[Caihua News] SHKP (00016-HK(under)Xinyi Network (01686-HK)It was announced that an application was made to the Hong Kong Science and Technology Park in 2012 for leasing the site of the Tseung Kwan O Industrial Estate for the construction of a data centre, but it was not accepted. Xinyi later questioned that the Science and Technology Park connived at the illegal subletting of the data centre operator of the land concerned, and then filed a judicial review, requesting the court to order the Science and Technology Park to enforce the terms of the lease, but it was ruled against in March this year.

Xinyi said yesterday that it had decided to appeal against the decision on the grounds that, after consultation with legal advice, there was an error in the legal point of view of the decision of the High Court and hoped that it could be rectified and clarified through appeal.

Xinyi reiterated its grounds for complaint that some data centre operators in Tseung Kwan O Industrial Estate operate in a mode of operation involving subletting or allowing occupation by third parties. As the Tseung Kwan O industrial land is heavily subsidized by the Hong Kong Government, the Science Park has not taken sufficient and reasonable measures to enforce the terms of its tenancy agreement to prohibit these operators from subletting the premises to third parties or to allow third parties to occupy the venues. Giving them an unfair competitive advantage will not only not help enhance the competitiveness of Hong Kong, but also seriously affect the healthy development of the data centre industry in Hong Kong.

It is understood that Xinyi Network applied for the lease of the site in Tseung Kwan O Industrial Estate as a data centre in 2012, but the bid eventually failed, and it was necessary to purchase lots outside the industrial estate for more than $400 million the following year. Xinyi Network submitted a judicial review of the incident, alleging that the Hong Kong Science and Technology Parks Corporation was unfair, and a judge of the Court of first instance ruled against Xinyi on 26 March this year.