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Redevelopment Arrangement
Arrangements for Commercial Tenants affected by the Comprehensive Redevelopment Programme

Redevelopment arrangements apply to tenants with fixed-term tenancies and tenants of graded shops.

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.

The above arrangements are not applicable to commercial tenants who acquired tenancies through rental tender or negotiation after the announcement of the CRP on 2 June 1988.

Ex-gratia Allowance

The amount payable to tenants of fixed-term tenancies is equivalent to 15 months' current (exclusive) rent / licence fee as stipulated in the Tenancy Agreement when the programme was announced.

The amount of allowance payable to tenants of graded shops will be determined in proportion to shop area and grade. Existing rents of all commercial premises are frozen upon the announcement of redevelopment.

Restricted Tender

Apart from the ex-gratia allowance, tenants may participate in the periodic restricted tender exercises to secure shopstall tenancies of the HD. 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 futher 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 / licence they held.

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

Exchange of Public Rental Housing by Tenants of Graded Shops

Only those graded shop tenants acquired the tenancies before 28.5.1987 are allowed to exchange their shop premises for a rental public housing unit by relinquishing their ex-gratia allowance and restricted tender right.

Eligible graded shops tenants will have to satisfy the following criteria:

1. The tenancy of the graded shop was acquired before 28 May 1987;
2. The tenant or his / her family members did not own any private property from up to 24 months prior to the announcement of redevelopment.

Upon acceptance of this offer, the tenant is no longer eligible for restricted tender, ex-gratia allowance, or lump sum payment in lieu of restricted tender right.

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