Mainland Chinese mall landlords have moved fast to relieve the pressure on their tenants across different sectors. As a solution to the the crisis brought on by the Wuhan coronavirus outbreak, They have reacted by cutting rents and offering zero-rent periods.
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They have also donated money to non-profit groups and hospitals in Hubei province, the epicentre of the new epidemic.
Beijing-based Dalian Wanda Group has exempted all tenants at its Wanda Plazas from paying rent and property management fees for a month, from January 24 to February 25.
According to mainland media, as reported by SCMP, this could cost Wanda 3 billion yuan (US$432 million). The company, China’s top commercial property developer, with revenue worth 26.45 billion yuan in the first half of 2019, owns at least 323 plazas, according to the website of Dalian Wanda Commercial Management Group, its commercial property subsidiary.
SCMP reported that State-owned developer Poly Commercial Real Estate said it would reduce rents for tenants at its 22 shopping malls from the first to the sixth day of the lunar new year.
Shenzhen-based Galaxy Commercial, which operates the Coco City and Coco Park malls in the city, said it would halve rents at its 15 shopping centres for the first fifteen days of the lunar new year. Redsun Properties, which focuses on developing property projects in eastern China, and Shengzhen-based Excellence Group with total assets worth 190 billion yuan, also said they would halve rents for the first seven days of the lunar new year for certain shopping centres.
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Meanwhile, Shanghai-based commercial property developer Powerlong Group and Yuzhou Group said they would halve rents for the first nine days of the lunar new year.
(Source: SCMP)