Covid-19 crisis: DLF takes lead, waives rent for beleaguered mall tenants

Realty major DLF has offered respite to its beleaguered mall tenants by waiving off rents, fully or partially, up till March 2021. The Delhi-headquartered firm has already offered a revised scheme on payable modified gross (MG) lease rent to its tenants at its properties in the capital.

In a letter to its tenants, the realtor said it “plans to waive of the entire MG rent from the beginning of the lockdown period up till 15 June”. It has offered 75 per cent waiver on MG rent from 15-30 June. During the second quarter of 2020-21 (July-September), it offered to waive off half of the rent. During the next quarter, the extent of waiver on MG rent has been set at 25 per cent.

In the fourth quarter (January-March 2021), 10 per cent waiver has been offered. However, retailers that attain 80 per cent of their sales, compared to the same period last year, during October-December will have to pay full rent during the third quarter. 

“We understand that both, the pandemic, and the lockdown, have been emotionally and financially draining for each one of us. We are sympathetic to the situation you are facing, and we have also been faced with a cessation of revenues whilst our financial obligations to external shareholders have remained. We have worked on a rental programme that will support our rental partners to restart your business,” DLF’s management said in the letter.

A DLF spokesperson said: “We value our partners in good and bad times and this is a generous gesture of building the partnership.”

Under the revised scheme, tenants will be locked in till the end of the current financial year and are required to open their outlets within a week after the opening of the mall. Two of DLF’s malls in the capital – DLF Avenue and DLF Promenade — reopened for shoppers on 10 and 11 June, respectively.

Tenants have also been allowed to clear any past dues by September 30 and asked to pay utility charges according to respective agreements.

 Rajeev Talwar, CEO and director, DLF and chairman of Naredco, said in a videoconference: “The overall behaviour of the consumer has changed to save more, spend less, and invest smart model. Real estate has always been less volatile as compared to share markets making it the safest investment available.”  Stressing upon the need to recalibrate businesses, he said “to stay afloat in these challenging times, we are moving towards a more digitally inclined world”.