AEON STORES (00984) has announced a new leasing arrangement for a commercial property in Hong Kong, aimed at bolstering its retail footprint.

According to a company filing dated September 2, 2026, the group, acting as the tenant, signed a lease agreement for the premises with a term of five years, running from February 2, 2027, to February 1, 2032, inclusive. The space will be utilized for retail operations. Concurrently, the company has entered into a separate license agreement, acting as the licensee, for the commercial use of the same premises for a period of five months, from September 2, 2026, to February 1, 2027, inclusive, which covers the period leading up to the commencement of the main lease. The total base rent payable over the entire lease term is approximately HKD 9.02 million. The property in question is identified as Shop No. 101 on the first floor of No. 101 King's Road.

The group's core business involves operating retail chains under the banners of "AEON STYLE," "AEON," and "AEON SUPERMARKET" across Hong Kong and mainland China. Given the nature of its retail operations, the company routinely enters into lease agreements to secure store locations. Each retail outlet, particularly large-format stores similar to this new site, contributes to sustaining the group's operational scale, which in turn helps to lower overall operating costs, strengthen bargaining power with business partners, and expand its store network and market share.

By securing this new lease and the preliminary license, the group aims to obtain suitable retail space at a strategic location to operate its "Mono Monoものもの" concept. The terms of the lease, including rent and management fees, were determined through arm's length negotiations, referencing prevailing open-market rents for comparable properties as well as costs incurred at other retail stores operated by the group. The transactions are part of the group's routine and ordinary business activities. Consequently, the board considers the terms of both the lease and license agreements to be on normal commercial footing, fair and reasonable, and in the overall best interests of the company and its shareholders.