Former Link Reit chairman Paul Cheng Ming-fun has confirmed he resigned from Hong Kong's largest real estate investment trust last year because he opposed plans to hit small retailers with big rent increases.
Mr Cheng, who in March walked away early from his three-year appointment, said a clash with major shareholder The Children's Investment Management (TCI) over rent increases meant he could not continue in the role.
Ironically, he is now working as a potential supplier to Link in his new role as a director of MRC Technology International, which provides energy-saving indoor and outdoor signs.
His resignation from Link highlights tensions that can occur when aggressive funds such as TCI invest in businesses that many people believe should serve a social role.
The reit, which was listed in 2005, has 180 formerly government-owned shopping centres and car parking assets valued at more than HK$30 billion. They usually had lower than market rents and were usually leased to small retailers serving the community. TCI bought an 18 per cent stake on the market and urged Link to raise rents faster, sparking street protests by retailers.
TCI, set up in 2003 by money manager Christopher Hohn, is well known for demanding the companies it invests in adopt a more aggressive profit-making strategy.