SINGAPORE - One of Singapore's largest commercial landlords, City Developments Limited (CDL), is stepping up its help to retail tenants struggling with the fallout from the coronavirus outbreak, as firms like PropNex roll out measures for other stakeholders in the property industry.
CDL said on Monday (April 6) it will provide its retail tenants rental rebates of 100 per cent in April and 50 per cent in May. More support may be rolled out progressively after May as CDL monitors the situation closely. It has already given out rental rebates "in a targeted manner" to qualifying retail tenants in March.
Altogether, CDL has so far committed more than $17 million in property tax and rental rebates to help its office and retail tenants cope with the temporary business closures and disruptions from Covid-19, it said in its media release.
This amount includes - but also exceeds - the full quantum of the government's enhanced property tax rebates to be passed on to CDL's tenants.
Its announcement comes ahead of a Parliament sitting on Monday afternoon, when new legislation will be introduced to ensure landlords pass on the property tax rebates in full to their tenants. The enhanced rebates comprise the 100 per cent property tax rebate for qualifying commercial properties and 30 per cent for businesses in other non-residential properties such as offices and industrial properties.
CDL said on Monday tenants facing severe cash flow issues will be given more flexibility in rental payments.
Said the group: "As the Covid-19 situation continues to evolve, with new regulations being put in place by the authorities, close engagement with tenants to understand their operating challenges is critical during this uncertain and difficult period. CDL is reviewing tenants' requests on a case-by-case basis and will work hand in hand with tenants to support them and provide further assistance."
CDL is landlord to a total of 426 retail tenants. They come from five malls, eight retail properties where the group owns strata-titled units and an additional four commercial properties with retail space. In terms of the trade mix, 36 per cent are in the food and beverage sector.
Group CEO Sherman Kwek said: "We stand united alongside our tenants in these unprecedented times. While the Covid-19 situation looks likely to be prolonged and the authorities have just imposed stricter measures, nevertheless we must remain positive in our outlook and help one another to tide through this difficult period."
PropNex Realty, meanwile, announced on Monday a support package for its 8,500 real estate agents, as well as a $750,000 donation, comprising $250,000 for the needy in the community and frontline workers in the virus outbreak and $500,000 to the Community Chest.
CEO Ismail Gafoor said that in light of the "circuit breaker" measures that kick in on Tuesday, there will be further restrictions on the conduct of real estate business and the company was concerned for its salespersons' cash flow situation.
To this end, PropNex has rolled out a plan, whose highlight is a $25 million advance commission scheme. Under this, property agents for new project launches can apply for the early release of their commissions, interest free, capped at $10,000 per person. Developers generally take three to six months to release the commissions. They can also apply for the early release of their commissions for eligible resale transactions, capped at $1,000 per transaction and limited to $10,000 per person.
The firm will also make advance payments on its pension fund and management fees for team leaders, waive or subsidise certain training fees and pass on rental rebates to its agents in the form of discounted or free room bookings.
The company is also appealing to otheer agencies on behalf of their agents to lower business costs.
It has written to the Professional Indemnity Insurance provider to request for a discount on the salesperson insurance premium.
It has also written to the Council of Estate Agencies, appealing for a total waiver of the $283.50 fee for agents to renew their licence next year, and for deferment of their Medisave top ups for 2020.
