Date
19 January 2017
Allan Zeman says the tenant ratio that heavily favors food and beverage retailers should be changed  Photo: HKEJ
Allan Zeman says the tenant ratio that heavily favors food and beverage retailers should be changed Photo: HKEJ

Allan Zeman calls for overhaul of retail tenant ratio

Online sales are contributing to the struggles of the traditional retail industry as much as the slowing economy, Lan Kwai Fong Group chairman Allan Zeman says.

He said the trend led to the practice of landlords supporting food and beverage retailers with rents from other tenants, the Hong Kong Economic Journal reports.

As a result, rents have tripled for the latter, Zeman said.

He blamed the problem on a tenant ratio heavily skewed toward food and beverage tenants — seven for every three other types of retailers.

Zeman said the ratio should be reversed.

Zeman has launched LKF Capital, a private equity fund that invests in lifestyle, entertainment and food and beverage brands.

Meanwhile, he said investors should not be overly concerned about China’s policies, saying these are mostly meant to maintain stability.

Zeman is frequently invited by Chinese cities to share his experience in turning Lan Kwai Fong, a once rundown pocket of Central, into a success story.

[Chinese version中文版]

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