Exclusive | Harbour City offers more concession to beleaguered tenants but dozens refuse to sign up as they find terms stifling
- Harbour City says tenants signing up to the new offer can cut the duration of lease to 12 months from 18 months previously, but other strict terms still apply
- In the past few months, Harbour City has sued tenants to recover rent arrears, sent bailiffs to seal off shops of those who have failed to pay rent in full
Hong Kong’s biggest shopping centre Harbour City, owned by Wharf Real Estate Investment Company, has yielded to pressure from tenants, backing down from its earlier demand that they renew their lease for 18 months to avail of the rent concessions.
However, dozens of tenants have decided against signing the letter as they would have to return the rent concession in full if they fail to abide by the terms of the offer that includes clearing all “outstanding rent, charges and any arrears accrued up to 31 August 2020 before 15 September 2020”.
“If you have signed and returned to us the offer letter for rent concession for the month of May 2020, the period of 18 months … of that letter shall be deemed to have been amended to 12 months from the expiry date of your current tenancy at the then market rate to be mutually agreed between you and the landlord, provided that the offer contained in this letter is accepted,” reads the letter seen by the Post.
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Requiring tenants to comply with terms when offering rent concession “is probably specific to Hong Kong”, said Luca Solca, senior research analyst of global luxury goods at Bernstein. The landlord has sent this letter in a bid to defuse the risk of brands closing shops, he added.