The exact terms of the lease were not disclosed, but from what we do know, the 25-year land lease is for a 15,064 sqm parcel of land in DMW’s [DMW 6.68 1.18%] Aseana City development.
Landers is a subscription shopping superstore concept, similar to Puregold [PGOLD 38.75 1.52%] subsidiary, S&R. DMW said that the deal will provide recurring income to the company and diversify its client base while acting as a ‘draw” for shoppers and foot traffic to the development that will benefit existing stores.
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These huge anchor-tenant type leases are highly prized, not only for the obvious recurring revenue from the lease itself, but from the physical foot traffic that a store like this can provide.
If you’ve ever gone to S&R in BGC, and then taken the opportunity to pick up some things from the Mercury Drug by St. Luke’s while you were in the area, then you’ve demonstrated the exact behavior that DMW is hoping will benefit its other tenants.
It also (could) allow DMW to charge more for subsequent tenants, especially once DMW is able to demonstrate increased foot-traffic metrics once the Landers store is up and running. On an aside, it’s nice to see some large leases getting signed.
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