Hong Kong's Court of Final Appeal Wednesday ruled that the Housing Authority's sale of retail and carpark facilities to the Link Real Estate Investment Trust is lawful.

Chief Justice Andrew Li said the authority plainly has the power to sell the properties to the Link REIT as stipulated in Section 4(2)(a) of the Housing Ordinance. But any exercise of the power of disposition should be consistent with the authority's object as laid down in Section 4(1) to secure the provision of housing and ancillary amenities for such kinds or classes of people as the authority may, subject to the Chief Executive's approval, determine.

Li pointed out the critical question is whether the sale of the retail and carpark facilities to Link REIT is consistent with the object of "securing the provision of" the facilities.

He explained to "secure" the provision of the facilities does not mean the authority must itself be the direct provider, which would involve its direct control, or that, having been the direct provider for some years, the authority may not stop being the direct provider and give up control.

There is no basis to suggest the statute contains any provision, express or implied, that public housing tenants have any statutory right to the authority's continued retention and control of the facilities which the tenants are still using.

He said the authority secures the provision of facilities so long as the facilities are available, though they are provided not by the authority but by Link REIT, a third party over whom the authority has no control.

All the other four judges agreed with the Chief Justice's judgment.

Source: Xinhua