A 15 percent rental rebate has been put forward by another government body to its tenants.
The Straits Times was informed by the National Parks Board (NParks) that this approach is intended to assists its tenants to get by during these poor economic times.
The rental rebate is set to be backdated to January for over 70 tenants at 26 parks throughout the island. The rebate will generally be in favour of F&B operators, and it will be offered until the year ends.
The move adheres to the announcements made by four government agencies, including National Environment Agency, the Singapore Land Authority, the Housing Board and JTC Corporation, last January that they have reduced about 15 percent of the rents. While Sentosa Development Corporation declared its cooperation by also cutting rents earlier this month.
The 40 percent property tax rebate implemented in January has caused these actions as tenants forced commercial landlords to offer them with better rebates than the 4 percent they have previously offered.
The rebate offered by the approaching Ion Orchard shopping mall’s commercial landlord is so far the highest – about 30 percent off base rentals as the mall launches in July.
The Aramsa Spa at Bishan Park is one of the tenants which be benefited from NParks rent cuts. Aramsa Spa’s spokesman said that “It will be used to help offset rising operational costs like utilities, maintenance and labour costs. It will help cushion us in these times when even a little goes a long way”.
Tenants were notified last month about the rebates, which is expected to cost NParks lost rental revenue of around $2.3 million this year.
The move is welcomed by each and every one, though some tenants wondered if more could be done.
Bliss Restaurant’s, in Punggol Park in Hougang, owner stated that rental surged about 400 percent when she did a renewal of a three-year lease the previous year.
The rental valuation was done during the property boom, at closing stages of 2007. 35-year old Christine Low, who refused to reveal her rent’s exact amount, stated that her monthly fee is a five-digit sum, which was just a four-digit sum before she renewed the lease.
“It was a really ridiculous increase, and one that was implemented after we worked our butts off to bring in good business”, Mrs. Low said. “The rebate is better than nothing, but when rental is so high, the amount is almost negligible”, she added.
Mrs. Low, who demanded NParks for a reprieve, also asks for a free rental revaluation “to suit the current situation”.
To date, a few tenants approached by The Straits Times tell that their rents have been adjusted in the previous year after appeals.
Tan Lai Kheng, statutory board’s assistant director, stated the rental “was revised from a very low base line and even in current market conditions is still a very fair rental”, speaking of the Bliss issue.
“NParks is continuing to monitor the market situation and will provide assistance where possible”.