CapitaLand to inform tenants of rental relief packages by end-March
CapitaLand, which operates Singapore's largest mall network with 18 under its management, is in the process of reviewing 3,500 leases and aims to inform all tenants of their respective rental relief packages by end-March.
The retail giant said it has granted rental rebates of 20 per cent to 30 per cent over two months as an interim relief to eligible tenants in its downtown malls, which have been more affected by the coronavirus outbreak.
Rental relief by CapitaLand will be disbursed to tenants in a targeted manner as the outbreak impacted different malls and trade categories in varying degrees, said CapitaLand president for Singapore and international, Mr Jason Leow.
He was responding to the Restaurant Association Singapore (RAS), which accused it of not fulfilling the promised rental relief packages.
RAS said in a statement yesterday that apart from Jewel Changi Airport, Changi Airport Group, JTC and National Parks Board, all other landlords and mall owners have yet to respond to its appeal for rental rebates.
RAS said CapitaLand, in particular, has yet to honour its promised rental rebates of 50 per cent for its restaurant tenants.
In response, Mr Leow said: "It is unfortunate that the entire relief package has not been fully comprehended by RAS, despite our ongoing engagements.
"Our various promotions since Feb 14 have shown positive results in bringing customers back to our malls."
On Feb 24, a joint statement was issued by RAS and the Singapore Retailers Association where CapitaLand said it would offer flexible rental payments of up to 50 per cent and a one-time rental rebate of up to half a month for eligible tenants.
RAS executive director Edwin Fong said only 10 per cent to 15 per cent of rental rebates have been offered to restaurateurs operating under CapitaLand.
Some, he added, were granted no rental rebates.
"We are deeply disappointed in the landlords' lack of follow through in spite of public announcements of support for the industry during this crisis," said Mr Fong.
Frasers Property, which manages 14 malls, said it will be passing on the Government's 15 per cent property tax rebate, as announced in Budget 2020, to qualifying tenants over the next two weeks.
The spokesman for Frasers Property added that it will continue to engage its tenants and encourage the malls' foot traffic with wider marketing assistance initiatives.
It added that if the situation worsens, the company will consider rolling out additional support such as rental reliefs.