Opinion | Link Reit's sale of shopping centres will leave poorer residents worse off
Albert Cheng says poorer residents and smaller shops will suffer most as trust focuses on prime locations with big chain stores and higher rents
The Link Reit has recently disposed of four of its shopping centres for a total of HK$1.24 billion, marking its first asset sale since it was established as a listed company in 2005.
Despite a public outcry, The Link - a real estate investment trust - pressed ahead with the series of deals, which saw the Hing Tin Commercial Centre, in Lam Tin, the Kwai Hing Shopping Centre, in Kwai Chung, the retail venues and car park in Tung Hei Court, in Shau Kei Wan, and the Wah Kwai Shopping Centre, in Pok Fu Lam, change hands.
In July 2005, the Court of Final Appeal affirmed that the Housing Authority was entitled to sell its shopping malls and car parks. The verdict, however, also makes it clear that the Housing Authority continues to be duty-bound to provide appropriate amenities to tenants of it housing estates.
After the announcement of the asset disposal, lawmakers from both the pro-establishment and pan-democratic camps, who backed the listing plan of The Link, have criticised the asset disposal and urged the government to buy back The Link's shares from the market by using public money.
The government has already rejected calls to do so.
I was a lone opponent to The Link's initial public offering exercise in 2004. I was under attack from all directions by politicians and the news media. A protest march was organised against me on New Year's Day, in which participants threatened to resort to violence to silence me.