26/10/2018-8

Retailers rent and buy for their own use more than 2 billion

The recovery in the retail industry has prompted retailers to switch from tenants to owners. In the past three months, the market has listed three listed companies engaged in retail business or related parties to purchase the rented shop for their own use, involving more than 2 billion yuan, two of which were purchased by luxury retailers, reflecting the luxury market turn good.

The value of jewellery, watches and clocks and valuable gifts rose by over 20% year-on-year, which increased the confidence of such tenants in the market, with reference to the statistics of the Census and Statistics Department. . Year-to-date, the largest tenant shop purchase case was Emperor Watch Jewellery (00887) purchased from the parent company, Emperor International (00163), on the ground floor and 1st floor of 4/8 Canton Road, Tsim Sha Tsui. It was funded by $1.8 billion and the building area was 4328 square feet. The price is about 415,900 yuan.

Luxury market is better

According to the information, Emperor Watch & Jewellery has been renting the 6th to 8th Canton Roads as a branch since 2005. Due to the ideal business, Emperor International has attracted a total of 1.013 billion yuan from 2007 to 2009 to purchase the 4th to 8th Canton Roads. Rent it to Emperor Watch and Jewellery.

At this stage, Emperor Watch and Jewellery decided to enter the market for its own use, as the shop price has been lowered a lot. According to the annual report, during the peak rent season in 2013-14, Emperor Watch and Jewellery was required to pay a monthly rent of $6.18 million, while the latest lease was $4.362 million. Since the value of the shop has always depended on the rent, it means that the shop price should fall by nearly 30%.

As for the other local leading jewellery company, Chow Tai Fook (01929), it was previously acquired by the relevant parties for $168 million at Shops D and E, G/F, Wah Tai Commercial Centre, Shop No. 678, Nathan Road, Mong Kok, with a total gross floor area of ​​about 1570 sq ft. 10.7 million yuan. Chow Tai Fook rented the site for more than 6 years, and now it is used by the city for self-use, which can ensure more strongholds.

At present, Chow Tai Fook has a total of 12 shop outlets in Mong Kok. At least three of the above-mentioned newly purchased shops are self-use shops, accounting for a quarter of the total number of outlets.

Tenants have more discounts

Pan Zhiming, managing director of Zhongyuan (Industrial and Commercial), believes that a retailer decided to enter the market to buy a shop, mainly considering whether the shop is doing business and long-term rental expenses.

As retailers are doing business in the shop, it is easier to “count" the number of people and business in the shop. Moreover, the price of the first-line area is far lower than that in 2013, and the tenants have always bought a shop. Therefore, there have been many cases of tenants buying shops in the near future.

He believes that luxury goods are most sensitive to the retail market. Since the market has already bottomed out and the high-speed rail is also open to traffic, it is beneficial to the sales of watches, jewellery, etc. In the future, the rents of street shops in the first-line shops will rise or rise, and tenants will be able to avoid renting rents. .

However, it is not a chain of listed retail companies, the proprietor is the high-rise property in the city of Pupu, and the sellers are mostly old-fashioned restaurants. Shops for sale include “One Lok Roast Hotel" Shop No. 2, G/F, Po Wah House, Tai Po Wan, Tai Po, Tai Po, Tai Po, Tai Po. For sale of 34.8 million yuan, it will be sold at Shop B, G/F, 40 Sancun Street, for 40 years.