CMT commits support for CapitaLand’s relief package for mall tenants affected by COVID-19

CapitaLand will offer various forms of support to its retailers which may include flexible rental payments, and a one-time rental rebate of up to half-a-month for eligible tenants.

Singapore, 24 February 2020 – CapitaLand Mall Trust Management Limited (CMTML), the manager of CapitaLand Mall Trust (CMT), today expressed its support for CapitaLand’s relief package for shopping mall tenants affected by COVID-19.

CapitaLand has committed rental relief and S$10 million in marketing assistance to help its mall tenants in Singapore ride through current challenges and position for the future.  As COVID-19 has impacted different malls and trade categories by varying degrees, the rental relief will be disbursed to tenants in a targeted manner.  CapitaLand will offer various forms of support which may include flexible rental payments, and a one-time rental rebate of up to half-a-month for eligible tenants. In addition, to ease cashflows for all its mall tenants, CapitaLand will release one month security deposit to offset rental payments for the month of March 2020.

These initiatives are on top of the 15% property tax rebate granted by the Government under Budget 2020, which CapitaLand will pass on in full to its tenants.  For tenants who heed the Government’s call to upskill their employees during this period, CapitaLand plans to offer relevant training programmes under its signature Biz+ Series of tenant engagement events.  The comprehensive relief package will benefit tenants operating more than 3,500 stores in CapitaLand’s retail network, including the over 3,000 stores in 15 malls owned by CMT.

These initiatives are on top of the 15% property tax rebate granted by the Government under Budget 2020, which CapitaLand will pass on in full to its tenants.  For tenants who heed the Government’s call to upskill their employees during this period, CapitaLand plans to offer relevant training programmes under its signature Biz+ Series of tenant engagement events.  The comprehensive relief package will benefit tenants operating more than 3,500 stores in CapitaLand’s retail network, including the over 3,000 stores in 15 malls owned by CMT.   In addition, to ease cashflows for all its mall tenants, CapitaLand will release one month security deposit to offset rental payments for the month of March 2020.As COVID-19 has impacted different malls and trade categories by varying degrees, CapitaLand’s rental relief will be disbursed to retailers in a targeted manner, based on their individual needs and circumstances.  Customised measures may include a review of security deposits, restructuring of rental payments and rental rebates to ease retailers’ cashflow.  As COVID-19 has impacted different malls and trade categories by varying degrees, CapitaLand’s rental relief will be disbursed to retailers in a targeted manner, based on their individual needs and circumstances.  Customised measures may include a review of security deposits, restructuring of rental payments and rental rebates to ease retailers’ cashflow.  CapitaLand is offering additional support, including rental relief, for its Singapore retail partners affected by COVID-19.  These measures will be on top of Budget 2020 measures unveiled yesterday, as well as the S$10 million marketing assistance programme set up by CapitaLand last week.  

 

As COVID-19 has impacted different malls and trade categories by varying degrees, CapitaLand’s rental relief will be disbursed to retailers in a targeted manner, based on their individual needs and circumstances.  Customised measures may include a review of security deposits, restructuring of rental payments and rental rebates to ease retailers’ cashflow.  

Mr Tony Tan, CEO of CMTML, said: “CMT cannot achieve sustainable distributions without embracing and considering the needs of our retailers.  We want our tenants and shoppers to know we are in this for the long haul and that we will journey with them during this difficult period.  As Singapore’s largest retail REIT, it is incumbent on CMT to take the lead and proactively work alongside our tenants, who are our closest business partners in an increasingly collaborative retail environment.  By weathering the challenges together, we can build greater resilience for our retail ecosystem that underpins the long-term growth of our portfolio.”

“CapitaLand’s relief package considers a broad range of needs and has been developed in response to feedback from tenants and industry associations.  It offers immediate cost and cashflow relief for retailers while driving sales to boost their topline.  The proposed training opportunities will further prepare our tenants to future proof their skill sets and better ready for the eventual recovery.”

“CMT’s resilient performance through the years has been supported by a quality portfolio comprising malls located at or near transport nodes in areas with large population catchments.  These attributes will continue to put us in strong position to ride through the current challenges.  The proposed merger with CapitaLand Commercial Trust will further enhance our portfolio resilience and growth through different market cycles.”

To better capitalise on the trend of integrated developments, CMT and CapitaLand Commercial Trust announced on 22 January 2020 their proposed merger.  Upon obtaining the necessary approvals, the merged entity is expected to become the largest REIT in Singapore and third largest in the Asia Pacific region.

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