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New World submits proposal to demolish and rebuild part of The Pavilia Farm project hit by construction defects
- Company is awaiting approval from the Buildings Department to demolish and rebuild towers one and eight of the third phase of the project in Tai Wai, says Adrian Cheng
- New World posts a nearly 6 per cent increase in full-year underlying profit to HK$6.98 billion
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New World Development has submitted a proposal to demolish and rebuild part of The Pavilia Farm project that has been marred by construction defects, a top executive said on Thursday after the developer posted a full-year underlying profit increase of nearly 6 per cent.
The Hong Kong-listed developer also said that it was striving to help the government solve the city’s housing shortage problems.
The company has submitted a proposal to the Buildings Department to demolish and rebuild towers one and eight of the third phase of the development of its bestselling project in Tai Wai, said Adrian Cheng Chi-kong, executive vice-chairman and chief executive.
“After approval of the formal time to start work, an independent third-party team will monitor the process of demolition and rebuild,” Cheng said.
In early July, New World sent shock waves through the industry after it said it would tear down and rebuild two of the seven tower blocks under construction at the project above Tai Wai MTR station in the New Territories. The company said that this would set back the delivery schedule of phase three by nine months to March 2024. It also came up with compensation options and subsidies for affected buyers.
As of June 30, a total of 3,028 units in the project were sold, realising nearly HK$37.4 billion (US$4.8 billion) in sales proceeds, according to a filing to the Hong Kong stock exchange.
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