[回購領展] Should Government buy back Link REIT?

Buy Back the Link Real Estate Investment Trust

Link REIT is owner of numerous shopping malls near public housing estate in Hong Kong, its popular shopping centers are being upgraded to luxury shopping malls one after the other, leading to a continued surge of rent, which in turn triggered criticism from the public.

Stakeholders

Pros -> support repurchase -> any problems if not repurchase

1. Traditional shops
- Shut down due to soaring rental prices

2. Preservation group
- Lost the collective memories

3. Neighborhood (Grassroot living in public rental estate)
- Cannot buy low-price products

Cons -> not support repurchase -> any problems if repurchase

Retails, catering, wholesales
- Cannot earn profit due to low traffic flow

PR, marketing, event
- Less events, low income

Investors
- Hold less shares and enjoy less dividend
-> Link Reit has less cash flow to improve the quality of the shopping malls and market
-> the quality, cleanliness decline
- Deficit

Where do we stand? (HK specific)

- HK is Free economy, which is the pillar of success
- Provide high quality shopping malls and market
- Neighborhood will be beneficial from it, e.g Tuen Mun Butterfly Shopping Mall

Remedies

- Reiterate the gov will closely monitor the rent of link malls and markets
- Remind link to strictly comply with the tenancy agreement
- Hold more bazaar to replicate the traditional food stalls regularly at a discounted price
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