Associated International Hotels and parent company Tian Teck Land have lowered asking rents at iSquare, a new shopping centre in Tsim Sha Tsui, by up to 30 per cent in the wake of the economic downturn.
The companies invested HK$1.3 billion to redevelop the Hyatt Regency into the shopping centre.
Cheong Kheng Lim, the deputy chairman of Tian Teck, yesterday said they had lowered asking rents by 20 to 30 per cent from the peak level in the first quarter of last year.
The latest asking rents for retail space in iSquare ranged from HK$45 to HK$200 per square foot, said Kevin Lam, an associate director of retail services at DTZ. Rents for street-level shops range between HK$600 and HK$800 per square foot.
The annual rental income could reach more than HK$360 million if the shopping centre is fully let.
Although hard times have hit the retail sector, Mr Cheong was optimistic about leasing at iSquare and in the retail business. 'Hong Kong people's buying sentiment has been damped, but increasing mainland visitors could help improve retail business,' he said.