Shocking rent cut by 42% was gave to a new tenant in Causeway Bay.
Emperor International Holdings Ltd (00163.HK), a local landlord focusing on retail shop in popular shopping districts, made a 42% discount or HK$1.6 million rent per month in a premium retail property in No.8 Russell Street, Causeway Bay, one of the region famous in the most expensive rent in the world. That space had been taken by Bonjour Holdings Ltd. (00653.HK), a local cosmetic chain, from Emperor Watch & Jewellery (00887.HK), a seller of luxury watches & jewellery.
Furthermore, Belle International (1880.HK), a local self-branded shoe-seller, closed all of the seven Belle-brand outlets in Hong Kong for business re-structuring.
Emperor International Holdings Ltd announced that 6 of its stores in Causeway Bay and Tsim Sha Tsui have signed the new lease agreement or surrender agreement.
The stores at No.3 and No. 5, Ground Flooar, Emperor Watch & Jewellery Centre, No.8 Russell Street, which were the region with the most expensive rent in the world, were previously leased by Emperor Watch & Jewellery at $2.76 million a month but they will be transferred to Bonjour Holdings Ltd, rent was cut by 42% to $1.6 million a month, marking the greatest reduction in the region.
In addition, Tsui Wah (01314.HK) recently announced that the monthly rent of its store in Tsim Sha Tsui from 1 September to 2016 was reduced by 33% from $0.303 million to $0.203 million.