Gradual easing of restrictions imposed for coronavirus pandemic has commenced in the second half of April 2020 and is expected to continue throughout May – June.
NEPI Rockcastle released a statement on how the pandemic affected its business in nine European countries.
Lithuania retail shops are open
Trading restrictions have been substantially lifted in Lithuania, with most retail shops, including those in shopping centres, being now open. Indoor restaurants and entertainment facilities are expected to open at the end of May or beginning of June. The government safety guidelines require shopping centres, among others, to ensure a maximum density of one person per 10 square metres.
NEPI Rockcastle resumed its operations at Ozas Shopping Centre and Entertainment in Vilnius on 25 April 2020.
NEPI Rockcastle malls in Poland resumed normal trading
On 4 May 2020, Poland ended the temporary trading restrictions on the stores located in shopping centres larger than 2,000 square metres, and all the group’s malls in Poland have resumed normal trading.
Some safety guidelines imposed by the government remain in place, including wearing face masks and maintaining social distancing when in public spaces. Restaurants currently provide only take-away food. Entertainment facilities remain closed as the government continues to monitor the situation.
Retail parks in Croatia have been open since 27 April
Retail parks in Croatia have been open since 27 April, including the group’s Arena Retail Park (Zagreb, Croatia).
Non-essential store openings are also being accelerated in Serbia, Czech Republic and Croatia, with trading restrictions expected to end by mid-May; and
Shopping centers in Romania, Slovakia, Hungary and Bulgaria are still closed
A gradual easing of the lockdown measures has been announced also by Romania, Slovakia, Hungary and Bulgaria, although specific dates for allowing trading of non-essential shops located in shopping malls have not been yet communicated.
NEPI office portfolio continues to be functional.
Only 43% of NEPI Rockcastle tenants are open
As of today, tenants representing 43% of the Group’s GLA are open, and the number is expected to increase progressively over the next weeks.
The first trading indications in Lithuania and Poland are positive: most of the tenants have already opened their stores, footfall is gradually increasing, and customers react positively to the new safety rules.
Further increases in footfall and turnovers are expected when the restaurants and cinemas revert to operations, and also when the neighbouring offices have increased attendance.
Targu Mures Shopping City, the Romanian mall which was initially planned for opening at the end of March, was completed. A new opening date will be decided together with the tenants, once the Romanian government provides more information on the phased easing of restrictions.
Over 90% of the rent and other charges invoiced for Q1 2020 have been collected
Over 90% of the rent and other charges invoiced for Q1 2020 have been collected. Although rent payment obligations regarding closed units for April and May (where already invoiced) have been deferred for 60 days without penalties, as a mean to supporting tenants.
The asset management team is committed to working together with tenants to maintain sustainable, long-term relationships. Any discounts will be agreed on case-by-case basis, based on a thorough analysis of the tenants’ financial situation, occupancy cost ratio and other factors, and will be focused on maintaining a functioning retail environment for the long term.
