CapitaLand to give 1,000 tenants rental rebates
Mall operator CapitaLand will be giving 1,000 tenants rental rebates over two months in a move to help stores tide over the current retail storm caused by the coronavirus outbreak.
In a letter sent to tenants on Wednesday, 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.
It 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) called out landlords for dragging their feet when it came to providing promised rental rebates.
The association singled out CapitaLand for previously announcing rental rebates of 50 per cent but giving certain food and beverage outlets less than that.
In response, CapitaLand president for Singapore and international 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 Covid-19 outbreak has impacted different malls and trade categories in varying degrees.
So far, about five other landlords, including Changi Airport Group and the National Parks Board, have confirmed rental rebates for tenants.
In a Facebook post yesterday, 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 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."