Developer seeks sale of HQ as tycoon loses faith in HK

http://www.thestandard.com.hk/news_detail.asp?we_cat=11&art_id=148070&sid=42753846&con_type=1&d_str=20140806&fc=4

Frances Sit Wednesday, August 06, 2014 Cheuk Nang (0131) plans to sell its Wan Chai headquarters as chairman Cecil Chao Sze- tsung says Hong Kong's declining competitiveness and worsening governance is forcing him to reduce his local investment."Hong Kong's changing environment and the government's worsening efficiency and governance as compared to before the handover is making it hard for the company to fulfill its earning targets," Chao said yesterday. Cheuk Nang Plaza, at 250 Hennessy Road, is being put on a tender with a reference price of HK$880 million. The tender closes on September 23. Chao said the 32-story building with total gross floor area of about 55,622 square feet has already drawn interest from mainland businesses and local consortiums, with some planning to turn it into a hotel. ADVERTISEMENT Asked about the use of the proceeds from the sale, Chao said he has no plans to acquire local sites but that he will not spend all the money to buy land overseas. The developer also lashed out at the Lands Department for delays in approving the consent on selling Cheuk Nang's luxury residential project - One Kowloon Peak in Tsuen Wan. Chao said the project had applied for government sales consent in May 2007 and the Lands Department has been refusing to grant approval "based on various excuses." Chao added: "The government has been asking [developers] to boost supply [of flats], but it is unreasonable for them to treat our company this way. "The seven years it took for the Lands Department to process our application is a world record... a huge joke for Hong Kong." Chao urged the department to improve its efficiency and asked the government, led by surveyor- trained Chief Executive Leung Chun-ying, to investigate whether someone is blocking the approval. The developer has been fined more than HK$15 million for illegally cutting down about 250 trees in the site in 2010. The firm once again applied for consent in September last year and plans to put the units at One Kowloon Peak on the market by year-end.