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Its enhanced rental assistance package will also see the mall passing on the government’s property tax rebates in full to all retail tenants in May. Photo: Sunteccity.com.sg
Suntec City is waiving the rents for all its retail tenants for the month of April to help them cope with temporary closures and disruptions amid the month-long “circuit breaker” measures aimed at limiting the spread of Covid-19.
The rental waiver, which is entirely funded by the landlord, will also be extended to tenants offering essential services, such as pharmacies, supermarkets, food courts, banks and restaurants.
Most workplaces will be shut from 7 April to 4 May, with only essential businesses permitted to remain open. Suntec City revealed that it will closely work with tenants to comply with such rules, reported CNA.
Its enhanced rental assistance package will also see the mall passing on the government’s property tax rebates in full to all retail tenants in May.
“As a portion of these savings had been passed on in March, the balance will subsequently be passed on to all tenants in the form of rental rebates for the period from 1 May to 31 May,” it said, adding that this will translate to another month of rental reduction for most tenants next month.
Along with the one-month security deposit which retail tenants can use to offset rental payments, Suntec City revealed that almost all tenants will receive help that is “equivalent to a total of three months’ rent”.
“We will continue to work closely with the authorities and all stakeholders to overcome this unprecedented crisis.”
City Developments (CDL) also announced on Monday (6 April) that it will be passing on to its tenants the “full quantum” of property tax rebates.
These come before the introduction of a Bill that is aimed at ensuring landlords pass on to tenants the property tax rebates in full.
For months, retail tenants – particularly those in the retail and F&B sectors – have been calling for rental help. According to them, landlords have been slow in translating the rebates into savings for them.
With the roll out of stricter distancing measures, these smaller businesses also calls on landlords to do more, such as having retail rents based solely on their gross turnover (GTO) for a temporary period.
“We need mall operators to bear their fair share burden on rental rebates beyond the 100% property tax rebate pass-through,” explained the SG Tenants United for Fairness, an informal group of retailers and F&B operators.
“We call on all mall operators to fully waive rental payments for all businesses who are closed during circuit breaker period and move to 15 % GTO terms for all other businesses.”
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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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