URA hits HK$2.3b deficit in last financial year

Its long-term financial stability is also threatened.

The Urban Renewal Authority has recorded a HK$2.3bn deficit in the last financial year, based on a report by Barclays.

According to the URA in the report, the deficit was rooted to the delay in tendering for four projects that had met resistance from property owners as well as a provision for losses on five projects for which compensation offers were made.

Here's more from the Barclays:

The URA’s chairman said that a declining property market and rising construction costs could also threaten the URA’s long-term financial stability.

Despite the gloomy near-term outlook, the URA still had net assets of Hk$23.9bn and could afford the HK$33bn it would cost to implement its business plan for the next five years.