PCRT – BT

PCRT seals lease deal with Shanghai Summit

Contract value for mall lease totals 94.1m yuan over 2.5 years

MAINBOARD-LISTED Perennial China Retail Trust (PCRT) said yesterday that it has leased out parts of its Shenyang Longemont Shopping Mall to Shanghai Summit Group for a total contract value of 94.1 million yuan (S$19.2 million).

The lease agreements cover a total of 57,028 square metres of retail space at Shenyang Longemont Shopping Mall, and will be leased for the purposes of operating an indoor rooftop theme park, indoor ice-skating rink, a supermarket, a Yes Sir Coffee and several other food and beverage outlets.

The lease agreements are for two-and-a-half years, until June 30, 2014, with renewal at the lessor’s option and subject to terms and conditions to be agreed by both parties.

PCRT, which was listed here in June this year, owns half of the mall.

According to PCRT’s trustee- manager, Perennial China Retail Trust Management, the lease agreements and forward renewal terms with Summit will ensure long-term sustainable and stable income for the trust.

The lease agreement with respect to the indoor rooftop theme park and indoor ice skating rink is for a monthly rent of 1.15 million yuan and 132,632 yuan respectively, or 12 per cent of the month’s gross turnover, whichever is higher.

The lease agreement for the supermarket is for a monthly rent of 900,409 yuan or 4 per cent of the month’s gross turnover, whichever is higher.

The agreement for the F&B outlets is 888,023 yuan per month, from Dec 29, 2011 to June 30, 2013. From July 1, 2013 to June 30, 2014, a monthly rent of 947,586 yuan will be charged. Turnover rent is pegged at 13 per cent.

The lease agreement for Yes Sir Coffee is for a monthly rent of 55,967 yuan or turnover rent at the rate of 15 per cent, whichever is higher.

PCRT closed trading yesterday at 47.5 cents.