Over the last few weeks, in the context of easing of restrictions imposed by the coronavirus pandemic, a large proportion of retailers have resumed their operations and 63% of NEPI Rockcastle shopping centers Gross Leasable Area (‘GLA’) is currently open, shows a company report.
”As we begin to collect post-reopening operational data, we are confident that our high-quality portfolio, robust balance sheet and strong liquidity together with our unparalleled know-how of the CEE region remain key strengths for weathering this storm well”, said Alex Morar, CEO NEPI Rockcastle.
Lithuania (reopening of shops: 25 April 2020)
Restrictions substantially ended, with most shops, including those in malls, opened since 25 April. 83% of the GLA currently trading, with normalised occupancy expected in June 2020, when entertainment and indoor restaurants open.
The Lithuanian government partially covers tenant payments from the commencement of trading restrictions until end of July 2020, the landlord is expected to provide a discount of 30% to the rental and other obligations for this period, while 20% is covered by the tenant and 50% by the government.
Footfall in May has already recovered to 50% compared to the same period of previous year and is increasing.
Poland (reopening of shops: 4 May 2020)
Restrictions on non-essential stores ended on 4 May. Certain services, including restaurants, cinemas, gym and entertainment facilities, are still restricted, but expected to start trading in June.
72% GLA is trading and normalised occupancy is expected by 30 June.
Government announced relief for rent and service charges, subject to a mandatory six-month lease extension plus the period when units were closed.
Footfall has already recovered to 50% compared to the same period of the previous year and is increasing.
Serbia (reopening of shops: 8 May 2020)
Restrictions for smaller shops, including those located in retail parks, ended on 27 April, while other non-essential stores reopened on 8 May.
Restaurants and entertainment facilities will open later, as government monitors situation.
35% of GLA open, normalised occupancy estimated by 30 June. There is no specific legislation regulating lease agreements.
Croatia (reopening of shops: 11 May 2020)
Restrictions for smaller shops, including those located in retail parks, ended on 27 April, while other non-essential stores reopened on 11 May.
Restaurants, coffee shops and food courts are open, with social distancing measures which limit their capacity.
90% of GLA open; entertainment facilities, currently closed, are expected to open by 30 June.
No specific legislation regulating lease agreements.
Czech Republic (reopening of shops: 11 May 2020)
Restrictions on non-essential stores ended on 11 May.
76% of GLA open; restaurants and entertainment facilities will open by end of May.
No specific legislation regulating lease agreements adopted, other than forbidding their unilateral termination by the landlord before the end of 2020.
Romania (reopening of part of the shops: 15 May 2020)
The Romanian government has announced gradual easing of lockdown measures, with shops having street access and those located in retail parks up to 15,000 sqm of total built area allowed to trade from 15 May.
Reopening of non-essential shops and entertainment facilities located in larger malls will be implemented at a later stage, not yet communicated (expected reopening by mid June).
Offices remained fully functional, with work-from-home measures adopted by many companies.
Legislation proposing deferral of rental obligations to year-end under certain conditions is being considered.
Bulgaria (reopening of shops: 18 May 2020)
Restrictions on trading of non-essential shops ended on 18 May.
72% of GLA open; cinemas and foodcourts are not open, although restaurants can sell take-away food. It is expected that cinemas will open by end of May.
Offices remained fully functional, with work-from-home measures adopted by many companies.
No specific legislation regulating lease agreements adopted.
Hungary (reopening of shops: 18 May 2020)
Non-essential shops opened on 18 May, with restaurants expected to open by end of June, while entertainment facilities are estimated to open in July.
72% of GLA currently open. No specific legislation regulating lease agreements adopted.
Slovakia (reopening of shops: 20 May 2020)
The Slovakian government ended the trading restrictions for all non-essential shops on 20 May.
Restaurants and entertainment areas expected to open by end of June. 91% of GLA open.
Offices remained fully functional, with work-from-home measures adopted by many companies.
No specific legislation regulating lease agreements adopted, other than forbidding their unilateral termination by the landlord before the end of 2020 if the tenant is in delay with its payment obligations for the period April – June 2020.
