Renewal profits go through roof with flats boom

Patsy Moy Tuesday, June 15, 2010

Urban Renewal Authority profits hit a record high of HK$6.9 billion at the end of March, amid the property boom.

Most of it came from the authority's three major projects in Lee Tung Street in Wan Chai, Yee Kuk Street in Sham Shui Po and Yuet Wah Street in Kwun Tong.

Chairman Barry Cheung Chun-yuen attributed the rise to last year's property boom, adding that this year's bottom line is unlikely to break the record.

Cheung also did not rule out the URA issuing bonds in future, though it does not have an immediate plan to do so.

It will invite tenders this year for its two smaller development projects in Yu Lok Lane in Western and Fuk Tsun Street/Pine Street in Tai Kok Tsui.

Cheung believes the two projects will appeal to small developers.
These will provide 350 flats, most of them less than 500 square feet.

In the next 18 months, the URA will supply more than 1,000 mostly small- sized flats of no more than 600 square feet to meet housing demand, especially from first-time buyers.

The URA was established in May 2001 with a HK$10 billion injection from the government, replacing the Land Development Corporation. It enjoys land premium exemptions for its projects.

Cheung admitted the authority would not have enjoyed such a handsome profit without the premium exemptions.

Also at yesterday's URA press conference, deputy secretary for development Tommy Yuen Man-chung said the government has no timetable for the authority to repay the HK$10 billion even though it is making a profit.

The government also has no plans to revoke the premium exemptions.

Meanwhile, the Development Bureau will submit a paper to the Legislative Council on Tuesday about a new round of funding for its "Operation Building Bright" scheme. The plan was launched in 2008 to subsidize the repair of buildings 50 years and older to create jobs in the market at the height of the financial tsunami.




tender noun ( OFFER )
/ˈten.dər//-dɚ/ n [C]
• a written or formal offer to supply goods or do a job for an agreed price