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Housing Authority urged to defer listing

Klaudia Lee

Management firm must first work out terms with tenants, says Legco panel

A motion calling on the Housing Authority to suspend the listing of a new company that will run its shopping malls and car parks until an agreement is struck with tenants on future arrangements was passed by a Legco panel yesterday.

The motion, proposed by Liberal Party vice-chairwoman Selina Chow Liang Shuk-yee, was passed unanimously by the legislature's housing panel.

It called on the authority and the new company, Link Management, to negotiate with tenants on rent and other transitional arrangements as soon as possible.

Facilities to be listed by the company include 1 million square metres of shopping space and 100,000 car parking spaces.

A concern group comprising major commercial tenants' groups had threatened not to renew its contract if Link Management did not meet demands for transitional arrangements.

At the housing panel meeting, lawmakers expressed their concern over the future rental arrangements.

Independent lawmaker Albert Chan Wai-yip accused the authority and Link Management of acting in a 'black box' and betraying tenants.

But Director of Housing Leung Chin-man said after questioning that details relating to the initial public offering could not be disclosed.

Although the new company had 100 per cent control of future operations, he said he believed both sides had the will to create a win-win situation.

'The new company needs tenants, and vice-versa,' Mr Leung said.

He also promised tenants that car park rents would remain unchanged until next June, and the terms for renting authority facilities would also be retained.

It is believed the government may raise as much as $21.3 billion from the listing of Link Management, which is expected to sell 1.97 billion shares at $10.51 to $10.83 each.

Mrs Chow, convenor of the concern group representing the tenants, said at a news conference that Link Management had failed to give any response to their demands.

'Faced with the threat of a possible huge rise in rents, commercial tenants might be forced into closure, or the extra cost might be transferred to consumers,' she said.

'Both situations will have a direct adverse impact on commercial and residential tenants.'

The group demands existing tenants be given priority in renewing their contracts and be able to opt for contracts of three, six or nine years; the establishment of a transparent and reasonable rental adjustment system based on the consumer price index; and that the existing three or four-month notice for any termination of contract be retained.

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