Taipingshan Restaurant Renewal

Taipingshan Restaurant Renewal

The Taipingshan restaurant, which belongs to the top of the mountain landmark, has been successfully renewed by existing operators to avoid the crisis of completion. The latest lease is changed to a dividend system. The government collects 25% of the total monthly income or at least 230,000 yuan, which is calculated at the lowest rent. The old lease reduced rent by 75%.

The property of No. 121, Peak Road, which has a history of more than 100 years, was leased by Zhongshi International Co., Ltd., a subsidiary of the restaurant tycoon Tang Shengming, 18 years ago, and operated the Taipingshan restaurant. The lease expired in March this year and the government re-tendered. Finally, the company has successfully renewed its lease from China.

3 years, the government collects 25% of monthly income

According to the latest lease announced by the government, the three-year lease from mid-July this year has a minimum monthly rent of $230,000, or a monthly gross income of 25%, whichever is higher (excluding rates, electricity and any other Expenditure), for the first time in nearly 20 years, the property was leased by dividends.

If the calculation is based on the minimum rent of 230,000 yuan, it will fall by 75% compared with the old rent. Compared with the highest monthly rent of 1.532 million yuan in 2011, it is a sharp drop of 85%. With a property area of ​​9,042 square feet, the average rent per square foot is only 25.4 yuan, only the rent level of the shops in Minsheng District.

The consumption power of the mountain is weakened

Huang Hancheng, chief executive of Midland Industrial and Commercial (00459), explained that in the case of a shop with an area of ​​about 9,000 square feet, it is estimated that there will be a turnover of 1 million to 2 million yuan a month, and the actual rent will be calculated based on the dividend of 25%. More than 500,000 yuan, so the actual rent reduction is not as high as the surface, and it is not as low as 25 yuan.

However, Mr Wong also pointed out that the current peak tourist attractions are mainly domestic tourist groups. The number of foreign tourists is lower than before. The consumption power is relatively weak. It is difficult to operate shops, especially restaurants.

Huang Hancheng also said that the current restaurant adopts a dividend system, which is more cost-effective for tenants. If the business is good, it will pay more rents. If the business is not good, it will be less. At present, many shopping malls have switched to the dividend system.

The Taipingshan Restaurant is located between the Peak Galleria and the Linglong Pavilion. It has been used for more than 100 years. It was used as a rickshaw parking lot and a sedan rest shed in the early years. It was converted into a restaurant for use in 1947. The plan can only be used as a restaurant. Use is subject to government consent.

As the property is a Grade II historical building property, the tender documents also specify that the decoration and arrangement of the interior of the property cannot be changed. For example, walls, floors and roofs, and iron gates outside the premises are required to be conserved.

The Peak Taipingshan Restaurant has a long history and is also popular among celebrities, including the political celebrity “Tian Shao" Tian Beijun. The ICAC has also been exposed to a $100,000 banquet in recent years.