SKYLINE Technologies -- News Update (21 June 2006 )

Click-on these handy "jump links" to quickly access the news item
you're looking for.

1. Civic Party to monitor all aspects of Tamar project
MAY CHAN , SCMP 21 June 2006

The Civic Party and its allies opposed to the Tamar project will set up a group to monitor the controversial development after Friday, when the Legislative Council is expected to endorse the $5.1 billion funding proposal.

The group, which will monitor the cost-effectiveness, quality, overall planning and environmental impact, will also include architects and town planners, legislator Kwok Ka-ki said yesterday.

"The battle won't stop even if Legco endorses the funding proposal," Mr Kwok said.

He was speaking as he announced findings of a survey by the Action Group on Protection of the Harbour, which found that 52 per cent of respondents did not believe the Tamar project had won 70 per cent public support, as claimed by Chief Executive Donald Tsang Yam-kuen.

The study interviewed 767 randomly selected respondents from June 12-15 in Central, Wan Chai, Causeway Bay and Tsim Sha Tsui.

Sixty-nine per cent agreed there should be a three-month public consultation before any decision was made on the Tamar project, while 77 per cent said the government should conduct a comprehensive environmental impact assessment, including the level of dioxin concentration at the site.

The findings contradicted earlier poll results released by Mr Tsang in May, which found 70 per cent public support for the project.

Mr Kwok cast doubt on the significance of this poll, as the government failed to provide details on its methodology and question samples, which he requested this month.

He will forward the findings of the survey by the harbour group to all legislators, Mr Tsang, and Secretary for Housing, Planning and Lands Michael Suen Ming-yeung today.

"If my colleagues don't react to the survey findings when they vote, I will find them very pathetic," Mr Kwok said.

The group will collaborate with other harbour groups to organise demonstrations on Thursday and Friday.

A spokesman for the Department of Administration cited a South China Morning Post survey released on June 12, saying that 56 per cent of the respondents supported the Tamar project.

2. Developer seeking US$85m in bond issue
STAFF REPORTER , SCMP 21 June 2006

Coastal Greenland , a Hong Kong-listed mainland property developer, plans to raise as much as US$85 million to fund expansion by selling bonds to an affiliate of a United States-based hedge fund.

Coastal Greenland said it would sell between US$39.5 million and US$65 million worth of convertible bonds to Citadel Equity Fund. It will also sell senior bonds of at least US$20 million to the fund.

The bond sale "is a timely move to raise additional funds for [the company's] business development", Coastal Greenland chairman Chan Boon Teong said in a press release.

"We are confident that Coastal Greenland will be able to grasp opportunities arising from the booming Chinese economy and the country's tremendous housing demand, leading to further expansion in the group's core business," Mr Chan added.

The company said Citadel might swap the convertible bonds into its shares at 70 cents each for as much as a 24.66 per cent stake. The conversion price represents a 29.6 per cent premium on the stock's closing of 54 cents on June 16, the lasting trading day before suspension.

Citadel Equity Fund is an affiliate of Citadel investment Group, a US-based hedge fund firm. Citadel Investment manages US$12 billion of funds and has generated over US$5 billion of trading profits since 1998, according to company data.

The convertible bonds will mature in 3-1/2 years and carry interest of 4.75 per cent per annum payable every half year. Details on the senior bonds had yet to be agreed, Coastal Greenland said.

Assuming the size of the convertible bonds is the bottom-end of the proposed range, Coastal Greenland will raise net proceeds of US$37.4 million from that sale.

It plans to use US$25 million for future investments and the rest as general working capital. Net proceeds of US$18.9 million from the sale of senior bonds will be set aside for future investment projects.

Coastal Greenland scrapped a plan to sell US$30 million of convertible bonds last month. Its stock has gained 63.6 per cent this year.

The Buildings Department approved 37 building plans in May - 19 on Hong Kong Island , eight in Kowloon and 10 in the New Territories .

Of the approved plans, 21 were for apartment and apartment/commercial developments, 8 were for commercial developments, and 8 were for community services developments.

In the same month, consent was given for work to start on 14 building projects that, when completed, will provide 26,132 square metres of gross floor area for domestic use, involving 281 units, and 127,530 square metres of gross floor area for non-domestic use. The department has received notification of commencement of work for 11 building projects.

The department also issued 22 occupation permits - three on Hong Kong Island , two in Kowloon and 17 in the New Territories .

Of the buildings certified for occupation, the gross floor areas for domestic use were 25,348 square metres, involving 364 units, and 17,523 square metres for non-domestic use.

The declared cost of the new buildings completed in May totalled about $642 million.

In addition, six demolition consents involving six building structures were issued.

The department received 2,110 complaints against unauthorised building works in May, and issued 2,940 removal orders on unauthorised works.

The full version of the Monthly Digest for May can be viewed by members of the public on the Buildings Department's homepage ( www.bd.gov.hk ).