50% rent reduction for tenants at Harbour City in TST

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12th February 2020 – (Hong Kong) An internal email sent by Wharf Real Estate Investment Company Limited revealed that the February rent for tenants at Harbour City in TST will be halved. In the email, it was stated that the management for Harbour City has implemented a series of measures to combat the epidemic to protect customers and tenants. Some tenants have confirmed the 50% rent reduction.

The Real Estate Developers Association of Hong Kong expressed on their website yesterday that landlords should reduce the rent for tenants to ease their burden. The statement also mentioned that it would continue to explore with the tenants on various feasible solutions, including rent reduction to ease their operating pressure. The Chairman of the Real Estate Developers Association of Hong Kong said yesterday that many members have lamented over the difficult business environment. Everyone feels that it is necessary to provide tenants with temporary relief measures, including short-term rent reduction or rent-free periods, etc.

Meanwhile, Link Real Estate Investment Trust expressed yesterday that they will set up a HK$80m temporary relief fund to help tenants overcome the current situation. Measures include payment of rent in instalments, exemption of penalty interest and service fees, rent-free period, rent reduction, additional parking discounts for catering merchants, etc. The specific arrangements depend on the proportion of individual tenants’ rent to turnover, lease history, operating and capital flows.

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