Retail real estate investor Eurocommercial Properties will grant “a number” of rent payment deferrals from its tenants for Q2 2020, as Italy prepares to nearly shut all stores in response to the coronavirus outbreak.
Italy is shutting all stores and shopping centres apart from pharmacies and grocery stores until 25 March.
Netherlands-based Eurocommercial, which has eight shopping centres in Italy, said it has been reviewing occupier requests on a case-by-case basis.
For the tenants gaining deferrals, rents for the second quarter of 2020 will be invoiced per month. Rents are usually payable quarterly in advance.
The landlord said this measure does not waive any contractual rent or lease obligations from its retailers but “could have a temporary impact” on cash flows.
Its centres in Italy are: Carosello, Collestrada, Cremona Po, Curno, Fiordaliso, I Gigli, I Portali and Il Castello.
Eurocommercial stated: “Since the initial trading restrictions were imposed over the two previous weekends in Lombardy and Veneto, Eurocommercial has been in regular communication with its tenants and is very appreciative of the impact on retailers and their staff.
“We will continue to monitor the situation closely, bearing in mind that the health and safety of our employees and partners is our priority.”
The landlord owns and operates 28 retail properties in Belgium, France, Italy, and Sweden, with total assets of €4.1bn.
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