Chinese Property Giants Forgive Rents to Ease Coronavirus Distress
Dou Shicong
DATE:  Feb 03 2020
/ SOURCE:  yicai
Chinese Property Giants Forgive Rents to Ease Coronavirus Distress Chinese Property Giants Forgive Rents to Ease Coronavirus Distress

(Yicai Global) Feb. 3 -- Almost 80 Chinese real estate companies, including Dalian Wanda Group and Longfor Group Holdings, have offered rental forgiveness to merchants to reduce the impact of the novel coronavirus outbreak. 

Some 79 commercial property firms have decided to cut rents by at least 50 percent for about 600 department stores and shopping malls during a time period of one week to two months, which means losing CNY10 billion (USD1.4 billion) in profits, the 21st Century Business Herald reported.

China's retail sales have slumped during the Spring Festival holiday, which used to be a high season of traveling and shopping, due to the ongoing coronavirus epidemic, the China Commercial Real Estate Association said in a report.

"In the short-term, real estate developers have strong economic strength and can slash rents," said CCREA President Wang Yongping. But if the market continues to slide, the government should step in by lessening tax burdens and relaxing loan policies, he added.

Wanda Group will forego collecting rental and management fees of Wanda Plaza shopkeepers during the month ending Feb. 25, taking a hit of CNY3.5 billion, the Beijing-based based firm said in a statement on Jan. 28. Sunac China Holdings and China Resources Land have issued similar policies.

Red Star Macalline Holding Group, one of China's biggest furniture retailers, said yesterday that it will let 82 store operators not pay rent or management fees for a month, which could mean that the parent loses up to CNY430 million (USD61.3 million) in net profit this year. 

Nearly all of Chinese restaurant chain Xibei's 400 outlets in more than 60 Chinese cities are now closed, Chairman Jia Guolong said in an interview on Jan. 31, adding that the firm is expected to lose up to CNY800 million over the month-long Spring Festival period. Meanwhile, over 20,000 staff members are out of work while the employer has the amount of cash on hand to cover just three months of wages.

Editor: Emmi Laine

Follow Yicai Global on
Keywords:   2019-nCov, Red Star Macalline,Wanda Group