Opinion | Link's campaign for more flexibility for reits should raise eyebrows
Albert Cheng is worried by reports that it wants to work with Housing Authority on property development, which is barred by current rules
The Housing Authority recently warned that it could become poor due to impending projects over the next four years.
In its latest financial forecasts, it said its surplus and cash balance will drop sharply and it has not ruled out having to ask for funding from the government to meet construction targets.
As someone who fought to block the authority from selling public assets on the cheap back in 2005, I am still angry over the issue. The reality today is that the authority sold public assets to The Link Reit for HK$20 billion - far below market prices. Those assets are now estimated to be worth more than HK$81 billion.
After selling off public assets that would have been the goose that laid golden eggs, the authority now has the nerve to claim it is scraping the bottom of the barrel as it is again running out of cash.
No wonder the public is outraged. Who wouldn't be incensed after witnessing the authority hand over its only cash cow to the rich and powerful property tycoons without hesitation?
The bad memories of the authority selling off our assets on the cheap are still fresh
After its listing on the stock market, The Link Management has been renovating old shopping centres and then raising rents in order to boost income.