Hong Kong’s mall owners push back at tenants’ pleas to cut rents even as retail sales shrink amid unrelenting protests
- Hysan Development and Swire Properties are the only two retailers to offer rent cuts for their struggling tenants
- Retailers and market observers say the proposals mall owners have come up with fall far short of what is needed to keep them in business
Hong Kong’s leading mall owners are looking at various options to help struggling tenants amid the unrelenting protests, but most of them are reluctant to commit to rent cuts even after the city recorded its worst monthly sales in August.
Although Sun Hung Kai Properties, Wharf (Holdings), Hysan Development, Swire Properties and CK Asset, which together own 40 shopping centres in the city, have come up with proposals, including increasing promotional activities to postponing rental payments, retailers and market observers say it falls far short of what is needed to keep them in business.
So far, only Hysan and Swire have confirmed rent cuts.
“Temporary rental adjustments have been offered as one possible solution,” said Hysan Development, Causeway Bay’s biggest landlord, one of the worst affected districts in the protests.
Hysan owns nine shopping centres, including Hysan Place and Lee Garden One, Two, Three, Five and Six in the popular shopping district.
