The Link's average monthly operating costs are about $12 million, Secretary for Housing, Planning & Lands Michael Suen says, adding the company has not charged any new fees for retail and carpark facilities under its management.

Responding to Leung Kwok-hung's query in the Legislative Council today, Mr Suen said prior to the anticipated public listing of the Link Real Estate Investment Trust, the Link operates as a wholly-owned subsidiary company of the Housing Authority. The authority must approve - and cover - the Link's operating budget.

He noted the shopping centres and carparking facilities to be divested remain the authority's properties before the Link REIT is publicly listed. The authority's transfer of management responsibilities for these facilities to the Link is different from general outsourcing arrangements. Hence, no tender exercise needs to be conducted.

Mr Suen said a joint committee, comprising senior management of the authority and the Link and chaired by the Director of Housing, has been set up to discuss important issues relating to operations and management of the properties to be divested.

Authority, Link co-ooperate to ensure tenant satisfaction

Both parties also keep close contact over daily operational matters to ensure requests and demands of commercial tenants and residents are responded to properly.

Moreover, the authority's internal audit section scrutinises the Link's key internal codes and auditing mechanism for resource deployment, and may examine the Link's financial system and accounts as and when necessary.

After the Link's takeover of the management of the retail and carpark facilities, the authority has not received any complaints concerning the closedown of any shops, or any rent increase of shops or parking spaces under the Link's management, he added.