Link Asset Management Limited (Link), the manager of Link Real Estate Investment Trust (Hong Kong stock code: 823), announced today (Tuesday) the establishment of a $80 million scheme to support its small and medium-sized tenants in Hong Kong to alleviate their operating pressure brought by the novel coronavirus epidemic.
This is an extension of Link’s relief efforts to support its tenants since the second half of last year, which were offered according to the circumstances of individual tenants.
Under Link’s support scheme, targeted relief measures include allowing rent payment by instalments, waiving late payment interests and service charges, granting rent-free periods, reducing rents, and introducing additional parking concessions to customers of restaurant tenants*. Actual arrangements will be subject to mutual agreement between individual tenants and Link, taking into consideration factors such as tenants’ rent-to-sales ratio, tenancy track records, and operating and liquidity conditions.
The support scheme will run in parallel with Link’s other support to tenants, such as lease restructuring and marketing initiatives.
“As the impact of the epidemic on different tenants varies, we believe offering targeted, rather than across-the-board, relief measures is the optimal way to help tenants most in need,” Link’s Chief Executive Officer George Hongchoy said.
“We will continue to closely monitor the market conditions and review the scheme’s operation in due course. We will communicate closely with our tenants and continue to explore additional options to support them including ways to help them increase their business and exploit new opportunities such as food delivery,” he said.
In addition to the support scheme in Hong Kong, Link has also offered relief measures to its tenants on the Mainland.
Meanwhile, Link remains committed to the prevention of an outbreak of the contagious disease. Link has been implementing a host of additional measures in its shopping malls, fresh markets and car parks, which include deep cleaning and sanitisation of facilities on its premises to protect shoppers, raising frontline staff’s anti-infection awareness and upgrading their gear, and calling for tenants’ collaboration on the implementation of contingency plans. Link has also provided various dedicated support services for tenants in the event of an emergency.
*Additional parking concessions will take effect on 12 February 2020.
Link Real Estate Investment Trust (Hong Kong stock code: 823), managed by Link Asset Management Limited, is a leading retail-focused REIT in the world. Listed in 2005 as the first REIT in Hong Kong, Link has been 100% held by public and institutional investors and is a Hang Seng Index constituent stock. From its home in Hong Kong, Link manages a diversified portfolio including retail facilities, car parks and offices spanning Hong Kong, Beijing, Guangzhou, Shanghai, Shenzhen, London and Sydney. Link seeks to extend its portfolio growth trajectory and grasp expansion opportunities in different markets in pursuit of our medium-term target Vision 2025. For details, please visit https://www.linkreit.com/.