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1. Land resumption for construction of Kowloon Southern Link

2. Prime Central building is sold

1. Land resumption for construction of Kowloon Southern Link
Hong Kong Government, 9 September 2005

The Lands Department today (September 9) announced the resumption of private underground strata of land and creation of rights of temporary occupation over private land and underground strata in Tsim Sha Tsui and Tai Kok Tsui for the construction of the KCRC Kowloon Southern Link.

"According to the authorised Railway Scheme, the underground strata of two private lots, involving a piece of land owned by the MTR Corporation in Tai Kok Tsui and an electricity sub-station in Canton Road, with a total area of 62 square metres will be resumed under the Railways Ordinance and will revert to the Government on December 9, 2005," a spokesman for the Lands Department said.

Portions of land and strata of a number of private land including One Peking, Ocean Centre and Olympian City 2,etc will be temporarily occupied for a period of about three and a half years.

The effective date will also be three months after the gazettal date. Details of the private land and strata affected are contained in the Gazette published today.

Notices will be sent to the registered owners and interested parties and have been posted at or near the affected land.

"The acquired land and strata will be granted to Kowloon-Canton Railway Corporation for construction of the Kowloon Southern Link. Those temporarily occupied land will be returned to the landowners concerned after the works for the Kowloon Southern Link have been completed," the spokesman said.

The construction work is scheduled to commence in the third quarter 2005 and is expected to be completed by 2009.

Under the Railways Ordinance (Cap 519), any person who has a compensatable interest in the land resumed or temporarily occupied may submit a claim to the Secretary for Environment, Transport and Works.

The claimants are suggested to make their claims within 12 months from the date of land taken on December 9, 2005. Any professional fees reasonably incurred for making and agreeing such a claim may be reimbursed by the Government.

If the claims cannot be settled by agreement, the claimants may apply to the Lands Tribunal for adjudication. The decision of the Lands Tribunal on the amount of compensation payable is final.

The Railway Development Section of the Lands Department which is responsible for the subject resumption and creation of rights of temporary occupation has compiled a pamphlet providing general information on the procedures and arrangements for compensation payment.

People who would like to obtain a copy of the pamphlet may approach the Railway Development Section of the Lands Department, 7/F., Hong Kong Pacific Centre, 28 Hankow Road, Tsim Sha Tsui.

2. Prime Central building is sold
TOH HAN SHIH, SCMP 10 September 2005

Hysan Development yesterday sold the Entertainment Building in Central for $2.7 billion, almost $1 billion less than it paid for it in 1996.

The Hong Kong-listed property firm made the sale to cut its debts, the company announced last night.

Hysan sold its wholly owned subsidiary, Jarrow Properties, which owns the building, to Join-in Investments, whose owners are not linked to Hysan. As part of the deal, Hysan also sold to Join-in Investments some loans of an undisclosed amount made by Hysan to Jarrow Properties.

Hysan, which paid $3.64 billion for the prime Queen's Road Central retail-office site, said it expected to book a gain of $262 million from the transaction. The book value of the building, which has a gross floor area of 211,148 sq ft of office and retail space, was $2.43 billion as of June 30.

The $2.7 billion payment will be in cash, with $270 million paid yesterday, the balance on completion. The deal is expected to be wrapped up by the end of this year.
"The proceeds of the transaction will be applied towards reduction of the company's debts, which Hysan believes will considerably strengthen its financial position," the announcement said.

As of June 30, Hysan had $3.28 billion of long-term bank borrowings, $1.55 billion of debt from fixed rate notes and $2.69 billion of deferred tax liabilities, according to its 2005 interim report.

When Hysan bought the Entertainment Building in November 1996, the acquisition represented an average value of more than $17,000 per sq ft, 20 per cent higher than prices paid for office property in Central. Entertainment Building contributed a net profit of $38.86 million in 2004 and $29.41 million in 2003, Hysan said.

On August 27, the South China Morning Post reported that Watsons, the health and beauty chain of Hong Kong tycoon Li Ka-shing, was being forced out of Entertainment Building after Hysan lured in fashion retailer Joyce Boutique Holdings and doubled the rent.