Lantau fancy crowdfund push for $1.1 trillion

More than seven million Hongkongers may each invest HK$10,000 in a mega crowdfunding plan to help generate HK$1.1 trillion to reclaim 2,000 hectares of land off Lantau to ease the housing shortage, veteran investor Wang Sing has proposed.

After placing advertisements in major Chinese newspapers, Wang announced his ambitious plan in a press conference yesterday along with a panel of guests that included Centaline Property founder and chairman Shih Wing-ching, lawmaker Paul Tse Wai-chun and Hong Kong Indian Association council president Raj Sital.

Wang proposed a public-private partnership model for developing Lantau, first by setting up a HK$100 billion company - 75 percent owned by Hong Kong residents on a "one person, one share" basis.

All Hongkongers will be given warrants for buying the shares, with a total nominal value of HK$75 billion.

The remaining HK$25 billion will be raised by a private fund management from sovereign wealth and international pension funds.

The company will raise HK$1 trillion by issuing five-to-15-year bonds - carrying an annual coupon rate of approximately 5 percent - from public markets to achieve a total financing of HK$1.1 trillion.

Wang said the government only has to provide policy support such as the approval of reclamation rights and support for bonds.

Wang said all Hongkongers will share the fruitful results of the project.

All proceeds will be used for the development of Lantau Tomorrow Vision announced in the 2018 policy address, which involves building 1,700 hectares of artificial islands for HK$620 billion.

"The market orientation and fund raising in the public markets will be efficient, hence shortening the time needed for the project and making it more cost-effective, Wang said.

"A total of 2,000 hectares of land will be reclaimed for development, which includes constructing 250,000 affordable housing units in 30 to 40 communities for young people, so as to improve their living conditions" he said. Wang said a majority of the reclaimed land can be used by the government.

"Only a small portion will be for sale or development by the company to repay the bonds issued," he said.

Wang is currently the chairman of Hong Kong My Home Limited - a nonprofit company which pushes the public-private partnership proposal.

He was a global partner of top private equity firm TPG and co-chairman of its Greater China branch, and previously the chief executive officer and director of TOM Group.

His proposal comes amid criticism against Lantau Tomorrow Vision, as people worry the project will dry up the government's fiscal reserve.

Democratic Party lawmaker Lam Cheuk-ting earlier said even though pan-democrats have resigned en masse from the Legislative Council, they will still unite "community powers" to fight Lantau Tomorrow Vision.

jane.cheung@singtaonewscorp.com