24 April 2003
KCRC to offer temporary rental concession
The Kowloon-Canton Railway Corporation (KCRC) today announced that its Managing Board had approved a temporary rental relief scheme for tenants badly hit by the outbreak of severe acute respiratory syndrome (SARS).
A KCRC spokesman said, "The Corporation is fully aware of the plight of some of our tenants who have experienced a significant drop in business since the SARS outbreak.
"To help them tide over their current difficulties, we will offer those tenants who are genuinely facing financial hardship as a result of SARS a rental concession of up to 50% for three months starting 1 May 2003."
The spokesman said, "KCRC will grant tenants, upon application and after a preliminary assessment, an immediate 30% rent reduction for the three-month period to help them overcome any immediate cash flow problem.
"This rent reduction can be adjusted upwards or downwards, up to 50%, at the end of the period in the light of actual business performance, based on information provided by the tenants on gross sales or revenue.
"The final percentage reduction will be the percentage fall in business turnover attributable wholly to the SARS crisis. If the drop is less than 30%, the tenant will have to reimburse the rent to match the same percentage fall in business."
The spokesman said the scheme would be open to all KCRC shop tenants to apply.
KCRC estimated that the scheme would lead to a loss in rental revenue of up to $56 million.
The spokesman added, "If the SARS crisis appears likely to extend beyond July 2003, the Corporation will review the situation towards the end of July."