CapitaLand to offset mall tenants' March rent with 1 month of security deposit

Junction 8 is part of CapitaLand's shopping mall network. (PHOTO: CapitaLand)

SINGAPORE — CapitaLand Mall Trust Management (CMT) said it will release one month of security deposit to offset March rentals as part of moves to ease cashflow for all its mall tenants amid the COVID-19 outbreak.

The move is on top of other measures the company plans to introduce including flexible rental payments and a one-time rental rebate of up to half-a month for eligible tenants, according to a statement by CMT on Monday (24 February).

For tenants that upskill their employees during the outbreak as encouraged by the government, CapitaLand plans to offer training programmes under its Biz+ Series of tenant engagement events.

Food services and retail tenants operating more than 3,500 stores across CapitaLand malls in Singapore stand to benefit from its support package.

CapitaLand said on 13 February that it will offer its mall tenants the flexibility to operate shorter store hours and also put in place a S$10 million marketing assistance programme to fund promotional activities for its tenants.

The support measures come after the government announced that it would grant a 15 per cent property tax rebate under Budget 2020 to qualifying commercial properties. Deputy Prime Minister and Finance Minister Heng Swee Keat had urged landlords to pass this rebate on to tenants by reducing rentals. CapitaLand said on 19 February that it will pass the full savings to its tenants. 

“We will continue to engage our tenants closely and stand prepared to do more should the situation worsen,” said Jason Leow, President, Singapore & international, at CapitaLand Group.

CapitaLand had also met representatives from the Restaurant Association of Singapore and Singapore Retailers Association (RAS) on Friday during a dialogue session facilitated by Enterprise Singapore.

“The release of security deposit coupled with the stated rental rebate for F&B operators, is tangible relief at a time of great need,” said Andrew Kwan, Vice President of RAS.

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