Pearl Horizon | Gov’t says regranting or new bidding on former plot not possible

Suggestions for either a regranting or beginning a new bidding process for the rights to the land plot formerly assigned to the Pearl Horizon project is not possible under the public interest provisions stipulated within the Land Law, the government said in a statement issued yesterday.

The Land Law stipulates that only economic activities fulfilling a public good, and those beneficial to the social development of Macau, will be exempted from a public tendering process when seeking a land concession. Such economic actors include public utilities and those developing education, cultural affairs, healthcare, or sports facilities.

The statement comments on suggestions made to invite bidding for the former Pearl Horizon plot, saying that “the Government finds such a proposal difficult in practical terms, after in-depth research and discussions with [the] parties involved.”

The government cites two reasons for this:  Firstly, the plot – covering an area of 68,000 square meters – would have to be divided into four land plots, each offered to distinct bidders, because the law requires that any plot for a concession not working directly in the public interest must not exceed a gross area of 20,000 square meters. “In this case, the developer of the former Pearl Horizon project, Polytex Corporation Ltd, would only be able to bid for a single plot, meaning even if successful, the company could not continue in any form the original Pearl Horizon project on the same site,” the statement reads.

“Secondly, the law does not enable the government to impose specific requirements on future bidders for the former Pearl Horizon plot to sell residential units under the same conditions stated in the pre-sale contracts between Pearl Horizon homebuyers and Polytex Corporation Ltd. Hence, a suggestion of including ‘special terms’ in land concessions is not possible,” the statement continues.

To solve the conundrum, the government reiterated that homebuyers should seek compensation from the Pearl Horizon developer, as the right to such compensation is time-limited. The government also says that Polytex, who made a civil court filing seeking compensation from the government, should “fulfil its responsibilities stated in contracts and compensate homebuyers accordingly.”

Regarding the compensation suit, the government claims it is not valid and will not affect pre- buyers rights since “the developer submitted in 2014 a written statement to the government, stating the company would seek neither compensation nor indemnity from the government should its land concession not be regranted.”

In late May, the government proposed using the former Pearl Horizon plot to provide interim public housing. Such housing would primarily be for those affected by the redevelopment of the city’s old districts under the existing urban renewal plan, but would also be made available to Pearl Horizon pre-sale homebuyers.