Hong Kong property developers cut retail rents in Feb amid virus battle (updated)

MTR

13/02/2020 05:12

(Adds measures from Henderson Land, New World Development)
    HONG KONG, Feb 13 (Reuters) - Major shopping mall landlords
in Hong Kong are offering cuts in February rent by as much as
60% to help tenants ride out the effects of the coronavirus
outbreak.
    Hong Kong's retail sector, battered by months of often
violent anti-government protests, is likely to suffer in the
coming months as the outbreak in mainland China has emptied
shopping centres and closed down tourist attractions.
 urn:newsml:reuters.com:*:nL4N29T19L
    Henderson Land  0012.HK  said it will cut February rent by
20% to 60% for its small- to medium-size tenants in retail, food
and beverage, as well as education businesses following similar
moves by its peers.
    "Hong Kong's retail and food and beverage businesses have
been greatly affected since February due to the outbreak of the
novel coronavirus outbreak," Henderson Land said in an emailed
statement on Thursday.
    The city's largest property developer by value, Sun Hung Kai
Properties  0016.HK , which owns major district malls that host
international fashion brands ranging from Coach to Zara
 ITX.MC , said on Wednesday it would reduce February rent by 30%
to 50% for most of its tenants.
    New World Development  0017.HK , whose tenants include many
luxury brands, also said it would reduce the February rent,
while MTR Corp  0066.HK , which runs malls on top some of its
subway stations, said it would adjust rent for small-medium
sized companies.
    MTR also said it would launch relief measures for its chain
and international brand tenants after collecting their sales
data.
    Link Real Estate Investment Trust  0823.HK  has set up a
HK$80 million ($10.30 million) relief scheme for its community
malls, including measures like allowing rent payment by
instalments, waiving off late payment interest and service
charges, granting rent-free periods and reducing rents.    
    Separately, Sun Hung Kai Properties said home sales and
hotel occupancy rates have been affected by the epidemic.  
    Hong Kong's economy contracted for the first time in a
decade in 2019 and the worst yet to come, with no end in sight
to the protests in the Chinese-ruled city and the virus outbreak
in mainland China.  urn:newsml:reuters.com:*:nL4N2A32F2  
    Hong Kong, which has confirmed 50 coronavirus cases and one
death so far, has taken measures to reduce the number of
visitors from China. The city's retail and tourism sectors rely
heavily on spenders from the Chinese mainland.
    The Chinese province of Hubei, which is at the epicentre of
the virus, reported a record 14,840 new cases on Thursday under
a new method for diagnosing cases.  urn:newsml:reuters.com:*:nL8N2AB6U4
    
    
($1=7.7690 Hong Kong dollars)

 (Reporting by Clare Jim; Editing by Louise Heavens and Amy
Caren Daniel)
 ((clare.jim@thomsonreuters.com; +852 2912 6653; Reuters
Messaging: clare.jim.thomsonreuters.com@reuters.net))