COMMERCIAL PROPERTY | Staff Reporter, Hong Kong

Development Bureau junks mall proposal

The Bureau said the proposed granting of consent to the developer of The Pulse to lease out shops was not worthy of consideration.

A Development Bureau spokesman said, "We must point out that in this case, the concerned lot is the Remaining Portion of Rural Building Lot No. 368. The owner completed the above building on the Lot without Government's consent in breach of the lease conditions. Notwithstanding that the building plans for the redevelopment of the Lot were disapproved by Lands Department, the owner chose to build without Government's consent despite the Government's repeated warnings.”

This was in response to media enquiries about a political party's suggestion that Government could give consent to the developer of The Pulse shopping centre in Repulse Bay to lease out the shops in parallel with the premium negotiation between the developer and the Lands Department.

"The case is concerned with a breach of lease condition and involved a sizable land premium for the grant of consent under the lease. Any suggestion to allow the developer to bring into operation the built premises, let alone to lease shops to third parties, will send a most undesirable message to lessees and has adverse implication on our land administration practice,” stressed the spokesman.

The Lands Department was said to be acting in the capacity of a private landlord to process the owner's redevelopment on the Lot in accordance with the applicable procedures. According to the spokesman, it was the owner's responsibility to obtain consent under the lease before commencing its redevelopment.

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