'There is no profit': head of Hong Kong developer New World says extending Avenue of Stars is a 'thankless task' he didn't really want

The head of the developer behind controversial plans to extend Tsim Sha Tsui's Avenue of Stars said he never really wanted to take on the "thankless task" anyway, as he hit back at claims the government was granting his company favours.

Speaking for the first time since planners approved New World Development's proposal, chairman Henry Cheng Kar-shun said he found objections to the scheme "baffling" and did not believe an open tender, which critics have demanded, would attract much interest. But he did admit that the company hoped for spin-off benefits from a major development nearby.

New World, via a not-for-profit subsidiary, plans to extend the 440-metre avenue by 500 metres to Hung Hom and build new dining spots, shops and cultural attractions under a public-private partnership with the Leisure and Cultural Services Department. In return, it would see the area - which it has run since building the original avenue in 2004 - entrusted to it for the next 20 years.

The Town Planning Board approved the rezoning plan last month despite a storm of objections. But the proposal suffered a setback on Tuesday, when the department put on hold plans to sign a deal with New World and pledged to consult the public after criticism from members of the government's Harbourfront Commission.

But Cheng yesterday insisted the plan was made out of good intentions.