It will therefore offer the tenants who are currently not allowed to open their shops the following, subject to the approval of the respective investors and banks:
For the period of shop closure since mid-December, the cold rent will be reduced by half. This also applies to possible further lockdowns in 2021. In the case of a lockdown of one month, this means a rent waiver of up to around 50 million euros in Germany.
The advertising fees for the first quarter of 2021 as well as possible special advertising fees in 2021 will not be charged. This will relieve retailers by another 25 million euros at the beginning of 2021.
In total, the relief will therefore amount up to around 75 million euros and thus correspond to the sum that the respective investors had already waived in the spring after the 1st lockdown.
Alexander Otto, CEO of ECE Group: “The lockdown before Christmas is the absolute worst case for all retailers and threatens the existence of many of them. That’s why they need quick relief now, especially since the promised government aid has been flowing far too slowly so far, and in many cases not at all. We see ourselves as partners of both the traders and the investors and feel obliged to find a fair balance of interests here. For my family’s portfolio, I have therefore decided that we want to share the rent with the tenants for the further closure periods. I am pleased that other well-known investors have already joined this approach.”
Otto also emphasized, “I believe that it would be in the interest of both retailers and the vast majority of landlords in Germany if we could come to a uniform solution here as quickly as possible, so that we can concentrate all our efforts on the challenges that lie ahead.”
All in all, the basic consent of the respective investors has already been obtained for almost two thirds of the approximately 100 ECE centers in Germany, including pension associations for company pension schemes. Talks are currently underway with several more.
ECE also has successfully reached an amicable solution with the vast majority of retailers for the first lockdown in spring. Joanna Fisher, CEO ECE Marketplaces: “In the meantime, we have been able to agree on contract adjustments with 90% of the retailers who were directly affected by the closure.” In most cases, the rent was temporarily reduced and the lease term extended in return. In total, the rent waiver for the spring is expected to amount to more than 75 million euros.
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