Following the Covid-19 outbreak in India and the closure of malls in March, shopping centres and their tenants have been fighting over whether rent should be paid during this period.
If retailers were known for offering flat discounts and buy-now-pay-later options to customers, there’s been a role reversal during the coronavirus era, with malls now offering their tenants the same deals.
Brigade Malls in Bengaluru is extending a 50% rebate on rent to its tenants from mid-March until its two malls reopen. Phoenix High Street Mall in Mumbai is giving retailers the option of paying March-June rents together in July, according to two top retail executives.
Phoenix declined to comment. Ambience Mall in New Delhi and Gurgaon is dangling a one-month rent-free offer for those who pay rents up to May.
“All retailers who shall pay their monthly dues of rent and CAM (common area maintenance charges) during the month of March, April and May in time will be allowed one month rent free extended period on renewal or expiry of their respective leases,” Ambience mall said in an email to retailers, which ET reviewed.
Following the Covid-19 outbreak in India and the closure of malls in March, shopping centres and their tenants have been fighting over whether rent should be paid during this period.
While retailers say their sales have been zero since mid-March when various states first ordered closure of the shopping centres, the malls contend that they have bank loans that are linked to rents they get from their tenants.
So far, only a handful of malls including Lulu in Kochi, Vegas in Dwarka, New Delhi, and Brigade in Bengaluru have given concessions from discounts to full waivers for a month.
“Since it is a pain for both sides, we decided to share the burden 50-50,” said Shashie Kumar, COO of Brigade Malls. “About 40% retailers have already reverted to us and appreciated our move.”
ET reported earlier this month that about 200 retailers and restaurants including Future Group, Aditya Birla Fashion, Arvind Brands, Domino’s Pizza, Adidas and Levi’s have decided not to reopen their stores in malls that disregard their plea to move to a revenue-sharing arrangement for a few months after the shopping centres open.
No comments:
Post a Comment