Selective rent cuts for Swire tenantsBusiness | 10 Jan 2020 5:23 pm
Swire Pacific (0019) has been cutting some rents in the city, Bloomberg reported.
Swire’s Pacific Place mall has shops with brands including Cartier and Louis Vuitton, though its location has at times made it a refuge for protesters fleeing police tear gas and rubber bullets.
Rent concessions have been offered to the company’s tenants on a case-by-case basis, Michelle Low, the conglomerate’s finance director, said in a briefing with analysts today.
She didn’t give the size of rent reductions or name any recipients.
“All of us are aware that Hong Kong’s retail sales have dropped quite significantly,” Low said. “It’s important that we continue to support Hong Kong’s retail industry as well as our tenants through this challenging time.”
Sales slumped by12 percent at Swire’s shopping malls in Hong Kong through the first three quarters.
Low said the full-year result would be worse. The hotel business also suffered, said Low, with an occupancy rate of between 50 percent and 60 percent.
Shares of the company rose 0.35 percent to HK$72.60.