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The following is issued on behalf of the Housing Authority:

The Housing Authority's Supervisory Group on Divestment (SGD) today (December 19) agreed in principle to pursue a Real Estate Investment Trust (REIT) structure for implementing its divestment plan for its retail and car parking facilities (RC Facilities).

The SGD adopted the recommendation made by the Joint Global Coordinators (JGCs) at a meeting today during which members thoroughly examined and discussed the impact of two broad divestment structures for the RC Facilities, namely a REIT structure or a property company structure with REIT characteristics.

A spokesman for the Housing Authority said, "The SGD agreed with the JGCs' recommendation that a REIT would be the optimal divestment structure for the HA scenario in that it meets the objectives for setting up a vehicle with strong corporate governance and promoting a successful divestment."

Following the decision, the JGCs will proceed along the REIT route, and maintain a close liaison with the relevant regulatory bodies on the required approvals.

Ends/Friday, December 19, 2003

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