BHG Retail REIT reopens two malls in Hefei city temporarily shuttered by coronavirus

BHG Retail REIT said on Tuesday it has reopened two of its malls in Anhui, China, after certain stores were temporarily closed from Feb 7 due to the coronavirus outbreak.

Hefei Mengchenglu Mall and Hefei Changjiangxilu Mall, both in the provincial capital Hefei, reopened on Tuesday "upon approval from the relevant local authorities", BHG Retail REIT said in a statement.

On Feb 7, the company said it had temporarily closed all stores other than certain food and beverage outlets providing delivery services and the supermarkets in the two malls. This was in compliance with Hefei authorities' coronavirus containment requirements issued the day before.

In its latest statement, BHG Retail REIT said all other properties within its portfolio remain open, albeit on shortened operating hours. It is also offering relief arrangements such as rental rebates to qualifying tenants to help them tide over the Covid-19 situation.

It added that Badaling Outlets, which it has proposed to acquire, also remains open.

Meanwhile, the company said it is taking proactive action to prevent the spread of the virus.

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"Preventive measures to be kept in place include temperature screening at entrances, efforts to clean and disinfect facilities and public areas, limiting activities with mass gatherings and putting in place contact tracing procedures to monitor the well-being of employees, tenants' employees, and visitors," BHG Retail REIT said.

The company also said the full financial impact of the outbreak cannot be ascertained at this juncture as the situation remains fluid, but added that its long-term strategy positions it well to benefit from China's rising income, despite this "near-term headwind".

BHG Retail REIT closed at S$0.585 on Tuesday, down 3.3 per cent from the day before.