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1. Push to rezone Tamar as parkland

2. Henderson to make use of huge farm land bank

3. Swire to redevelop CMB's North Point site into flats

4. Group condemns Tsang Tamar plan

1. Push to rezone Tamar as parkland
FELIX CHAN,SCMP 29 September 2005

An artist's impression of a park on the Tamar site, as proposed by the Action Group
on Protection of the Harbour. SCMP photo

Harbour activists will try to have the Tamar site rezoned as public open space.

They say the government should develop a public park and scrap plans to build its headquarters on the prime site.

The Action Group on Protection of The Harbour said yesterday it would apply to the Town Planning Board next month to change the area's land use from that of government, institution and community to open space.

"We hope to return this piece of land, which allows the public to enjoy Victoria Harbour, to the people," said legislator Kwok Ka-ki, a spokesman for the group.

"Not only is there an overriding need for it, but also it cannot be replaced by money and other benefits. In fact, looking at urban conservation in other countries such land would be used for recreational purpose without hesitation."

The group said the move was in response to indications by the government that it favoured a proposal to build a government headquarters and a legislative council building on the Admiralty site.

Under the government's proposal, the gross floor area housing the new government offices and the legislative building would be 490,000 square metres, about 15 per cent larger than the massive International Financial Centre.

The action group said it doubted whether the massive development was intended solely for government use. Property companies have been calling for the site to be released for private development.

Dr Kwok said the Tamar area and land in the Central reclamation third phase should become a park.

The group said building a new government headquarters on the site would seriously worsen traffic congestion in Central after a recent Transport Department study estimated the development would increase average traffic flow by 800 cars an hour.

Dr Kwok said that even the proposed Central-Wan Chai bypass would not solve the problem of increased traffic flow.

"The Transport Department says saturation would be reached by 2016," he said. "Will the government propose reclamation again in order to solve the problem?"

The group said the authorities could sell the west wing of the Central Government Offices to private developers and use the proceeds to redevelop the rest of the compound and Murray Building for the new headquarters.

Dr Kwok also proposed that the former Urban Council building next to City Hall, now used only for meetings of the Liquor Licensing Board and the Harbourfront Enhancement Committee, could be used for the Legislative Council.

2. Henderson to make use of huge farm land bank
PEGGY SITO, SCMP 29 September 2005

Henderson Land Development, which yesterday reported a record full-year net profit, plans to convert its agricultural land bank over the next few years to provide about three million square feet of gross floor area each year.

The company said it would also enhance its investment property value and capture higher rental yield by refurbishing its major retail shopping properties including Sha Tin Plaza, the Trend Plaza in Tuen Mun and the Metro City Plaza in Tseung Kwan O.

"As supply of high-grade office space is expected to remain tight, the shopping mall and the office towers of International Finance Centre are anticipated to continue to see significant rental growth," said chairman Lee Shau-kee.

He added that other rental contribution would come from the newly completed Four Seasons Hotel and the Four Seasons Place, part of the International Finance Centre development.

Mr Lee said Henderson was continuing negotiations with the government for conversion of its farm land sites totalling 26.8 million sq ft and on fixing the land premium.

The landholdings include the Wu Kai Sha site with a total gross floor area of 3.5 million sq ft as well as several other large farm lots.

The company, which acquired 4.3 million sq ft of farm land during the year under review, says its agricultural holdings are the largest among Hong Kong developers.

Henderson has a total non-farm land bank with 17.5 million sq ft in gross floor area in Hong Kong. It also plans to develop a waterfront site of 1.45 million sq ft in Macau.

With a number of development plans, the company said its future development expenditure approved but not contracted for amounted to $4.86 billion.

Its gearing ratio was 17.8 per cent as of June 30.

The company posted a 75.81 per cent rise in net profit to $10.85 billion for the year to June. The figure reflected gains from the revaluation of its investment properties.

Excluding such gains, the company saw a 43 per cent rise in net profit to $4.37 billion. Earnings per share were $5.98 each, against $3.46 each in the preceding year.

