CEO speaks on Facility Maintenance Strategies at Link

(Hong Kong, October 30, 2010) Mr George Hongchoy, Chief Executive Officer of The Link Management Limited ("The Link Management"), spoke about The Link REIT's ("The Link") experience in upkeeping its portfolio's property value and serviceability through modern maintenance strategies at the Building Surveyors Conference 2010 this morning. The Link Management is the manager of The Link that runs a portfolio of 180 retail and car park properties serving nearly 40% of Hong Kong's population.

Properties in The Link's portfolio are buildings formerly owned by Housing Authority and primarily built from the 1960's through 2000. To upkeep the value and serviceability of this broad property portfolio, Mr Hongchoy said The Link Management has adopted modern maintenance strategies and a life cycle approach in maintenance planning.

"The predictive life cycle approach implemented involves surveying and inspecting the properties regularly and compiling a holistic portfolio-wide asset registry that provides the company with the necessary data and enables future projections," explained Mr Hongchoy.

"As part of our efforts to further enhance maintenance standards, our maintenance programme also encompasses integrated but independent cost control, health & safety teams, independent project performance auditing, and performance targets for staff and contractors," he added.

"The Link Management also has in place a 3-year maintenance cycle and a 10- year replacement capital expenditure programme for main plants and machinery and building fabric," Mr Hongchoy pointed out.

These cycles run alongside the company's other established refurbishments and capital work programmes, including district improvement and The Link's Asset Enhancement Initiatives (AEIs).

"Having started Direct Management of our retail properties in November 2009, we have been focusing on improving service quality through tiering of our shopping centres to offer applicable levels of service, switching Customer Service Agents from contract staff to employees of The Link to ensure quality of service, and tracking service performance of the centres with a "mystery shopper program," he said.

Mr Hongchoy said that The Link is committed to a high standard of corporate social responsibility (CSR) and is playing its part in contributing to a green future through a wide range of environmental initiatives in supply chain management, capital works and daily management practice.

"Our service contractor selection is based on our CSR commitments and quality, performance & partnering approach rather than on price alone. A study is being conducted at Leung King and Stanley Plaza for green opportunities in Asset Enhancement centres. Future AEIs will incorporate more public open spaces, green roofs, recycled building materials, CFC free refrigerant, and hygienic refuse collection systems."

"Through implementing various measures in our daily operations, we have saved over 18 million kilowatt-hours of electricity, equivalent to the reduction of 10.3 million kilograms of carbon dioxide emission. These measures include turning off lights and air-conditioning systems not in use, adjusting the lux level as well as indoor temperature," Mr Hongchoy concluded.

The Building Surveyors Conference is an annual event organized by the Building Surveying Division of The Hong Kong Institute of Surveyors. The objective of this annual event is to provide a platform for all professional brethrens to interact and exchange the latest update and development in their expertise. The theme of this year’s conference is "The 21st Century Building Maintenance Trend".