MTRC 'waiting for right time' to relaunch Oyster Bay project

Themis Qi

MTR Corporation said it is still waiting for an appropriate timing to relaunch the Oyster Bay development project amid concerns over demand and interest rates.

After the bid for the Oyster Bay project was withdrawn in February, MTRC hopes to relaunch it with a revised plan.

But it could take a while, as MTRC understands that the developers have concerns over the pace of economic recovery, the market demand and the global interest rates hikes, said chairman Rex Auyeung Pak-kuen before the company's annual general meeting.

Though the recovery is slower than expected, MTRC believes the business will slowly rebound to the pre-pandemic level and remains optimistic about its performance this year.

The monthly cross-border traffic has recovered to 70 percent of the pre-pandemic level and local passengers reached 90 percent, after the anti-pandemic measures were gradually eased in Hong Kong and in the mainland since last year, Auyeung added.

He mentioned that the company will invest more than HK$100 billion to expand the local network. He added that the extension of the east rail line starts today and other new railway projects will follow suit.

MTRC chief executive Jacob Kam Chak-pui said that the reopening of public transportation between Hong Kong and the mainland will boost the SAR's economic recovery.

At the AGM, which was attended by over 300 shareholders yesterday, MTRC said it continues to check if the HK$2 elderly fare is misused and aims to punish those who abuse the privilege.

Asked whether the elderly fare will be raised to HK$3, the company said it largely depends on the Hong Kong government.

Separately, MTRC set up a panel to conduct a comprehensive review of the asset management and maintenance system, after the train gates at Tseung Kwan O Line and Yau Ma Tei Station fell off last year. A report is expected to be submitted and the results announced in the coming months.

In terms of special dividends, MTRC hopes to steadily increase the distribution every year, or at least maintain the existing policy, but depends on the company's financial performance and capital expenses, said the finance director Herbert Hui Leung-wah.

Additionally, when asked about the possibility of spinning off the property management unit, Hui said it would review the portfolio regularly to ensure long-term sustainable development, without giving specific details. Hui defended the existing portfolio, saying that the diverse business model brought stable financial results even during the three-year pandemic.

Besides, Auyeung said MTRC will look out for development opportunities in the Middle East, which has been in discussions with the management, but cannot reveal details yet.

Meanwhile, some shareholders requested the company to improve the facilities in and the around the MTR stations for the convenience of the elderly. MTRC assured that it has made considerable improvements at the new stations and hopes to upgrade the old ones eventually.

The AGM started in chaos as some homeowners at Lohas Park urged the project developer MTRC to resolve water leakage within the property, a petition that has been in existence for seven years. They held banners with their complaints outside the meeting hall.

MTRC responded that it has been in touch with the owners and provided repair services several times, yet some seemed dissatisfied with the results.