LHN expects hit to rent collection, renovation delays amid Covid-19

Sharanya Pillai

Published Wed, Apr 29, 2020 · 03:22 PM

LHN Group is bracing itself for rental collections under its Space Optimisation Business to be hit amid the Covid-19 outbreak, the Catalist-listed company announced in a Wednesday bourse filing.

In particular, rental collections for sub-leases of the group's commercial and industrial properties could be affected. This is because Singapore's Covid-19 (Temporary Measures) Act, which was passed earlier this month, provides six months of relief from legal action for parties unable to perform certain contracts (including leases or licences of non-residential property) as a result of the outbreak.

LHN also expects renovations of its current projects in Singapore and overseas to be delayed.

"The Group expects the Covid-19 pandemic to bring about adverse economic outcomes to the Singapore economy as well as the markets where it has business operations in the near term. However, at this stage, the group is still assessing the full extent of the business, operational and financial impacts of the circuit-breaker measures and the temporary relief measures," the company said.

To comply with the circuit-breaker measures, LHN has closed its headquarters in Singapore and implemented work-from-home arrangements since April 7. It continues business operations that provide essential services such as residential business under space-optimisation business, facilities management business and logistics-services business.

Shares of LHN closed flat at S$0.11 on Wednesday.