Kowloon Club sued for HK$4.5m

PUBLISHED : Sunday, 12 October, 2008, 12:00am
UPDATED : Sunday, 12 October, 2008, 12:00am

The exclusive Kowloon Club is being sued by its landlord in the High Court for back payment of rent and other management fees worth more than HK$4.5 million.

Hong Kong Island Development filed a writ on Friday to seek the sum from the private members' club in Tsim Sha Tsui.

The company is also demanding that the club quit the four-storey premises it occupies at the New World Office Building in Salisbury Road, which includes a car park.

The writ says it will alternatively seek damages if the Kowloon Club fails to vacate the premises.

The writ accuses the club of breaking a 2005 tenancy contract by which a lease of more than eight years was taken out from January 2005 to May 2013.

It states that the company intends to demolish the building and has served a six-month notice to the club that the tenancy would be terminated by end of July this year.

The company later agreed in June to extend the time for the club to vacate the premises to October 31 upon the club's request.

The writ says the Kowloon Club managed to pay only HK$291,837 to the company last month as a part payment and failed to make any further payment.

Kowloon Club general manager Savio Won said it had sought approval to remain at the premises until the end of January, when it would move to a new building in Hung Hom.

Mr Won said the club was seeking legal advice about the writ.

'The club is not going to close and we haven't taken any new deposits from members, because we are moving,' he said.

'We had asked for an extension of our lease until the end of January so that our members would not experience any break in service.'

The club, on the top floors of the building in Tsim Sha Tsui, was founded in 1984 as a private body to accommodate social and business functions.

It consisted of two floors open to members, providing facilities and services such as a health club, function rooms, bars and restaurants.