Ready for clearance: The Housing Department has taken over Kwun Tong Factory Estate, recovering all remaining leased factory units.

The Housing Department has taken over Kwun Tong Factory Estate, recovering all remaining leased factory units. The site will be returned to the Government after clearance.

Built in 1966 the estate comprises two seven-storey blocks without lifts. There are 817 units, each a standard size of 24 square metres. The Housing Authority endorsed the clearance in October 2006 due to its obsolete design and deteriorating condition.

More than 200 tenants surrendered 500 units under the Early Surrender Scheme introduced in 2000. Only 100 tenants were still in active business at the end of 2007. Notices-to-quit were issued on November 30 last year informing them the removal deadline would be May 31.

After taking into consideration the difficulties met by some operators, the department postponed the deadline to September 18.

Rents for affected tenants have been frozen since the announcement of the demolition. The tenants were also offered ex-gratia allowances ranging from $80,000 to $630,000. The total amount of allowances payable is $34 million.