26th July 2022 – (Hong Kong) The lease for The Peak Lookout restaurant located in a century-old history and a Grade II historic building at No. 121 Peak Road expired in July. According to the latest information, the lease is taken over by MODERN CHINA INTERNATIONAL LIMITED for a three-year term, and the monthly rent is HK$112,000 or 20% of the monthly turnover, whichever is the highest. MODERN CHINA INTERNATIONAL LIMITED has operated The Peak Lookout since 2001. The property covers an area of approximately 12,900 square feet with an interior area of approximately 9,042 square feet, and can only be used for restaurant operation and other ancillary purposes that may be approved in writing by the government. The base rent of the property is HK$112,000, which is 51.3% lower than the HK$230,000 renewal rent in 2019.
According to data, the restaurant rent reached a high of HK$1.8 million in 2006, and then continued to decline with market conditions. In 2016, the monthly rent had dropped to HK$920,000. 3 years ago, the base rent dropped further to HK$230,000 or 25% of the turnover. In terms of base rent, the latest amount has dropped by more than 50% compared with the old rent, and in terms of profit sharing ratio, it is also 5% lower than three years ago.