SINGAPORE - Mall operator CapitaLand will be giving 1,000 tenants rental rebates over two months to help stores tide through the current retail storm caused by the coronavirus outbreak.
In a letter sent to tenants on Wednesday (March 4), the landlord said it had reviewed February sales and footfall data and will be granting a 50 per cent rebate on the fixed components of their one-month gross rent. This will be disbursed in two tranches of 25 per cent in April and May.
The landlord also assured tenants that it would be passing on the full amount of savings from the 15 per cent property tax rebate provided by the Government once the rebate has been received.
Earlier this week, the Restaurant Association of Singapore (RAS) had called out landlords for dragging their feet when it came to providing promised rental rebates.
Food and beverage (F&B) establishments have felt the crunch in the last two months with many experiencing a drop in revenue of about 50 per cent due to the outbreak.
The association had singled out CapitaLand for previously announcing rental rebates of 50 per cent but giving certain F&B outlets less than that.
In response, CapitaLand president for Singapore and international business Jason Leow said it was "unfortunate that the entire relief package has not been fully comprehended by RAS, despite our ongoing engagements".
He said rental relief will be disbursed to tenants in a targeted manner since the outbreak of Covid-19, the disease caused by the coronavirus, has impacted different malls and trade categories in varying degrees.
So far, about five other landlords, including Changi Airport Group and National Parks Board, have confirmed rental rebates for tenants.
In a Facebook post on Thursday, RAS president Vincent Tan commended CapitaLand's latest move and urged other landlords to follow suit.
He said: "CapitaLand's move to reach out to some 1,000 of its tenants (on Wednesday) is an appreciated gesture in helping tenants keep their operations going and saving the livelihoods of their employees."
He added that some association members expect revenues to drop by as much as 80 per cent in the coming months. "For many, these assessments are now a reality. The impact of Covid-19 has affected restaurants across the board."