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Tax Rebate

Jan 30, 2009
Malls to pass on tax rebate

FOUR more mall landlords have said they would pass on at least part of the 40 per cent property tax rebate they are getting from the Government to their tenants.

But City Developments, Frasers Centrepoint, AsiaMalls and Marina Centre Holdings were unable to say how much of the rebate would be passed on and how it would be distributed.

News of their plan comes on the back of announcements by CapitaLand, Mapletree and Lend Lease that they would pass on all their property tax savings to their tenants.

A Marina Centre Holdings spokesman said its management was working on the details.

Retailers told The Straits Times that this was good news, but expressed preference for a cut to their monthly rentals over a one-off or periodic cash handout.

Ms Jean Yeo, who owns Leather Ark in Parkway Parade, said: 'We are happy if we get a bit but, of course, we want a fall in monthly rent. That will really help us cut operating costs.'

Mr Samuel Chong, who owns a beauty products shop in Liang Court, said a one-time payment, while 'better than nothing', would be of little help if it amounted to less than 5 per cent of a year's rent.

Mall owners said they would turn to rental rebates as a 'last resort'.

For now, CapitaLand plans to continue trying to drive sales to its tenants by offering atrium space at discounted rates, or helping them save on rent with smaller shop units.

Frasers Centrepoint and AsiaMalls said they would improve their shop mix and run promotions to draw shoppers this year.