News Alert: Court ruled in favour of SUNeVision’s complaints against HKSTP
- SUNeVision was ruled successful in the judicial review on certain Grounds against HKSTP
- The complaint was on subletting or licensing part of leased premises to enterprises by data centre operators in HKSTP
- The court ruled in favour of SUNeVision and directed HKSTP to reconsider the complaints
- The court’s decision is positive for a benign competition in the Hong Kong data centre market
What’s New
– The High Court allowed SUNeVision’s (1686 HK) appeal against Hong Kong Science and Technology Parks Corporation (“HKSTP”) and ruled that was successful in the judicial review on certain Grounds on 31 May 2022.
– The court’s decision affirmed that the customers of HKSTP (e.g. Global Switch and NTT) in the Tseung Kwan O Industrial Estate (“TKOIE”) do not have exclusive use and occupation of space by subletting or licensing part of leased premises to enterprises.
– The High Court directed that HKSTP should reconsider SUNeVision’s complaints in accordance with the meaning of the Occupation Restriction in the Lease Restriction Policy.
– Legal judgment: SUNEVISION HOLDINGS LTD v. HONG KONG SCIENCE AND TECHNOLOGY PARKS CORPORATION
Our View:
– We believe the court’s decision is positive for benign competition in the Hong Kong data centre market, as some data centre operators are leasing land below market price.
– We currently rate BUY on the counter; TP of HK$13.30.