Annual Report 2019

082 Annual Report 2019 Miramar Hotel and Investment Company, Limited Report of the Directors On 7 June 2016, the tenant exercised the option to renew the sub-lease of the ifc Premises (the “Renewed Sub-Lease”) for three years upon the terms as detailed below: Term : Three years commencing from 7 July 2016 to 6 July 2019. 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 is HK$923,602.93 per month together with turnover rent representing the amount by which 11% of the Gross Receipts exceeds the basic rent per month. The aggregate air-conditioning and management charges and promotional levy payable on monthly basis in respect of the Renewed Sub-Lease shall be approximately HK$471,144.50 per month (subject to review from time to time). (2)(b) On 4 July 2019, Profit Advantage Limited, a wholly-owned subsidiary of the Company as tenant entered into a sub-lease with IFC Development Limited as landlord for a short term of two months (from 7 July 2019 to 6 September 2019) (the “Short Term Sub-Lease”) as the parties were unable to reach consensus on the rent for a further term of three years following the expiry of the three-year sub-lease in respect of the ifc Premises (as defined below) on 6 July 2019. On 4 December 2019, the parties have reached consensus on the rent for a longer sub-lease and the parties together with MTR Corporation Limited (“MTRC”) (being the lessor of the head lease dated 16 September 2003 entered into between MTRC as lessor and IFC Development Limited as lessee in respect of the ifc Premises) entered into a sub-lease (the “New Sub-Lease”) for a further term of two years and ten months (from 7 September 2019 to 6 July 2022). The Short Term Sub-Lease was a de minimis transaction for the Company under Chapter 14A of the Listing Rules. 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”). Term : Two months from 7 July 2019 to 6 September 2019 (both days inclusive) in respect of the Short Term Sub-Lease and two years and ten months from 7 September 2019 to 6 July 2022 (both days inclusive) in respect of the New Sub-Lease.