162
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
28 MATERIAL RELATED PARTY AND CONNECTED TRANSACTIONS (Continued)
(b) Other material related party and connected transactions (Continued)
(vii) (Continued)
(viii)
In June 2018, the indirectly non-wholly owned subsidiary of HLD as tenant and HLD Sub A (as agent of the Group) as landlord entered into a 2018 renewal offer letter A (the "2018 Renewal Offer Letter A”) in respect of the leasing of Shop Nos. G01, Portion of G31, G37-G50, Portion of G51, Portion of G52, G63-G74 and corridors and atrium on Ground Floor, MHP ("Premises 1") and Premises 2 for a term of
two years commencing from 1 July 2018 to 30 June 2020 at a monthly rental of HK$243,000 for Premises 1 and HK$7,000 for Premises 2 together with other ancillary expenses and a turnover rent of 7% of the excess (if any) of such annual gross turnover of the tenant's business conducted at Premises 1 and Premises 2 over HK$50,000,000, which shall be payable monthly in arrears.
The aggregate amounts of rentals and other ancillary expenses receivable under the Renewal Offer Letter A and the Renewal Offer Letter B are subject to the annual ceilings for the period from 1 July 2017 to 31 December 2017 of HK$7,500,000. In December 2018, the aggregate amounts of rentals and other ancillary expenses receivable under the 2018 Renewal Offer Letter A and the Renewal Offer Letter B are subject to the revised annual ceilings for the year ended 31 December 2018 of HK$15,000,000 (inclusive of the relevant cap applicable to the Renewal Offer Letter A) and for the year ending 31 December 2019 and for the period from 1 January 2020 to 30 June 2020 of HK$15,000,000 and HK$7,500,000 respectively.
During the year, an amount of HK$13,279,000 (2017: HK$12,271,000), being aggregate rental and fees receivable under the aforementioned lease and licences agreements in March 2014, June 2017 and June 2018, was credited to the Group.
In October 2015, the Group appointed HLD Sub A as the project manager of the comprehensively planned development consisting of residential component together with ancillary supporting facilities at 208 Tung Chau Street, Sham Shui Po, Kowloon, Hong Kong (the "TCS Property" or the "Proposed TCS Development") for a term of three years commencing from 2 November 2015 in consideration for a fee equivalent to the aggregate of 1% of the construction costs of the Proposed TCS Development, subject to the annual ceilings for the years ended 31 December 2015, 31 December 2016, 31 December 2017 and 31 December 2018 of HK$1,500,000, HK$4,100,000, HK$1,600,000 and HK$1,500,000 respectively. A total fee of HK$756,000 (2017: HK$688,000) was charged to the Group during the year. At 31 December 2018, an amount of HK$1,444,000 (2017: HK$688,000) remained unpaid and was included in trade and other payables.
Hong Kong Ferry (Holdings) Company Limited Annual Report 2018