URA offers new, better deal for old Cheung Sha Wan building
Better compensation package for Cheung Sha Wan site may be used for other projects
The Urban Renewal Authority is offering the owners of a 51-year-old Cheung Sha Wan industrial building a more attractive compensation package, after an earlier attempt to acquire another site for redevelopment was dropped when its owners turned down the deal.
The authority plans to redevelop the 10-storey Wing Hong Factory Building at 777-783 Yu Chau West Street in Cheung Sha Wan to provide almost 180,000 square feet of office and retail floor space. The building currently houses offices, warehouses, car repair services, and food processing and metal factories.
The URA yesterday issued acquisition letters to the building's 40 owners, giving them 60 days to consider its offer. If the pilot scheme offering owners a better compensation deal is successful, the authority may extend it to future projects to free up more industrial land for other uses.
"Many sites in Cheung Sha Wan are zoned for industrial use, but have in fact been turned into offices, entertainment venues … Through this project, we hope to start redeveloping conventional industrial districts," William Wan Shiu-wah, the authority's director of property and land, said.
Under the scheme, an affected owner is offered the option of an ex-gratia allowance equivalent to 10 per cent of the property's market value as assessed by URA-appointed valuation firms.
This is an alternative to the existing allowance, which is calculated according to a basic rate adopted by the government. The owner will be given the higher of the two amounts.
The average market value of the building's ground-floor premises is about HK$14,005 per square foot of saleable area, while that of upper floors is about HK$4,751, the authority said.
How much more an owner is offered depends on a number of factors. For example, the owner of a 2,600 square foot ground-floor premises will be offered about HK$44 million, compared with about HK$41 million under the basic-rate formula. The authority estimates the total cost of the redevelopment project will be between HK$1.4 billion and HK$1.7 billion. It hopes to complete the project by 2020.