Italy’s IGD defers rent payments in shopping malls to Q2 in 'extraordinary' concession

Italian retail specialist IGD announced this week that it is working on an ‘extraordinary’ rescheduling of rental payments due by retailers in its shopping centres to the second quarter of the year as a result of the coronavirus pandemic.

‘Regarding retailers in our shopping centres, certainly one of the categories most affected by this crisis, the company has activated support initiatives aimed at an extraordinary rescheduling of the payment dates to the second quarter of 2020, with a view to good faith, cooperation, solidarity and without prejudice to the current contractual agreements,’ the Italian REIT said in a statement.

IGD ‘is carefully and constantly monitoring’ the evolution of the situation, including the inevitable economic and financial impacts, it added. To this end, the company is reorganising and reducing cash outflows, especially regarding investments and other deferrable commitments.

‘IGD can count on a large cash availability deriving from the last bond issuance completed on November 2019, as well as on available credit lines,’ IGD said.

The retail property landlord also said that it will review its FFO guidance for the current year as a result of the epidemic.

The company is a major retail property owner in Italy with €2.4 bn of retail assets across the country. The portfolio largely consists of supermarkets, shopping centres and retail parks. The group also owns 14 shopping centres in Romania.

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