The Housing Department has taken over Tai Wo Hau Factory Estate, recovering all remaining leased factory units. The site is being returned to the Government for clearance.

All recovered units have been sealed, with all remaining machinery and leftovers being taken stock of and registered. Operators have to remove them by May 16.

Eligible tenants can apply for ex-gratia allowances equivalent to seven to 10 years' rent. The total amount of ex-gratia allowances payable is $42 million. They have also been offered three months rent-free when leasing other factory units under the Housing Authority or a cash sum if they choose to go elsewhere in the private sector.

A total of 439 sets of factory units have been put up for bidding by Tai Wo Hau Factory Estate's displaced tenants under 17 restricted tender exercises and another 370 sets of factory units under 12 open tender exercises since the announcement of the factory clearance in April 2005.

Built in 1961-66, the estate comprises four-, five- and seven-storey blocks without lifts. There are 1,035.5 units in standard sizes of 18 square metres or 24 square metres.

The Housing Authority Strategic Planning Committee approved the estate's clearance in 2005 because of its rising maintenance cost, obsolete design and high vacancy. It was deemed not cost-effective to maintain the estate.

Originally scheduled for clearance on October 31 last year, the operation has been extended twice to today at tenants' request for more time to arrange relocation.