King Fook Holdings (00280) has announced that on October 11, 2026, the landlord, Pacific Place Investment Limited, accepted an offer letter contained in the tenant's invitation regarding the lease of the property. The tenant is King Fook Jewellery Group Limited, a wholly-owned subsidiary of the company.

The landlord's acceptance of the tenant's offer letter relates to the lease of the property for a term of 72 months, commencing on the date to be notified by the landlord to the tenant in writing, currently expected to be February 1, 2028. The total base rent is approximately HK$268.5 million, which will be reduced by the total base monthly rent payable during the rent-free period.

In addition, turnover rent will be payable, calculated at 6.75% to 6.9% of the tenant's turnover at the property, plus additional percentage rates applicable to individual business transactions. This excludes the landlord's chilled water charges, service charges, and promotional levies, as well as government rates. Under the lease, the monthly base rent is payable in cash in advance on the first day of each month, while turnover rent is payable in cash on the 15th day of the following month.

The rent-free period is six months, or until the date the property commences business, whichever is earlier. Payments under this lease agreement will be funded from internal resources.

The tenant will enter into the lease to use the property as the group's single watch brand boutique. Leasing a prime location store in Pacific Place as the group's key single watch brand boutique marks an important milestone in the group's ongoing business optimization and strategic execution.

Expanding presence in prime locations

Establishing a flagship store in a premium shopping venue will help the group attract high-net-worth retail traffic, affluent local customers, and high-spending clientele.

Capturing growth in the watch business

The group is confident in the high-end watch market. The store expansion will help build a strong brand image and broaden the customer base.

Enhancing in-store customer experience

Modern luxury retail relies heavily on immersive, personalized shopping experiences. The expanded store will feature a spacious VIP lounge area and a comprehensive after-sales service area, further strengthening customer acquisition and retention.