Hong Kong's Urban Renewal Authority: Short-term cash flow pressure but overall financial stability, no plans for layoffs

On July 18th, Tse Hok-wing, the newly appointed Executive Director of the Urban Renewal Authority in Hong Kong, met with the media and stated that as of the end of March this year, the net asset value of the Urban Renewal Authority in Hong Kong was HK$43.6 billion, including HK$20 billion of cash flow. He reiterated the prudent financial management of the Authority, stating that even if there is pressure on cash flow in the short term, there are various ways to finance it. He also mentioned that the Urban Renewal Authority in Hong Kong currently has no plans for layoffs and will leverage technology to improve processes. As for the symbolic land premium charged by the Hong Kong government to the Urban Renewal Authority for the grant of two land parcels through private agreement, he believes it will enhance the financing capacity. Regarding the previously failed Yau Min Estate redevelopment project in Kwun Tong, Tse Hok-wing said that the project is the largest development project in East Kowloon in recent years, adopting comprehensive development that requires planning for the floor area of high-rise buildings. In the future, they will continue to study how to optimize the landmark design. However, he pointed out that breaking down the development may affect the integration of the project or fail to achieve synergy, believing that there are many developers in Hong Kong with the capability to develop. They will proceed with the 6 redevelopment projects that have already been initiated in an orderly manner, and do not worry about a fund break in the ongoing projects, emphasizing that they will monitor the market situation. When asked about the compensation proposal for buildings over 7 years old put forward by the former Executive Director of the Urban Renewal Authority in Hong Kong, Wai Chi-shing, Tse Hok-wing stated that there is currently no consensus in society, but suggests reviewing the compensation mechanism for more flexibility, including considering building-for-building replacement instead of monetary compensation. He believes that the large area of the newly acquired Area 137 in Tseung Kwan O can provide options for cross-district rehousing.