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1. K Wah wins Wan Chai race

2. Buzz around mega project

3. Battle for Kowloon City plot

4. Housing Authority seeks to resolve its financial problems

5. Draft Quarry Bay Outline Zoning Plan amended

6. Approved Tai Tong Outline Zoning Plan amended

7. Seven approved Outline Zoning Plans amended

8. Washington Pays Tribute

1. K Wah wins Wan Chai race
Raymond Wang, The Standard 11 June 2004

K Wah International Holdings has fended off 13 other developers to win the Johnson Road urban renewal project in Wan Chai - its second major project success in a fortnight.

The Urban Renewal Authority (URA) announced yesterday t the firm had won the joint development contract for the project.

Sources said KWah had offered the highest bid of about HK$1 billion.

Details of K Wah's offer price and the profit-sharing ratio with URA from future property sales were not disclosed.

The project is expected to yield about 190,000 square feet of residential floor area and about 28,000 sq ft of commercial retail area on completion in 2007.

The developer must also conserve five pre-war buildings of historic value to Wan Chai. Four of them, a row of four-storey, Chinese terraced-style buildings or tong laus, front Johnston Road. The other is a four-storey shop-house in Ship Street that is typically reminiscent of Hong Kong's live-and-work arrangement of a family business before the 1960s.

A URA spokesman said the main factors in assessing tenders were the overall benefits provided by the development design and its ability to help revitalise the neighbourhood.

Proposals for preserving the five pre-war buildings were also important.

K Wah has aggressively sought to replenish its land bank, and has triggered the release of three residential plots on the government's reserve list for public auction. Two weeks ago the developer outbid a dozen other developers with its HK$865 million offer for a site in Sha Tin.

Apart from government auctions, the company said it plans to expand its land bank through the URA, Kowloon-Canton Railway Corp and MTR Corp tenders.

It has set aside more than HK$1 billion to build about 100 luxury flats on Tung Lo Wan Hill Road, Sha Tin, the site it secured two weeks ago.

Managing director Francis Lui said last week that it has more than HK$2 billion and is looking for new projects with double-digit returns. KWah shares rose 3 per cent yesterday to close at HK$1.35.

2. Buzz around mega project
Raymond Wang, The Standard 11 June 2004

All eyes are on the tender for the HK$24 billion West Kowloon cultural hub project, with major developers Cheung Kong (Holdings), Sun Hung Kai Properties and Henderson Land Development likely to be the front runners.

Developers have until next Saturday to submit their bids.

At least 11 individual companies or consortiums are understood to have expressed interest in tendering for the 40-hectare project.

Among them is Li Ka-shing's Cheung Kong, which is in talks with Sun Hung Kai for a possible joint-venture bid.

Henderson Land chairman Lee Shau-kee, whose company was one of the 11 to submit a ``letter of intent'' for the project, said earlier the company might make a sole bid.

The project's chosen design, by award-winning architect Norman Foster, allocates 39 per cent of the development site to arts and cultural use, 17 per cent for commerce such as offices, and 16 per cent for hotels and residential accommodation.

The remaining 28 per cent has been designated for public space and utilities.

The government is known to favour a single developer or large consortium but small- and medium-sized developers have been seeking access to a slice of the huge project.

``Apart from next week's government land auction of a residential lot in Kowloon City, bidding focus among developers will be on the mega West Kowloon cultural project,'' Centaline Surveyors associate director James Cheung said.

He said smaller developers may join forces with other developers. Smaller companies have said the government has effectively barred them from bidding for the project with its insistence that only one firm should be allowed to develop the mega project.

With a war chest of HK$11 billion, Sino Land is looking for partners to bid for the project, sources said.

The government unveiled the West Kowloon development plan in September. It aims to transform the prime waterfront site into a world-class cultural zone.

The winning consortium will have the right to manage the area, twice the size of Tai Koo Shing, for 30 years.

3. Battle for Kowloon City plot
Raymond Wang, The Standard 11 June 2004

A battle is looming between developers over a plot of government land in Kowloon City which will go under the hammer next week.

Developers and surveyors predicted the 37,900-square-foot residential site at Sa Po Road could fetch between HK$850 million and HK$900 million. That would be about 25 to 32 per cent higher than the reserve price of HK$682 million.

With a plot ratio of nine, the site could generate a total gross floor area of about 341,000 square feet.

The sale will be the second since the government announced the resumption of land sales this year.

