URA’s Man On Street/Tai Kok Tsui Road demand-led project aborted as 80% threshold could not be met
The Urban Renewal Authority (URA) announced that it would not implement the Man On Street/Tai Kok Tsui Road demand-led redevelopment project. The project consists of 16 lots, each lot sharing a common staircase with the adjoining lot, in 8 clusters. There is a condition precedent for implementation of the project namely, there must be owners holding no less than 80% of the undivided shares in each cluster accepting acquisition offers issued by URA and signing Conditional Sale and Purchase Agreements with URA, both within 75 days of issue of acquisition offers by URA (80% Condition Precedent). The 80% Condition Precedent expires today (Wednesday) and could not be fulfilled by the owners.
Located at Nos. 8 - 30 Man On Street (even numbers) and Nos. 193 - 199 Tai Kok Tsui Road (odd numbers), the project was commenced on 16 December 2016 under the fifth round of the Demand-led Redevelopment Project (Pilot Scheme). The URA issued conditional acquisition offers to owners of 101 property interests on 24 February this year. Eligible owner-occupiers of domestic properties in the project were offered $13,391 per square foot of saleable area.
Initiated by owners, demand-led redevelopment projects require the concerted effort of the great majority of owners in order to fulfil the 80% Condition Precedent. As a responsible public organisation, the URA has taken established procedures to proceed with the demand-led application.
In fact, URA frontline staff have been working very hard to assist owners of Man On Street/Tai Kok Tsui Road demand-led project. Up to now, the URA has handled a total of 89 acceptances of URA's conditional acquisition offers and signed all 89 Conditional Sale and Purchase Agreements.
By the deadline of the 80% Condition Precedent at 5pm today, in one cluster, the total number of undivided shares of owners who have accepted URA's conditional acquisition offers fail to reach 80% of the undivided shares in that cluster.
As the Man On Street/Tai Kok Tsui Road demand-led redevelopment project fails to fulfill the 80% Condition Precedent, the project is ceased and will not be proceeded further. The URA will notify owners who have signed the Conditional Sale and Purchase Agreements of the cessation of the project and arrange to enter into Cancellation Agreements with them. The notification of cessation of the Man On Street/Tai Kok Tsui Road demand-led redevelopment project will also be published by gazette notice in due course.
The owners of the Man On Street/Tai Kok Tsui Road demand-led redevelopment project may consider seeking assistance from the URA's rehabilitation schemes to improve their living condition and the URA's facilitating services for joint sale of their properties.