SDEV's statement

In regard to my earlier statements relating to media reports about property investment activities undertaken by me and my family, I have the following to add:

1. My earlier response that I have "no knowledge" about the suspected unauthorised alterations and operation of sub-divided flat units by the lessee of the two properties in Tai Kok Tsui and Shanghai Street of which my wife has a stake was made in reference to the present situations of the said properties. I resigned my directorship of Harvest Charm Development Limited (the Company) in October 1997 and thus I have not followed up on the leasing matters of those properties. The unit in Tai Kok Tsui that the Company bought in 1994 was a property with several tenants. While I was not a shareholder of the Company, I was aware of that situation as a director of the Company. My understanding then was that the investment decision of the Company was based on the long-term investment value of the property while rental income was only a secondary factor. In fact, the tenancies of the property were governed by the rent control legislation at that time.

2. I reiterate that my wife has decided to sell all her stakes in the Company.

3. Regarding my investments in the property market, I stress that I have not bought Hong Kong property since 2007.

4. I promise that, during my tenure as the Secretary for Development, my wife and I will not invest in the Hong Kong property market, except for personal use, to dispel public concerns.

Ends/Monday, August 6, 2012
Issued at HKT 12:34