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To meet society’s strong demand for housing and economic land, the Government is pressing ahead at full steam with large-scale developments in the New Territories, including the development of multi-storey buildings (MSBs) for modern industries. There are two major objectives of the MSB development: (1) to promote development of industries; and (2) to consolidate brownfield operations in a land-efficient manner. Today, I have invited the Under Secretary for Development, Mr LAM Chi-man, David, to briefly introduce the MSB development proposal and explain how this proposal could assist affected brownfield operators. Representatives from the consultancy firm which conducted a market sounding exercise for the MSB proposal and relevant trade associations will also give their views on the proposal.

Supporting development of industries and consolidating brownfield operations

Sufficient supply of developable land, Mr David LAM says, is key to enhancing Hong Kong’s capacity for economic development and the nurturing of its industries. In developing land in the New Territories, we aspire to make available sufficient land for the long-term development of industries, through comprehensive planning with due regard to the benefits of cluster development. Take the Northern Metropolis as an example, among the 72 hectares of land in Hung Shui Kiu/Ha Tsuen New Development Area (HSK/HT NDA) and Yuen Long South Development Area (YLSDA) reserved for industrial and logistics uses, the majority (69 hectares) have been earmarked for development of MSBs for modern industries to support various industrial uses, including logistics and port back-up uses, vehicle repairing and maintenance, construction of modular integrated construction units and modern manufacturing, etc.

Market sounding exercise

Mr LAU Chun-kong, the person-in-charge of the consultancy firm commissioned by the Government to conduct the market sounding exercise for development of MSBs for modern industries, says that they conducted about 30 rounds of interview with industry stakeholders, including relevant trade associations, affected brownfield operators, and developers and investors holding/running businesses on industrial land. Stakeholders of some industries (such as the logistics and vehicle repairing related sectors) have shown great interest in the development of MSBs for modern industries, and would like to continue investing in these buildings for expansion of their core businesses. On the other hand, some brownfield operators (in particular those from the construction storage and waste recycling sectors) have expressed their hope for MSBs to provide a large and column-free space at low rental rates which could cater for their needs.

First batch of five sites

Among the first batch of MSB sites to be made available, two sites are situated in HSK/HT NDA (around 5.3 hectares and 2.7 hectares respectively) and three sites (each with an area of 1.0 to 1.4 hectares) are situated near the Yuen Long Industrial Estate.

Development model

Mr David LAM says that the Government would invite tenders for the first batch of five sites in Hung Shui Kiu and Yuen Long progressively starting from next year. Having regard to the findings of the market sounding exercise, we initially tend to develop MSBs for logistics or vehicle repairing as the major uses. The MSB developer(s) will be requested to set aside no less than 30% of the floor space to be taken up by the Government for leasing, through an agency, to the affected brownfield operators at a rental comparable with the prevailing market rental of brownfield sites, initially for a period of five to ten years, so as to assist them in operating in a more land-efficient manner and facilitate upgrading of their operation.

Prior to the formal invitation of tender, we will invite expression of interest from interested developers in respect of the proposed development parameters for MSBs. It is expected that the construction of first batch of MSBs will be completed in 2027/28 at the earliest.

Trade associations welcome the proposal

The construction industry has been one of the major industries operating mainly at brownfield sites. They make use of brownfield sites for storage of construction materials, equipment, machinery and vehicles. The First Vice-President of the Hong Kong Construction Association (HKCA), Mr James LEE, says that the HKCA welcomes the development of MSBs, and hopes that the building requirements of MSBs can meet the operational needs of the industry, such as the provision of sufficient loading capacity and appropriate vehicular ramps.

The Chairman of the Motor Traders Association of Hong Kong (MTA), Mr Joseph LAU, says that the MTA has been looking for additional space in Hong Kong for its members to develop motor-related businesses, including large-scale showrooms, after-sale service centres, car parks for unlicensed vehicles, etc. Therefore, MTA welcomes the Government’s efforts to develop MSBs which provides more potential floor space for the industry and supports the proposal.

Policy directive of “providing monetary compensation in parallel with facilitation service”

The Government has stepped up the resumption of land for development, including brownfield sites, in HSK/HT NDA and YLSDA with a view to taking forward the works programme therein. For business undertakings affected by clearance exercises for government projects, the Development Bureau will, in addition to monetary compensation, continue to assist those who wish to re-establish their businesses through various measures under the policy directive of “providing monetary compensation in parallel with facilitation service”. We will also step up the handling of cases to provide necessary assistance to operators.