Interview: Henderson Land targets bigger role in tackling Hong Kong's housing problem

Henderson Land Development Co

25/07/2022 05:30

By Clare Jim
    HONG KONG, July 25 (Reuters) - Henderson Land Development Co
 0012.HK , one of Hong Kong's four major developers, plans to
lend more land to the government to build transitional homes and
is keen to help accelerate development of an area close to the
Chinese border.
    Martin Lee, co-chairman of Henderson - which has the largest
farmland reserves among developers - said Hong Kong's pledge to
build the "Northern Metropolis" is an "inevitable trend", as the
financial hub integrates deeper with the Greater Bay Area (GBA).
    "With the development opportunities in the Greater Bay Area,
many locals will be attracted to live in the North West New
Territories in the future," Lee told Reuters in an email
interview.
    The Hong Kong government unveiled plans for the Northern
Metropolis last year, with an aim to provide homes for around
2.5 million people in remote districts close to the mainland
border in a bid to ease a chronic housing shortage.  urn:newsml:reuters.com:*:nL1N2R205K
    The development will be a stone's throw from the Greater Bay
Area, a Chinese government scheme to link Hong Kong, Macau and
nine cities in the southern Chinese province of Guangdong. 
    Affordable housing has been a priority for all of Hong
Kong's leaders since the city returned to Chinese rule in 1997
but despite their efforts, many people still live in cramped
flats in one of the world's most expensive property markets.
    Hong Kong's new leader, John Lee, said he would be
"pragmatic" in increasing land and housing supply, responding to
Chinese President Xi Jinping's recent call to provide "a better
life, a bigger flat" for Hong Kong people.
    Beijing identified housing woes as a major factor behind
discontent in Hong Kong, especially among the city's youth, that
led to the pro-democracy, anti-government protests in 2019.
    In recent years, developers have stepped up support for Hong
Kong's housing policies as China urged corporations to do more
for society.  urn:newsml:reuters.com:*:nL4N2Q1146
    Henderson owns the most land in the rural areas. It has
applied to a government pilot scheme to build public housing on
a farmland plot, and lent idle land to the government for
building transitional housing - a temporary solution for people
to improve their living conditions before they are allotted
public housing.     
    "If the government intends to take back the land for the
construction of public housing or for other public purposes, we
will also cooperate," said Lee, who took over the property giant
with his brother from father Lee Shau Kee in 2019.  
    
    INTERNATIONAL FINANCIAL HUB    
    Echoing calls by other business leaders, Lee, 51, urged the
government to reopen Hong Kong's borders with the mainland and
ease international travel restrictions, which he said would help
boost the city's property market. 
    Henderson aims to become the largest office landlord in the
city's main financial district of Central as it invests $8
billion in a harbourfront site and completes the construction of
its new tower, The Henderson, in 2023.  urn:newsml:reuters.com:*:nL1N2RV0SB
    The Henderson, designed by Zaha Hadid Architects and in the
form of a Bauhinia bud - the city flower of Hong Kong - recently
confirmed a 20,000 square feet lease with U.S. private equity
firm Carlyle Group  CG.O , Lee told Reuters.
    Carlyle declined to comment on the office lease or give
details about its current Hong Kong office space. A person with
knowledge said, however, the move will be an expansion for the
U.S. firm.
    Last year, British auction house Christie's became The
Henderson's first anchor tenant, leasing 30,000 square feet.
 urn:newsml:reuters.com:*:nL1N2P31EG.
    "It shows that these multinational groups have cast a vote
of confidence in the long-term future of Hong Kong as an
international financial centre," said Lee, adding there is still
strong demand for high-quality commercial buildings despite a
slump in the office market amid the pandemic.  

 (Reporting by Clare Jim; Editing by Anne Marie Roantree and
Muralikumar Anantharaman)
 ((clare.jim@thomsonreuters.com;))