C L P ® 中 中電控股有限公司

CLP Holdings Limited

香港九龍紅磡海逸道8號

8 Laguna Verde Avenue, Hung Horn,

Kowloon, Hong Kong

電話Te! (852) 2678 8111

傳真Fax (852) 2760 4448

網址Website www.clpgroup.com

19 September 2016

To: Owners I residents o f Laguna Verde

Laguna Mal l Upgrade Plan

CLP places utmost importance on our communication wi th Laguna Verde residents regarding the Laguna

Ma l l upgrade plan. We very much appreciate the views from residents through different channels over the

past several months and w i l l continue to stay connected wi th different parties. We have also been actively

exploring solutions to minimise the potential impact o f the project.

We have received an enquiry f rom Ming Pao earlier wi th regard to the upgrade plan and the news report

was subsequently published on 22 August this year. To enhance residents' understanding of our view, we

would like to share our fu l l response to Ming Pao as follows:

1. When did CLP acquire ful l ownership [commercial interest] of the Laguna Mall? When wi l l the

upgrade works commence and be completed? Wi l l the mall be closed down during the works

period?

We have been integrated wi th the Laguna Verde community since relocating our Head Office to the

Laguna Ma l l four years ago. Following a thorough study and serious consideration, we decided early this

year to upgrade our office as CLP's permanent headquarters, whilst proposing to enhance the exterior and

tenant mix o f the Laguna Ma l l as wel l as the residents' recreational facilities on the rooftop. We believe

CLP could work collaboratively wi th residents on the project which w i l l add value to the Laguna Verde

community.

In Ap r i l this year, we acquired the commercial interest o f Cheung Kong Property Holdings Limited (CK)

in the Laguna Ma l l , which gave us more f lexibi l i ty in implementing the project. We understand that the

upgrade works w i l l inevitably pose short-term impact on the neighbourhood. Hence, upon our acquisition

of CK's commercial interest, we have reached out to the parties concerned as soon as practicable to

facilitate necessary arrangements. In the past two [several] months, we have actively engaged wi th mall

tenants, parents o f Learning Habitat Kindergarten & Bilingual Nursery students (Learning Habitat is one

of the tenants), the Estate Owners' Committee (EOC) o f Laguna Verde, local residents and other relevant

stakeholders. Briefing sessions were held for the parents o f Learning Habitat students and Laguna Verde

residents on 3 June and 24 July respectively to address questions and gauge their views.

We tentatively target to commence the upgrade project in mid-2018 and bringing it to a completion in

approximately two years. As the project w i l l involve replacement o f the major electrical and mechanical

systems and certain structural demolition works, the mall w i l l be closed down during the construction

period. For safety and environmental considerations, all tenants o f the Laguna Ma l l and CLP staff w i l l be

required to vacate the building. We understand the inconvenience that would be caused to residents during

the closure o f the mall and are actively considering various means to minimise the impact.

C L P ® 中

2. Currently, the rooftop [of the Laguna Mall] is part of the Laguna Verde clubhouse. Would the

proposed alterations to the rooftop constitute a breach of the land lease?

There are recreational facilities on certain part o f the rooftop of the Laguna Ma l l which forms part o f the

Laguna Verde residential common areas and facilities. We propose taking the chance of the upgrade

project to refurbish the worn-out facilities to better serve the need o f the residents. We w i l l first obtain the

consent and authority f rom Laguna Verde owners through a general meeting before undertaking any

works to upgrade the facilities. The provision o f any new facilities w i l l be subject to compliance wi th

leasing conditions, safety requirements and other relevant regulations. Permission from relevant

government departments w i l l also be necessary.

3. Wi l l there be any retail facilities in the upgraded mall? I f yes, in what form? I f no, why?

We plan to modernise and upgrade the building exterior and retail mix o f the Laguna Mal l , and to

introduce smarter, greener and more access-friendly design elements to the mall. There w i l l continue to be

retail shops on the L G and U G floors o f the mall fol lowing the upgrade to ensure that residents' needs are

met. We also commenced a survey last month [July] to collect Laguna Verde residents' views on our

upgrade plan so that the future tenant mix o f the mall could best suit their needs.

4. Some residents quoted the sales brochure of Laguna Verde as stating that the Fisherman's

Wharf, which has now been renamed as the Laguna Mall , would serve as a shopping centre for

residents. Is CLP breaking a promise made during sales by using the mall as its office with the

proposed upgrade plan? How would CLP address residents' concern about a lack of mall

facilities in the future?

We would like to point out that according to the land lease and the deed of mutual covenant o f the Laguna

Verde development, commercial use (including retail and office use) is always permitted for the Laguna

Ma l l and there is no specific requirement in the deed of mutual covenant on the proportion o f retail and

office space in the mall . Most importantly, under our upgrade plan, there w i l l continue to be retail shops

on the L G and U G floors o f the mall fol lowing the upgrade to serve the needs of residents. We also

commenced a survey last month [July] to collect Laguna Verde residents' views on our upgrade plan

including their preferences on the future tenant mix. We w i l l continue to listen to the opinions of the EOC

and residents so that the retail mix could best suit their needs.

5. Wi l l the upgrade plan require approval from the Town Planning Board? I f yes, when wi l l the

plan be submitted? I f no, why?

Details o f the upgrade project are still being planned out. We w i l l ensure that the land lease and the deed

of mutual covenant o f the Laguna Verde development as wel l as other relevant legal requirements w i l l be

complied wi th in our implementation o f the project. Permission f rom relevant government departments

w i l l also be sought.

Should you have any enquiries, please do not hesitate to contact us at (852) 2678-8191 during office hours,

or e-mail us at upgrade@clp. com .hk.

Eric Ng

Associate Director - Group Property Development

CLP Holdings Limited