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Merlin expects a break of up to 10% on its leases
20 March 2020 | Ana Tavares

The Covid-19 crisis should have an impact of around -10% on Merlin Properties’ leases this year. The company is now betting on contingency plans.

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In a release sent to CMVM, Merlin remarked that this is only an initial estimate, given the current uncertainty environment, and that it will continue following up and assessing the situation through time, «having built several contingent scenarios dependent on the duration of the pandemic, it will provide additional updates when considered relevant».

«Considering the lease incentives commercial policy, which seeks to share the onus of the current difficult situation tenants who are unable to open their establishments face, and assuming the shut-down ordered by the authorities will last until the 31st of July, the impact on the gross leases expected until 2020 will be less than 10%», stated the release.

The many projects Merlin currently has, should continue being developed, «when allowed by the legal structure». Projects whose construction stage hasn’t started yet will be dependent «on the duration of the current emergency situation».

On the same note, it can be read that «the company’s main focus is the protection of the health and safety of its collaborators, tenants and suppliers, besides the preservation of the business activity. Merlin is following all the regulation and guidelines from the World Health Organisation and local Governments, adapting its operation to them».