Hong Kong Jockey Club can decide prime site’s use, authorities say, after flats plan sparks concern

The Hong Kong Jockey Club is not required to pay a land premium for redeveloping a sports complex into a residential project in a prime district, the government has said amid concerns the plan will set a precedent for the non-profit body to generate revenue through property.

The club’s planned move into the property market has raised eyebrows, with lawmakers calling for greater transparency over the intended use of the flats that will be built at 48 Shan Kwong Road in upmarket Happy Valley while questioning how profits will be managed.

The Development Bureau on Wednesday told the Post that the government had no role to play in the redevelopment plan as the prime site was bought by the club through public auction in the “early years”. The lease did not have any restrictions on uses and the site had also been rezoned as residential years ago, it said.

“It means the Jockey Club is not required to apply for modifying its lease or pay a land premium for developing the site for residential use,” a spokeswoman said.

“Whether or when to develop the site for residential purposes will be up to the land owner, the Jockey Club, to decide.”

It is understood that the site was leased to the club in 1930 at an annual rent of HK$558 (US$72) for 75 years, with renewal in 2005 increasing the rent to HK$84,600 per year.