URA Further Extends Rent Relief Period for Its Tenants

In view of the ongoing impact brought by COVID-19 pandemic to the economy, the Urban Renewal Authority (URA) announces today (20 December 2022) to further extend the rent relief for its domestic and commercial tenants in its properties for another three months, from January 2023 until the end of March 2023, in a bid to assist the URA’s tenants in the face of current economic challenges amid the pandemic to sustain their businesses.

The URA’s rent relief measures for its tenants have been in place since April 2020.  The cumulative amount of rent concession provided earlier together with the budget earmarked for the upcoming round of measures will reach around HK$243 million.

The new round of rent relief will cover around 1,300 domestic and commercial tenants.  The measures include: 

• 75% rent relief will apply for approximately 840 domestic and commercial tenants in the URA’s rehousing blocks and acquired properties of redevelopment projects;
• Percentage of rent relief in three levels will be provided for around 170 tenants operating businesses in the commercial portions of redevelopment, preservation and revitalisation projects.  The percentage level is determined according to the impact on the monthly business turnover and the rent-to-sales ratio (maximum rent concession at 75%);
• With regard to around 270 commercial tenants operating their businesses in the seven shopping malls^[1] that are jointly operated by joint venture developers, the URA will discuss with the joint venture developers on the measures that could be applied taking into consideration the degree of impact to business turnover caused by the pandemic for different trades; and
• For Central Market and Western Market, an appropriate level of rent relief may be considered by the respective main operators, which are responsible for handling leasing matter and venue management of the premises, taking into account individual tenants’ business performance under the pandemic.

The relevant rent relief amount for the eligible tenants will be reflected in the subsequent debit notes.

The URA hopes that the above relief measures will provide effective and appropriate assistance for target businesses that have been adversely affected by the epidemic.  It is also expected to help the tenants ride out the financial pressures during the economic recovery once the epidemic is under control.