STAFF IN CONFIDENCE
5.
The alternative property recently identified by Mr Day is a
penthouse on the 26 and 27 floors of a large modern development
overlooking Repulse Bay on the South side of Hong Kong Island.
It appears on plan to be suitable. The rent including service
and parking charges is about £155,300 per annum. A decision is
required by early January.
Argument
6.
The Albany is well located in Central Hong Kong. The quoted journey times to Repulse bay of 15 minutes to 20 minutes appears a minimum. From a functional point of view the arguments appear to be finely balanced. HKD's view is that in representational
terms there is little to choose between a flat in Central and a
flat in Repulse Bay. The properties are roughly equal in prestige although the Repulse Bay flat may have slightly more flexibility in that it has a roof garden and considerably more parking spaces for visitors.
The only type of accommodation which would offer significant representational advantages would be a detached house; but this is not what is under consideration
at present.
7.
From an estate management point of view there is no benefit
in moving. Running costs will be much the same while there
would inevitably be considerable additional capital expenditure involved both in fitting out the new accommodation and possibly also in surrendering of The Albany lease. The landlords (Swires) are legally entitled to ask for reinstatement and
dilapidations plus rent until a new tenant takes over. SBTC
argues that Swires would let us out of the leas gratis; that may
be so, but we cannot know unless we explore the points with them. We would not wish to do so (given the potential
embarrassment) unless there was a good case to move.
THIS IS A COPY THE ORIGINAL HAS BEEN
CLOSED UNDER
FOI EXEMPTION NO. 40. (2)
hk.res.JM
SLM
STAFF IN CONFIDENCE