Spanish firm Temprano Capital Partners has decided to cancel rent payments for the month of April for all tenants in its shopping centres which have been forced to close their doors due to the coronavirus pandemic.
The cancellation affects all shopping centres in Temprano’s portfolio, La Farga in Hospitalet de Llobregat, MYO in the Valencian town of Gandía, Quadernillos in Alcalá de Henares and Plaza Imperial in Zaragoza.
‘In such a complicated and unusual situation, we adopted this exceptional measure to help all operators that have been forced to close due to the Covid-19 crisis,’ said Enrique Biel, asset manager of Temprano Capital Partners. ‘To the best of our ability, we want to contribute to the maintenance of the jobs generated by our shopping centres. With understanding, solidarity and cooperation, we firmly believe that together we can overcome this situation.’
It is believed to be the second Spanish property company to forgive rents. Last month, Merlin Properties, the owner of roughly €12.7 bn of assets, started to communicate the decision to tenants representing around 77% of its retail portfolio as well as to all its hotel occupiers. According to well-informed market sources, the rental waive runs from mid-March until July this year.
The REIT has suggested that it may experience an income drop of as much as 10% this year. Merlin’s retail assets generated around €127 mln in rents last year, out of total gross rents of €526 mln in 2019.