Annual Report 2021

093 Report of the Directors Miramar Hotel and Investment Company, Limited Annual Report 2021 (4) (c) On 25 May 2021, a lease (the “Shops B109–113 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 : Shops B109–113, B1/F., Mira Place 1, 132 Nathan Road, Tsimshatsui, Kowloon, Hong Kong. Term : One year and nine months and seventeen days, commencing from 15 June 2021 and expiring on 31 March 2023, both days inclusive, or the 7th day(s) from the date of written notification by the Landlord or its solicitor that the vacant possession of the Premises is ready for delivery (“Lease Commencement Date”). Rent-free period : No rent shall be payable by the tenant for the initial period of one and a half months starting from and inclusive of the Lease Commencement Date provided that the management fee and air-conditioning charges, government rates and promotion contribution and other outgoings shall still be paid by the tenant during the rent-free period. 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$890,000.00; (b) Government rates (subject to Government’s review) is HK$44,500.00 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$163,934.80; (d) monthly promotion contribution, being 2% of the monthly rent of Premises, that is HK$17,800.00 subject to periodic review by Shahdan; and (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. User : To be used for property agency. HPAL is a connected person of the Company under the Listing Rules. Accordingly, the entering into of the Shops B109-113 Lease constituted continuing connected transaction for the Company under Chapter 14A of the Listing Rules.