Page 15 - Urban Renewal Authority 2023-24 Annual Report

Planning Ahead for Complex Projects Chairman’s Statement
Chairman’s Statement
The URA had anticipated the distinctive nature and intricate issues involved in the redevelopment of buildings
under the Civil Servants’ Co-operative Building Society (CBS) Scheme. For the Shing Tak Street/Ma Tau Chung
Road Project and the Kau Pui Lung Road/Chi Kiang Street Project, the URA discussed practical solutions with
different Government bureaux and departments for critical issues such as the dissolution of the CBSs, land
premia, stamp duties and compensation packages in order to expedite their implementation. Free legal support
was provided for these projects by a dedicated team and lawyers experienced in the dissolution of CBSs. They
assisted with procedures such as applications for dissolutions, modification of land leases and approval of Deeds Managing Director’s Statement
of Mutual Covenant, aiming to expedite the dissolution process and assist CBS members with the acquisition of
property interests of their units.
During this exercise, the URA set several precedents in areas such as arrangements for land premia and stamp
duties, as well as suitable compensation packages tailored to the unique nature of the projects. These innovative
Managing Director’s Statement
practices have been instrumental in ensuring a smooth implementation of the two CBS projects.
The joint development contract for the Shing Tak Street/Ma Tau Chung Road Project was awarded in December
last year, with demolition works completed in March 2024. The site has since been handed over to the joint
venture developer to commence construction. As for the Kau Pui Lung Road/Chi Kiang Street Project, only one
of the nine CBSs remained in the dissolution process as of June 2024. Upon the completion of the project, 950 Operating Review
units for the Starter Homes (SH) Scheme will be delivered in support of the Government’s housing policy.

Operating Review
An Innovative Tendering Approach to Increase Project Attractiveness
In the past year, the URA adopted a flexible and innovative approach to enhance the development potential and
attractiveness of Development Areas 4 and 5 of the Kwun Tong Town Centre Project, with the aim of better
positioning the project for future re-tendering. We retained the “floating planning parameters” mechanism of
the project to give successful tenderers greater flexibility in allocating development floor space for different uses Corporate Sustainability
in response to evolving market conditions, without the need to resubmit planning applications or modify the land
leasing terms. We also added residential elements to the project and, for the first time, introduced the “vertical
city” planning concept. A zoning amendment application was then submitted to the Town Planning Board (TPB)
for the mixed-use development featuring residential, office, hotel, and other commercial functions within a
Corporate Sustainability
landmark building, maximising the planning benefits under the “Single Site, Multiple Use” approach.
The zoning amendment application was agreed by the TPB in
April 2024. Given the scale of the project, we are breaking
boundaries by promoting the project to both local developers
and potential overseas investors to increase their
understanding of the project, in particular, the “floating
planning parameters” and “vertical city” concepts. After
collecting their feedback on the planning and development of Management Discussion and Analysis
the project, we will make appropriate adjustments to the
tender terms to accommodate their needs.
Our innovative strategies extend beyond project planning and
implementation. We have also been exploring the possibility
of revising the payment arrangement for large-scale
Management Discussion and Analysis
redevelopment projects such as Development Areas 4 and 5
of the Kwun Tong Town Centre Project. Provided that our cash
flow remains stable, we will consider allowing developers to
pay in instalments or through other flexible payment schedules
or profit sharing, instead of making a one-off lump sum upfront
payment. These payment options will help reduce cash flow Projects at a Glance
pressures on developers bidding for larger projects and
encourage participation from developers of varying scales.
Projects at a Glance

Incorporating elements of residential, commercial, office
and hotel under the planning concept of the “Vertical
City”, the mixed-use development will shape the Kwun
Tong Town Centre Project as an iconic skyscraper in the Corporate Governance
Eastern Gateway of Hong Kong.

URA ANNUAL REPORT 2023-24 13
Corporate Governance