The economy has deteriorated and retail sales have weakened
Longfeng Group, the pharmacy leader who has always taken root in Shanghai, has continued to “reverse the market” and actively expand the store layout of the core tourist areas. At present, the local chain cosmetics shop Sasha (00178) rented about 5,500 square meters of the Good Hope Corner Building in Sai Yeung Choi South Street, Mong Kok. It has been awarded 2 million yuan in advance for more than 3 months in advance. The monthly rent is as high as 2.5 million yuan. It is 25% higher than Sasha’s current rent.
The group has always been the most hospitable, 25% higher than the old rent
Longfeng’s pre-rented ground floor is located at Shops 13 and 15 on the ground floor of Good Hope Building, 7-19 Sai Yeung Choi Street, Mong Kok. The building area is 5,500 square feet. It is located in the first-line area. The latest monthly rent is 2.5 million yuan and the lease is about 455 yuan. It is the most expensive shop for Longfeng. It is understood that the lease will start in November this year for a period of three years.
At present, the site is being rented by Sasha. The monthly rent is about 2 million yuan
It will be rented from October 2016 and the lease will not expire until October this year. Although the lease has not been completed, it has been rented by Longfeng and the monthly rent is 500,000 yuan or 25% higher than the current rent. In the three-year lease period, the owner can pay an additional rent of 18 million yuan. It is no wonder that it is subletted to the new tenant.
Although the new rent has increased by 25%, the shop was leased to Chow Tai Fook (01929) for $4.5 million per month in 2013. As a result, the current rent is still lower than the peak period of $2 million or 44.4%.
Lung Fung has only been operating in the New Territories, such as Sheung Shui and Yuen Long. It was only officially opened in the urban area in March last year. In less than two years, it has leased or pre-leased six shops in Tsim Sha Tsui, Jordan and Mong Kok. The former tenants are Bonjour (00653) or Salsa’s two local chain makeup brands. As Longfeng currently sells cosmetics and skin care products, baby products, daily necessities and snacks, it is the main competitor of Bonjour and Salsa.
The industry pointed out that the current retail market prospects are uncertain and there are not many merchants willing to expand. The West Street South Street has a number of shops in the past, reflecting that Longfeng’s high-priced pre-rental shops are only individual cases.
In addition, LUTGEN, JEAN-PIERRE LEON MARIE, the Belgian CEO of the watch brand Ice-Watch, purchased the underground loft at No. 11 Gefu Street, Central, for a total of 1800 square meters, with a price of about 35,600 yuan. . The original owner purchased in 2004 for 4.15 million yuan, and the book profit was 59.85 million yuan, an appreciation of 14.4 times.