The Hong Kong authorities have started to issue formal offer letters as part of a government plan to acquire the ownership of residential units at the fire-ravaged Wang Fuk Court housing complex in Tai Po, the government announced on Thursday.

Established by the special administrative region government and wholly owned through the Financial Secretary Incorporated for the purpose of acquiring the ownership, Wang Fuk Court Property Rights Acquisition Limited will send offer letters by registered mail to the correspondence addresses provided by the owners, or deliver the letters in the manner requested by them.

On Feb 21, the SAR government announced it would spend HK$6.8 billion ($870 million) to buy back from owners all the flats destroyed in the Nov 26 devastating fire that claimed 168 people’s lives.

If the owners accept the acquisition offer, regardless of which option they choose, they must return the duly completed and signed letter of acceptance to Wang Fuk Court Property Rights Acquisition Ltd by Aug 31, according to a government statement.

The government also announced on April 28 that it would spend an additional HK$1 billion to buy out Wang Chi House, the lone apartment block unaffected by the devastating blaze that tore through the seven other buildings of the residential complex.

The acquisition plan will be formally available if 75 percent or more of Wang Chi House owners sign the letter of acceptance on or before June 30 to confirm their intention to sell.

Those who do not sign by the deadline but later decide to sell must also sign the acceptance letters on or before Aug 31. Otherwise, the plan will not cover Wang Chi House.

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“The government's acquisition offer provides a range of options, allowing owners to make the most suitable choice based on their own circumstances and needs," said a government spokesman.

For owners who opt for cash payment, the government will expedite the disbursement of funds upon completion of the transaction, so that they can make purchase arrangements in the private market or the secondary market of subsidized sale flats, said the spokesperson.

Owners can also participate in the subsequent special sales exercise dedicated for Wang Fuk Court owners to acquire a new subsidized sale flat either by cash or under the "Flat-for-Flat" arrangement, the spokesperson added.

To encourage owners to accept the acquisition offer at an early stage, the flat selection priority under the special sales exercise will be determined in batches according to the date on which the duly signed letter of acceptance from the owners is received.