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CMMT commits to RM35m in rental relief for non-essential services tenants

KUALA LUMPUR (April 30): CapitaLand Malaysia Mall Trust (CMMT) has committed to RM35 million in rental relief for shopping mall tenants in non-essential services during the movement control order (MCO) period.

CMMT chief executive officer (CEO) Low Peck Chen said the mandated closure of non-essential businesses during the MCO had dealt a blow to shopping mall tenants involved in non-essential services.

“In the immediate months post the MCO, their operating conditions are likely to remain challenging in view of various measures expected to be in place. To help alleviate their cash flow and operating difficulties, we have drawn up a comprehensive support package,” she said in a statement today.

Low said this support is inclusive of the 14-day rental waiver implemented for the first phase of the MCO from March 18 to 31.

“Following the 14-day rental waiver granted to affected tenants in March 2020, we will be rolling out a second tranche of assistance in the form of rental relief and both initiatives collectively amount to RM35 million.

"The rental relief will be on top of the 15% electricity discount announced by the government, which will be fully passed on to eligible tenants,” she said.

Low added that by weathering the challenges of Covid-19 with its tenants, CMMT is aiming to build greater resilience of its retail ecosystem, in line with long-term interest of unitholders.

Meanwhile, CMMT said, its malls remain accessible to the public during the MCO period when it comes to the provision of essential services.

Tenants involved in such services are offered flexibility – to operate no later than 11am and close no earlier than 8pm – with complimentary parking being put int place to support mall tenants’ business.

To maintain social distancing, CMMT said, floor markets have been placed in common areas such as elevators and mall entrances, with precautionary measures such as temperature checks and the cleaning and disinfection of common areas and tenants’ touchpoints also put in place.

CMMT units closed 0.6% or five sen lower at 82.5 sen today, giving it a market capitalisation of RM1.7 billion.

EdgeProp Malaysia will be hosting a virtual Fireside Chat titled "The Malaysian property market picked up in 2019! Could this be its last hurrah?" through Facebook Live on May 1 at 2pm.

Join us for more insights from Rehda president Datuk Soam Heng Choon, Rehda vice-president and Selangor branch chairman Zulkifly Garib and Rehda Johor branch chairman Datuk Steve Chong Yoon on the market outlook post-MCO!

Stay calm. Stay at home. Keep updated on the latest news at www.EdgeProp.my #stayathome #flattenthecurve

 

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