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Redevelopment Arrangement
Arrangements for Commercial Tenants affected by the Redevelopment/Estate Clearance

Eligible commercial tenants who are notified by the Housing Department (HD) in writing to evacuate before the clearance date may choose to accept the following arrangements upon surrendering their premises:

 
  • Ex-gratia allowance; and
  • Restricted tender right or lump sum payment in lieu of restricted tender right.

Ex-gratia Allowance

In general, the amount payable to tenants of fixed-term tenancies is equivalent to 15 times of the monthly exclusive rent as stipulated in the Tenancy Agreement when the programme/estate clearance was announced.

Existing rents of all commercial premises are frozen upon the announcement of redevelopment and will also be included in the current six-monthly rent review for shops affected by PRH clearance once the clearance has been announced.

Restricted Tender

Apart from the ex-gratia allowance, tenants may participate in the periodic restricted tender exercises to secure premises in Housing Authority markets. Successful tenderers will be granted 3 months rent-free period for the new commercial premises acquired through the restricted tender exercise. They are barred from further tender, and not permitted to surrender the premises in order to receive the lump sum payment in lieu of restricted tender right.

Should the tenants decline to participate in the restricted tender, they can choose to receive a lump sum payment in lieu of restricted tender right. The choice, once made, is final.

From 7 December 1995 onwards, tenants occupying more than one premises scheduled for redevelopment in the same phase are granted tender eligibility or cash allowance for each tenancy they held.

For tenants affected by redevelopment announced on and after 29 November 2001, they are only allowed to bid, through restricted tenders, for market premises with areas not exceeding twice the area of their present premises, or with internal floor area not exceeding 30 square metres, whichever is bigger.


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