Widow stalls huge property float

A Hong Kong widow on social welfare, who this week halted the listing of the world's biggest initial public offering of a property trust, says she wants to make sure the Housing Authority meets its obligations to tenants.

"The Housing Authority is selling our assets so cheaply," said 67-year-old Lo Siu Lan. "I'm very angry so I have to stand out."

That anger forced the Government to delay the listing of the US$2.7 billion ($3.7 billion) Link real estate investment trust until Lo's case is resolved. The decision, six days after Lo filed her lawsuit, caps a legal battle that has captivated the city and reached Hong Kong's highest court.

"Given the paramount importance of the rule of law in Hong Kong, the authorities will respect the decision by the Court of Final Appeal," said Michael Suen, Hong Kong's Secretary for Housing, Planning and Lands and chairman of the Housing Authority, when announcing the listing delay.

The court ruling on Saturday denied the Government's bid to reduce Lo's appeal time to hours, from 28 days - a verdict that left too much doubt for the sale to proceed.

"Justice must be done and must be seen to be done," said Chief Justice Andrew Li Kwok-nang.

Grey-haired Lo lives alone in the suburb of Kwai Chung and receives a monthly pension of HK$3331 ($596). At a press conference on Saturday, she refused to answer questions about her family.

Lo is associated with the Elderly Rights Centre, according to its website. She joined a protest in July against cuts in social assistance and is an active member of Chinese Grey Power.

"I came out today for the residents," she said after the appeal court ruling.

"I don't have to hide. You're giving trouble to my neighbours."

The Housing Authority has US$18 billion in assets and provides homes for almost half of the city's 7 million residents.

Victor So, 58, the chief executive of Link Management, which runs the authority's property trust, earns a basic annual salary of HK$5 million, with a bonus of at least 30 per cent.

Lo's lawsuit, initially filed with fellow tenant Ma Ki Chiu, aged 77, arguing that the property trust, known as the "Link REIT", violated the authority's obligation to provide shopping and parking facilities for residents.

Ultimately Lo might lose her case, considering two courts have already dismissed it. The Housing Authority says it will start the initial public offering again next month once the appeal is resolved.

Lo's original lawsuit was funded by legislator Albert Cheng, who formerly hosted a popular radio talk-show that challenged the Government on issues of democracy and social justice.

Last week, Hong Kong chief executive Tung Chee-hwa accused those behind the legal challenges of "deliberately" stirring up trouble.

Lo has support among the millions of tenants who fear their subsidised rents could rise. But the IPO attracted orders equal to 28 times the stock on offer.

Lo has 28 days to decide if she will appeal. "When you buy a chicken," she said, "you don't know when it will lay an egg."

- BLOOMBERG