Annual Report 2019

077 Miramar Hotel and Investment Company, Limited Annual Report 2019 Report of the Directors Connected Transaction and Continuing Connected Transactions The Group has the following connected and continuing connected transactions during the year ended 31 December 2019: (1)(a) On 23 November 2015, a lease (the “Whole of 18th Floor Lease”) was entered into between Shahdan Limited (“Shahdan”) as landlord and Union Medical Centre Limited (“Union Medical”) as tenant, whereby Shahdan agreed to let to Union Medical the premises upon the terms as detailed below: Premises : Units 1801–18 on the 18th Floor, Mira Place Tower A (previously known as Miramar Tower), 132 Nathan Road, Tsimshatsui, Kowloon, Hong Kong. Term : Three years, commencing from 1 February 2016 to 31 January 2019 (both days inclusive). Rent and other charges : The rent payable on a monthly basis (exclusive of government rates, management fee and air-conditioning charges) (payable in advance on the 1st day of each month) during the term is HK$1,841,307.00; The aggregate monthly management fee and air-conditioning charges (subject to the periodic review or revision by Shahdan or its designated property manager) (payable in advance on the 1st day of each month) is HK$265,306.60; and Extra chilled water supply costs may be charged by Shahdan to Union Medical for additional chilled water supply required by Union Medical which is beyond the specified normal daily chilled water supply hours. Usage : To be used as a clinic only. Union Medical is a company indirectly controlled by the private trusts of the family of Dr Lee Shau Kee. Accordingly, Union Medical is a connected person of the Company thereby rendering the Whole of 18th Floor Lease a continuing connected transaction for the Company under Chapter 14A of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the “Listing Rules”). Such continuing connected transaction has expired on 31 January 2019, and was renewed under a tenancy agreement as listed under the following paragraph 1(b).