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Mall Operators agreed to cut rents by 50-100% | MoneyControl – Spectraa Real Estate Advisory

Mall Operators agreed to cut rents by 50-100% | MoneyControl

COVID-19 impact: Some mall operators agreed to cut rents by 50-100% during lockdown period | MoneyControl

Prolonged mall closure, rent waivers to test financial flexibility of mall operators; operating income to decline by 45-60 percent in FY2021: ICRA

A few mall operators have announced blanket deals for their retail tenants in their properties that include letting go of rents anywhere between 50 percent to 100 percent during the lockdown period but any prolonged mall closure, rent waivers is expected to lead to operating income of owners declining by 45 to 60 percent, an analysis by ICRA Research has said.

The contagion fears as well as the possible impact on disposable income of the consumers will also lead to low footfalls in malls throughout the year.

Further, people may fulfil their shopping requirements through e-commerce platforms or through local retailers in the near term, which may also impact the footfalls. In such a scenario most of the leveraged malls will have to take measures to fund the cash flow mismatches which are expected in the current year, it said.

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