Explainer | From horses to homes: a look at the controversy of Hong Kong Jockey Club’s real estate plans
- The Post delves into the unfolding debate over the racing organisation’s plans to turn a sports complex into a residential project
The club’s move into real estate raised concerns about setting a precedent for the non-profit body generating revenue through housing, with legislators calling for clarity over the intended use of the project while questioning how profits would be managed.
The Post takes a deeper look at the controversy.
1. What is the controversy about?
The club is not required to pay a land premium, which means it will benefit financially from owning a piece of prime real estate, with high potential earnings from converting the existing sports complex into 21 residential blocks.
It gained approval for the construction of those blocks from the Buildings Department in June.
The sports complex, which has tennis and squash courts, a golf simulation room, fitness studios and other recreational facilities, was built on a plot of prime land that was bought by the club through public auction in the “early years”, according to the Development Bureau.
Brian Wong Shiu-hung, a researcher with NGO Liber Research Community, said he was concerned the development would set a precedent for the club to profit through property leased to them at very favourable prices, which he considered “unreasonable”.
Wong also criticised the government for not narrowing the terms of the lease when the contract with the club was extended in 2005, citing outdated terms that only governed the use of the site as stables.
