Tsui Wah Restaurant (翠華茶餐廳) on Wellington Street in Central will stay. Renewal rent reduced by 43% to HK$1.3M. Still the highest F&B shop lease in Central!
After months of negotiation, Tsui Wah Restaurant on Wellington Street will stay. Renewal monthly rental was reduced by 43% to HK$1.3 milion. It’s still the highest F&B shop lease in Central.
Many nightlife goers, tourists and office people in Central can now breathe a sign of relief, after knowing that Tsui Wah Restaurant on Wellington Street is not closing.
Background Story of Tsui Wah Restaurant
Tsui Wah restaurant is a Hong Kong Tea Restaurant (Cha Chaan Teng) owned by Tsui Wah Holding Limited, which was the first Cha Chaan Teng (港式茶餐廳) in Hong Kong to go into the public listing.
The most famous one is the 24/7 restaurant in Wellington Street of Central, which is near to Lan Kwai Fong. It attracts celebrities, tourists and nightlife lovers to fill stomach after clubbing nearby.
Huge renewal rental reduction by Tsui Wah Restaurant
Lacrucci starts to research Hong Kong’s shop leasing market cycles early this year. Market trends showed that lease prices went up to record high from 2012 to mid 2016. The market began to adjust in late 2016.
For Wellington Street in Central, Tsui Wah Restaurant renewed a record high rent at around HK$2.3 million per month in 2014. Approaching its lease expiry, the landlord has started to market the shop space for lease at HK$2.1 million.
Market feedback seemed not promising. Landlord then lowered the monthly rent from HK$2.1 million to HK$1.88 million.
Actually, it would be very hard for a restaurant, club or bar to afford such high rent in current market situation.
At last, Tsui Wah Restaurant managed to bargain a substantial rental concession for renewal.
The newly-agreed monthly rent is said to be HK$1.3 million, about HK$1 million lower than its current rent. Such a huge amount!
Its rental saving is more than enough for Tsui Wah Restaurant to take up another restaurant space on Stanley Street in Central, which was formerly occupied by Honolulu Coffee Shop (檀島茶餐廳).
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