AEON STORES (00984) plans to renew lease for Hong Kong properties.

AEON STORES (00984) announced that on November 15, 2024, the company (as the tenant) signed a lease agreement to renew the lease of the premises for a fixed term of 3 years, from November 16, 2024 to November 15, 2027. The company has been leasing the property since September 16, 2016, and operates a retail business there. It is reported that the premises are located at Shop B9, G/F, Goodwill Building, Nos. 27-31 Kung Lok Road and 25-31 Kong Jing Street, Yuen Long, New Territories, Hong Kong (including stairs, platform, and escalator leading to the 1st floor) and the entire 1st floor unit. The group's main business is operating retail business in Hong Kong and mainland China under the commercial names "AEON STYLE", "AEON", "AEON SUPERMARKET" and "DAISO JAPAN" through chain stores. Due to the nature of its retail business, the group is required to lease retail stores from time to time to operate its retail business. Each retail store (especially large stores like the properties mentioned) contributes to and maintains the group's operational scale, thus helping to reduce overall operating costs, strengthen the group's bargaining power with business partners, and expand its store network and market share. The company has been leasing the property from the landlord since September 16, 2016 for the operation of its retail business. As the existing lease agreement is set to expire on November 15, 2024, the company has signed a new lease agreement to extend the term of the lease until November 15, 2027.