k) WAN CHA RECLAMATION - FLEMING ROAD (6,000 M2)
E SIZE AS (1) BUT LESS ATTRACTIVE IN TERMS OF LOCATION.
7. SETTING ASIDE THE LEGAL AND TECHNICAL QUESTION OF HOW TO SECURE BEFORE 1997 LAND TITLES UPON WHICH THE CONSULATE-GENERAL CAN RELY THEREAFTER, IT WILL BE NECESSARY TO CONSIDER WHETHER, AND IF SO HOW MUCH LAND PREMIUM WILL BE CHARGED FOP THE SITE. AT PRESENT ALL CONSULATES-GENERAL AND HIGH COMMISSIONS ARE HOUSED IN COMMERCIAL PREMISES AND IN THE MAJORITY OF CASES RENT RATHER THAN OWN THEIR ACCOMMODATION. THE ONLY EXCEPTION IS THE U.S. CONSULATE- GENERAL, WHICH OCCUPIES A SITE ON GARDEN ROAD GPANTED TO THE U.S. GOVERNMENT BY PRIVATE TREATY IN 1950. THE LEASE TERM OF THE U.S. CONSULATE-GENERAL SITE RUNS FOR 75 YEARS (RENEWABLE FOR ANOTHER 75 YEARS) FROM 1950, AND THE PREMIUM WAS CHARGED AT FULL MARKET VALUE (HKD 1.41 MILLION). IF THIS PRECEDENT IS TO BE FOLLOWED, THE LAND PREMIUM FOR THE VICTORIA BARRACKS SITE AND MURRAY ROAD SITE KS ESTIMATED TO BE HKD 1.656 MILLION AND HKD 360 MILLION RESPECTIVELY. THE COST OF THE FLEMING ROAD SITE WILL BE LOWER AND IS ESTIMATED TO BE IN THE REGION OF HKD270 MILLION. A LIST OF POSSIBLE SITES IN CENTRAL AND WANCHAN IS AT APPENDIX N.
8. LAND PREMIUM PAID BY HMG WILL BE SHARED BETWEEN HKG AND SARG IN ACCORDANCE WITH ANNEX N TO THE JOINT DECLARATION.
OPTION 2 # PURCHASING EXISTING PREMISES
9. THE EXISTING MARKET RATE FOR FIRST-CLASS OFFICE PREMISES IN CENTRAL IS ABOUT HKD 30,000/M2. THE COST FOR BUYING 5,000 M2 OF OFFICE SPACE WILL BE IN THE REGION OF HKD150 M, WHICH IS SIGNIFICANTLY LOWER THAN THAT IN OPTION 1. THE COST CAN BE REDUCED IF IT IS DECIDED THAT THE CONSULATE-GENERAL, OR PART OF IT (E.G. THE BRITISH COUNCIL) CAN BE HOUSED IN WAN CHAP OR TSIM SHA TSU. A LIST OF NEW COMMERCIAL BUILDINGS IN CENTRAL AND WANCHA, TOGETHER WITH DEVELOPMENTS SCHEDULED TO COME ON STREAM IN THESE AREAS IN AROUND 1990, WHICH MAY BE AVAILABLE FOR SALE IN THE MARKET IS AT APPENDIX .
10. THE MAIN DISADVANTAGES OF THIS OPTION IS THAT THE CONSULATE- GENERAL WILL NOT BE ACCOMMODATED IN A FREE-STANDING BUILDING AND THERE WILL BE THE USUAL PROBLEMS OF ACCESS AND SECURITY ETC. COMMON TO ALL MULTI-USER COMMIERCIAL BUILDINGS IN HONG KONG.
OPTION 3 RENTING EXISTING PREMISES
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