The Executive Director of the Urban Renewal Authority, Wai Chi-shing, published a blog today (22nd), revealing that with the launch of tenders for the project this year, the "harvest period" of the project will come to an end.
In the next five years, the URA will have to deal with huge acquisition expenditures for 6 projects, among which the acquisition and compensation expenditures are expected to be nearly 30 billion yuan, which is equivalent to the current cash reserves. business operations.
He also pointed out that the large-scale projects launched during the year will enter the peak of the acquisition cycle in two to three years as scheduled.
If, after a few years, there are no projects that can be tendered to bring cash income from the initial payment to the URA, the URA will have a negative cash flow situation, and the maximum amount can exceed $15 billion.
The URA revealed that in the next five years, it will have to deal with huge acquisition expenses for 6 projects. After the acquisition is completed, it will be difficult to maintain sufficient cash reserves to cope with daily business operations.
(file picture)
Cash reserves of about 30 billion will be acquired or exhausted in the next five years
Wei Zhicheng pointed out that in the past year, the URA projects have entered the "harvest period". Among them, seven redevelopment projects that have been cleared have been launched for tenders one after another, and about 20 billion yuan has been collected from the cooperating developers who won the bids. The URA had an original cash reserve of about $10 billion. By the end of the 2020/2021 year, the URA's cash reserve will reach about $30 billion.
However, the acquisition and compensation expenditure for the above-mentioned 6 projects is expected to be close to 30 billion yuan, including Shing Tak Street in To Kwa Wan, Sa Po Road in Kowloon City, Tess Road Street in Mong Kok, and Kinshin Lane in Sham Shui Po, which means that the URA currently has approximately The cash reserve of 30 billion yuan will be almost fully used for the acquisition of properties by then.
In addition, the large-scale projects to be launched during the year will also enter the peak of the acquisition cycle in two to three years as scheduled.
▼Five development nodes of Youwang Research▼
+2
Update the business plan for the next five years, the total cost of development projects is 120 billion yuan
Wei Zhicheng said that a business plan covering 2022/23 to 2026/27, that is, the next five years, has been formulated. The newly planned redevelopment projects, together with the redevelopment projects that have been carried out but have not yet started acquisition, are expected to cost a total of 120 billion yuan .
22,000 new units involved
He also pointed out that the business plan has been approved by the government. The area of old districts that can be renewed in the next five years exceeds 200,000 square meters, and about 22,000 new residential units are planned, an increase of about one-quarter compared with last year's business plan.
+4
Kowloon City, Tsuen Wan, etc. to carry out regional planning studies
Wei Zhicheng also pointed out that the Yauwang study has been completed, and the URA will start the urban renewal work of Yauwang as soon as possible, including incorporating more mature projects into the business program and implementing them at an appropriate time.
In addition, the URA has carried out district planning studies in Kowloon City, Wong Tai Sin, Sai Wan Ho, Tsuen Wan and Sham Shui Po to formulate suitable urban renewal plans.
He revealed that the URA will apply the “Integrated Strategy” implementation model, that is, in addition to dealing with the problem of ageing and disrepairing buildings, it will also address issues such as regional infrastructure, community facilities, and transportation at the planning level, including the construction of new government facility complexes, assistance to Build footbridges and tunnels, revitalize nearby pedestrians and green open spaces, etc.
Therefore, he described that the URA will not only be involved in the acquisition of title costs for redevelopment projects, but may also have to bear at least billions of dollars in expenditure. Therefore, it will "inevitably further increase the financial burden of the URA".
He mentioned that the URA will take the lead in adopting the "new planning tools" suggested by the Yauwang study in suitable projects to release the potential of land development, such as the transfer of plot ratio, etc., thereby accumulating sufficient resource reserves to support the development of large-scale renewal planning schemes. implement.
Civil Servants Cooperative | Shing Tak Street/Ma Tau Chung Road Project has acquired 90% of the units, some owners have already bought properties, the oil boom is booming | Reconstruction plan does not mention resettlement scholars worry about the loss of affordable housing in urban areas at the grassroots level Select Zhou Songgang to continue as URA Chairman III Cheng Yongshun and Huang Yuanshan remained as non-executive directors URA reserved 200 million yuan to promote outreach services to assist residents affected by lift works URA extended rent concessions to September 800 tenants benefited from the cumulative amount of concessions exceeding 200 million yuan