Mid-sized developer K Wah International triggered the release of three residential plots on the government's reserve list for public auction. K Wah outbid 12 developers for one of two sites in Sha Tin sold last month and a third plot, in Kowloon City, will be auctioned on June 15.

Apart from K Wah, other developers including Kowloon Development, Sino Land and Chinese Estates Holdings have expressed interest in the site.

Cheung Kong Holdings executive director Justin Chiu said the site would attract fierce bidding from developers and the auction results can be expected to become the reference level for developers.

``The two lots sold last month were both located in the New Territories, and next week's auction price of the urban area plot would become an indicator for the residential market in East Kowloon.''

K Wah estimated total investment of the Kowloon City project at about HK$1.5 billion.

Executive director of Legend Surveyors' surveying and valuation department, Kenneth Cheung, predicted the Kowloon City plot would sell for about HK$850 million, or HK$2,492 per square foot. The development could be priced at HK$4,200 psf for residential units and HK$6,000 psf for retail space, Cheung said.

In January, the government released 17 lots on the application list after a 13-month suspension. Of those, 14 lots were residential sites.

The application list programme was frozen under the government's market-stabilisation measures in November 2002. Future sales will only be from the list, which has attracted keen interest from developers and investors.

It is believed Manhattan Garments (International), which took part in last month's land auction, has failed to trigger, for auction, two luxury residential sites on The Peak and in Kowloon Tong as the offer prices did not meet the government's minimum requirements, sources said.

The company's interest is in the 12 Mount Kellett Road plot on The Peak and a site on Ede Road in Kowloon Tong, which have a total market value of about HK$900 million.

The Peak site is expected to sell for more than HK$500 million, while the Kowloon Tong plot could fetch about HK$400 million, surveyors said.

4. Housing Authority seeks to resolve its financial problems
Hong Kong Government, 10 June 2004

The following is issued on behalf of the Housing Authority:

The first and foremost work of the Housing Authority (HA) in the coming year is to resolve its structural financial problem with a view to formulating a set of comprehensive financial arrangements to sustain the development of the public housing programme, the Chairman of HA, Mr Michael Suen, said.

Addressing the Annual Special Open Meeting of HA today (June 10), Mr Suen noted that there was a pressing need to address the financial difficulties currently faced by HA.

"The Housing Department has already commenced its negotiations with the relevant Government Bureau. We hope that we will soon reach an agreement on some matters of principle," Mr Suen said.

In the financial year 2003/04, HA's cash balance stood at $17.3 billion, representing a substantial fall of $10.3 billion as compared with that of 2002/03.

"HA will set up a budget committee to better monitor and control the costs and expenditures, so as to ensure more rational use of the financial resources under an ever-stringent financial situation.

"We will continue with our efforts to explore new sources of revenue and reduce expenditure, to streamline the organisation, to lower the cost and to enhance the efficiency," Mr Suen added.

He pointed out that another priority work for the HA was to study the rent adjustment mechanism.

Noting that HA Members and Members of the Legislative Council (LegCo) had discussions on the issue of rent policy, he said that the majority of the Members who spoke in the LegCo's motion debate that day agreed that the provisions concerning rent adjustment in the existing Housing Ordinance should be amended.

"We will analyse and study the valuable opinions expressed by different quarters in order to formulate a rent adjustment mechanism which was objective and clear, and can provide a closer link to tenants' affordability and support the long-term sustainability of the public housing programme," Mr Suen said.

Referring to plans to enable HA to divest its retail and car-parking facilities through public listing, Mr Suen said that HA had already appointed the Chief Executive Officer and the Chief Financial Officer for the new management company.

"They will work closely with other professional consultants to ensure successful completion of the divestment project and the re-organisation exercise," he said.

5. Draft Quarry Bay Outline Zoning Plan amended
Hong Kong Government, 11 June 2004

The Town Planning Board today (June 11) announced amendments to the draft Quarry Bay Outline Zoning Plan (OZP).

The amendments involve incorporating some refinements to the Master Schedule of Notes to Statutory Plans. These include revising the covering Notes to clarify the planning intention with respect to "existing use" in the urban context and to incorporate the definition of "existing building".

Some amendments have been made to the Notes for "Residential (Group A)" zone relating to the interpretation of the purpose-designed non-residential portion of an existing building, Column 2 of the Notes for the "Other Specified Uses (For All Other Specified Uses Not Listed Above)", and the planning intention in the Notes for the "Open Space" zone.

