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1. Paul Y wins $1b Macau project

2. Ho Man Tin sites in line for rezoning

3. Trustees may oversee cultural hub

1. Paul Y wins $1b Macau project
Danny Chung and Eli Lau, The Standard 8 November 2004

Skynet (International Group) Holdings, a unit of Hong Kong-listed builder Paul Y-ITC Construction, has won a HK$1 billion contract for an entertainment complex being developed in Macau by casino tycoon Stanley Ho, a source close to the deal has confirmed.

The company had outbid other contractors for the design and building contract, the source said.

The contract details of the hotel-casino-retail complex had been settled as early as May this year.

The initial design was for a tower soaring more than 100 storeys, but this was rejected by the Macau aviation authorities.

The current design should have a height less than 100 storeys and was still being revised, the source said.

``The company is now making preparations to carry out the contract and a whole team of people have been sent there,'' he added.

The complex, situated at Baixa da Taipa in Macau, is being jointly developed by Ho's Hong Kong-listed Melco International Development and his gaming conglomerate, Sociedade de Turismo e Diversoes de Macau (STDM). Melco would be co-ordinator of the complex while the Hyatt Hotels Group would manage the six-star hotel facilities.

The casino would be run by STDM's unit, Sociedade de Jogos de Macau (SJM), and the electronic gaming lounge by Melco's unit, Mocha Slot Group.

The joint venture would receive rental income from Mocha and SJM.

The entertainment complex would be ready for operation by 2006.

Skynet is 94 per cent-owned by Paul Y-ITC, Hong Kong's largest listed builder.

Earlier this year, Paul Y-ITC injected the construction unit and shareholder loans of a subsidiary into Skynet.

Last month Melco announced the placing of 75.9 million new shares at HK$5.2 per share to raise HK$395 million.

Of the HK$377 million in net proceeds, 55 per cent, or HK$94 million, would be used for development of the entertainment complex, 25 per cent for expansion of the company's Mocha slot machine operations and the rest reserved as working capital.

2. Ho Man Tin sites in line for rezoning
Raymond Wang, The Standard 8 November 2004

The government may change the usage of the former Ho Man Tin Estate and nearby Hong Kong Housing Authority headquarters to private residential. The sites could fetch HK$16 billion, a surveyor said.

The 4.8-hectare Ho Man Tin Estate site was earmarked for public housing development. It is being used as a temporary car park since public flats were demolished early this year.

The Housing Department will consider scrapping plans to build public housing on the site after the parking leases expire next year, a source told Sing Tao Daily. In the long term, the Housing Authority headquarters, on 0.7 hectares at 33 Fat Kwong Street, are expected to be demolished to make way for private residential use.

``The sites would be returned to the government and put into its land reserve list after changing the site usage to private residential,'' the source said.

Surveyors said the two sites would probably attract strong interest from major developers. A luxury residential lot in the area was sold for HK$9.42 billion or HK$5,476 per square foot at last month's government land auction.

Assuming a land price of HK$3,500 psf, the sites have a combined market value of HK$16 billion if they are redeveloped into luxury residential projects with a plot ratio of eight times, chartered surveyor Pang Shiu-kee said.

3. Trustees may oversee cultural hub
CHLOE LAI, SCMP 8 November 2004

The government may set up a board of trustees to oversee management of the West Kowloon cultural district, a government source said.

The source said members of the public would have representatives on the board of trustees.

Officials are reportedly studying how similar projects in North America, Europe, Australia and Japan are managed.

A selection committee is still examining the five proposals submitted by developers.

The shortlisted development bids would be announced by Christmas, the source said.

"The company winning the project will not dominate the board of trustees," the source said.

"Those who represent the public interest won't be simply window-dressing. The trustee must be accountable to the public."

Ada Wong Ying-kay, a prominent member of the arts and cultural community, said that more than one board of trustees should be established: one could focus on the management of the museums, and one on the performing arts venues.

"The philosophy of managing a museum is very different from the performing arts. I can't see how one board of trustees can do the job effectively," said Ms Wong, who was a member of the now-defunct cultural and heritage commission.

She also said that the developer should not dominate decisions on how money would be spent.

Otherwise, having members of the public appointed to the board of trustees would have little effect on the project, she said.

The government wants to transform the 40-hectare plot of reclaimed land near Kowloon station into a regional cultural hub.

Five bids were received from developers before the June 19 deadline for submissions.

They include Dynamic Star International (a joint venture between Cheung Kong Holdings and Sun Hung Kai Properties); Swire Properties; Henderson Land; and a consortium of Sino Land, Wharf (Holdings), Chinese Estates Holdings and the K Wah Group. There is also a mysterious individual bidder, Lam Sze-tat.

Chief Secretary Donald Tsang Yam-kuen said earlier this year that the government wanted to foster a greater sense of public ownership in the project.

This is why the shortlisted development proposals will be exhibited early next year for public consultation. The government plans to hold public forums on the proposals during the exhibition period.

The core cultural facilities, such as theatres and museums, are expected to be completed in stages from early 2011.