Covid-19 crisis: REITs and funds are willing to adjust rents

Covid-19 crisis: REITs and funds are willing to adjust rents

Retail and Hotels: talks have started

Given the current situation, which forced several businesses to close down and others to work only partially, several companies, owners of commercial spaces, have already started talks with their respective tenants.

Despite not having yet outlined specific measures, REIT Lar España, specialised in retail spaces, revealed that it is already «in permanent and unobstructed contact» with their tenants and that the measures should be analysed «shopping centre by shopping centres, client by client, on a mid-term prospect», revealed newspaper Expansión.

In order to better adjust the rents to this «unprecedented situation», URW mentioned it had already started «talks with its operators on how to approach the retailers’ contractual obligations in an unprecedented situation». This fund owns 8 shopping centres in Spain, amongst which the Parquesur, La Vaguada and La Maquinista.

Millenium Hotels, owner of 8 luxury hotels in Spain, also revealed it will have the «best predisposition» to adapt to this situation.

On this matter, REIT Merlin Properties went farther: it has already announced it will waive the full amount of the rents of the retail spaces and hotels affected by the current crisis. The measure can be read with further detail here.

There is already flexibility with payments at the housing segment

There have been several companies announcing measures which will offer housing segment tenants softer ways of paying their rents.

Lazora, which is part of management company Azora, was one of these companies. The company outlined a program which allows to postpone the payment of the rents to a later date in several instalments during a year.

Témpore also approved a similar measure: allowing the postponement of part of the rents for a maximum of 6 months for clients whose jobs were affected by the crisis.

On the other hand, Blackstone – which through Aliseda, Anticipa, Testa and Fidere controls around 50 thousand dwellings in Spain – has already announced it is conceiving solutions «case by case». The same newspaper further revealed that Blackstone «will do all that is possible and with much more effort to support its tenants».

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