Profit-share scheme for flat owners

A PROFIT-SHARING scheme is to be implemented for property owners affected by Land Development Corporation projects.

A flat-for-flat exchange option also will be offered to affected owners in addition to more cash compensation.

The new options have been worked out to speed up property acquisitions in the face of growing resistance from residents over compensation terms.

Under the proposed scheme, those who choose to take part in corporation redevelopments are required to surrender their units as an investment.

After the project is completed and the new properties sold, the participants would share corporation profits in proportion to their initial investment.

The owners' participation scheme would apply to both residential and commercial property, but the flat-for-flat option would be offered only to domestic households, corporation chairman Mr Steven Poon Kwok-lim said yesterday.

Landlords affected by the corporation's planned projects in Queen Street, Kwong Yung Street, and Nga Tsin Wai village will be the first to be offered the new options.

In the past, owners were offered only cash compensation, but this sparked lengthy debates over the amounts and often the corporation had to resort to the Lands Resumption Ordinance to compulsorily acquire the properties.

Landlords have accused the corporation of abuse of power and demanded the Government change laws to restrict its power.

Corporation chief executive Mr Abraham Razack said a new formula would be adopted to determine compensation to ensure affected landlords could buy comparable new flats in the same district.

Officials yesterday visited two families in a corporation's property in Kennedy Town. The building was opened last October to rehouse tenants affected by redevelopment.