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The following is issued on behalf of the Housing Authority:

The Chief Executive Officer of The Link Management Limited (The Link Management), Mr Victor So Hing-woh, pledged to enhance cost-effectiveness in the management of the Housing Authority (HA)'s retail and car-parking (RC) facilities for divestment and to create a favourable business environment for his commercial tenants.

The Link Management is the new management company established to manage the real estate investment trust (REIT) to be set up for the purpose of divestment.

The company will remain a wholly-owned subsidiary of the HA until the proposed initial public offering (IPO) of the REIT tentatively scheduled to take place, subject to prevailing market conditions, before the end of the 2004/05 financial year.

Elaborating on his company's management concept and mode of operation at a Meet-the-Media Session today (August 11), Mr So said the company would operate on economic principles but would foster an open dialogue and close partnership with the commercial tenants to enhance the operational efficiency of the RC facilities.

"We must establish a good business partnership with our commercial tenants with a view to identifying win-win solutions to any issues raised,"he said, adding that the company also aims to improve the quality of service provided for commercial tenants, public rental housing estate residents and customers.

Mr So said that his company was well aware of the concerns of the tenants and had maintained close contacts with the Housing Department (HD).

"We will be meeting with our commercial tenants in groups in the next few weeks to establish a communication channel to listen to their concerns," said Mr So.

The Link Management came into operation last month and will progressively take over the management of a majority of HA's RC facilities. The exact divestment portfolio is currently being finalised.

During the transition period before the IPO, The Link Management will be phasing in its own staff and establishing its operation mode. Mr So said that HD staff would provide supporting services to the company to effect a smooth handover.

The Link Management has set up a temporary office at the Housing Authority Headquarters in Ho Man Tin but will move to its permanent premises at the Wong Tai Sin Shopping Centre Multi-Storey Car-park Building by phases in mid-August.

The initial Board of Directors of The Link Management will be appointed by HA, as the company will remain a wholly-owned subsidiary of HA before divestment. Mr Peter Wong Tung-shun has accepted the invitation as the Chairman-designate of the Board of Directors, whilst the appointment of the other directors is being finalised.

HA will ensure that the board's composition can bring in expertise and diverse talents consistent with industry best practices.

Turning to corporate plans, Mr So said that a Business Advisory Unit would be set up to offer advice to commercial tenants on a wide range of issues.

"While enhancing our assets, we must not overlook our social responsibilities. We will optimize the usage of public areas in our commercial centres to support all kinds of charitable activities," he said.

Describing the divestment of HA's RC facilities as an important milestone in the development of Hong Kong's real estate and financial markets, Mr So said that the launching of possibly the first REIT in Hong Kong would not only help enhance the status of Hong Kong as a regional financial centre but would also bring a new dimension to the real estate market not seen before in our city.

The HA approved in July last year the divestment plan involving retail properties of one million square meters and 100,000 car-parking spaces, making up about 11 per cent and 16 per cent respectively of the market share in Hong Kong. It is expected that a majority of the RC facilities will be divested.

The successful divestment of these facilities will enable the HA to focus on its primary mission of providing subsidised rental housing to people in need.

Ends/Wednesday, August 11, 2004.

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