Annual Report 2019

081 Miramar Hotel and Investment Company, Limited Annual Report 2019 Report of the Directors (2)(a) On 19 November 2013, Profit Advantage Limited, a wholly-owned subsidiary of the Company as tenant entered into a sub-lease with IFC Development Limited as landlord (“Sub-Lease”) and certain floor space at the ifc mall are also being licenced by the landlord to the tenant. Details of the terms and conditions are set out as follows: Premises : Shop Nos. 3101–3107 on Level Three of ifc mall (the “ifc Premises”) and certain floor space at ifc mall. Term : Initial term of three years commencing from 7 July 2013 to 6 July 2016 (the “Initial Term”) and, for the Licence, on an annual basis (and/or such shorter period as may be agreed between the landlord and the tenant) subject to termination upon termination of the Sub-Lease. Rent and other charges : The rent payable on monthly basis (exclusive of rates, air- conditioning and management charges, promotional levy and all other outgoings) during the term shall be as follows: (a) From 7 July 2013 to 6 July 2016, basis rent in the sum of HK$836,594.00 per month together with turnover rent representing the amount by which 11% of the Gross Receipts exceeds the basic rent per month (the “Turnover Rent”); and (b) From 7 July 2016 to 6 July 2019, provided an option (as defined below) is exercised by the tenant, at open market rent provided that the basic rent shall not be less than HK$836,594.00 per month or more than HK$1,003,912.80 per month, together with the Turnover Rent. The aggregate air-conditioning and management charges and promotional levy payable on monthly basis in respect of the Sub-Lease shall be approximately HK$435,736.00 per month (subject to review from time to time). The aggregate licence fee, air-conditioning and management charges and promotional levy payable on a monthly basis in respect of the Licence shall be approximately HK$9,890.40 per month (subject to review from time to time). Option : An option exercisable by the tenant at the expiry of the Initial Term on 6 July 2016 to renew the sub-lease of the ifc Premises for three years. The parties will enter into new agreement(s) upon the tenant exercising the renewal option. Usage : The ifc Premises shall be used for operating up-market restaurants and the certain floor space are used in connection with the restaurant business.