Preparations for a relaunch of the Link Real Estate Investment Trust have begun with Link Management Limited overseeing the running of the Housing Authority's divestment portfolio.

The authority said the divestment exercise is a continued process, adding that the Housing Department will play a support role to minimise possible duplication of works.

The transitional arrangements have to be reviewed, as the divestment portfolio will remain the authority's property before the re-listing.

Noting the divestment portfolio has been organised into eight districts, the authority said the Link had taken over the property management services of two districts, Kowloon East-Hong Kong Island and Kowloon Central, since October.

About 200 Link staff will assume the management and operational responsibilities of the divestment portfolio. The property management and maintenance services of the remaining six districts will be put under the Link's umbrella by March 1.

All improvement work in the feasibility and planning stages has been handed to the Link. It will be operating under a budget allocation and will put in place an internal auditing system to ensure effective use of public funds.

Services contracts

The Link will procure its own services contracts including car park management, Property Management Agency and Property Services contracts, based on its outsourcing strategy.

The Housing Department may consider to extend expiring contracts for a short period or serve early termination notices to existing service providers to facilitate transitional arrangements based on the Link's new outsourcing time frame.

The Link will act as the authority's leasing agent and will be responsible for all new letting and tenancy renewal in respect of the divestment portfolio on and after May 1.

The ultimate decision on rent level and leasing terms will still have to be made by the authority's delegated officers as stipulated under the Housing Ordinance.

A Joint Leasing Panel will be set up to oversee leasing matters including considering new initiatives or trade mixes proposed by the Link. These proposals will be submitted to the authority or its committee for approval as appropriate.