Developers slash fees for retail tenants
A slew of real estate developers in China have announced rent and property management reductions over recent days to help retail tenants survive the industry-wide hit from an outbreak of pneumonia caused by a novel coronavirus.
The commercial real estate subsidiary of China Jin Mao Holdings Group Co announced on Friday that it will waive rents between January 24 and February 9 for all tenants at the company’s shopping malls under multiple brands across the country.
Longfor Group, a Chongqing-founded and Hong Kong-listed developer, announced on Thursday that it will offer a 50-percent discount on rents, property management and promotion fees between January 25 and March 31 for tenants at 39 malls across 10 cities including Beijing, Shanghai, Chongqing, Chengdu, Hangzhou, Suzhou and Nanjing.
Developers offering similar rent waiver and reduction plans also include Shui On Land Ltd, China Resources Land Ltd, Shanghai Forte Land Group, Yintai Group, Seazen Group, Poly Commercial Real Estate and Grand Joy Holdings Group.
Dalian Wanda Commercial Management Group, the commercial property investment and operation arm of Dalian Wanda Group, announced on Tuesday that it will waive rents and management fees between January 24 and February 25 for all tenants at all Wanda Plazas around the country, which could reach between 3 billion yuan and 4 billion yuan (US$429 million-572 million) in total, according to industry estimates.