Ukrainian shopping and entertainment centers for two weeks of January lockdown will not receive UAH 1.5-2 billion of lease payments, while the loss of their tenants’ turnover will amount to UAH 10-12 billion.
These data were announced by Head of the Ukrainian Council of Shopping Centers, Chief Operation Officer of Budhouse Group Maksym Havriushyn.
“January for most of the tenants of the shopping centers has always been far from the most profitable month. According to our calculations, tenants of the shopping centers as a whole will lose UAH 10-12 billion in turnover in the two weeks of January quarantine. Shopping centers will lose about UAH 1.5-2 billion of rental income,” he told Interfax-Ukraine.
According to Havriushyn, if the lockdown had been introduced at the end of December, the losses would have been doubled.
During the January lockdown, as well as during the spring one in 2020, the shopping and entertainment centers in Ukraine will not charge lease payments for their tenants, whose work is prohibited by a government resolution, the head of council said.
“The market has already gained experience of working in such conditions. The approach will remain the same as during the spring quarantine of 2020. Only maintenance fees will remain. For tenants who will continue to work, conditions will be determined on an individual basis,” Havriushyn said.
Arricano Real Estate Plc (Cyprus), the management company and developer of a number of shopping and entertainment centers in Ukraine, will limit the work of its trade centers in Kyiv, Zaporizhia and Kryvy Rih on weekends in accordance with the quarantine conditions until November 30.
According to a report from Arricano on the London Stock Exchange (LSE), the mall will be open an hour longer on weekdays.
Such restrictions will not significantly affect the financial results, the company believes.
Arricano Real Estate Plc specializes in the construction of shopping and entertainment centers, and is one of the leading developers on the Ukrainian real estate market. It owns and operates five shopping centers in the country with a total area of 147,300 square meters, namely RayON and Prospect in Kyiv, Soniacha Halereya (Solar Gallery) in Kryvy Rih, City Mall in Zaporizhia. The company also owns 49.9% in Sky Mall (Kyiv).
