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:
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Ex-gratia Allowance
In general, eligible commercial tenants under fixed term tenancies will be offered ex-gratia allowance equivalent to 15 times of the monthly exclusive rent as specified in the tenancy agreement applicable on the date of formal announcement of clearance.
Upon formal announcement of the clearance, the existing rents of all commercial premises will be frozen, and their rent will be reviewed at a six-month interval.
Tailor-made Tender Opportunity or Lump Sum Payment
Apart from the ex-gratia allowance, eligible commercial tenants under fixed term tenancies will be given the opportunity to participate in tailor-made tender arrangements for leasing Housing Authority's commercial premises , subject to the condition that affected shop and shopstall tenants can only bid for shops and shopstalls of similar trades respectively under the tailor-made tender arrangements. Successful tenderers of the commercial premises will be granted a 3-month rent free period for the new tenancy . If the commercial tenant is successful in bidding for a commercial premises, he/she cannot participate in subsequent tailor-made tender exercises to bid for another commercial premises or give up the successful bided premises to opt for lump sum payment in lieu.
Should the tenants decide to give up the tailor-made tender opportunity, they may apply for a lump sum payment in lieu. However, the tenants cannot change their decision once they have opted for lump sum payment in lieu.
From 7 December 1995 onwards, tenants occupying more than one premises scheduled for redevelopment in the same phase are granted tailor-made tender opportunity or lump sum payment for each tenancy they held.
