Pearl Horizon | Denial of extended land concession prompts siege

Protestors were initialy requested by police to leave the area facing the gov’t headquarters

Scores of pre-sale buyers of Polytec Asset’s Pearl Horizon residential development stormed government headquarters yesterday afternoon, in tandem with a press conference explaining the government’s decision. Police officers surrounded the building and tried to quell the protests.
The luxury residential complex’s land concession expires on December 25. Its underdevelopment is due to the bureaucratic nature of the public service, the land developer claimed two months ago in a media conference.
As the project edges closer to the deadline, the authorities have announced that the concession will not be renewed after the stipulated date, as the “concessionaire failed to fulfill the land use in accordance with the conditions laid down in the contract.”
The announcement was made by the Secretary for Administration and Justice Sonia Chan during a press conference, where she said the decision was made on a legal ground.
On Friday, Polytec Asset acknowledged that the application for an extension of the expiry date had been declined. On Saturday, the group issued a statement pledging to take the case to court after consultation with its own legal advisers. The ultimate fate of the land parcel is expected to remain subject to the court’s sentencing, which will take time.
“The government has to wait for the court’s verdict before responding accordingly under the Land Law and the varying outcome that ensues,” secretary Sonia Chan stressed yesterday.
If the government wins the litigation, the land – with an area of roughly 68,000 square meters – would have to be put up for another development tender, which the authorities have promised will be favorable for advance buyers, Sonia Chan added.

Later on, they obstructed the road facing the side entrance, heavily guarded by police

Nonetheless, the government’s move has exacerbated protests. Angry buyers arrived outside the heavily guarded headquarters, furious after having just sought intervention at the region’s mainland liaison office.
One property owner, wearing a face mask, spoke on condition of anonymity, telling the Times that they actually learnt about the news earlier through several
organizations.
“We’re over. We have lost both the money and the flats,” said another homeowner in her forties. Using an idiomatic Cantonese expression, she said:  “We want Chui Sai On to ‘die’ with us.”
A majority of buyers have allegedly poured small fortunes – ranging from HKD2 to over HKD10 million – into the presale of around 3,000 apartments, while some even claimed that they bought them on mortgage or after selling their own flats.
The masses refused to leave after the media conference, despite police warnings, which eventually led to a skirmish.
Angry protestors yelled verbal abuse to authorities present at the complex, demanding talks with the officials and the region’s leader. “How could the government make such irresponsible remarks under the current situation?” said another middle-aged man. “We’re left stranded now.”
The authorities promised to return the payment to buyers via the tax required for home purchase, and offered them legal assistance. However, buyers must seek their own legal counsel to pursue greater compensation from the developer.
According to another buyer, the lawsuits would be troublesome as each flat transaction requires a lawyer, citing the remarks from the legal advisers they talked to earlier.
The land, which has been disputed for more than a year, sits in the northern Macau Peninsula close to the Amizade Bridge. The government had granted the concession to develop the land to one of the region’s largest property developers 25 years ago.
It remains unknown how many of the advance buyers are actually speculators, as the authorities professed yesterday that they do not know the full statistics. The Hong Kong listed company’s stock tumbled to a three-year record low in last Friday after the news surfaced.