Link Reit is offering customers a growing array of shopping and dining choices

I refer to the letter from Chan Pak-hei ('High prices causing real problems', September 17).

Since our initial public offering in 2005, The Link Reit has been gradually enhancing customer experience with a growing array of shopping and dining choices, while continuing to meet the daily needs of residents. In keeping with Hong Kong's time-honoured free market principles, we have stayed customer focused and market driven in running our properties to create better value for our stakeholders.

Product prices and rents are a reflection of market conditions and other factors.

As shown in rent-to-turnover figures collected by us, rent is not the biggest or most influential cost component for retailers. Moreover, according to an internal analysis on publicly available price data, rental levels at The Link's fresh markets surveyed is not correlated to their general price level.

Our retailers' business can only stay viable by keeping prices competitive and affordable for shoppers. In reaching a mutually agreed rental rate with our retailers, The Link takes into consideration factors like retailers' affordability, location, size and the trade of each shop. It is only when our retailers succeed that our business can be sustained.

Our leases usually cover three years, and based on recent leases signed, the rental increase is around 6.7 per cent per year.