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The following is issued on behalf of the Housing Authority and The Link Management Limited:-
The Chief Executive Officer of The Link Management Limited ("The Link Management"), Mr. Victor So Hing-woh, stressed that the new management would focus on unleashing the value of the Housing Authority's shopping centres and car parking facilites to enhance revenue.
At a meeting with the Chairman of the Hong Kong Public Housing Estates Shop-Operators' Union, Mr. Chan Wing-shing, and members of the Executive Committee today (November 27), Mr. So reassured them that rental increase, at least for the initial period, had never been on the top priority list of our business plans.
"We aim at cost-cutting and enhancing efficiency. We must enhance the potentials of our centres before we can make rental adjustments on a trade-by-trade basis," he said.
"Our main concern is to improve the overall shopping environment of the facilities to attract more shoppers to bring more business for our tenants who are, in fact, our business partners," Mr. So added.
Addressing the operators' concern over the reprovisioning of commercial operators to make way for theme centres, Mr. So said that only a handful of the shopping centres were suitable for converting into theme centres.
He said that existing commercial tenants could renew their tenancies and "subletting cases" would be dealt with in accordance with the law."
During the meeting, Mr. So explained in details the new company's key business strategies and operational enhancements.
Measures of operational enhancement include disciplined and efficient asset management and cost control; proactive retail leasing; continual improvement in tenant mix and facility layout; enhancement of carpark operations and profitability; delivery of high quality services to tenants and shoppers; active marketing and promotion and the pursuit of additional revenue opportunities.
"The Link Management is well aware of the concerns of the shop-operators and will continue to maintain good business partnership with them with a view to identifying win-win solutions to any issues raised," Mr. So said.
The Link Management was set up to manage The Link Real Estate Investment Trust, the first REIT to be listed in Hong Kong. The Link Management will remain a wholly-owned subsidiary of the Housing Authority until the listing of The Link REIT on the Hong kong Stock Exchange on December 16.
The divestment plan will enable the Housing Authority to focus on its core business of providing subsidised public rental housing to people in need.
Mr. So will visit and meet with the commercial operators within the eight districts next week at the following locations:-
Tuesday 2:30 pm Sau Mau Ping Shopping Centre
(November 30) 4:30 pm Lok Fu Shopping Centre
Wednesday 2:30 pm Lei Yue Mun Plaza
(December 1) 4:30 pm Cheung Fat Shopping Centre
Thursday 2:30 pm Ho Man Tin Plaza
(December 2) 4:30 pm Sha Kok Shopping Centre
Friday 2:30 pm Chung Fu Shopping Centre
(December 3) 4:30 pm Tai Wo Shopping Centre
Disclaimer
This press release is not for distribution, directly or indirectly, into the United States, Japan or Canada. This press release is not for, and is not intended to be, an offer of securities for sale in the United States and/or any other jurisdictions nor is it an offer of, or invitation to subscribe for, securities in Hong Kong. Units of The Link REIT may not be offered or sold in the United States absent registration or an exemption from registration under the U.S. Securities Act of 1933. Any public offering of securities to be made in the United States will be made by means of a prospectus that contains detailed information about The Link REIT and its management as well as financial statements. No money, securities or other consideration is being solicited and, if sent, in response to the information contained herein, will not be accepted.
End/Saturday, November 27, 2004.
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