Swire becomes first Hong Kong developer to offer relief, lowers rents temporarily at Pacific Place in protest-hit Admiralty
- ‘Temporary rental adjustments’ are being made on a case-by-case basis, Swire Properties says
- Retailers likely to continue to face a challenging business environment ahead, JLL says
Swire Properties said on Friday it would offer “temporary rental adjustments” to tenants at Pacific Place, its flagship shopping centre in the protest-hit district of Admiralty, becoming the city’s first developer to cut rents.
Some shops at Pacific Place, home to international luxury brands such as Louis Vuitton, Chanel and Cartier, had to shut down early during weekends after protesters gathered in the area to demonstrate against the now-withdrawn extradition bill.
“We can confirm that Pacific Place will offer temporary rental adjustments to tenants, to support the Hong Kong retail industry, as well as our tenants, during this challenging time,” the developer, which is owned by Hong Kong conglomerate Swire Pacific, said in a statement.
“The adjustments are being made on a case-by-case basis, depending on an individual tenant’s business circumstances. As such, the majority of Pacific Place’s tenants will be offered a temporary rental concession,” the company said, but did not provide any further details.
The company, one of Asia’s largest conglomerates, had said during its interim results briefing last month that Pacific Place’s July retail numbers had been soft because of the protests.
“It is the first big developer to make such a move,” said Terence Chan, senior director of retail at JLL in Hong Kong. “It is hard to say whether other landlords will follow. It depends on the location and whether business has been affected by the recent social movement.”