
rather than Zen Pacific, as before. Wai Kee vice chairman Derek Zen did not respond
to phone calls. [Source:
The Standard, 6 June 2002] 5.
New World plans tallest hotel
New World Development plans to build the tallest hotel in Hong Kong next to its
New World Centre in Tsim Sha Tsui. New World sold its ageing Regent Hotel last
August generating HK$2 billion in ``exceptional gains'' for the group. It has
decided to re-invest in the hotel sector to take advantage of the projected increase
in tourists from the mainland. New World chairman Cheng Yu-tung confirmed plans
to build the one million square foot five-star hotel on the New World Centre Extension
site next to the car park. With height restrictions relaxed in Tsim Sha Tsui,
New World plans to build a 60- to 70-storey showpiece hotel with total construction
cost expected to run to HK$1.8 billion. Sources said several options were being
considered, including demolishing the car park and/or the newly renovated New
World department store to create more space for the hotel. Cheng said although
the Regent was world class, it was getting old and it was better for the group
to sell it and build a new hotel. It does not have to pay a land premium for the
project as the New World Centre has not fully utilised its plot ratio. The group
now has three hotels in Hong Kong: Renaissance Harbour View, New World Renaissance
and the Grand Hyatt. All reported a rise in occupancy and average room rates during
fiscal 2001. Its hotel portfolio in the SAR could increase to five when the hotel
projects at the New World Centre Extension and the proposed Chinese University
hotel are completed. The announcement of the plan came as no surprise, as previously
a potential buyer had made a conditional offer for the Regent, but wanted a guarantee
that New World would not build a new hotel nearby for a certain period of time.
New World rejected that offer, selling the Regent to another group at a lower
price. Analysts say the site would become more attractive when the new Kowloon-Canton
Railway Corporation East Rail terminus, under construction opposite the New World
Centre, is finished. By 2004, the railway station will be linked to the New World
Centre through subways. But as the group has been trying to reduce its gearing
ratio over the past few years analysts raised concerns the hotel plan will delay
progress. [Source:
The Standard, 6 June 2002] 6.
Initial $1.6b due at MTR project
The developer who wins the MTR Corp's residential-retail project at Hang Hau Station
faces an initial HK$1.68 billion outlay. Sources said the MTRC required the successful
bidder to pay the Government's HK$1.27 billion land premium. Then it wants a HK$350
million up-front payment to compensate it for the cost of enabling works, and
a HK$60 million decoration fee for the retail portion. "The MTRC did not
ask for minimum profit sharing but has reserved ownership of the retail portion
to be built by the developers," a source said. An MTRC official said tender
documents had been sent to 18 developers who had earlier expressed an interest.
The tender closes on June 24. The 1.53 million square feet development is the
second station along the Tseung Kwan O railway extension tendered. Wharf (Holdings)
assistant director Ricky Wong Kwong-yiu said the group had yet to decide whether
to bid. The development risk would not be great because the estimated cost of
about HK$2,000 per square foot was well below existing flat prices in Tseung Kwan
O, he said. He expected developers could make some savings in development costs
as the MTRC had completed the foundation work and residential units could be released
for sale next year under the pre-sale consent scheme. However, analysts said developers
might be cautious due to the cost of the land premium and up-front payment squeezing
profit margins. The project includes a 37,600 sq ft shopping mall and more than
2,000 units in six residential blocks. Apart from Wharf, Sun Hung Kai Properties,
Henderson Land, Sino Land, New World Development, HKR International, Nan Fung
Development, Chinachem Group, Wing Tai Asia and K Wah International, showed interest
as did Hantec Investment and Chun Wo Holdings. [Source:
SCMP, 6 June 2002] 7.
Chairman rules out buy-backs
Harbour Centre Development is unlikely to make any share buy-back offers to minority
shareholders, according to chairman Gonzaga Li Wei-jen. There were also no plans
to launch another privatisation attempt, Mr Li said after the hotel company's
annual general meeting yesterday. A minority shareholder, frustrated by Harbour
Centre Development's low share price, asked if management would consider following
Hongkong & China Gas's example of making a buy-back offer to minority shareholders,
rather than a general privatisation offer. Mr Li said after the meeting that he
would note the shareholder's view but it was unlikely the firm would pursue a
buy-back offer. He said such an exercise was expensive and that Harbour Centre
Development was not a large company and had a small number of shareholders. Asked
if parent company Wharf (Holdings) would consider trying again to privatise Harbour
Centre Development, Mr Li said Wharf reviewed restructuring possibilities from
time to time but there was no immediate plan to reorganise. Mr Li is senior deputy
chairman of Wharf. Harbour Centre Development has twice been targeted for privatisation
- in 1993 and 1999 - but both attempts failed. The company, which owns Marco Polo
Hongkong Hotel in Tsim Sha Tsui, reported a HK$113.1 million loss last year because
of a HK$301.5 million provision for investment securities, compared with a HK$114.5
million profit the previous year. It has a 20 per cent interest in the Sorrento
residential development in Kowloon Station. [Source:
SCMP, 6 June 2002] 8.
