D2 Place once again cut rents in the epidemic

28Hse Editor  2020-07-30  #Comm. / Ind.

As the epidemic continues to be severe, the government has taken the most stringent measures to control the flow of people. From yesterday, dine-in was banned throughout the day and the gathering limit was tightened to two people. This has had a huge impact on the catering industry and the retail industry. Many large landlords have recently made rent reductions to tenants to help overcome difficulties. The Roche Group has recently offered rent reductions to individual tenants of D2 Place shopping malls. In addition, Festival Walk also reduced rents to tenants by 100 million HKD after its revenue fell sharply by more than 30% from April to June.

In response to the ongoing epidemic and the government's series of anti-epidemic measures, the D2 Place mall in Cheung Sha Wan will provide more rent concessions to individual tenants of the mall. The Roche Group stated that it will continue to respond to the government's appeal, increase support, and provide more rent concessions based on the business nature and circumstances of individual merchants, so as to reduce the business pressure of merchants and tide over the difficulties together.

Roche: Increase support

In fact, the group had already reduced the rent of commercial tenants as early as last year, and implemented it again in February of this year. It was the first shopping mall to reduce rents to tenants after the outbreak in Hong Kong.

On the other hand, Mapletree North Asia Commercial Trust, which owns Festival Walk and is listed in Singapore, recently announced that Festival City’s total revenue for the first fiscal quarter was S$43.4 million (approximately HK$240 million), a sharp drop 33 from the same period last year. % Is the lowest in the past 2 years. Mapletree North Asia explained that the decrease in revenue was mainly due to the impact of retail and office rental income in shopping malls under the epidemic. During the period, the tenant sales and passenger flow of Festival Walk fell 38.6% and 44.9% year-on-year respectively.

Festival Walk reduces rents by 100 million to tenants

The group pointed out that in order to maintain a long-term relationship with tenants, from April to June, rent assistance was provided to tenants of S$18.1 million. Among them, the rent of Festival Walk tenants was reduced by S$17.9 million (approximately HK$100 million). The company refers to the originalAfter the government relaxed some of the anti-epidemic measures in early May, the flow of people in Festival Walk’s shopping malls has slightly improved. However, with the government’s recent tightening measures, it is expected that the retail market will continue to weaken. The average rent in Festival Walk will be renewed and leased again. The rent may be lower, but will continue to provide rent relief.

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