There's finally hope for Hopewell Holdings to expand its Wan Chai kingdom, as the construction of Hopewell Centre Phase II may gain approval after a proposal to downsize the project.

The government welcomed the developer's move after 30 years of controversy in the community.

Over the past six months, the Development Bureau and Hopewell Holdings engaged in discussions to address public concern and the possibility to reduce the project's development intensity.

"Both parties are satisfied with the amendment result, and the developer has implemented its social responsibility," Secretary for Development Carrie Lam told reporters yesterday.

Under the new proposal, the Hopewell Centre II - a conference hotel project previously called "Mega Tower"- located between Ship Street and Hopewell Centre I in Wan Chai, will comprise only 55 stories instead of 93. This will lower the building height by 105 m to 210 m while saving the ridge line.

The plot ratio will be reduced to about 10.3 from about 15, with the total gross floor area trimmed by about 31 percent.

Hopewell also halved the number of hotel rooms to only 1,024. There will be convention facilities for 1,000 people.

To enhance quality of life in Wan Chai, the company will construct a 5,880-sq-m park for public use.

The developer will also spend about HK$20 million to preserve and transplant 510 trees.

Despite Nam Koo Terrace being located outside the plot, Hopewell Holdings set out to preserve and revitalize it, as well as develop the nearby land for tourists. Nam Koo Terrace is a 90-year-old Grade I historic building.

To alleviate traffic congestion after the construction of the conference hotel, an extra lane will be built near Wah Yan College, along with the road-improvement project cited in its initial proposal in 1994.

The developer will submit the traffic-assessment report to the Transport Department.

"We are confident of the approval," said co-Managing Director Thomas Wu.

Long time coming

The developer worked up an expansion plan as early as 1978, when the construction of Hopewell Centre I was completed. The proposal was approved by the Town Planning Board (TPB) in 1994.

But opposition from residents in the district and groups concerned with its height and intensity, as well as its view blockage to buildings in Kennedy Road, held up the proposal until discussions resumed this year.

"It will now be 10 stories lower than Hopewell Centre I, and it's no longer a skyscraper," Wu said. "The revised plan strikes a balance between economic development and environmental protection."

He disagreed with the view that the government did not respect contract spirit.

"It (the government) didn't give us any pressure. We've consulted legal advice saying it's the best way to go forward after taking into account different views," Wu said.

Lam added that she only suggested that the public would find the project more acceptable if the ridge line could be kept intact.

"To be frank, I've never seen any developers make such a large adjustment," she said, suggesting there is no need for the TPB to examine and approve the revision. "But we need to consult legal advice first as it trims so significantly."

The five-year construction will likely commence by the end of next year if everything goes smoothly, Wu said.

The cost, including construction and land premium, will be at least HK$5 billion.

Wu admitted that revenue from the tower will decrease in line with its smaller size.

"Yet, revenue is not the only consideration in the project. Hopewell Centre II will be our long-term project and will not be sold," he said, adding that the company wishes to support Hong Kong amid the financial turmoil.

"We hope to further enhance the development of Hong Kong's meetings, incentives, conventions and exhibitions industry," he said.

The company will also bring in an experienced world class hotel brand to manage the hotel facility.

The project will create more than 4,000 jobs, with 1,900 jobs at the peak construction period. After the completion, there will be 900 permanent hotel jobs and about 300 jobs in the retail shops.

Hopewell Holdings will introduce the project to the Wan Chai District Council to seek support in January.

(HK Edition 11/20/2008 page1)