Source:
https://scmp.com/sport/golf/article/2187140/face-it-hong-kong-golf-club-needs-friendly-landlord-more-doomed-old
Sport/ Golf

Face it, the Hong Kong Golf Club needs a friendly landlord more than the doomed Old Course

  • Any legal challenge would be folly after Carrie Lam condemns century-old course to build housing
  • The reality is the government can crush them with the swing of a club
Spanish star Sergio Garcia tees off during the second round of the Honma Hong Kong Open at Fanling last November. Photo: Richard Castka/Sportpixgolf.com

The Hong Kong Golf Club cannot win. It’s at the mercy of the government and will have to swallow a course concession if it wants to survive.

That means surrendering the century-old Old Course at Fanling and being grateful the government will continue granting a new lease for the remaining 140 hectares of land – at least until 2027.

Chief Executive Carrie Lam Cheng Yuet-ngor’s endorsement of the land supply task force taking back the 32 hectares of land (eight holes out of the 18) for housing development is simply a political decision.

Parts of the golfing community are outraged, parts had already accepted the inevitable, others tried to launch save-the-golf-course campaigns, while the club mounted a charm offensive, emphasising it and the game is not just for the super rich.

The 18th hole of the Old Course – what will happen to that? Photo: Edward Wong
The 18th hole of the Old Course – what will happen to that? Photo: Edward Wong

Contrary to some beliefs, the club has thrown its doors open to everyone, but you cannot shake the perception it’s a game for the aristocracy. And the proletariat needs homes more than a set of golf clubs.

On the fairways at Fanling there are whispers the club may seek a judicial review or take some other form of legal action to save their treasured piece of land – or at least postpone the decision which will see construction begin at the site in 2024 at the earliest.

Secretary for Development Michael Wong Wai-lun has sent a warning already that it is prepared for any legal challenges. And as the land owner, the government can crush the club with a swing of a club.

The reality is this: Lam had to accept the recommendations of the task force on the three short-to-medium-term options to increase land supply, including the alternative use of sites under Private Recreational Leases, or, simply, the Fanling course.

Aaron Rai during the second round of the Honma Hong Kong Open in November 2018 at Hong Kong Golf Club, Fanling. Photo: Richard Castka/Sportpixgolf.com
Aaron Rai during the second round of the Honma Hong Kong Open in November 2018 at Hong Kong Golf Club, Fanling. Photo: Richard Castka/Sportpixgolf.com

Task force chairman Stanley Wong Yuen-fai said there was strong public support for the recommendation.

One task force member even threatened to resign if the government did not follow the recommendation of taking back the land, while another member said on Tuesday they could walk away from their job “on a high note” after the positive response from the government.

The Old Course’s fate may be sealed but the club still has two other courses, which combine to stage its flagship event since 1959 – the Hong Kong Open.

There may be concerns from the European and Asian Tours, which sanction the tournament, but the organisers and the golf club will no doubt find a way to make sure it remains. The tournament also relies heavily on a government handout – up to US$2 million (HK$15 million) – so why bite the hand that feeds you?

Hong Kong’s top player, Tiffany Chan Tsz-ching, at the 2017 EFG Ladies Open, which is held on the Old Course.
Hong Kong’s top player, Tiffany Chan Tsz-ching, at the 2017 EFG Ladies Open, which is held on the Old Course.

Although the Development Bureau said it had no plan in taking back the whole Fanling site, the risk of losing the other 140 hectares is still real.

Task force chairman Wong reiterated on Thursday that the renewal of the current lease from 2020 to 2027 doesn’t mean the club can use the remaining piece of land forever as he said the government should constantly review the land supply situation.

The task force, indeed, proposed in its report in December that the government should consider identifying a site to relocate the entire golf course, the lead time for relocation, impact on the ecology and conservation values of the site, as well as the necessary ancillary infrastructure to support other developments.

Who can guarantee what is going to happen as the lease will be renewed every 15 years after 2027?

The club is also staring at a heavy financial burden as the government now plans to charge one third of the land premium under full market value upon completion of the current lease.

An aerial view of Hong Kong Golf Club, with the Old Course on the right. Photo: Winson Wong
An aerial view of Hong Kong Golf Club, with the Old Course on the right. Photo: Winson Wong

At the moment, the private recreational clubs pay nil or a nominal fee of the premium on top of the rent and rates for the land they occupy. The golf club paid HK$2.53 million rent in 2017.

The club will not have to pay the land premium until 2027 so it has ample time to raise the required funds. The government did not say how much the premium would be as it will only be calculated by the market value of 2027. But it will be a huge amount, estimated to be over several hundred million dollars. And the government will also recalculate the land premium value upon the renewal of the lease in future.

On top of the financial requirement, the club will also be asked to open 30 per cent of their sports facility capacity to eligible outside bodies and work with the respective governing bodies to promote the sport. You can hear the members groaning even more as that will mean fewer tee times.

The Old Course will stage a qualifying tournament for the 2019 US Women’s Open Championship in May, followed by the EFG Hong Kong Ladies Open, first staged on the course in 2015. That course is always preferred in Hong Kong’s rainy season as it boasts a better drainage system than the Eden Course and New Course.

The two events will certainly go ahead this year despite all the issues but the landscape is about to change dramatically.