Here is an interesting article from Bloomberg this morning that goes into detail the plight of Chinese Malls forgoing rents for top names like Zara and H&M in order to continue to attract crowds to the malls. [Article here]
Much names were mentioned including Capitamalls.
Of particular interest is CapitaRetailChina because I thought its performance have been good since IPO. Its been able to consistently improve its DPU.
Testing times but this is where we assess the management’s handy work
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sgxstockpicker
Wednesday 3rd of July 2013
It happens all the time for commercial/industrial properties.
I remember my old boss telling me that the building management kept the monthly rental of the lease unchanged, but gave a few months free. This was during the 08/09 crisis. It is a clever move in that although the average rental fell, the stated rental did not, making it useful for negotiation in the future.
Kyith
Wednesday 3rd of July 2013
I think that is common practice and builds the relationship that they think last time you did this for them they will tend to be stickier to you
Patrick
Wednesday 3rd of July 2013
Based on this current trend, do you think the DPU will be affected or reduced going forwards..?
Kyith
Wednesday 3rd of July 2013
Hard to say. It depends on how good thee management is really
BlueKelah
Tuesday 2nd of July 2013
a 38 percent increase in supply, first ghost cities then now ghost like malls. Hahaha go china go.