Tear Sheet: Urban Renewal Authority

This report does not constitute a rating action. These underscore the city?s commitment and ongoing support to Urban Renewal Authority (URA). In June, the Hong Kong government approved granting two sites with an estimated value of HK$13.2 billion in Hung Hom and Tseung Kwan O Area 137 to URA at a nominal premium of HK$1,000 via private treaty. It further reserved three sites in the Northern Metropolis for URA. These land provisions are in process and not reflected in our base case, apart from the Hung Hom?s site. Despite high new home sales, developers? interests in land tenders remain low. We revised down our revenue forecast, mostly land tenders, to reflect market conditions. URA may continue to experience impairment losses

...November 11, 2025 This report does not constitute a rating action. Government land injections continue: These underscore the city's commitment and ongoing support to Urban Renewal Authority (URA). In June, the Hong Kong government approved granting two sites with an estimated value of HK$13.2 billion in Hung Hom and Tseung Kwan O Area 137 to URA at a nominal premium of HK$1,000 via private treaty. It further reserved three sites in the Northern Metropolis for URA. These land provisions are in process and not reflected in our base case, apart from the Hung Hom's site. Land tenders remain challenging: Despite high new home sales, developers' interests in land tenders remain low. We revised down our revenue forecast, mostly land tenders, to reflect market conditions. URA may continue to experience impairment losses over its inventory should the property market remain lukewarm. URA receiving extraordinary support from the Hong Kong government if needed remains almost certain. This considers...

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