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Recovery Operation of San Po Kong Factory Estate

    The recovery operation of San Po Kong Factory Estate went smoothly today (February 27) with the successful recovery by the Housing Department of all the remaining leased factory units of 40 tenants.

     "We are pleased with the progress of today's operation, thanks to the co-operation of the tenants and the assistance of various government departments," the Chief Manger/Management (Kowloon East), Mr Lee Cert-quinn said.

     "All recovered units were sealed up with all remaining machinery and chattels being taken stock of and registered. Operators are required to move them out on or before March 31," Mr Lee said.

     He appealed to the tenants to collect their ex-gratia allowances ranging from $72,000 to $1.49 million or equivalent to 100 to 130 months' rent. The total amount of ex-gratia allowance payable is $109 million.

     In addition to the allowances, they will be offered three months rent-free when leasing other factory units under the Housing Authority or a cash sum if they choose to go elsewhere in the private sector.

     Mr Lee said the assignment right and inheritance of tenancies expired with the termination of the tenancy agreements.

     Original scheduled for clearance on May 31, 2005, the operation has been extended three times to August 3, 2005, November 30, 2005, and subsequently February 27, 2006, or a lapse of 27 months from the date of announcement.

     The Housing Authority's Strategic Planning Committee approved the clearance of San Po Kong Factory Estate on September 11, 2003, because of rising maintenance cost and obsolete design.

     Built between 1962 and 1965, San Po Kong Factory Estate comprises four five-storey blocks and two seven-storey blocks without lift service. There are 2,008 factory units with standard size of 24 square metres.

     A consultancy study will begin later this year to ascertain the site's suitability for public rental housing development.

Ends/Monday, February 27, 2006
Issued at HKT 16:34