CapitaLand said it would give back rental rates worth S$41.5 million to existing industrial, commercial and retail tenants, giving an effective 4 percent rental reduction to all its tenants.
The property developer received budget savings from government last week and this will be passed on to their tenants.
Finance Minister Tharman Shanmugaratnam said the Singaporean government is giving 40 percent property tax rebate for commercial and industrial properties this year. And he urged landlords to pass on the rebates to their tenants.
“CapitaLand will pass through 100 percent of the rebate to the retailers…if the retailers do not survive, we also cannot survive,” said CapitaLand Group CEO and President Liew Mun Leong.
Retail tenants of CapitaLand are currently paying S$5 to more than S$30 per square foot, depending on the size and location of the units.
The company refused to disclose the price of commercial rents, but it understands that these could be as much as S$18 per square foot per month, depending on the grade and location of office space as well as the time at which they signed.
CapitaLand owns a close to six million square feet of industrial and commercial floor space around Singapore. It manages and operates a total of 18 malls, including Plaza Singapura, ION Orchard, Bugis Junction Raffles City and Tampines Mall.
Managing Director of Comics Connection, Daniel Yeo, said, “What is very important is the cash flow, I can use it for the cash flow. I can use part of it to send my staff for training.”
Since 2002, CapitaLand have already spent over S$600 million to develop malls and utilise its spaces effectively, and said it would continue to concentrate its assets on enhancing and developing their properties.
CapitaLand plans to focus on Atrium@Orchard and Plaza Singapura developments along the Orchard Road shopping belt.