Swire Properties to offer rental waiver to support retail tenants

Swire Properties has rolled out a series of measures to support retail tenants in some of its shopping malls, as the Hong Kong government is set to introduce a new law to prohibit owners of commercial properties from taking action against defaulting tenants. In a statement, Swire Properties said its measures include a full rental waiver to tenants in Pacific Place and Cityplaza, which have had to close due to the government's pandemic measures during the fifth wave of the pandemic. The rental waiver will cover the onset of the government-mandated closure period until 20 April 2022.

Moreover, Swire Properties is supporting F&B tenants with reduced traffic through their premises. The company will also offer tailored support on a case-by-case basis, to the extent of charging only turnover rent in some cases, and will continue to work closely with its tenants to offer assistance. "We are giving our full support to the Hong Kong government's anti-pandemic measures to help ride out the fifth wave of COVID-19. In addition to offering some of our premises as quarantine and community isolation facilities, as well as vaccination and testing centres, we are continuing our collaborative approach with our tenant partners during these challenging times," said Tim Blackburn, chief executive of Swire Properties.

The company added that various promotional campaigns, ranging from shopping and dining rewards and discount vouchers to the extension of free parking offers and takeaway promotions, will continue.

Swire Proprieties' announcement came after Hong Kong financial secretary Paul Chan's proposal to introduce a law to ban owners of commercial properties from taking action against defaulting tenants for up to six months. Chan also praised a major landlord, without mentioning the name, for taking the initiative to waive the rents of its retail tenants until mid-April. According to the South China Morning Post, a government source said the rental relief measure would not undermine the rights of private property owners.

Although some businesses can see a lifeline after the government's announcement, many of Hong Kong's F&B chains have decided to reduce service offerings to survive, as the F&B sector is one of the most heavily impacted sectors amid the pandemic due to the government's pandemic control measures.

For example, on 27 February, fast food chain Cafe de Coral said on its Facebook that some of its branches will only offer takeaway services from 1 March onwards as a means to "protect the safety of its customers and staff." Cafe de Coral's sister brand Super Super Congee and Noodles will also offer only takeaway services from the same day until further notice.

Moreover, LH Group also announced that in view of the recent outbreak of pandemic in Hong Kong, the company decided to suspend the operation of all the restaurants of the Group with effect from 28 February 2022. Chairman Simon Wong expected that the suspension will be in a temporary nature. "The group will be closely monitoring the market conditions and adjust its response strategies in a timely manner, and will endeavor to reopen the said restaurants in due course," he added.

 LH Group operates 11 F&B brands in Hong Kong, according to its website. Some notable brands include Gyu-Kaku, On-Yasai, Mou Mou Club and Peace Cuisine.

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