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Hong Kong's Housing Authority shelved a US$3 billion real estate privatization scheme, the world's largest of its kind, last night just hours before its planned launch on the stock exchange today.
Michael Suen, Secretary for Housing, Planning and Lands, said the government will push back the listing, which has been challenged in court by an elderly female tenant, until it is free of any legal obstacles.
"I think we will have to wait until all the legal impediments are removed before we can launch to the next stage," Suen told reporters after a late-night meeting. "We won't be able to know when we'll relaunch (the sale) but we aim to relaunch it as soon as possible."
The government plans to sell off 180 shopping malls and 79,000 car parking spaces on public housing estates to private investors through a Real Estate Investment Trust (REIT).
But 67-year-old public housing resident Lo Siu-lang was on Friday given 28 days to appeal to Hong Kong's highest court against the lower court decisions upholding the authority's right to privatize the assets.
The pensioner was seeking a judicial review of the listing of the so-called Link REIT, claiming the deal undervalues public assets, short-changes the public and threatens to lead to rent rises for public housing tenants. It is not clear if she will appeal the earlier judgments, but the Authority had wanted all legal challenges dealt with before listing.
A fresh lawsuit was heard by the High Court Saturday evening as a disgruntled investor sought urgent leave to apply for a judicial review and the return of her money. But her application was rejected by the court.
(China Daily HK Edition December 20, 2004)
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