Five months after the government announced to shell out property tax rebates, owner of 78 Shenton Way office building has yet to decide if they would distribute the benefits to its tenants.
The silence is increasing the hackles of the tenants that they wished that the government will start to intervene and mandate the owner to share the said rebates with the occupants.
The owner of Shenton building, which is previously called Lippo Centre, is the Commerz Real. The property from CLSA and Credit Suisse were purchased by the German real estate firm in December 2007, during the peak of the property boom.
Early in February, Director of IPP Financial Advisers Mr. Kevin Wilkinson, wrote to officials of Commerz Real to formally inquire about the rebates. “We’ve been pressing very hard to see some follow-through on the property tax rebate, which was intended by the Government to flow through to tenants, but so far, that hasn’t happened,” said Mr. Wilkinson.
The IPP Financial Advisers occupies five floors of Shenton building.
“What is the purpose of the Government giving rebates to landlords if they don’t give it to the tenants?” inquired Mr. Prem Gurbani, a partner at Gurbani & Co law firm.
When the Commerz Real was contacted, it said that they were "still looking into the issue of the property tax rebate which, for commercial reasons, we see as a private matter between us and the tenants of 78 Shenton Way.”
There is already a talk between the occupant and the Shenton management, but expressing some despair, Mr. Gurbani commented, "There’s nothing I can do to compel them (the landlord). If they don’t give it to me, I can’t do anything. Is there something that can compel the landlord to pass down (the rebate)?”
Do unhappy tenants have other options? The Ministry of Finance (MOF) said that it is ‘impractical’ for the government to order the landlords to pass the tax rebates to the tenants due to the uncertainty of the market.
"Landlords contract tenants at different times, and therefore, at different rates even within the same property,” said MOF spokeswoman.
"Nonetheless, the MOF has been urging landlords to find more ways to help their tenants. Given the current state of weak demand for rental property, it is in the landlords’ commercial interest to ensure that rents stay competitive, which should include – but is not limited to – the passing down of the property tax rebates,” she added.
The rebate issue just worsened the existing frustrations of the 78 Shenton Way tenants.
During a conversation, each tenants listed their complaints that were not connected with the main issue, like the inconvenient parking spaces and the lack of an available lift, which causes for some to climb several floors everyday just to get their car. "It feels like you are walking into a construction site,” said Mr. Wilkinson.
In response, the Commerz Real said that the construction would result to both extension and to a "much smarter joint lobby for the two towers". They promised that the work is expected to be completed by July, after which visitors and occupant would be able to benefit from a well enhanced 78 Shenton Way.