Unlock 1.0 | DLF offers rent waivers to mall tenants

DLF Shopping Malls has raised an olive branch in the commercial landlord versus renters scuffle, offering to waive the minimum guaranteed (MG) rent for the lockdown period till June 15. The developer suggested that new rent agreements be reached so that re-opening of eateries can be sped up.

In a letter to tenants, DLF suggested a complete MG rent waiver from the beginning of the lockdown till June 15. For CyberHub clients, it announced a 70 percent waiver of MG rent in Q2, 45 percent waiver in Q3 and 20 percent in Q4. For Promenade Mall, it has waived 50 percent of the MG rent in Q2, 25 percent in Q3 and 10 percent in Q4.

“DLF believes in long-term partnerships driven by strong relationships. This gesture is in that same spirit,” a company spokesperson told The Times of India.

Moneycontrol could not independently verify the report.

Terms of the waiver mentioned in the latter include the condition that outlets reopen with seven days of malls resuming business; lock-in period till March 2021 and 2 percent higher revenue sharing for FY21.

It stated that if sales for Q3 FY21 touch 80 percent of the same period last year, MG rent at Promenade would be 100 percent. At CyberHub, if sales touch 70 percent of last year’s numbers, MG rent would be 90 percent.

All dues have to be cleared by September 30.

“We are mindful that a strong partnership entails…are sympathetic to the situation you (partners) are facing, and we have also faced a cessation of revenues while our financial obligations to external shareholders remain. We have worked on a rental programme that will support our partners in restarting their business,” the spokesperson told the Financial Express.