The draft Quarry Bay OZP No. S/H21/20 incorporating the amendments is available for public inspection during normal office hours at the following locations:

* Secretariat of the Town Planning Board, 15th Floor, North Point Government Offices, 333 Java Road, North Point;

* Hong Kong District Planning Office, 14th Floor, North Point Government Offices; and

* Eastern District Office, Ground Floor, Eastern Law Courts Building, 29 Tai On Street, Sai Wan Ho.

Any person affected by the amendments can submit a written objection to the Secretary of the Town Planning Board on or before July 2, 2004.

Copies of the draft OZP are available for sale at the Map Publications Centres in North Point and Yau Ma Tei. The electronic version of the plan can be seen on the Town Planning Board's website at www.info.gov.hk/tpb.
Ends/Friday, June 11, 2004

6. Approved Tai Tong Outline Zoning Plan amended
Hong Kong Government, 11 June 2004

The Town Planning Board today (June 11) announced amendments to the approved Tai Tong Outline Zoning Plan (OZP).

Amendments have been made to revise the Notes of the OZP to follow a revised set of Master Schedule of Notes (MSN) to Statutory Plans endorsed by the Board. Under the revised MSN, various measures including broad use terms have been introduced to provide greater flexibility for change of use and reduce the need for planning application.

The general provisions under the covering Notes and the user schedules for various land use zones have been revised to expand the scope of uses that are always permitted. Besides, the planning intentions for various zones have been incorporated into the Notes to form part of the statutory plan.

Opportunity is also taken to incorporate the alignment of the Yuen Long Bypass Floodway in the OZP for information.

The draft Tai Tong OZP No. S/YL-TT/11 incorporating the amendments is now available for public inspection during normal office hours at the following locations:

* Secretariat of the Town Planning Board, 15th Floor, North Point Government Offices, 333 Java Road, North Point, Hong Kong;

* Tuen Mun and Yuen Long District Planning Office, Planning Department, 14th Floor, Sha Tin Government Offices, 1 Sheung Wo Che Road, Sha Tin;

* Yuen Long District Office, Yuen Long District Office Building, 269 Castle Peak Road, Yuen Long; and

* Shap Pat Heung Rural Committee, Main Road, Yuen Long.

Any person affected by the amendments can submit a written objection to the Secretary of the Town Planning Board on or before August 11, 2004.

Copies of the draft Tai Tong OZP are available for sale at the Map Publications Centres in North Point and Yau Ma Tei. The electronic version of the plan can be seen on the Town Planning Board's website at www.info.gov.hk/tpb.

7. Seven approved Outline Zoning Plans amended
Hong Kong Government, 11 June 2004

The Town Planning Board today (June 11) announced amendments to seven approved Outline Zoning Plans (OZPs).

The amendments mainly involve revision of the Notes of the OZPs to follow a revised set of Master Schedule of Notes (MSN) to Statutory Plans endorsed by the Town Planning Board. Under the revised MSN, various measures including broad use terms have been introduced to provide greater flexibility for change of use and to reduce the need for planning applications.

The general provisions under the covering Notes and the user schedules for various land use zones have been revised to expand the scope of uses that are always permitted. The planning intentions for various zones have also been incorporated into the Notes to form part of the relevant statutory plans.

The seven approved OZPs amended are as follows:

Approved Kau Lung Hang OZP No. S/NE-KLH/7;

Approved Kwu Tung South OZP No. S/NE-KTS/8;

Approved Lam Tsuen OZP No. S/NE-LT/7;

Approved Tai Long Wan OZP No. S/SK-TLW/2;

Approved Ngong Ping OZP No. S/I-NP/2;

Approved Ngau Tam Mei OZP No. S/YL-NTM/8; and

Approved Tong Yan San Tsuen OZP No. S/YL-TYST/7.

The seven draft plans incorporating the amendments are available for public inspection during normal office hours at the Secretariat of the Town Planning Board, 15/F, North Point Government Offices, 333 Java Road, North Point and the relevant District Planning Offices, District Offices and Rural Committee Offices.

Anyone affected by the amendments can submit a written objection to the Secretary of Town Planning Board by August 11, 2004.

Copies of the relevant draft plans are available for sale at the Map Publications Centres in North Point and Yau Ma Tei. The electronic version of the plans can be seen on the Town Planning Board's website at www.info.gov.hk/tpb.

8. Washington Pays Tribute
Hong Kong Government, 11 June 2004

A riderless black horse, with the riding boots of former U.S. President Ronald Reagan turned backward in the stirrups, follows a horse-drawn caisson procession carrying the remains of the former president en route to the U.S. Capitol in Washington. The 40th president died on Saturday at age 93. CTK.