UOL extends rental rebates for retail tenants to July, with over $50m Covid-19 relief package

Velocity@Novena Square, one of the shopping malls under the UOL Group. ST PHOTO: GIN TAY

SINGAPORE – Retail tenants of UOL Group and its subsidiary United Industrial Corporation will receive rental rebates from May till July on top of rental waivers already given out in March and April.

This will result in a total relief package of more than $50 million to help tenants withstand the coronavirus crisis, inclusive of about $16 million of property tax rebates from the Government, the listed property developer said on Monday (May 4).

The group’s shopping malls include United Square, Velocity @ Novena Square, Kinex, Marina Square, West Mall and New Park Shopping Arcade. It also owns retail premises within Odeon Towers and Clifford Centre.

Rental waivers have been granted to all eligible tenants which were either required to or opted to close shop, starting from either March 27 or April 7 till end-May.

Tenants that are still operating, which account for approximately 25 per cent of the group’s retail tenants, will receive waivers on the fixed component of their rent and be charged only variable rental based on their gross turnover from the start of the “circuit breaker” period on April 7 till end-May.

In addition, eligible tenants will receive 50 per cent rental rebates for the months of June and July.

Ms Jesline Goh, UOL’s chief investment and asset officer, said: “We are thankful for the various measures implemented by the Government and its agencies to support the economy and industry. In this crisis, all business sectors are badly affected. No one is spared. As such, we are committed to stand alongside our valued partners to keep businesses viable.”

Last week, City Developments Limited (CDL), which operates malls such as City Square Mall in Farrer Park and Central Mall in Clarke Quay, enhanced its rental relief for retail tenants in Singapore to $23 million. Retail tenants will receive 100 per cent rental rebates for April and May, 50 per cent for June, and 30 per cent for July.

Similarly, Mapletree Commercial Trust said in March that it was committing an additional $18 million to its retail support package, to a total of $30 million to help its retail tenants in malls like VivoCity and Alexandra Retail Centre.

CapitaLand, Singapore’s biggest retail landlord with malls such as Ion Orchard, Funan and Junction 8 in its portfolio, said that it is effectively granting 100 per cent rental rebates for almost all tenants for the months of April and May.

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

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