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The following is issued on behalf of the Housing Authority:
The Housing Authority (HA) will extend the Extra Rent Free Scheme from conventional wet markets to include long-standing vacant shops for retail business.
"The extension aims at further reducing the overall vacancy rate of the HA's retail premises," said the Chief Manager/Management of the Housing Department, Mr. Deryk Yim.
The offer of extra rent free period depends on the vacancy period of the shops:
- 2 extra months for shops with a consecutive vacancy period between 2 years and 3 years;
- 4 extra months for shops with a consecutive vacancy period over 3 years and up to 4 years; and
- 6 extra months for shops with a consecutive vacancy period over 4 years.
Mr. Yim said that in order to deter abuse of the concession, the extra rent free period will be granted in stages during the 3-year term tenancy:
- The 2 extra months' rent free will be granted in the 6th and 12th months of the tenancy.
- The 4 extra months' rent free will be granted in the 6th, 12th, 18th and 24th months of the tenancy.
- The 6 extra months' rent free will be granted in the 6th, 12th, 18th, 24th, 30th and 36th months of the tenancy.
In July 2006, the HA's Commercial Properties Committee endorsed extra rent free concession for new letting of shopstalls which have remained vacant for a considerable period and failed to be let out at least thrice in open tender exercises. A total of seven long-standing vacant shopstalls have been let under the Scheme since then.
"In the light of the positive market response to the Extra Rent Free Scheme, it is decided to extend the Scheme to include those long-standing vacant shops for retail business meeting the above mentioned criteria as an enhancement measure to further reduce the overall vacancy rate of the HA's retail premises." Mr. Yim explained.
"Notwithstanding extra rent free period being given, there should be positive net gain from letting out the prolonged vacant shop premises, hence bringing better revenue return to the HA's Commercial Accounts," he added.
The enhancement will be implemented in the upcoming open rental tendering invitation on 9 March 2007, successful bidder/bidders for prolonged vacant shop premises meeting the above mentioned criteria will enjoy extra rent free period.
Ends/Saturday, March 3, 2007
Issued at HKT 11:57
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