On 2 March 2020, the Hong Kong Housing Authority (HA)’s Commercial Properties Committee (CPC) has approved to extend the 50 per cent rent concession for its retail and factory tenants. In line with the government’s relief measures, the extension period will last for six months, from 1 April to 30 September 2020.
Back in 26 February, the Financial Secretary announced the reduction of rentals by 50 per cent for another six months from 1 April 2020 for eligible tenants of government properties and government land, among others.
“A total of about 2,450 retail and 3,300 factory tenants will benefit from the rent concession. The rent concession does not include rates and air-conditioning charges,” said a spokesman for the HA.
To tie in with the government’s relief measures, in September and October 2019 the CPC endorsed the arrangements to grant a 50-per cent rent concession for the HA’s retail and factory tenants for six months from 1 October 2019 to 31 March 2020.
The total rent forgone for the 12-month rent concession is estimated at about USD778 million. The arrangements endorsed previously will continue to apply during the extended rent concession period.
“We will continue to adopt a flexible approach in dealing with retail and factory tenancies due to expire during the extended rent concession period as a transitional arrangement,” the spokesman said. — Construction+ Online