Lockdown slump: V&A Waterfront collecting only half of normal rent from tenants

Business

Cape Town – One of South Africa’s leading landlords, Growth Properties, says it is receiving requests for additional rent payment relief on a daily basis with tenants battling to pay their bills as the nationwide lockdown enters its eighth week. The company’s flagship V&A Waterfront development in Cape Town has only been able to collect around 50% of what it billed tenants in those two months.

“The V&A Waterfront is significantly impacted by Covid-19, considering some 66% of its net property income comes from the retail and hotel sectors,” the group said in a statement.

The group added that the development is heavily dependent on foreign tourists who account for 50% of sales at retail outlets and 80% of hotel occupancies, it has to give R26 million in rental discounts just for April and May.

They said only 22% of their retail tenants are classified as essential and fully trading. The company usually bills its tenants in the R1.1 billion region per month, but only collected R735 million or just over 71% of normal revenue after giving a combined discount of R99 million on all its properties. It collected R665 million in May.

Billings and collections remain fluid with additional requests for relief being received daily,” the group said.

 

Leave a Reply

Your email address will not be published. Required fields are marked *