Sale and/or Letting of Premises in Industrial Buildings

The Estate Agents Authority (“EAA”) received a letter from the Lands Department (“LandsD”) requesting the EAA to draw licensees’ attention to the interpretation of “industrial purpose” under the land lease when handling the sale and purchase or leasing of industrial premises in industrial buildings (“IBs”) that are redeveloped or to be redeveloped in accordance with the planning permission from the Town Planning Board for redevelopment for “modern industrial uses” or “non-polluting industrial uses”.

When dealing with the sale and/or letting of properties in IBs, licensees should note that the interpretation of “industrial and/or godown purposes” under land leases is different from the interpretations of “modern industrial use”, “non-polluting industrial use”, “other uses as permitted in the “Other Specified Uses” annotated “Business” zone” and “industrial use” under the planning regime , which uses will constitute uses in breach of the user restriction of “industrial purpose” under the land lease.

Licensees should provide accurate information to their clients in respect of the sale and/or letting of premises in IBs. They should be aware of the different interpretations under leases and the planning regime and avoid providing inaccurate or misleading information to prospective purchasers or tenants of properties in IBs. Moreover, if a breach of land lease conditions is detected, the LandsD will take lease enforcement actions in respect of the breach.

Licensees are advised to click here to read the letter extract provided by the LandsD for the detailed explanation of the aforementioned interpretations.

Should there be any enquiries, please call the enquiry line of Development Control Section of the LandsD at 3793 4233.

(9 December 2021)