Directors declared a final dividend of six cents per share, bringing the full-year dividend to $1 per share, up 11 per cent from the previous year.

During the year under review, the company sold about 3,300 flats, reaping sales revenue of $6.81 billion. The projects include the Grand Promenade, Royal Peninsula, Splendid Place, King's Park Hill and Phase Two of the Metro Harbour View.

Henderson Land's profits from property leasing rose to $1.31 billion from $1.2 billion. The total attributable gross floor area of the company's rental property portfolio was 8 million sq ft, excluding car parking space of about 2.5 million sq ft.

Hotel operations profit rose 22 per cent to about $55 million.

Henderson Land shares fell 0.13 per cent to $38.25 yesterday.

Meanwhile, 73.48 per cent-owned Henderson Investment posted a 64.5 per cent rise in net profit to $3.5 billion, reflecting the gains of investment property revaluations. Excluding the revaluation gains, it posted a 22 per cent rise to $2.21 billion.

Henderson China Holdings, which was privatised by Henderson Land last month, posted a net loss of $103 million due mainly to the loss of about $70 million resulting from the revalution of investment properties.

3.Swire to redevelop CMB's North Point site into flats
ERNEST KONG, SCMP 29 September 2005

Swire Properties will spend $200 million to develop a China Motor Bus-owned site in North Point into a mid-sized residential project.

According to surveyors, the firm is likely to invest the sum in construction costs for developing the site on Kam Hong Street into an 180,000 square foot residential project.

The site formerly housed the bus company's staff quarters. Levelling of the previous construction, which started last year, has been completed.

Earlier this year, the Buildings Department approved the development on the site of a 49-storey single block tower for both residential and commercial use. China Motor Bus will reimburse the development cost to Swire Properties subject to a limit of $299 million.

The bus company will also pay Swire Properties a fee calculated on the higher figure of $55 million, or 25 per cent of the project's sales in excess of $840 million.

Charles Chan Chiu-kwok, executive director of property consultant Chesterton Petty, expected the project to comprise about 200 apartment units with an average size of about 800 sq ft. He said the selling price would be more than $8,000 per square foot.

Swire Properties and China Motor Bus jointly hold a 25,500 sq ft industrial site in Wong Chuk Hang, in respect of which they have applied for a change to residential use.

4. Group condemns Tsang Tamar plan
Mimi Lau, The Standard, 29 September 2005

A harbor protection group criticized the government Wednesday over its plans to redevelop the vacated Tamar site at Admiralty.

A harbor protection group criticized the government Wednesday over its plans to redevelop the vacated Tamar site at Admiralty.

The government announced last month it plans to turn Tamar into its headquarters, which will also house the Legislative Council.

However, the HK$6 billion project has drawn fire from the business community, politicians and environmentalists, who argue that the ever-shrinking harbor front will be ruined.

The Action Group on Protection of the Harbour demanded Wednesday that the government turn Tamar into a green park. "Why do we need to put all the offices together when the area is already severely congested?" said legislator Kwok Ka-ki, who is a member of the group.

"There is no logic behind it. The 490,000 square meters [at Tamar] should be converted into a green park for Hong Kong people to enjoy."

The group said converting Tamar into a green area will cost less than HK$10 million.

The government responded by saying that there is no concrete plan for Tamar.

"We are still reviewing the Tamar project. An announcement will be made once the review has been completed," a government spokesman said.

Kwok pleaded with Chief Executive Donald Tsang to reconsider the plan.

"Any leader who goes against the will of the people will commit political suicide," Kwok said.

Recently, the pro-Beijing Democratic Alliance for the Betterment and Progress of Hong Kong interviewed 604 people, and 40 percent of the interviewees were opposed to redeveloping Tamar, which is also the headquarters of the People's Liberation Army.

DAB vice chairman and lawmaker Tam Yiu-chung demanded last week that the government rethink the Tamar plan. He argued that it is a prime site in the heart of Central.

"It would be more appropriate to use the former Kai Tak Airport site in Kowloon, or to build office clusters for the Executive, the Legislative Council and the Judiciary," Tam said.