Cyberport
Encyclopedia : C : CY : CYB : Cyberport
Cyberport (Traditional Chinese: ; Simplified Chinese: }}}; Cantonese Jyutping: sou3 maa5 gong2; Mandarin Pinyin: Shùmǎgǎng) is a 240,000 m², campus-style, low-density project consisting of commercial, retail, hotel, entertainment and residential facilities, built by Pacific Century CyberWorks Limited (PCCW).
Hong Kong-listed PCCW, headed by entrepreneur Richard Li, the second son of one of Asia's wealthiest businessmen Li Ka-shing, signed an agreement with the Hong Kong government in 2000 to design, build and market the technology-themed Cyberport.
One of the more noteworthy political episodes in Hong Kong since 1997, when Hong Kong was returned to the People's Republic of China, has been controversy over Cyberport, widely seen as a turning point in the popularity of Tung Chee-Hwa's government. It was alleged that Tung had favored Li's family. Commercially, the project is also struggling with low occupancy rate, 42% as of 2005. [link]
Background of the project
In its 1999 annual report, the Hong Kong government revealed its hope that the Cyberport would help local businesses capitalize on the rapid growth of the Internet. The Cyberport was intended as a place where the development of information technology and multimedia would be nurtured so that the demands of these industries could be met in the future. It was also hoped that this development would help the HKSAR's economy rebound after the East Asian financial crisis of 1997.
On 17 May 2000 the Government of the HKSAR signed an agreement with Hong Kong Cyberport Management Company Limited (HKCMCL), a company set up and wholly owned by PCCW. The agreement required HKCMCL to perform the role of developer, complete the project by the agreed deadline, and to carry the risks associated with construction, financing and default/completion.
According to the agreement, the Cyberport would be handed back to the HKSAR Government upon completion so that ownership and management rights would ultimately reside with the Government. A private company, Cyberport Management Company Limited, was set up by the Government to hold the title of the Cyberport and operate the Port.
The government's capital contribution to the project was the Residential Portion Land Value of the Cyberport, valued at $7.8 billion, which included an estimated cost of around $1 billion for infrastructure work. HKCMCL was responsible for the construction costs of both the Cyberport portion and the residential portion.
It was intended that HKCMCL would profit from the ancillary residential development. The amount of return due to the company would depend on its construction costs, the value of the land (which would be determined when development rights were granted), the sale prices of the apartments/flats and the mode of financing.
Location and features
The development is located at a reclaimed bay - the Telegraph Bay or Kong Sin Wan - on the southwest side of Hong Kong Island, between Aberdeen and Pok Fu Lam, near Baguio Villa. It has a total area of 5.7 million square feet(530,000 m²), providing 27,000 m² of retail and entertainment space and a 173-room five-star hotel.
Project overview
The Cyberport project has been mired in controversy since the Hong Kong government chose PCCW in 1999, without competitive bidding, to develop the HK$15.6 billion commercial, retail and residential project that was intended to be Hong Kong's answer to California's Silicon Valley.
Critics see the Cyberport as a real estate project dressed up with IT elements. Recently, the promotion of residential properties in Cyberport has attracted far more attention than the technology-related development that it is supposed to nurture.
PCCW is trying to find new growth avenues after losing its telephone monopoly in Hong Kong and has high hopes for its Cyberport project.
Financing
By the end of 2002 PCCW had invested a total of HK$3.89 billion in Cyberport.
External links
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