Date
16 December 2017
Posters hang outside Ka Hing Supermarket in Sham Shui Po telling customers it is closing after its lease was not renewed. Photo: SocRec
Posters hang outside Ka Hing Supermarket in Sham Shui Po telling customers it is closing after its lease was not renewed. Photo: SocRec

Link REIT ejects supermarket despite 45% rent hike offer

Ka Hing Supermarket, well known among the masses for the comparatively low prices of its goods, said Link Real Estate Investment Trust (0823.HK) has refused to renew the lease agreement for its outlet at Po Hei Court Shopping Arcade in Sham Shui Po.

Ka Hing boss Wong Chung-ka said he had offered to raise the existing rent by 45 percent to have the contract renewed, but still Link refused, news website thestandnews.com reports.

The grocery store has been operating at Po Hei Court for the past six years.

A Link REIT staffer reportedly told Wong that the company preferred chain store operators to rent space in the shopping center.

Replying to a standnews enquiry, Link Asset Management Limited, which manages Link REIT, said the decision not to renew Ka Hing’s lease was part of efforts to enhance food and beverage options at the shopping arcade and diversify the mix of tenants.

It said a restaurant will occupy the space vacated by Ka Hing.

There are several supermarkets and grocery stores at the shopping arcade and nearby streets, which means there is already an abundant supply of supermarkets in the neighborhood, Link said.

Link refused to comment on the Link REIT staffer’s comment that it prefers to rent out its spaces to chain store operators.

Link operates retail spaces and car parks based on assets formerly owned by the Housing Authority.

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EL/AC/CG

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