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Suntec City, CDL offer rental rebates to their tenants

SINGAPORE — In the face of increasing pressure from tenants and the Government over the past few weeks, several mall owners in Singapore said on Monday (April 6) that they would provide rental relief to their tenants.

People passing through Suntec City's West Atrium on March 24, 2020.

People passing through Suntec City's West Atrium on March 24, 2020.

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SINGAPORE — In the face of increasing pressure from tenants and the Government over the past few weeks, several mall owners in Singapore said on Monday (April 6) that they would provide rental relief to their tenants.

Suntec City will be waiving the rents of all its mall tenants, including those allowed to open during the “circuit breaker” period, for the month of April.

In a media statement on Monday, the mall also said that it would pass on the full savings of the 100 per cent property tax rebate to all mall tenants.

As a portion of these savings has been passed on in March, the balance will be passed on in the form of rental rebates for the month of May. This would amount to another month of rental reduction for most tenants.

It will also allow tenants to use their one-month cash security deposit to offset the rent.

This means that almost all tenants will have cash flow relief equivalent to a total of three months’ rent, said Suntec City.

Separately on Monday, City Developments (CDL) also said it would pass on the full amount of money saved from the property tax rebate to its tenants.

This translates to CDL tenants getting a 100 per cent rebate in rent for the month of April, and a 50 per cent rebate for May.

The property developer said it has also disbursed rental rebates in a targeted manner to qualifying tenants in March.

All in, these measures amount to more than S$17 million, said CDL.

It also said that more support may be rolled out after May as the developer continues to monitor the situation.

Another major property developer in Singapore, CapitaLand, said on Monday that it has committed about S$100 million to support its partners, including retail tenants, as well as help governments and healthcare communities in the various markets where it operates.

Landlords and tenants have been embroiled in a discord amid the Covid-19 pandemic, as retailers and food-and-beverage outlets hit hard by the slump in consumer demand have pressured landlords to cut rent.

Many tenants claimed that their landlords have been slow to provide rental relief despite property tax rebates given by the Government.

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