Zug Estates: Rent reductions due to Corona crisis
Zug Estates is cutting rents by between 50% and 80% for retail and restaurant tenants affected by the lockdown. Over 90% have already accepted the offer, the company said.
Train Estates offers the affected tenants in the areas Metalli and Suurstoffi a reduction of at least 50%, smaller tenants are to be relieved of up to 80%. In contrast to the the solution envisaged by the National Council and the Council of States there is no upper limit, according to the real estate company.
Since the rent reductions only have a temporary effect, Zug Estates The company continues to anticipate rising rental income for the year as a whole. However, as a result of increased refurbishment and maintenance work and lower capitalisable financing costs, rental income is expected to rise. Real estate expenses and financial expenses will be significantly higher, the company writes in a statement.
In the hotel and catering segment, however, Zug anticipates Estates with sales and GOP well below the previous year's level; developments in the second half of the year would be difficult to forecast. As a result, both the operating result before depreciation and revaluations and the consolidated result excluding revaluations and special effects would be significantly below the previous year, the real estate company said. (ah)
