CRCT adopts precautionary measures to contain the spread of Novel Coronavirus
Singapore, 29 January 2020 – In light of the developing Novel Coronavirus (nCoV) situation in China, CapitaLand Retail China Trust (CRCT) has taken precautionary measures at its malls in accordance with guidelines from the respective local authorities. Working closely with CapitaLand1, CRCT has put in place business continuity plans to minimise impact to operations.
Mr Tan Tze Wooi, CEO of CapitaLand Retail China Trust Management Limited, said: “As a responsible and proactive business owner, we work closely with the different local authorities in China to support their efforts in containing the spread of the nCoV and ensure the well-being of our tenants, shoppers and employees. These include shortening our malls’ operating hours, limiting mass participation activities and selected temporary closure as required by the local authorities.”
Of CRCT’s 13 operational malls in China, CapitaMall Minzhongleyuan in Wuhan is closed and will reopen when local conditions permit. The mall represented less than 3% of CRCT’s portfolio value as at 30 September 2019 and contributed approximately 0.5% of CRCT’s net property income for the first nine months of 2019. As such, CRCT does not expect the temporary closure of CapitaMall Minzhongleyuan to have a material impact on CRCT’s FY 2020 financial performance.
The remaining 12 malls located in various cities such as Beijing, Shanghai, Guangzhou and Chengdu are operating shorter hours, in line with local government guidelines. CRCT will continually review the operating hours of its malls in line with local conditions and regulations.
Mr Tan added: “As the situation is still developing, it is too early to assess the full financial impact of nCoV to CRCT. Notwithstanding the short-term impact on shopper traffic and tenants’ sales, CRCT’s resilience is underpinned by its geographically diversified portfolio and well-spread leases across nine Chinese cities. In the long term, we remain positive on the China market and will rely on our strong financial position to ride through temporary challenges.”
“In the long term, we remain positive on the China market and will rely on our strong financial position to ride through temporary challenges.”
Precautionary measures have been adopted at CRCT’s malls, in accordance with guidelines from the health authorities. These include conducting temperature checks and intensifying cleaning and disinfecting of common areas. Isolation rooms have been set up within the malls and contact tracing will be carried out for those suspected to be infected with nCoV.
CRCT will continually monitor the situation on the ground and provide updates on any material developments as soon as practicable.
1 Please refer to news release issued by CapitaLand, CRCT's property manager, on 29 January 2020: "CapitaLand puts in place precautionary measures and business continuity plans in fight against Novel Coronavirus."
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