(Yicai Global) Jan. 17 -- Chinese internet giant Tencent Holdings will bring to an early end its agreement with Netac Technology to lease floors in an office building belonging to the data storage device maker.

Tencent is terminating the contract three years ahead of schedule because of the economic downturn, the Shenzhen-based lessor said late yesterday. The parties are negotiating the terms of the proposed termination, it added, without disclosing any further details. 

Tencent, which is also based in Shenzhen, rented office space between the second and 14th floors of the 19-story building in June 2011, Netac noted, adding that it also took over some parts of the 17th floor in January 2019. The two firms renewed the contract in 2021.

Netac received about CNY37.7 million (USD5.6 million) from renting out the building in 2021, equal to almost 2 percent of its revenue that year, that year’s annual earnings report showed. It charges up to CNY140 (USD21) per square meter a month, with each floor measuring around 3,500 sqm, according to the company's website.

Netac's office building is not Tencent's biggest workspace in Shenzhen. In August 2019, the tech giant built Tencent Building, which has 39 floors above ground and three below. That was the company's first self-built office building, with an overall workspace of 69,800 sqm.

Editor: Martin Kadiev