Hong Kong court rules in favour of govt rent demands on developer sites

HONG KONG (AFX-ASIA) - The Court of Final Appeal has ruled the government is allowed to demand rents on undeveloped sites based on a "rateable value," the South China Morning Posted reported. The report said nine developers -- Cheung Kong, Chinachem, Hang Lung Group, Henderson, Nan Fung, Sino Group, Sun Hung Kai Properties, Swire Pacific and Wheelock Group -- had contested government demands that they pay rent on land waiting to be redeveloped or in the course of being developed. The report said the developers protested against a change in the law that enabled the Commissioner of Rating and Valuation to demand rent in respect of 59 development sites. The sites were in the course of development or redevelopment, although in some cases the development has not progressed beyond the erection of hoardings, the report said. The report said leases for the sites were granted between May 1985 and June 1997. The sums charged -- 3 pct of the rateable value of the relevant properties -- were substantial, the report said, adding the developers previously paid either a nominal rent for the sites or nothing.

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