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The Link Real Estate Investment Trust (REIT), which operates 180 shopping centers and car parks in public housing estates, will continue to do its business despite its chairman's resignation, said chief executive officer Victor So.

The management stressed that the company would rely on the new chairman, who has considerable experience in the operation of shopping centers. So also said the company was not under any pressure from major shareholder TCI because the UK-based firm was happy with the performance of the management and staff.

On Monday night, Link REIT chairman Paul Cheng announced his resignation with effect from the end of March,a year before the expiry of his contract. He will be replaced by Hong Kong Lands chief executive Nicholas Sallnow-Smith.

Speaking about Cheng's resignation at a press conference yesterday, So said Cheng had planned to retire early and informed the board of his intention.

Referring to shop owners' fear that the company would raise rents drastically if the new chairman pursued a more aggressive marketing approach, he said rents are decided by the market mechanism, while the company has also market positioning for the shopping centers.

"Our mission since the listing is to maximize the best strengths of shopping centers with good potential," he said. "But the very thing is for the shop owners to cooperate with us to attract residents nearby and from farther districts to consume in our shopping centers to create a win-win solution for the residents, shop owners and shareholders."

On the new chairman, So said Nicholas has considerable experience in shopping center operations. There will be no communication problem between the new chairman and management and in fact management will have a lot to learn from him, he added.

Meanwhile, over 200 shop representatives marched to the SAR government's Central Government Offices and demanded the Link REIT to freeze and cut rents.

The company will breach the contracts if they force the shop owners to leave before the contracts expire, they said. If the company refuses to freeze and cut rents, they will stage protests by stopping their business and defaulting rents after the Lunar New Year holidays, they added.