密密送 4 - issue 26 -- 活化工廈

AL Geography SUPER ISSUE 2011

The New Links to China

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Samuel Chan 2010

The New Links to China By Samuel Chan & Howard Tung AB Hunter

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Revitalizing the Industrial Buildings

Super Issue 2011

261.

Revitalizing the Industrial buildings

By Samuel Chan

2. Reasons for the revitalizing the industrial buildings 3. Difficulties for the revitalizing the industrial buildings 4. How the revitalizing the industrial buildings fulfill the sustainable development?

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Background

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Samuel Chan 2011Website: www.abhunter.net E-mail: [email protected] Facebook: samuel chan

2Fans page: abhunter samuel chan

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1. Background 2009 At the beginning of 2009, the government announced its decision to develop six pillar industries, including testing and certification services, medical services, innovation and technology, cultural and creative industries, environmental industries and education services.

2009-10

To increase land supply and support the six industries. Chief Executive Donald Tsang Yam-kuen in his 2009-2010 Policy Address to revitalize industrial buildings. Through policies, it encourages owners to convert or rebuild industrial buildings and turn vacant space for other uses.

Major Industrial Building Revitalization Measures1. 15 The government exempts industrial buildings aged 15 years or old from any conversion fees. 2,000 5 Owners who have to settle more than HK$20 million of land premium () after lease modification can repay the premuim by instalments over five years at a fixed interest rate. Allow pay for what you build. Owner only have to pay for the extra density after the reconstruction

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4. Lower the threshold from 90% to 80% for owners of industrial buildings situated in non-industrial zones



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2. Reasons for the revitalizing the industrial buildings A. Optimizing Land Use As a result of Hong Kong's economic transformation and relocation of manufacturing activities to the Mainland, many private flatted industrial buildings are now vacant or under-utilised. This is a waste of our land resources.

2009 1 730 8% 140

The total stock of private flatted factories was 17.3 million by the end of 2009. At a vacancy rate of 8%, the total vacant floor area is about 1.4 million m2.



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B. Potential of the industrial building Most of Hong Kong's industrial buildings are relatively young and are built to vigilant building requirements.

Many industrial buildings are located in urban areas with good accessibility and connectivity; some are at harbourfront with good views.

With generally large floor plan, high ceilings, strong floor loadings, wide corridors and large lifts, many industrial buildings are suitable for conversion to various alternative uses.

A wide range of commercial uses and social services are permitted to be located in

redeveloped or converted industrial buildings.



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C. Merits of Redevelopment and Wholesale Conversion(1) Merits of Redevelopment Certain planning gains, e.g. setback of building lines, new open spaces, can be realised only upon redevelopment

Redevelopment can also help upgrade the general environment of former industrial areas by removing sources of environment concerns e.g. chimneys

New development meets today's safety standards and special requirements of the new uses



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(2) Merits of Wholesale Conversion Many industrial buildings are in former industrial areas with good public infrastructure, transport links and convenient location

Industrial buildings usually have high ceiling height, high floor-loading, flexible floor layouts, thus have good potential for conversion to serve other uses

Compared with redevelopment, conversion will generate less construction wastes, can start and complete within a shorter time, and costs less

Mixed industrial and commercial uses will no longer be allowed in converted factory buildings, thus reducing the level of fire risk to occupants

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3. Difficulties for the revitalizing the industrial buildings The multiple ownership in flatted industrial buildings makes it difficult for all owners to

reach a decision to convert or redevelop the buildings.

The owners are deterred by the requirement to pay full market premium for lease modification for redevelopment to other uses.

The building owners may be reluctant to be the first mover to convert or redevelop their buildings for non-industrial uses before similar uses emerge in the neighbourhood.

Owners may find it difficult to raise funds for redevelopment.



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4. How does the revitalizing the industrial buildings fulfill the sustainable development? A. Social and Economic aspect Redevelopment or wholesale conversion of eligible industrial buildings would allow better uses of our valuable land resources and could potentially provide useful support for higher value-added economic activities.

Revitalisation of these buildings would bring about new economic activities and employment opportunities.

B. Environmental aspect The proposal to facilitate wholesale conversion of industrial buildings, as compared with demolition and redevelopment, would help reduce the amount of construction waste

This would help extend the lifespan of our landfills which are approaching their full capacity.



密密送 4 - issue 26 -- 活化工廈

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