Annual Report 2020

092 Report of the Directors Annual Report 2020 Miramar Hotel and Investment Company, Limited (4) (c) On 29 June 2020, a lease (the “312 Lease”) was entered into between Shahdan as landlord and HPAL as tenant, whereby Shahdan agreed to let to HPAL the premises upon the terms as detailed below: Premises : Shop 312, 3/F., Mira Place 1, 132 Nathan Road, Tsimshatsui, Kowloon, Hong Kong. Term : One year commencing from 2 July 2020 and expiring on 1 July 2021, both days inclusive, or the 7th day(s) from the date of notification by the Landlord or its solicitor that the vacant possession of the Premises is ready for delivery (“Lease Commencement Date”). Rent and other charges : (a) rent payable on a monthly basis (exclusive of management fee and air-conditioning charges, government rates and promotion contribution) during the term is HK$157,633.00; (b) Government rates (subject to Government’s review) is HK$7,550.00 per month; (c) aggregate monthly management fee and air-conditioning charges (subject to periodic review by Shahdan or its designated management company of the Premises) is HK$33,135.10; (d) monthly promotion contribution, being 2% of the monthly rent of Premises, that is HK$3,152.66 subject to periodic review by Shahdan; (e) Extra chilled water supply costs may be charged by Shahdan to HPAL for additional chilled water supply required by HPAL which is beyond the specified normal daily chilled water supply hours; and (f) Licence of certain area at the Premises being obtained by the Tenant from the Landlord at a licence fee of HK$1.00 (exclusive of management fee and air-conditioning charges, government rates and other outgoings) during the term. Such Licence shall commence and co-terminate on the same date as that of the New Tenancy Agreement. User : To be used for property agency. As HPAL is an indirect wholly-owned subsidiary of Henderson Land, which in turn is a substantial shareholder of the Company, therefore HPAL is a connected person of the Company under the Listing Rules. Accordingly, the entering into of the 312 Lease constituted continuing connected transaction for the Company under Chapter 14A of the Listing Rules.