Investors propose private partnership for Lantau development

Hong Kong My Home Limited promotes ‘Popular Public Private Partnership’ initiative seeking government support to build an eco-friendly tech-forward smart community for our youth.

Speed Up Lantau — Home for Everyone
      • One Person One Share
      • Market Orientation
      • Eco-friendly Design
      • Affordable Homes
      • Priority to the Young

Veteran investor Sing WANG and a group of Hong Kong residents have proposed a market oriented initiative aimed at seeking government support to adopt the “Popular Public Private Partnership” model.

This entails setting up a company jointly owned by all Hong Kong permanent residents and building housing units by way of reclaiming 2,000 hectares of land off Lantau Island.

East Lantau Metropolis / Lantau Tomorrow Vision

The “Popular Public Private Partnership” model targets to raise HK$1.1 trillion.

Below are the related financing proposals to set up a company with equity of HK$100 billion:

  • 75% equity will be owned by Hong Kong residents on a “one person one share” basis; all Hong Kong permanent residents will be granted warrants, for free, with a total nominal value of HK$75 billion
  • 25% or HK$25 billion, will be raised by a private fund management company, from sovereign wealth funds and international pension funds; further HK$1 trillion in bonds will be raised from the public markets
Objectives
  • Reclaim 2,000 hectares of land to build housing, which will include 250,000 affordable housing units for young people
  • Create an eco-friendly, tech-forward smart community with participation from young people in design and operations
  • In particular, ecological and environmental protection are considered to be vital elements in the entire project
  • Tap top industry designers to ensure an eco- friendly approach to the construction, conserving nature in pursuit of land development to create a win-win situation

 

Sing WANG, Chairman of Hong Kong My Home Limited is seeking government support to set up a company jointly owned by all Hong Kong residents (“Hong Kong Residents-owned Company”) with equity of HK$100 billion, and to raise HK$1 trillion in bonds from the public markets to achieve a total financing of HK$1.1 trillion. He proposes to speed up the land reclamation process to build an eco-friendly and tech-forward smart community with participation from the young generation.

  • The initiative aims to resolve the long-standing land and housing issues in Hong Kong. Mr. WANG
  • PPPP (Popular Public Private Partnership): A stake for everyone, sharing the fruitful results

The “Popular Public Private Partnership” proposal in this “Speed up Lantau; Home for everyone” (「人人有屋住 快快建大嶼」) initiative includes establishing a “Hong Kong Residents-owned Company” with equity of HK$100 billion. 75% of the equity, with a nominal value of HK$75 billion, in the form of free warrants, will be offered to each of the Hong Kong permanent residents, on a “one person one share” basis. This will make all Hong Kong permanent residents the stakeholders of the project and share the fruitful results together.

The remaining HK$25 billion will be raised from international sovereign wealth funds and pension funds by a private fund management company. The “Hong Kong Residents-owned Company” will then raise HK$1 trillion in bonds from the public markets. Total capital raised will amount to approximately HK$1.1 trillion. The 5 to 15-year bonds will carry an annual coupon rate of approximately 5%.

All proceeds will be used for the development of Lantau Tomorrow Vision.

2,000 hectares of land will be reclaimed for development which includes constructing 250,000 affordable housing units for the young people. The majority of land reclaimed will be used by the government for the development of tech innovation, financial centre, and service industry 4.0, etc.

The costs of this project will be the responsibility of the “Hong Kong Residents-owned Company”, while the government will provide policy support, including recognition for the project, approval to grant the project and the right of reclamation in designated waters, as well as support for the bonds issued by “Hong Kong Residents-owned Company”.

The project will follow market mechanisms and does not need any funding from the government, thus significantly shortening the time required. This initiative will allow all Hongkongers to enjoy the fruitful results as well as achieving fairness and equality.

To resolve the housing problems faced by young people in Hong Kong the project seeks to set up 30 to 40 youth communities, including 250,000 affordable housing units for young people, so as to improve the living conditions for them. As new construction methods can effectively lower cost, which will help reduce the sales prices and rents, thus benefiting the young generation. The construction of youth apartments can also create jobs for them.

All development projects will have tech innovation elements, including blockchain, IoT, big data, 5G/6G network, AI, robotics, as well as eco-friendly design, which will turn Lantau Tomorrow Vision into a global leading eco-friendly tech-forward smart community, thus improving the quality of life for Hong Kong residents. The project also seeks to make “Lantau Tomorrow Vision” a benchmark for modern city development in the world.

