09 April 2020
Mercatus is fully committed to supporting our retail mall tenants (at AMK Hub, Jurong Point and Thomson Plaza) during these unprecedented challenging times. As part of our tenant support package, we will be providing rent relief for our mall tenants who cannot operate and a reduction in rent for most who can continue to operate during the month-long ‘circuit-breaker’ period.
These support initiatives will be fully funded by Mercatus, in addition to previous initiatives including rental assistance and the passing on of the property tax rebates from the government in full to our tenants.
1. Rent relief to cover the month-long ‘circuit-breaker’ period
All mall tenants in the non-essential services category that are not permitted to operate as well as essential services that are not operating during this period will be entitled to one-month gross rent relief. Tenants who were earlier mandated to close their operations, including cinemas, entertainment centres, tuition and enrichment centres, had already been informed of the rental relief during their closure.
Tenants in F&B, telcos and other essential services trade that are trading with limited services in line with Government restrictions will only have to pay the service charge.
For most essential services operating during this period including essential retail service and banks, Mercatus will reduce the gross rent by 50% and suspend the gross turnover rent component.
We understand that this assistance is critical to the viability of many of our tenants and we are reaching out to them individually to provide them with more updates.
2. Additional Rent Relief
As previously announced, Mercatus is passing on the property tax rebates that we would be receiving to our tenants. On top of this, we will be giving additional rental assistance of up to one-month gross rent to all tenants at Mercatus malls. This is in addition to the rental relief provided to cover the ‘circuit breaker’ period as outlined above.
Property tax rebates in the form of rental rebate have been credited fully to all our tenants at Mercatus malls in April 2020. For other tenants in our portfolio, the property tax rebates will be credited by end of May 2020.
Mercatus is monitoring the situation closely and we are working closely with our stakeholders and the authorities. We are reviewing each request on a case-by-case basis and hope that our latest initiatives will provide our tenants additional relief. We are committed to overcoming this together as one.