Future Bright Holdings Limited announced that its subsidiary in charge of its Henqgin project, FBHQ, could receive a daily penalty of some RMB628 million (MOP709.2 million/US$87.2 million) due to delays in the project.
According to a Hong Kong Stock Exchange filing the Hengqin Island Land Authority notified the company that the fine could be enforced for any delay to meet any development milestone without good justifications, since the company might possibly be in breach of the relevant land acquisition contract of January 2015 due to the project having stopped its construction works.
The company headed by legislator Chan Chak Mo also revealed that Henqgin authorities did not approve an application to partial change land use right of its development project land in Hengqin for residential use in order to include serviced apartments.
‘Management is now revising its application to Hengqin Island Land Authority again seeking for its support for a partial change of the land use right of the Hengqin Land to include commercial servicing apartments without any residential use, and its related building milestone extension under the Land Contract,’ the company noted.
Future indicated in its previous second-quarter financial report that it was negotiating the sale of all or controlling interest in a subsidiary that owns the Hengqin land where the group intended to develop its Future Bright Food Plaza, with the assets expected to be sold within twelve months.
The project, which broke ground in 2017, was expected to be completed by 2020-2021 with Future Brightholding a 40-year lease with the Zhuhai Government.
The total project cost was estimated at HK$1 billion with the gross floor area of the project 50,000 square metres and set to feature up to 50 restaurants and food shops.
