UOL gives 50% rental rebates to eligible retail tenants for June, July

RETAIL tenants of UOL Group and its subsidiary United Industrial Corporation have received their rental rebates in March and April, and will continue to receive additional rental rebates in May till July.

This will result in a total relief package of more than S$50 million for retail tenants, inclusive of about S$16 million of property tax rebates from the government, property developer UOL said on Monday.

Full rental waivers have been granted to all eligible tenants which were required to or opted to close during the periods starting either March 27 or April 7 till end-May.

As for tenants that are still operating - which account for about one-quarter of retail tenants - the fixed component of their rent will be waived entirely, and they will be charged only variable rent based on their gross turnover from the start of the "circuit breaker" on April 7 till the end of May.

In addition, "eligible tenants" will receive 50 per cent rental rebates for the months of June and July, UOL said on Monday. A large majority of tenants are eligible for this, although some that have expiring leases will get a smaller amount as the property tax rebate quantum will be pro-rated, a company spokesperson told The Business Times.

In line with the Republic's extended "circuit-breaker" period till June 1, all non-essential businesses within the group's properties have closed, while those offering essential services can remain open.

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UOL chief investment and asset officer Jesline Goh said: "We are committed to stand alongside our valued partners to keep businesses viable."

As the Covid-19 pandemic evolves, the group expects the recovery to be in phases, Ms Goh added. "It is therefore important for all stakeholders to continue to work together to ride through this unprecedented crisis."

UOL Group's malls include United Square, Velocity@Novena Square, Kinex, Marina Square shopping mall, West Mall and New Park Shopping Arcade. It also has retail premises within Odeon Towers and Clifford Centre.

Shares of UOL fell S$0.19 or 2.8 per cent to trade at S$6.64 as at 11.06am on Monday.