$8b Foster landmark empty four years on
2 July 2006
South China Morning Post
A distinctive Lord Foster-designed high-rise modelled on the shape of a lily and built at a cost of $8 billion on prime Repulse Bay land has stood vacant since it was built four years ago.
The delay - widely believed to result from developer Chinachem failing to agree with the government on the amount of additional land premium it must pay to convert the building from residential use to a hotel - has local residents baffled.
While a new hotel in the area would raise Repulse Bay's profile, it would put more strain on the area's narrow roads brought by large tour buses.
The 95.5-metre-tall building occupies a site area of 113,775 sq ft on Repulse Bay Road and was completed in 2002 with a view to being sold as luxury flats. But poor timing - it was put up for sale soon after the Sars scare hit the property sector in 2003 - and a hefty $30,000 per sq ft price tag translated into poor sales.
Chinachem, owned by Asia's richest woman, Nina Wang Kung Yu-sum, then decided to convert the finished building into a 352-room hotel modelled on the world-famous five-star Burj Al Arab in Dubai, tentatively to be named L'Hotel Repulse Bay, as the latest in a series of hotels under the L'Hotel brand in Hong Kong.
"They never tell us what's going on, and we don't know what is happening with this building," said Chu Ching-hong, vice-chairman of Southern District Council and a Repulse Bay resident. He noted that the community had never been notified or consulted in the four years since the high-rise was built.
Mr Chu, who plans to take up the issue of the building's status with the government, added that an impact study on Repulse Bay's arterial roads should be made before final approval was given for a hotel.
Recently there has also been speculation that Chinachem will abandon its conversion efforts.
A Lands Department official confirmed Chinachem had applied for lease modification in the change in use of the building but declined to give further details.
Chinachem officials have refused to comment.
"I am busy in a meeting now," said hotels division director George Kuk Hin-fai last week.
It has been reported the rooms would have an average floor area of 970 sq ft, while the top floors would feature 3,000 sq ft suites. The building is fenced off from Repulse Bay Road and old scaffolding still clings to the lower walls.
Construction workers could be seen loitering at the site last week but there was no sign of activity. A security guard at the entrance said renovation work had stopped a "long time ago".
Property market watcher Ivan Ho Shiu-cheong, managing director of real estate agency Ricacorp, said it was highly unusual for a Hong Kong property developer to leave a building vacant for so long after completion.
But he also noted that in Chinachem's case, this could be partially explained because the company was not listed on the stock market and is believed to have a strong balance sheet. Chinachem has a unique history of sitting on completed projects for years, he said.
He added that the company had, in the past, been associated with lower-key projects. The Lord Foster-designed building was an attempt by the company to boost its image, he said.
2 July 2006
South China Morning Post
A distinctive Lord Foster-designed high-rise modelled on the shape of a lily and built at a cost of $8 billion on prime Repulse Bay land has stood vacant since it was built four years ago.
The delay - widely believed to result from developer Chinachem failing to agree with the government on the amount of additional land premium it must pay to convert the building from residential use to a hotel - has local residents baffled.
While a new hotel in the area would raise Repulse Bay's profile, it would put more strain on the area's narrow roads brought by large tour buses.
The 95.5-metre-tall building occupies a site area of 113,775 sq ft on Repulse Bay Road and was completed in 2002 with a view to being sold as luxury flats. But poor timing - it was put up for sale soon after the Sars scare hit the property sector in 2003 - and a hefty $30,000 per sq ft price tag translated into poor sales.
Chinachem, owned by Asia's richest woman, Nina Wang Kung Yu-sum, then decided to convert the finished building into a 352-room hotel modelled on the world-famous five-star Burj Al Arab in Dubai, tentatively to be named L'Hotel Repulse Bay, as the latest in a series of hotels under the L'Hotel brand in Hong Kong.
"They never tell us what's going on, and we don't know what is happening with this building," said Chu Ching-hong, vice-chairman of Southern District Council and a Repulse Bay resident. He noted that the community had never been notified or consulted in the four years since the high-rise was built.
Mr Chu, who plans to take up the issue of the building's status with the government, added that an impact study on Repulse Bay's arterial roads should be made before final approval was given for a hotel.
Recently there has also been speculation that Chinachem will abandon its conversion efforts.
A Lands Department official confirmed Chinachem had applied for lease modification in the change in use of the building but declined to give further details.
Chinachem officials have refused to comment.
"I am busy in a meeting now," said hotels division director George Kuk Hin-fai last week.
It has been reported the rooms would have an average floor area of 970 sq ft, while the top floors would feature 3,000 sq ft suites. The building is fenced off from Repulse Bay Road and old scaffolding still clings to the lower walls.
Construction workers could be seen loitering at the site last week but there was no sign of activity. A security guard at the entrance said renovation work had stopped a "long time ago".
Property market watcher Ivan Ho Shiu-cheong, managing director of real estate agency Ricacorp, said it was highly unusual for a Hong Kong property developer to leave a building vacant for so long after completion.
But he also noted that in Chinachem's case, this could be partially explained because the company was not listed on the stock market and is believed to have a strong balance sheet. Chinachem has a unique history of sitting on completed projects for years, he said.
He added that the company had, in the past, been associated with lower-key projects. The Lord Foster-designed building was an attempt by the company to boost its image, he said.