CapitaLand’s COVID-19 support package for mall tenants gets full endorsement from Restaurant Association of Singapore and Singapore Retailers Association
Singapore, 24 February 2020 – In a show of solidarity and togetherness, CapitaLand has met up with representatives from the Restaurant Association of Singapore (RAS) and Singapore Retailers Association (SRA) to reaffirm its commitment to support food services and retail companies to ride through the challenges brought on by COVID-19. The dialogue, which took place on 21 February 2020, was facilitated by Enterprise Singapore (ESG).
At the dialogue session, CapitaLand provided more details of the comprehensive support package the Group has drawn up for its mall tenants, which was announced in statements issued on 13 February 2020 and 19 February 2020. These initiatives are on top of the 15% property tax rebate granted by the Government under Budget 2020. Food services and retail tenants operating more than 3,500 stores across CapitaLand malls in Singapore stand to benefit from the support package.
As COVID-19 has impacted different malls and trade categories by varying degrees, 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.
Mr Jason Leow, President, Singapore & International, CapitaLand Group, said: “As the operator of Singapore’s largest shopping mall network, we recognise that we will succeed only if our retail partners do. Our commitment to build a sustainable retail ecosystem remains unwavering. We will continue to engage our tenants closely and stand prepared to do more should the situation worsen. We look forward to working closely with RAS and SRA to ride through this challenging period together.”
Mr Andrew Kwan, Vice President of RAS, said: “RAS appreciates the leadership demonstrated by CapitaLand where the social compact, between landlords and tenants, is characterised by practical support and sacrifice. The release of security deposit coupled with the stated rental rebate for F&B operators, is tangible relief at a time of great need. We urge other landlords to take the cue from CapitaLand and offer urgent and immediate cost relief measures for their tenants. Only when all parties work together can we save jobs during this difficult time.”
Mr R Dhinakaran, President of SRA, said: “We appreciate CapitaLand’s willingness to understand the difficulties on the ground and take immediate actions. Singapore’s retail sector is facing unprecedented challenges and many of our members are facing cashflow issues. We are heartened that CapitaLand is taking the leadership to release the security deposit and offer rental relief, on top of the Government’s Budget 2020 measures. We hope other landlords will follow suit and do their part to keep Singapore’s retail ecosystem going.”
Mr Ted Tan, Deputy Chief Executive of ESG, said: “We are pleased that CapitaLand is extending rental support to its tenants. This shows that its management understands and cares about the current business conditions of its tenant partners, and is committed to helping them tide over the situation and prepare for the recovery. We hope other mall owners will do the same. We also commend the leaders of the Restaurant Association of Singapore and the Singapore Retailers Association, who are representing the food services and retail companies in seeking to understand CapitaLand’s position and constructively forging a win-win solution for all. Moving forward, it is important that all three parties work together to bring more customers back to the malls, stores and food outlets, and to make Singapore an even more attractive lifestyle destination for visitors than before. Enterprise Singapore will support this effort fully.”
CapitaLand first announced on 13 February 2020 that it is offering its mall tenants the flexibility to operate shorter store hours. CapitaLand has also put in place a S$10 million marketing assistance programme to fund retailer-driven and mall-wide promotional activities to help its tenants achieve more sales.
In response to Budget 2020, CapitaLand said on 19 February 2020 that it will pass on the full savings of the Government’s property tax rebate for qualifying commercial properties 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. Over and above the Budget 2020 measures, CapitaLand has committed additional support, including rental relief, for tenants affected by COVID-19.