Kerry banks on green concept
Constellation Cove, tucked away in Tai Po Kau overlooking Tolo Harbour, has become
a choice luxury residential property due to a design that highlights its natural
surroundings. Developer Kerry Properties has made an effort to ensure an environmentally
friendly concept with extensive green areas, landscaping and interior designs.
International landscape planner Belt Collins Hong Kong and P&T Architects
and Engineers were instrumental in carrying out the design. Constellation Cove
spans 800,000 square feet and site coverage is just 11 per cent, with the remaining
area extensively landscaped. Chu Ip-pui, executive director of Kerry Real Estate
Agency, the marketing arm of Kerry Properties, said more than 1,000 plants surrounded
Constellation Cove so that flowers would be in bloom year-round. A lot of attention
had been paid to developing and managing the landscaped area to ensure an attractive
environment, Mr Chu said. Within the low-rise residential development, which was
converted from agricultural land, the developer has constructed the Tai Po Kau
Interactive Nature Centre, which occupies 9.3 hectares. The centre is a European-style
building of about 30,000 sq ft that features a museum, restaurant, nature park
and nature activity centre. "The development was planned during the market
boom and constructed with top-quality materials. We spent some HK$2,600 per square
foot on the building and we hope to create a benchmark in the area," Mr Chu
said. The recently completed project comprises 286 units, including 50 three-storey
houses measuring 3,200 sq ft to 3,900 sq ft, 28 duplex villas ranging from 2,700
sq ft to 2,900 sq ft, 200 standard flats of 1,300 sq ft to 1,500 sq ft and eight
duplex penthouse units of 3,000 sq ft in 12 blocks of 10-storey apartments. There
are 429 parking spaces. Kerry Properties committed to the project in 1997 and
expected to release units for sale at more than HK$10,000 per square foot. At
the end of 1997, Cheung Kong (Holdings) launched nearby residential development
DeerHill Bay for more than HK$10,000 per square foot. However, the property market
slump took its toll on all developers and prices. At the official launch three
months ago, the first batch of apartments at Constellation Cove were priced as
low as HK$3,038 per square foot, representing a 20 per cent discount compared
with the secondary market, to drum up buyer interest. Last year, Kerry Properties
made a special provision of HK$270 million for its 75 per cent stake in Constellation
Cove. The development cost after provision ranged from HK$3,850 to HK$5,500 per
square foot for the flats and houses. The project was estimated to have a market
value of HK$2.8 billion to HK$3 billion. Mr Chu said the average sale price for
the development was kept to a level close to development cost amid the market
downturn. He said market response in the past three months was satisfactory, with
140 apartments, six duplex villas with gardens and about 10 detached houses sold
generating about HK$1 billion. Flats were now priced at HK$4,100 per square foot,
duplex villas at HK$5,000 and houses at HK$6,000, he said. The remaining units
- about 70 flats, 22 duplex villas and 25 houses - were for sale. "We offer
a second mortgage of up to 20 per cent of the flat price, charging at prime rate
[5.125 per cent], which reduces the down payment to 10 per cent of the flat price,"
he said. Mr Chu said 15 detached houses of 3,240 sq ft and 3,960 sq ft with views
over Tolo Harbour were reserved for lease for an average rental of HK$30 per square
foot per month. He expected the group to generate a rental of HK$1.2 million to
HK$1.3 million per month for all the houses. Recently, the developer spent about
HK$8 million decorating three show flats in various styles to lure buyers. The
efficiency rate of each unit is about 70 per cent. The project features a 70,000
sq ft clubhouse, swimming pool, driving range, tennis courts, snooker and table
tennis rooms, children's paddling pool, playground and indoor playroom. The clubhouse
also incorporates a fully equipped gym, sauna, steam bath and whirlpool bath.
Management fee charges are HK$2.80 per square foot for houses and flats, and HK$2
per square foot for duplex villas with gardens. [Source:
SCMP, 5 June 2002] |  |
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