SINGAPORE (EDGEPROP) - Property giant City Developments Ltd (CDL) has announced that it is enhancing its rental relief and support for its tenants in Singapore affected by the extension of the “circuit breaker” measures. The company says it is setting aside a further amount of more than $6 million in rental and property tax rebates, on top of the $17 million it had previously announced.
This means the majority of CDL’s tenants will receive more than 2.8 months of gross rental rebates in total, of which an average of two months is fully funded by CDL. Retail tenants will enjoy 100% rental rebates in April and May, 50% in June, and 30% in July.
The company is also assisting tenants with cash flow issues by allowing them to offset rent by using part of their security deposit.
In total, CDL has committed over $23 million to support its tenants affected by the 'circuit breaker' measures. (Picture: Samuel Isaac Chua/The Edge Singapore)
The full quantum of the government’s enhanced property tax rebate, announced as part of the Supplementary Budget, will also be passed on to its tenants. This includes 100% of the property tax rebate for qualifying retail property tenants, and 30% for businesses in other non-residential properties such as offices and industrial buildings.
“We remain fully committed to supporting the Government’s latest measures which are necessary to curb the spread of Covid-19,” says Yvonne Ong, CEO of Commercial at CDL. “CDL stands united alongside our tenants, and we will strive to support them with their immediate and urgent need.”
The developer says that about 80% of its retail tenants are not operating as a result of the circuit breaker, which has been extended to June 1. As of Dec 31, 2019, CDL’s Singapore retail segment accounts for 28% of its commercial portfolio.
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