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The rental rebates are part of CapitaLand’s initiatives to help its retail partners hurdle the challenges brought by the coronavirus (Covid-19) outbreak.
The Restaurant Association of Singapore (RAS) said CapitaLand has offered rental rebates to about 1,000 tenants in its urban and suburban malls in Singapore.
After reviewing sales and footfall data for February, the Singapore’s biggest mall operator decided to “grant a rental rebate of 50% on the fixed components of (tenants’) one-month gross rent”, revealed RAS citing a letter issued to tenants.
The rebates will be disbursed in two tranches of 25% each in April and May, reported CNA.
RAS also noted that no change will be made in the computation of additional rent, which will continue to be in accordance with the agreements signed by the parties.
Tenants of CapitaLand malls can also use part of their security deposits to offset their rents for March, in accordance with CapitaLand’s earlier announcement of relief measures.
“CapitaLand’s move to reach out to some 1,000 of its tenants yesterday is an appreciated gesture in helping tenants keep their operations going and saving the livelihoods of their employees,” said RAS President Vincent Tan.
For Tan, CapitaLand’s initiative is a “gesture which will be remembered”. He therefore urged other landlords to “respond immediately” and help their smaller tenants.
The rental rebates are part of CapitaLand’s initiatives to help its retail partners hurdle the challenges brought by the coronavirus (Covid-19) outbreak. The group recognizes that “Covid-19 has impacted different malls and trade categories by varying degrees”.
Thus, “we are progressively informing our retailers of their relief packages”, said CapitaLand.
The group’s relief packages had already reach some of its retail partners who, in turn, expressed their appreciation.
For instance, Katrina Group, which owns and operates F&B brands like Bali Thai and So Pho, had initially received a 10% rebate for two months in its stores that are located within CapitaLand’s urban malls, while those running at Clarke Quay got 15% for the same period.
Such rebates have now been revised to 50% across all his 12 stores in CapitaLand malls.
“We are thankful to them for responding to our calls,” said Katrina Group Chief Executive Alan Goh.
Meanwhile, tenants operating out of Suntec City will also receive rental rebates as its property manager, APM Property Management, intends to “fully pass on the savings” obtained from property tax rebate to “qualifying tenants in the form of rental reductions for the month of March and April”.
It can be recalled that a 15% property tax rebate for landlords of private commercial properties was announced by Deputy Prime Minister Heng Swee Keat two weeks ago.
The rebate was part of a special $4 billion package allotted to help businesses affected by Covid-19. With this, Heng encouraged landlords to translate such savings into lower rents for its tenants.
“We are also finalising the additional rental relief measures and will reach out to the affected tenants regarding the targeted measures as individual tenants are impacted differently by COVID-19,” said APM Property Management’s deputy chairman Anthony Yip.
Meantime, tenants have the option to utilize their one month’s worth of security deposits in order to offset rents for March or shorten their operating hours to minimize operating costs.
Yip added that those with immediate liquidity needs, on the other hand, can tap on an $8 million SME Help Fund that was set up by ARA Asset Management, JL Family Office, and Straits Trading Company.
Singapore Retailers Association (SRA), for its part, continues to urge other landlords to conform with such rental rebates and increased marketing efforts.
Tenants, on the other hand, demand for further details regarding the package in order for them to plan their respective cashflows.
Mall operators attributed the delay in details to the pending clarifications as to their qualifications for the property tax rebate.
CapitaLand, for instance, “still in the process of clarifying the qualifying criteria” for the property tax rebate, said RAS.
“But it assures tenants that they will pass on the full property tax rebate once (they) receive it.”
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Victor Kang, Digital Content Specialist at PropertyGuru, edited this story. To contact him about this or other stories, email victorkang@propertyguru.com.sg
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