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Intellasia East Asia News – MTRC ‘waiting for the right time’ to relaunch Oyster Bay project

MTR Corporation said it is still waiting for a suitable time to relaunch the Oyster Bay development project amid concerns about demand and interest rates.

After the offer for the Oyster Bay project was withdrawn in February, MTRC hopes to relaunch it with a revised plan.

But it could take a while, as MTRC understands that developers are concerned about the pace of economic recovery, market demand and global interest rate hikes, Chairman Rex Auyeung Pak-kuen said ahead of the general meeting. company annual.

Although the recovery is slower than expected, MTRC believes that business will slowly recover to pre-pandemic level and remains optimistic about its performance this year.

Monthly cross-border traffic recovered to 70 percent of the pre-pandemic level and local passengers reached 90 percent, after anti-pandemic measures were gradually relaxed in Hong Kong and the mainland since last year, Auyeung added. .

He mentioned that the company will invest more than HK$100 billion to expand the local network. He added that the extension of the eastern railway line starts today and other new railway projects will follow his lead.

MTRC chief executive Jacob Kam Chak-pui said the reopening of public transport between Hong Kong and the mainland will boost the SAR’s economic recovery.

At the AGM, which was attended by more than 300 shareholders yesterday, MTRC said it is continuing to check whether the HK$2 senior fee is being misused and is aimed at punishing those who abuse the privilege.

When asked if the senior fee will be raised to HK$3, the company said it is highly dependent on the Hong Kong government.

Separately, MTRC set up a panel to conduct a comprehensive review of the asset maintenance and management system, after the train gates on the Tseung Kwan O line and Yau Ma Tei station fell down last year. A report and results are expected to be announced in the coming months.

In terms of special dividends, MTRC hopes to steadily increase the distribution each year, or at least maintain the existing policy, but it depends on the company’s financial performance and capital expenditures, said chief financial officer Herbert Hui Leung-wah. Also, when asked about the possibility of spinning off the property management unit, Hui said he would review the portfolio regularly to ensure long-term sustainable development, without giving specific details. Hui defended the existing portfolio, saying the diverse business model delivered stable financial results even during the three-year pandemic.

In addition, Auyeung said that MTRC will look for development opportunities in the Middle East, which has been in talks with management but cannot disclose details yet.

Meanwhile, some shareholders have requested the company to improve facilities in and around MTR stations for the convenience of the elderly. MTRC said it has made considerable improvements to the new stations and hopes to upgrade the old ones eventually.

The AGM began in chaos when some Lohas Park homeowners urged the project developer MTRC to fix water leaks within the property, a petition that has been in existence for seven years. They held banners with their complaints outside the assembly hall.

MTRC responded that it has been in contact with owners and provided repair services several times, but some seemed dissatisfied with the results.

https://www.thestandard.com.hk/section-news/section/11/252782/MTRC-‘waiting-for-the-right-time’-to-relaunch-project-Oyster-Bay

Category: Hong Kong


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