Despite Finance Minister Avigdor Lieberman's remarks this week that "most businesses are in excellent shape," Big Shopping Centers sent a letter to store tenants in its closed malls today (Wednesday) about a 25% discount on their rent this month, after recognizing a 20% drop in redemptions due The rise in morbidity in Corona.
This benefit does not apply to the group's open malls.
As I recall, in a briefing that Lieberman gave to the media this week, the Minister of Finance said: "I saw the dividends that the company owners attracted for the profits in 2021, I wish everyone the same situation in 2022."
"Since there is also no general closure, then there is also no grant for every citizen. We certainly believe that every business that is harmed should help him, but it should be understood that in the end most businesses are in excellent condition and I am happy about that as finance minister."
While saying that at this stage it is too early to talk about compensation, but the issue will be examined in a few months.
Minister of Finance Avigdor Lieberman, Photo: Oren Ben Hakon
But despite the optimistic remarks of the Minister of Finance, CEO of Big Shopping Centers, Chai Gallis, presented a different reality. A letter sent to tenants read: "Looking from the side, but dealing with the situation at an early stage and updating in advance about the outline of support and the relief we intend to take in the matter of rent payments."
Gallis added: "As always, sales and congestion figures are what lead us. In January, we identify an average decrease of about 20% in the closures of closed malls in the country compared to the same period in 2019. However, there is stability in open center sales. Such support will take care of the three closed malls we own: Bat Yam, Tiberias and Beit Shemesh, where according to Rees reports there is a significant decrease in redemptions while in the open centers, where there is a minor decrease, if any, we will take care of tenants who need help, as we do for years. "Ours is always open for relief in case of need, depending on the sales data. Our main goal is to help and support, so that as our tenant you can get through the coming period more safely."
In terms of payment arrangements, in January at the Bat Yam Mall, Fashion Tiberias and Fashion Beit Shemesh, it was stated that a 25% discount will be given on the basic contractual fee in January 22 and that the management fee will be paid as usual. Will be calculated in relation to the reduced price.
The corona is peaking in several countries due to the omicron variant // Photo: Reuters
Gallis added in the letter that at the end of the first half of 22 the Big Shopping Taps will perform a load test.
"As long as the rent burden, including the management fee actually paid in the first half 22 will be lower than the rent and management burden in the first half 2019, then in this case a supplemental invoice will be issued so the load will be the same as the store load in 2019. The discount in January will be credited. As part of the February payment. "
Gallis stressed that the essential stores will pay as usual.
"Supermarket and pharma chains, cellular stores, computers, clinics and banks will pay as usual."
He further referred to future compensation from the state if there is and wrote "To the extent that the state provides financial support or compensation for this period, we will be paid with these funds retrospectively a total rent discount. Needless to say if we as a company receive compensation for rent loss, we will notify you .
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