AEON STORES (00984) announced that on May 9, 2024, the company (as tenant) received a renewal offer duly accepted by an agent (acting as the landlord's agent) to renew the lease of these properties for a fixed period of four (4) years, from June 1, 2024 to May 31, 2028 (including the first and last two days), with the option to renew for a further period of three (3) years. The Company has leased such properties since 1987 to operate its retail business in such properties.
According to Hong Kong Financial Reporting Standard No. 16, the Company (as lessee) entered into a renewal offer to require the Group to confirm the right-of-use assets resulting from the extension of the lease period. Therefore, according to the listing rules, making a renewal offer would be considered an asset acquisition by the Group. The value of the right-to-use assets that the Group will confirm under the renewal offer is approximately HK$587 million.
According to reports, these properties are located in all parts of the ground floor, first floor, second floor, third floor and fourth floor of Kornhill Plaza, 2 Kornhill Road, Hong Kong, including the air conditioning unit room, the elevator room on the fifth floor, the ventilation room and capacitor room on the sixth floor, and the ventilation room on the seventh floor.