Retail rents at malls are slashed by up to 40pc

Business | Stella Zhai 13 Dec 2019

Swire Properties (1972) was reported to have offered up to 40 percent rental cuts for tenants in Cityplaza while Wharf Real Estate Investment Company (1997) has reduced rentals costs by 15-20 percent for merchants in Harbour City, local media reported quoting sources.

Several shops in Cityplaza have been offered 30-40 percent rent cuts for six months, and the average rental cost for tenants in Cityplaza could be HK$72 per square foot per month following the cut, almost equal to those for shopping malls under The Link Real Estate Investment Trust (0823), the media outlet reported.

Swire Properties told The Standard that Pacific Place, Cityplaza and Citygate Outlets have offered temporary rental adjustments on a case-by-case basis, but would not disclose their lease arrangements with tenants. The company will take into consideration each individual tenant's business circumstances and their existing lease terms to provide suitable assistance.

Media reports also said merchants at Sun Hung Kai Properties' (0016) projects are free of rental costs for days when the mall closes and some tenants have been refunded deposits worth three months' rent. Shops at K11 Musea, under New World Development (0017), meanwhile, have been offered 10-20 percent rent cuts for two to three months.

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