“In the past, Hong Kong’s infrastructure projects were mostly undertaken by the government, but our creative model is spearheaded by a private company, which will uphold public interests as the first priority, to seek government support and public participation, by leveraging market mechanism and market capital to accomplish the land reclamation. At the same time, ecological and environmental protection are also considered to be vital elements in the entire project. We will tap top designers in the industry to ensure an eco-friendly approach to our construction, conserving nature as we pursue land development so as to create a win-win situation. We would like to support the government’s ‘Lantau Tomorrow Vision’ with actions, strive to mitigate the housing shortage problem in Hong Kong within five to eight years, seize opportunities to develop a smart community, pave the way for next-generation innovations, create jobs for young people and build homes for Hong Kong residents, all in a bid to make Hong Kong an international city with tech innovation, hope and a bright future.” Mr. Sing WANG, Chairman of Hong Kong My Home Limited

He continued: the market orientation and fund raising in the public markets will be efficient, hence shortening the time needed for the entire project and making it more cost-effective. The project belongs to everyone in the city. Everyone is a stakeholder and is entitled to share the fruitful results. It can also prevent the project from being monopolized by a small number of big companies.

Similar to the previous PPP plans, “Hong Kong Residents-owned Company” will return most of the land to the government for public use after the reclamation project is completed. Only a small portion of land will be for sale or development by the company in order to repay the bonds in issue. He believes that this proposal will significantly reduce the time and costs of land reclamation and housing construction in Hong Kong, it will also fundamentally resolve the biggest problem in the city, namely the housing shortage faced by young people, thereby promoting social harmony and economic development.

Hong Kong My Home Limited

Hong Kong My Home Limited is a non-profit making limited company, which aims to promote the proposal of Popular Public Private Partnership (PPPP) and seek support from the government. The proposal also includes establishing a Hong Kong Residents-owned Company to raise fund in the market for land reclamation and the development of Lantau Tomorrow Vision.

Pui Shing Foundation

Fax: +852 2287 5002
Email: info@puishing.org
http://en.puishing.org

Media Enquiries:

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https://en.wikipedia.org/wiki/Lantau_Tomorrow_Vision

https://www.lantau.gov.hk/en/lantau-tomorrow-vision/index.html/

http://www.lantautomorrow.org/

https://www.economist.com/china/2019/05/30/hong-kong-wants-to-build-massive-artificial-islands

https://www.theguardian.com/cities/2019/jul/12/are-artificial-islands-the-answer-to-hong-kongs-housing-crisis

https://www.bloomberg.com/news/features/2019-01-02/hong-kong-s-lantau-tomorrow-vision-to-fix-its-expensive-housing

https://www.skyscrapercity.com/threads/hong-kong-lantau-tomorrow-vision-pro.2188782/

http://www.construction-post.com/support-in-doubt-for-lantau-tomorrow-vision-plan/

https://news.rthk.hk/rthk/en/component/k2/1553622-20201008.htm

https://www.thestandard.com.hk/section-news/section/17/222437/Wise-to-put-Lantau-Vision-back-on-shelf

https://www.thestandard.com.hk/section-news/section/4/200911/Why-East-Lantau-is-the-best-spot-for-reclamation

https://www.scmp.com/news/hong-kong/hong-kong-economy/article/3002583/lantau-tomorrow-vision-arguably-hong-kongs-most

https://www.scmp.com/news/hong-kong/politics/article/3016010/cash-lantau-tomorrow-vision-can-wait-until-next-term-say

https://www.scmp.com/business/article/3002198/benefits-proposed-east-lantau-metropolis-outweigh-estimated-reclamation

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https://www.ejinsight.com/eji/article/id/2104631/20190408-Why0Lantau-Tomorrow-Vision-deserves-our-support

http://www.chinadaily.com.cn/hkedition/2018-11/07/content_37213486.htm

https://www.chinadailyhk.com/articles/10/88/157/1541584895569.html

https://www.chinadailyhk.com/articles/77/41/231/1539227276622.html

https://lantaunews.com/2020/07/15/govt-in-last-minute-bid-to-fund-lantau-tomorrow-project/

https://lantaunews.com/2019/06/17/govt-hk550m-lantau-tomorrow-funding-request-goes-to-legco-on-friday/

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https://bec.org.hk/events-current/bec-policy-dialogue-series-lantau-tomorrow-vision