********************************************************
A total of 18 sets of vacant factory units covering about 1,000 square metres at Housing Authority¡¯s (HA) factory estates will be put up for bidding by tenants affected by the clearance of Tai Wo Hau Factory Estate at a restricted tender exercise to be held on 18th May.
"These factory units are located at Chun Shing Factory Estate and Kwai On Factory Estate in Kwai Chung; Hoi Tai Factory Estate in Tuen Mun and Sui Fai Factory Estate in Sha Tin,¡± the Deputy Director of Housing (Estate Management), Mr. Lau Kai-hung, said today (April 22).
Another 1.3 million square metre of factory space are also available in the private sector currently, according to records of the Rating and Valuation Department.
"We understand the tenants' difficulties in relocating to factory units in newer HA factory estates or in the private sector. We will try to do as much as we can to assist them," Mr. Lau said after a meeting with representatives of the displaced tenants and Legislative Councillor Wong Kwok-hing chaired by the Permanent Secretary for Housing, Planning and Lands (Housing), Mr. Thomas Chan Chun-yuen.
A total of 78 sets of factory units had been put up for bidding by displaced tenants of Tai Wo Hau Factory Estate under four restricted tender exercises and another 226 sets of factory units under six open tender exercises since the announcement of the factory clearance in April last year.
He stressed that the levels of ex-gratia allowances (EGAs) payable to the affected tenants, ranging from $2,717 to $5,070 per square metre or equivalent to seven to 10 years' rent, were far higher than levels of EGAs offered by the Government in land resumption exercises.
On assignment rights and tenancy rights, Mr. Lau explained that both the tenancy agreement and the Housing Ordinance entitled the HA to terminate factory tenancies on giving due notice of three months or less. Tenants have the rights to lodge appeals with the independent Appeal Panel upon receiving Notices-to-Quit issued by the HA.
"Whilst tenants might rely on assurances made by the former Resettlement Department on security of tenure, our legal advice is that notwithstanding arrangements for assignment having been acceded to by the HA, any rights held by tenants do not survive upon the termination of the tenancy," Mr. Lau said.
"The EGAs granted was intended to reflect the benefits attached to the tenancies, which vary depending upon the date the tenancy was acquired and the means of acquisition," Mr Lau said.
"Although displaced tenants are not legally or contractually entitled to any form of compensation, as a responsible and reasonable landlord the HA offered EGAs to assist their relocation," he added.
The EGAs have taken into account the dual elements of disturbance including removal cost, rental during fitting-out of new premises and fitting-out costs; and an amount to buy-out the tenant's assignment right.
It is the HA's established practice to give an 18-month notice to vacate and to suspend rent increases from the date of announcement. An advance payment of 70 per cent of the proposed EGAs will be paid on approval, with the balance to be paid upon clearance of rent arrears and delivery of vacant possession.
A three-month rent-free period or a cash sum of $4,700 in lieu will also be offered to tenants leasing HA factory units, otherwise they can choose to obtain a cash sum of $4,700 per unit.
Built in 1961¡ª1966, Tai Wo Hau Factory Estate comprises one four-storey block, one five-storey block and one seven-storey block without lift service with 1035.5 units in standard sizes of 18 square metres or 24 square metres.
There are now 158 remaining tenancies occupying 387.5 units, out of which about 50 per cent are in active use. Under an Early Surrender Scheme, 214 tenants holding 526 units had actually surrendered their premises.
"Due to the high vacancy rate, it is not considered cost-effective for the HA to maintain the estate. The site will be returned to the Government for disposal," Mr Lau said.
Ends/Saturday, April 22, 2006
Issued at HKT 14:51
NNNN
