HONG KONG: The Urban Renewal Authority (URA) announced Friday it will redevelop five old buildings in Sham Shui Po at a cost of HK$424 million.

About 81 households, comprising more than 180 residents, will be affected by the work. The buildings are located at No 69 - 83 Shun Ning Road, near Tonkin Street.

URA director of acquisition and clearance, Joseph Lee King-chi, explained: "Re-development is the solution to help the residents improve their living conditions substantially."

He said that because the buildings are in poor condition , renovation or refurbishment are not feasible. Thus, redevelopment is the only solution.

Lee said: "These buildings were built in 1954-55. They are in a generally dilapidated condition with unauthorized rooftop structures and poor living environs. On top of that, none of the buildings have owners to manage the buildings."

He said URA staff have started approaching tenants Friday morning, carrying out a survey to confirm the number of households and the occupancy status.

The project will cover an area of approximately 827 square meters. Construction costs are expected to reach HK$230 million.

Lee said the project aims to provide about 110 residential units and some 700 square meters of commercial space. Work is scheduled for completion by 2016 or 2017.

All registered tenants will receive compensation, he added. Tenants may opt for cash compensation or accommodation at a public housing rental estate.

Lee said acquisition costs of the properties and re-housing for tenants are expected to cost an additional HK$194 million.

He said the URA will consider all objections to the project during the consultation period in the next two months.

Once the Secretary for Development gives the project the go-ahead, the URA will start acquiring the properties and making re-housing and compensatory arrangements.

(HK Edition 06/27/2009 page1)