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1. US$12b Las Vegas-style Strip planned for Macau

2. KMB, Sun Hung Kai in $1.27b property venture

3. HK and Guangdong set for bridge-building talks

4. Call to ban development on key sites

5. KCR expansion on track

6. Planners slash Tseung Kwan O density levels

1. US$12b Las Vegas-style Strip planned for Macau
Dennis Eng, The Standard 23 July 2003

The owner of The Venetian Resort-Hotel-Casino in Las Vegas plans to spend more than US$12 billion (HK$93.6 billion) to transform Macau into Asia's version of ``The Strip''.

Unveiling his master plan in Singapore, Las Vegas Sands chairman Sheldon Adelson said the 47-hectare Cotai strip of reclaimed land between Coloane and Taipa would be home to a mammoth ``destination resort'', including The Venetian Macau.

Due to open in the next three to three-and-a-half years, The Venetian project is situated on one of eight parcels of land to be developed as part of the first phase of construction.

The other seven sites will be offered in partnership with other operators of three-to-five star hotels totalling almost 3,000 rooms with casinos, showrooms and shopping complexes.

The company said it expected to sign contracts with the hotel operators by year end. It will provide the upfront development costs for Cotai.

``The Cotai strip is 60 seconds from Macau International Airport,'' Adelson said.

``This is an opportunity begging to be capitalised. A three-and-a-half to four-hour plane ride away and you can reach 1.6 billion to 1.8 billion people.

``When I spoke with Stanley Ho, he told me I could reach two-thirds of the world's population with only a five-hour plane ride, but I said we don't need that many people.''

Adelson said the company planned to develop 20 lots over three phases. Each lot will feature a ``mega resort'' offering 3,000 hotel rooms for a total of about 60,000 rooms.

He added there was critical mass under one roof and that they would target the tour and travel market of package tour groups from Taiwan and the mainland, as well as from South Korea and Japan.

Adelson said The Venetian in Las Vegas enjoyed occupancy rates of between 95 and 100 per cent with room rates ranging from US$180 to US$230.

But he declined to specify if they would be indicative of his Macau development.

``The key is to find a way to fill the mid-week traffic. If so, you can charge the same rate as for the weekend. That's why we want to appeal to the wholesale and convention market. People will pay for a destination resort,'' he said.

The company also expects to open a Las Vegas Sands casino in January or February next year on a six-hectare site sandwiched between the Mandarin Oriental Hotel and the Macau Cultural Centre.

Sheldon noted the company derived 31 per cent of its bottom line from gaming activities in Las Vegas, and he hoped the proximity of the casino to the Macau Hong Kong Ferry terminal would appeal to the ``day trip'' market.

``We have half the size of Las Vegas in one place,'' he said.

President and chief operating officer William Weidner said 80 per cent to 90 per cent of jobs at the casino had now been filled.

But he denied there were plans to list the company's wholly owned subsidiary, Venetian Macau Limited, in Hong Kong.

Las Vegas Sands is working with Jones Lang LaSalle Hotels and United States architecture firm Skidmore, Owings and Merrill on the project.

2. KMB, Sun Hung Kai in $1.27b property venture
Joyce Li, The Standard 23 July 2003

Kowloon Motor Bus Holdings (KMB) has agreed to pay substantial shareholder Sun Hung Kai Properties up to HK$1.27 billion for the construction, management and marketing of a planned residential and commercial complex in Lai Chi Kok.

The development, slated for completion by the end of June 2006, is on a piece of land previously used as a KMB depot.

``The directors consider that redevelopment of the lot into a residential and commercial complex adds value to the lot and is generally in line with the group's strategy of effective deployment of its assets,'' KMB company secretary Lana Woo said.

Since property development is not the core business of the bus operator, ``directors consider that it is in the interests of the group to leverage on the expertise of the SHKP group'', Woo said.

SHKP holds a 33 per cent equity interest in KMB and has applied to the stock exchange for a waiver on disclosing the transactions.

KMB, through its wholly owned subsidiary Lai Chi Kok Properties Investment, signed deals with SHKP on Thursday to develop the site which will have a gross floor area of one million square feet and a retail podium area of 50,000 sq ft.

SHKP's wholly owned subsidiary Chun Fai Construction has been appointed by KMB as management contractor to undertake the contract that includes responsibility for construction, substructure and superstructure of the development.

KMB agreed to pay Chun Fai a maximum of HK$1.16 billion under the contract. KMB is also paying SHKP's wholly owned subsidiary Sun Hung Kai Real Estate Agency HK$46 million to be the exclusive agent for the marketing, sale and letting of all residential and commercial units and car parking spaces. The project consists of four high-rise residential blocks comprising 1,300 units for sale and lease. The contracts need shareholder approval. KMB also appointed SHKP's wholly owned Hong Yip Service to manage the property.

Under a two-year deal worth up to HK$61.45 million, Hong Yip would provide services including management, operation, cleaning, security and repair of the common areas and facilities of the development.

3. HK and Guangdong set for bridge-building talks
CHLOE LAI and GARY CHEUNG, SCMP 23 July 2003

Hong Kong and Guangdong will discuss which side will be taking the lead on construction of the bridge linking Hong Kong, Macau and Zhuhai after the completion of a central government report on the sructure, according to sources close to the project.

They explained that the endorsement by the National Development and Reform Commission was just an affirmation of the planning direction. Issues such as financing and which side would take the lead remain unresolved.

"In the eyes of the central government these are minor matters and they are confident that Hong Kong and Guangdong should be able to come up with a solution themselves.

"There are a number of ways to solve this problem, such as having a joint committee," said a source close to the bridge's study team.

He also expected Hong Kong and Guangdong authorities to set up a joint taskforce to work out the details.

