URA Welcomes Decision to Grant Two Sites for Urban Renewal Purpose
The Urban Renewal Authority (URA) today (6 June 2025), welcomes the Executive Council’s decision to approve the recommendation made by the Development Bureau to grant two sites, one in Bailey Street, Hung Hom and the other in Tseung Kwan O Area 137 (TKO Site), to the URA by private treaty at nominal land premium.
A spokesman for the URA said, “The decision represents the Government’s strong support to the URA in enhancing its financial capability to maintain the sustainability of urban renewal by way of, among others, providing suitable land to the URA to increase its usable resources, an initiative in The Chief Executive’s 2023 Policy Address.”
With a view to enhancing financial sustainability amidst adverse market condition, the URA has taken a number of measures to maintain a financially stable portfolio, such as utilising its borrowing limit to raise funding through bond issuance and bank loan facilities, exploring various means to improve tender attractiveness to bring in cashflow, adopting a dynamic management approach to adjust the pace of acquisition, and implementing a number of cost optimisation measures to critically control its operating expenditure.
“The additional support from the Government, in the form of providing land resources, enriches the URA’s asset mix and enhances its borrowing capacity to tide over liquidity needs in the coming years for taking forward urban renewal projects, in particular in advancing the acquisition programme for six commenced redevelopment projects with estimated expenses totalling about HK$23.5 billion,” the spokesman said.
“It will also help boost market confidence, thereby facilitating the URA in conducting another round of external financing,” he added.
The URA will act in accordance with the requirements for this land grant to make good use of the extra revenue generated from the two sites, and plan the implementation timeline for the current commenced redevelopment projects, as well as the prioritisation of the yet-to-be-commenced projects in a prudent manner, taking into consideration its financial sustainability. The URA will work with the Government to review and refine its operating and financing model to enhance its ability to undertake urban renewal across varying market conditions. Meanwhile, it will also examine ways to step up building rehabilitation aiming to extend the service life of aged buildings and reduce the immediate need for redevelopment. Detailed recommendations for the aforementioned initiatives will be formulated by 2026 and submitted to the Government for consideration.
Following the Executive Council’s decision, the URA will facilitate the Planning Department in the preparation of necessary submission to the Town Planning Board for rezoning the Bailey Street Site from “G/IC” to “Residential” development, optimising land use and enhancing the connectivity from the older urban hinterland of To Kwa Wan to the waterfront at the southern part of the Victoria Cove Area for which the URA has commenced a planning study. With regard to the TKO Site, a comprehensive study will be conducted to explore different implementation models under the urban renewal regime.
(ENDS)