Authorities draft strategy for proceeding with offering while reit is in legal limbo
The Housing Authority has forged a contingency plan to deal with the doomsday scenario that would occur if the Link Reit listing goes ahead without its legality being confirmed by the top court and a later legal challenge proves successful.
The plan to 'unwind' the real estate investment trust has been drawn up in response to one of three possible scenarios faced by the beleaguered authority as it awaits the next step by its nemesis, plaintiff Lo Siu-lang, who has twice failed to have the listing declared illegal.
The 67-year-old public housing estate resident has said she will appeal against the two lower court rulings but by last night had not given formal notice, leaving open the possibility the listing might have to go ahead with its legality still undetermined.
'We have to prepare for this doomsday scenario no matter how remote it is,' an authority official said. He said unwinding would not necessarily mean delisting, but would not give details.
In preparation for such an event, all the possible legal risks would have to be spelt out in the prospectus, making the reit less attractive to investors.
