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Yau Tong Bay project at mercy of public opinion
Site development likely to be halted by reclamation concerns
7 May 2005
South China Morning Post
Developers are unlikely to see much in the way of progress at the $10 billion Yau Tong Bay redevelopment project in the near future as public calls to protect Victoria Harbour from reclamation delay proceedings, according to one of its investors, Henderson Land Development.
Under the redevelopment plan, which has been in existence since 1989, heavily polluted Yau Tong Bay would be transformed into a 22-hectare residential-cum-commercial development. According to blueprints, a total of 12.5 hectares of land would be reclaimed from the sea.
"Public opinion has been strongly against any land reclamation in Victoria Harbour, so we don't expect to see any breakthrough for the Yau Tong Bay project in the foreseeable future," said Colin Lam Ko-yin, vice-chairman at Henderson Land, which owns a 19 per cent stake in the project. Mr Lam was speaking after yesterday's annual general meeting of Hong Kong Ferry (Holdings), a Henderson Land subsidiary.
Approval for land reclamation projects around Victoria Harbour has been difficult to obtain since a 2003 court ruling went against reclamation off Wan Chai. The ruling said that developers had to demonstrate an "overriding public need" to justify reclamation.
Industry observers have suggested that making such a case for the Yau Tong project will prove problematic.
The project, developed by a Henderson-led consortium of more than 10 developers, has already received approval from the Environmental Protection Department with respect to land reclamation but it also needs a green light from the Town Planning Board.
A spokesman for Cornerstone Communications, the public relations firm acting for the developer consortium, claimed that, in fact, reclamation would be positive for Yau Tong Bay as it would involve a clean up of the area's heavy pollution, left over from when the bay was home to a shipyard.
The redevelopment envisages 38 residential blocks with a gross floor area of 9.7 million square feet, of which about 1.72 million sqft would be attributable to the group.
Separately, Hong Kong Ferry said it had brought in more than $1 billion this year from selling 170 residential units at Metro Harbour View in Tai Kok Tsui.
The average price of flats at Metro Harbour grew 20 per cent year on year to $4,500 per square foot, the firm said.
"We plan to sell the remaining 500 unsold units of Metro Harbour View this year," said Mr Lam, who is also chairman of Hong Kong Ferry.
He added the company would start pre-sales at another residential project, 43-51A Tong Mi Road, by the middle of this year while completion for the project was scheduled for early next year.
Henderson Land shares closed down 0.82 per cent at $36.20 yesterday, while those of Hong Kong Ferry were up 0.52 per cent at $9.65.
Site development likely to be halted by reclamation concerns
7 May 2005
South China Morning Post
Developers are unlikely to see much in the way of progress at the $10 billion Yau Tong Bay redevelopment project in the near future as public calls to protect Victoria Harbour from reclamation delay proceedings, according to one of its investors, Henderson Land Development.
Under the redevelopment plan, which has been in existence since 1989, heavily polluted Yau Tong Bay would be transformed into a 22-hectare residential-cum-commercial development. According to blueprints, a total of 12.5 hectares of land would be reclaimed from the sea.
"Public opinion has been strongly against any land reclamation in Victoria Harbour, so we don't expect to see any breakthrough for the Yau Tong Bay project in the foreseeable future," said Colin Lam Ko-yin, vice-chairman at Henderson Land, which owns a 19 per cent stake in the project. Mr Lam was speaking after yesterday's annual general meeting of Hong Kong Ferry (Holdings), a Henderson Land subsidiary.
Approval for land reclamation projects around Victoria Harbour has been difficult to obtain since a 2003 court ruling went against reclamation off Wan Chai. The ruling said that developers had to demonstrate an "overriding public need" to justify reclamation.
Industry observers have suggested that making such a case for the Yau Tong project will prove problematic.
The project, developed by a Henderson-led consortium of more than 10 developers, has already received approval from the Environmental Protection Department with respect to land reclamation but it also needs a green light from the Town Planning Board.
A spokesman for Cornerstone Communications, the public relations firm acting for the developer consortium, claimed that, in fact, reclamation would be positive for Yau Tong Bay as it would involve a clean up of the area's heavy pollution, left over from when the bay was home to a shipyard.
The redevelopment envisages 38 residential blocks with a gross floor area of 9.7 million square feet, of which about 1.72 million sqft would be attributable to the group.
Separately, Hong Kong Ferry said it had brought in more than $1 billion this year from selling 170 residential units at Metro Harbour View in Tai Kok Tsui.
The average price of flats at Metro Harbour grew 20 per cent year on year to $4,500 per square foot, the firm said.
"We plan to sell the remaining 500 unsold units of Metro Harbour View this year," said Mr Lam, who is also chairman of Hong Kong Ferry.
He added the company would start pre-sales at another residential project, 43-51A Tong Mi Road, by the middle of this year while completion for the project was scheduled for early next year.
Henderson Land shares closed down 0.82 per cent at $36.20 yesterday, while those of Hong Kong Ferry were up 0.52 per cent at $9.65.