Merlin suspends rents to retail businesses and hotels impacted by Covid-19

Merlin suspends rents to retail businesses and hotels impacted by Covid-19

This measure will be applied by the REIT for the duration of the mandatory closure for these businesses and hotels

«We know this will last for a while and that it will be tough for us, but if we learned something with the crisis of 92 to 96 and that of 2008 to 2014, was that without support to the SMEs and independent businesses, unemployment increases dramatically. Businesses do not recover and it is a disaster for the economy», assured Ismael Clemente, the company’s CEO.

This initiative will benefit 77% of the REIT’s retail tenants and two hotel tenants: the Novotel located in Barcelona and the Eurostars located in one of the Cuatro Torres (Four Towers) in Madrid.

Concerning the retail tenants, Merlin will apply this measure both to the shopping centres and to the small businesses it has in some office buildings. The rental suspension will be applied on the period which started on the 15th of March since that was the first day of the Government’s mandatory closure and it will continue until the closure ends.

The main beneficiaries are small mid-sized businesses, since around 70% of the REIT’s commercial clients are franchises, independent and family businesses, whereas the remaining 30% are in the hands of big companies such as Inditex and H&M.

Concerning the hotels, these will also be forced to close starting next week and that is when the suspension will also come into effect.

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