Emaar Malls Rent Concessions

The COVID-19 pandemic has led to a large-scale migration of the workforce into their homes. The global health crisis led to significant shutdowns around the world, with most schools, colleges and commercial establishments shutting down. Not only has this led to an exodus of labour, but it has also led to several companies and smaller establishments facing severe financial crunches. However, during such terrible times, various benefactors have provided their unending service and support to clients. One such instance is that of Emaar Malls giving their tenants various COVID-19-related rent concessions. Here’s a look at their newest relief letter and how it can help tenants deal with their financial troubles. 

Emaar Malls Helps Mitigate the Impact of COVID-19

The new circular also mentions that the company is doing all it can to help tenants during these difficult times. In both May and July, they had sent out extended circular detailing Relief Policies regarding their tenant’s rent obligations. The developer has continued to put tenants first by launching an initiative for patent deferral and extending the deadline for relief policies. The circular also noted that the company was focusing on finding new ways to help tenants and ensure they receive more support. 

For enquires call @ +971 45 570 204 / Email Us : [email protected]

New Measures to Help from Emaar Malls

Emaar Malls relies on rent from tenants to meet their required financial obligations. As most of their tenants are already aware, the Mall has continued supporting and maintaining security and cleaning personnel. Furthermore, it also has to spend money and resources on maintenance activities that help with the upkeep of their assets. However, to extend further support to clients, Emaar Malls has noted that it will sustain its Relief Policies and extend them till December 31. The Third Relief Policy will take effect from September 1, and last till the end of this year. 

For enquires call @ +971 45 570 204 / Email Us : [email protected]

Eligibility Criteria

1. In case the Base-Rent-to-Sale percentage falls below 20% during the third relief period, the relief rules will not apply. Tenants who fall into this category will therefore have to pay the full rent as per the lease agreement for this duration or period.
2. If the Base Rent-To-Sale percentage* exceeds 20%, the tenant will have to calculate their Turnover Rent. This amount will be calculated using the Base Rent-To-Sale percentage of a similar period, or the contractual TOR as per the lease. The higher of both will be considered the final percentage or TOR.
3. If the tenant’s lease does not have a TOR option, they will receive a discount of 25% on their base rent for the period denoted by the Third Relief Policy. 
4. If the tenant has a Speciality Lease, then they will receive a 25% discount on their licensing fee for this period. 
5. To avail such benefits, the tenants must have satisfied all the other requirements and must have validated and verified letters of variation.

Other Criteria:

1. The tenants must also have cleared all their due payments up to August 31, 2020.
2. They must all agree and submit their monthly sales reports on time, whenever requested or applicable.
3. The tenants must submit a casual sales report on a formal letterhead. It must be signed and stamped for the period between January and August 2020 by September 30, 2020.
4. The tenants must also agree to submit another casual sales report on a formal letterhead. This too must be signed and stamped for the period between September and December 2020 by January 7, 2021.
5. Eligible tenants must also abide by all the provisions of the clause regarding Electronic Point of Sale Terminals as per their lease. 
6. The businesses must also remain open for the period stipulated as the Third Relief Period unless otherwise ordered by the Emirati government. 
7. In case the tenant’s lease expires before March 31, 2021, they must renew their leases for a period not lesser than their current leasing period. 

*Base Rent-To-Sale percentage = Summation of total base rent divided by the summation of gross sales for Group Leases during the Third Relief Period.

In this case, a Group Lease is a collective reference for any tenant that has more than one current lease or multiple tenants that collectively have more than one lease under a single retail group. 

For enquires call @ +971 45 570 204 / Email Us : [email protected]

How Can KGRN Help?

KGRN Chartered Accountants is one of UAE’s most prominent business consultancy and audit firms. Our team of experts have the required experience and expertise to help you. We can guide you on all matters concerning an investment in the UAE. Hence, our experts will ensure that your investment stays safe and secure. We also ensure that you make well-informed decisions to avoid legal hassles and maintain 100% compliance. 

For enquires call @ +971 45 570 204 / Email Us : [email protected]