The management of the Dolmen Mall Clifton has given a respite to the operators of food outlets and restaurants for waving off 100 percent rent in May in the wake of the prevailing situation of the third wave of COVID-19, which restricted the working hours of these tenants on a weekly basis.
The full rent of the tenants providing services of entertainment and children playing areas has also been waived off the management, according to the stock filing issued by Dolmen City REIT, the holding company of the busiest and renowned shopping mall and business center.
Besides, 25 percent rent of retail stores has been reduced for May during the expected low business period ahead in the coming months due to COVID-19 related restrictions from the provincial government.
These measures will provide essential cash flow relief to tenant partners already affected by the closure of business. Further, we will continue to engage with the tenants and monitor the situation closely.
We are cognizant of the need to fully support the efforts of government at the provincial and federal level to contain the spread of this pandemic and sand with the nation in this unfortunate and difficult time, the stock filing added.
The relief of rent will not be extended to commercial banks, supermarkets, stores, and essential services providers with full-fledged operating businesses these days.
The management says that the rent of the stores has not been revised up this year in May 2021.
Dolmen City RIET had earlier provided rental relief to tenants of the stores in Dolmen Mall Clifton and Harbour Front last year too. Many of the outlets had shut their business in the two malls and business centers due to losses and unfavorable working environment.
Also, the management of Dolmen Mall Clifton had reduced the minimum license fee for restaurants and fast-food chains operating in the food courts and outskirts of the shopping center and executive center.
The real estate company also witnessed a drop in its profitability, including challenges to retain its tenants to some extent.
During the nine months of the financial year 2020-21, the company received a rental income of Rs. 2.196 billion as compared to Rs. 2.557 billion in the corresponding period last year, showing a decrease of 14.10 % due to the discounts it gave, owing to the outbreak Covid-19.