The news came as Secretary for Environment, Transport and Works Sarah Liao Sau-tung said the study, which was jointly commissioned by the Hong Kong government and the commission, is expected to be finalised later this week.

The source added that most technical issues involved in the construction, such as the location of the checkpoints, were only minor problems.

A feasibility study conducted by an institute under the National Development and Reform Commission has explored three possible options for a bridge spanning the Pearl River Delta.

4. Call to ban development on key sites
CHEUNG CHI-FAI, SCMP 23 July 2003

Legislators have urged the government to ban development on privately-owned sites with high conservation value - but the environment minister believes that landowners would be reluctant to damage their own lands.

The comments come ahead of a meeting this week between government officials and the Heung Yee Kuk, which represents the rights of indigenous villagers, regarding the government's newly-unveiled conservation policy.

At the environmental panel yesterday, legislators expressed concern that some sites would be deliberately destroyed by their owners who objected to the government's conservation plans.

Legislator Choy So-yuk and Martin Lee Chu-ming shared the views that there should be some forms of development ban on top conservation sites.

"Unless you can tie up the hands of the landowners for conservation purposes, I don't see why they will not try damage the sites for development," Mr Lee said.

The government proposed to introduce a scoring system to identify sites of top conservation value for protection in a consultation paper released last week.

5. KCR expansion on track
JOSEPH LO, SCMP 23 July 2003

The KCRC has unveiled a $20 million makeover of the track configuration at its Hunghom terminus ahead of the commissioning of its Tsim Sha Tsui extension in 2004.

The makeover project, due to be completed by year's end, will significantly increase the speed and reliability of trains entering and departing the station, according to Kowloon-Canton Railway Corporation officials. The biggest component of the planned works will be the simplification of the existing track layout to accommodate more trains in the station as passenger demand continues to grow, particularly for train services to the mainland.

When completed, the maximum capacity of the station will have been increased to 27 trains per hour from each direction from the present 22.

The works will also help increase the speed of trains entering Hunghom to 50km/h.

As part of the works some disruption to services between Hunghom and Mongkok will occur on July 26 and 27.

6. Planners slash Tseung Kwan O density levels
SOPHIA WONG, SCMP 23 July 2003

The government has reduced the proposed population density in Tseung Kwan O in an attempt to ease land and housing supply.

Property players welcomed the move, and a consortium led by Cheung Kong (Holdings) was considering revising its development scheme at Tiu Keng Leng Station, on the Tseung Kwan O MTR line, to maximise the market value.

The Territory Development Department initiated a feasibility study in 2001 on further development and reclamation in Tseung Kwan O to accommodate up to 520,000 people by 2011. The department at first proposed reclamation of up to 72 hectares to house 77,000 people.

However, this plan was scrapped as the public opposed increased density and the large scale of the reclamation.

Stephen Li Tin-sang, a senior engineer in the Territory Development Department, said the proposal for the highest development capacity to accommodate more than 495,000 people in Tseung Kwan O had been dropped due to public concern about overcrowding.

He said the department was inclined to scale down the capacity of future developments in Tseung Kwan O to provide a better living environment.

"We are considering reducing the highest permitted plot ratio of 7.5 to an average of between 3.5 and 4.5 for future land grants in the southern part of the town centre," he said.

Houses, low-rise apartments or hotels on waterfronts could be among development options, he added.

He expected the Tseung Kwan O development feasibility study to be completed by the end of this year, pending further public consultation.

He said the government had no concrete development schedule as housing demand had contracted in recent years.

Nan Fung Development project director Donald Choi welcomed the decision to scale back development capacity in Tseung Kwan O.

"The density in Tseung Kwan O is already too high. The future growing population can be accommodated in other areas, such as the northwest New Territories where West Rail is under construction," he said.

Diversified development in Tseung Kwan O could maximise land value, he said, adding that building hotels and other tourist attractions in the future town centre were viable options.

But he said houses or low-rise residential development were not suitable since the densely populated area could hardly attract high-end buyers.

Nan Fung and Cheung Kong have formed a consortium which has secured a residential and retail development package at Tiu Keng Leng Station, tendered by MTR Corp last year. The project, with a developable floor area of 2.7 million square feet, could involve an investment of up to HK$6 billion.

Mr Choi said the consortium was considering reducing the size of flats in phase two of the two-phase project, and increasing their quantity to maximise profits. The original project design altogether comprises about 4,000 residential units.

Phase one, providing about 1,600 units due to be finished by 2005, could be available for pre-sale next year, he said. The consortium had not yet agreed on the land premium for the phase two, pending revision of the master layout plan, he added.

Mr Choi estimated the residential land value in Tseung Kwan O was about HK$600 per square foot, given that the average flat value was about HK$2,500 per square foot.

Goldrich Planners and Surveyors director Francis Lau Tak said the present building density in Tseung Kwan O was too high to cater for the high-end residential market. Developers would prefer a higher plot ratio in the town centre so they could build higher apartments for better views and higher prices.

"It will be better to adopt the stepped-height concept and decline the building height towards the waterfront," he said.

He suggested allowing medium density, or a plot ratio of about five, for mass residential development along the railway line to maximise land value and reclaim the least amount of land.

He was not optimistic about the prospects for the Tseung Kwan O residential market. Flat prices were under pressure with the prospect of excess supply in the foreseeable future, he said.

Under the latest development feasibility study, the southern part of the town centre would accommodate a maximum of 62,000 people, on 37 hectares of residential land, when the total population in Tseung Kwan O would have expanded to 495,000 and up to 55 hectares of land was reclaimed.

The lowest-density development option would be to accommodate 32,000 people, on 25 hectares of residential land without reclamation, if the total population target were reduced to 460,000. The present outline zoning plan proposes developing 20 hectares of residential land to house 55,000 people within a total population target of 480,000.