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Japanese department store operator Isetan Singapore has decided not to renew its lease with JG Trustee (JGT) for its “loss-making” store in Westgate.
The terms of the lease allowed the company to have the lease renewed for a period of three years by notifying JGT within six months before the lease expires on 22 December 2019.
In an SGX filing on Monday (6 May), Isetan disclosed that its decision resulted from a failure to reach an agreement with JGT on the lease’s renewal.
“The rationale for the company’s decision not to renew the lease is due to both parties not being able to reach an agreement on the renewal terms of the lease favourable to this loss-making store,” stated Isetan Singapore.
The company pointed out that the decision for non-renewal was part of its ongoing exercise of continuous realignment, consolidation and assessment of its operations to allow better deployment of current resources among its other business units.
It noted that the financial effect of the non-renewal of lease on “the current and future financial years cannot be reasonably estimated at the date of the announcement”.
Fiona Ho, Digital Content Manager at PropertyGuru, edited this story. To contact her about this or other stories, email fiona@propertyguru.com.sg
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