CDL to enhance its rental relief for retail tenants here

The area outside Ion Orchard (above) almost deserted on April 7 and the Prada store at Paragon closed on April 16 after circuit breaker measures took effect in Singapore early this month. City Developments Limited said it would enhance its rental relief from $17 million to over $23 million. Other mall operators have also previously announced support for mall tenants.ST PHOTO: GIN TAY

The area outside Ion Orchard almost deserted on April 7 and the Prada store at Paragon closed on April 16 after circuit breaker measures took effect in Singapore early this month. City Developments Limited said it would enhance its rental relief from $17 million to over $23 million. Other mall operators have also previously announced support for mall tenants.ST PHOTO: ONG WEE JIN

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

In a statement yesterday, City Developments Limited (CDL), which operates malls such as City Square Mall in Farrer Park and Central Mall in Clarke Quay, said that 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 this month and next month, 50 per cent in June and 30 per cent in July.

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.

CDL said about 80 per cent of its retail tenants are not operating following the new coronavirus curbs.

The chief executive of CDL’s commercial division, Ms 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 retail tenants under CapitaLand, which runs malls such as Ion Orchard, Funan and Junction 8, the operator announced last month that it is effectively granting 100 per cent rental rebates this month and next month for almost all tenants.

Eligible tenants could also use their security deposit to offset rent last month.

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

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

Additionally, SPH Reit manager’s board of directors would also take a 10 per cent cut of their directors’ fees from this month to show solidarity with the community.

Meanwhile, Mapletree Commercial Trust last month said that 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 this month.

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 their tenants.

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

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