Feb 13, 2020
HK's Sun Hung Kai Properties cuts Feb rent by up to 50% for most retail tenants
Feb 13, 2020
Some shopping mall landlords in Hong Kong, including Sun Hung Kai Properties, the city’s largest property developer by value, are offering relief measures such as rental concession to their tenants during the coronavirus outbreak.
Sun Hung Kai Properties, who owns major malls in some of the local districts that host international fashion brands ranging from Coach to Zara, said on Wednesday it would reduce February rent by 30-50% for most of its tenants, in an effort to stabilize economy and protect employment.
MTR Corp, who runs malls on top some of its subway stations, said it will adjust rent for small-medium companies. For its chain and international brand tenants, it will launch relief measures after collecting their sales data.
Link Real Estate Investment Trust, whose tenants are mostly small to medium businesses, also said it has set up a HK$80 million relief scheme, which includes allowing rent payment by instalments, waiving late payment interest and service charges, granting rent-free periods and reducing rents.
Hong Kong’s retail sector, already battered by months of often violent anti-government protests, is likely to get worse in coming months as a new coronavirus outbreak in mainland China has emptied shopping centres and closed down tourist attractions.
Separately, Sun Hung Kai Properties said home sales and hotel occupancy rates have been affected by the epidemic.
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