Coronavirus: Mall operators extend rebates for retail tenants affected by circuit breaker measures

For mall tenants under CapitaLand, which runs malls such as ION Orchard, the operator announced in March that it is effectively granting 100 per cent rental rebates in April and May 2020 for almost all tenants.
For mall tenants under CapitaLand, which runs malls such as ION Orchard, the operator announced in March that it is effectively granting 100 per cent rental rebates in April and May 2020 for almost all tenants.ST PHOTO: GIN TAY

SINGAPORE - Following the announcement of the extension of the circuit breaker period to June 1 and the tightening on essential services, malls have extended their rental rebates for tenants whose businesses have been affected.

In a statement on Tuesday (April 28), City Developments Limited (CDL) which operates malls such as City Square Mall in Farrer Park and Central Mall in Clarke Quay, said it would enhance its rental relief for retail tenants in Singapore from $17 million to over $23 million.

Retail tenants will receive 100 per cent rental rebates in April and May, 50 per cent in June and 30 per cent in July.

CDL said about 80 per cent of its retail tenants are not operating following the tightening of essential services allowed to remain open over the circuit breaker period.

This means that most CDL tenants will receive more than 2.8 months of gross rental rebates in total, of which an average of two months will be funded by the mall operator.

Additionally, CDL will allow tenants to offset rent using part of their security deposit.

Chief executive of CDL's commercial division Yvonne Ong said: "During such challenging times, CDL stands united alongside our tenants, and we will strive to support them with their immediate and urgent needs."

Other mall operators, including CapitaLand, SPH Reit and Mapletree Commercial Trust, have also previously announced support for mall tenants.

For mall tenants under CapitaLand, which runs malls such as ION Orchard, Funan and Junction 8, the operator announced in March that it is effectively granting 100 per cent rental rebates in April and May 2020 for almost all it tenants.

Eligible tenants could also use their security deposit to offset rent in March.

Additional rental rebate was also granted from March 27 to 31 for tenants ordered to close their premises since March 27.

 
 
 

SPH Reit, which manages malls such as Paragon and Clementi Mall, granted rental rebates for February and March.

Additionally, its manager's board of directors would also take a 10 per cent cut of their directors' fees from April to show solidarity with the community.

Meanwhile, Mapletree Commercial Trust in March said it would commit an additional $18 million to its $11 million retail support package to help its retail tenants affected by Covid-19 measures at malls such as VivoCity and Alexandra Retail Centre. It also offered deferment for fixed rent in April.

All four mall operators have said that the full amount of the Government's enhanced property tax rebate, part of the Supplementary Budget, will be passed on to its tenants.

This includes 100 per cent of the property tax rebate for qualifying retail property tenants.