Covid waiver down to 25pc by Dolmen REIT

BoD decides to waive 25pc rent for tenants having retail outlets in 'Dolmen Mall Clifton' for the month of Aug 2020; minimum rent will not be charged to those who are closed or have limited operations 

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KARACHI: In view of the decline in Covid-19 cases, though the disease is still prevalent and likely to increase if not adequate precautions are taken, the businesses have been allowed to open subject to a strict following of precautions to lessen the economic burden on the population to the maximum extent possible.

This was stated by Dolmen City REIT in a notice to the Pakistan Stock Exchange on Tuesday.

As per decisions made by the subcommittee of the Board of Dolmen City REIT, “It has been decided that the company will waive 25pc rentals of tenants having retail outlets in Dolmen Mall Clifton, and 25pc for tenants of the Harbor Front for August 2020.”

In addition, tenants of Dolmen Mall Clifton that have closed or limited operations on government directives, such as entertainment, food outlets, and children’s playing area will not be charged the minimum rent.

However, this decision will not impact operational tenants that are providing essential services such as banks and supermarkets considering that they are fully functional.

Previously, on August  6, the board had decided on a 35pc waiver for tenants of the Dolmen Mall, and 25pc for tenants of Harbor Front for August 2020, but revised that down to 25pc considering the likely footfall that will rise.

A summary of rental waivers announced by the management is provided in the table hereunder:

Rental Waiver*
Month Dolmen Mall Clifton The Harbor Front
April 100% 25%
May 100% 50%
June 55% 50%
July 45%** 40%
August 25% 25%
* Does not include businesses providing essential services such as banks, supermarkets, etc.

** Businesses that are closed or have limited operations such as food court, play area, etc. do not have to pay minimum rent

 

As per the financial accounts of the third quarter ended March 2020, the mall had an occupancy rate of 98.25pc, whereas the Harbor Front had occupancy of 94.46pc, bringing the total occupancy to 97.04pc.

Considering how fear of Covid began spreading in March and the subsequent lockdown towards the end of the month, the daily average of footfall fell from 33,586 in January and 31,906 in February to 15,771 in March.

The mall has decided to take back age restrictions allowing all age groups into the mall, which will likely increase the footfall. However, shops in the mall are to maintain a limit to the number of individuals allowed inside and adhere to the SOPs.

As of June 2019, the total rental value of Dolmen Mall per month was Rs2.42 million, whereas the total rental value of Harbor Front Multistory building per month was Rs 71 million

This means that the total rental value of the mall per annum is Rs2.9 billion, whereas it is Rs855 million for Harbor Front.

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