NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
28 MATERIAL RELATED PARTY AND CONNECTED TRANSACTIONS (Continued)
(b) Other material related party and connected transactions (Continued)
(x)
(Continued)
(xi)
(xii)
In March 2014, the Group and the indirectly non-wholly owned subsidiary of HLD agreed to renew the tenancy and licence agreements for a term of three years commencing from 1 July 2014. Pursuant to the Tenancy Renewal Agreement, the tenant agreed to take the lease for a term of three years commencing from 1 July 2014 at a monthly rental of HK$470,000 and other ancillary expenses and a turnover rent of 7% (if any) of annual gross turnover of the tenant's business conducted over HK$120,000,000 which shall be payable monthly in arrears. The Group also entered into (i) an External Wall Signage Licence Agreement for three external wall signages at MHP; and (ii) an Entrance Signage Licence Agreement for one signage at the entrance of MHP for a term of three years commencing from 1 July 2014. Total annual licence fees payable under the External Wall Signage Licence Agreement and the Entrance Signage Licence Agreement are HK$22,000 and HK$8,000 respectively. The Tenancy Renewal Agreement and two Licence Agreements are subject to annual caps of respective years.
During the year, an amount of HK$9,650,000 (2013: HK$8,119,000), being aggregate rental and fees receivable under the aforementioned lease and licences, was credited to the Group.
In February 2012, the Group appointed a wholly-owned subsidiary of HLD as the contractor for carrying out the substructure works of TCS Property. In January 2013, the Group revised the annual cap of the substructure works of the respective years. The annual ceiling for the years ended 31 December 2012 and 31 December 2013 were HK$11,000,000 and HK$19,000,000 respectively. No cost has been charged for the year ended 31 December 2014. A total fee of HK$16,223,000 was charged to the Group for the year ended 31 December 2013. At 31 December 2013, an amount of HK$9,047,000 remained unpaid and was included in trade and other payables. The balance has been repaid during the year.
In March 2012, the Group entered into a letter agreement with HLD Sub A and appointed HLD Sub A as the agent of the Group to lease certain shops and spaces of Miramar Shopping Centre (the "Premises") for the marketing services of the Fanling Property for the period from 20 March 2012 to the earlier of 15 June 2013 and the date on which the last residential unit in the Fanling Property is sold, subject to the respective ceilings of HK$7,500,000 for the period from 20 March 2012 to 31 December 2012 and HK$4,500,000 for the period from 1 January 2013 to 15 June 2013. The letter agreement expired on 15 June 2013.
In August 2013, the Group entered into a letter agreement with HLD Sub B and appointed HLD Sub B as the agent of the Group to lease the Premises for the continuation of the marketing services of the Fanling Property for the period from 16 June 2013 to the earlier of 15 October 2013 and the date on which the last residential unit in the Fanling Property is sold, subject to the ceiling of HK$4,300,000. The letter agreement expired on 15
October 2013.
In December 2013, the Group entered into a letter agreement with HLD Sub B and HLD Sub B continued to act as the agent of the Group to lease the Premises for the continuation of the marketing services of the Fanling Property for the period from 16 October 2013 to the earlier of 31 December 2013 and the date on which the last residential unit in the Fanling Property is sold, subject to the ceiling of HK$2,688,000. The letter agreement expired on 31 December 2013.
Hong Kong Ferry (Holdings) Company Limited Annual Report 2014
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