Sentosa’s tenants get 15% rental rebate

Source : Straits Times - 18 Mar 2009

ANOTHER government-linked landlord is offering a 15 per cent rental rebate to its tenants - generous when compared to the 4 per cent that commercial landlords are offering at best.

Sentosa Development Corporation (SDC) announced this yesterday as a way of helping its tenants keep a lid on business costs during the downturn.

The rebate will apply until the year end, and be backdated to January for the 47 tenants on the resort island.

This follows announcements in January by four other government agencies - the Housing Board, JTC Corporation, the Singapore Land Authority and the National Environment Agency - that they were slashing rents by this quantum.

More than 36,000 businesses which rent hawker stalls, factories, offices or land from the four statutory boards are benefiting from their foregoing of $311.6 million in lost rental revenue.

Businesses leasing space from commercial landlords, on the other hand, have clamoured for deeper rebates than the 4 per cent they have been given as a result of the Government offering their landlords a 40 per cent property tax rebate.

Singapore Retailers Association president Jannie Tay said more careful spending by consumers has taken away 20 to 30 per cent of the income of the association’s members in the last two months, even as they were being ’squeezed’ by the high rents that were negotiated during boom time.

She said: ‘What retailers need now is a reduction in base rent. If not, many will not be able to survive this crisis.’

Sentosa’s tenants, which exclude the seven hotels, will make monthly savings of between $180 and $3,000 for the year.

The hotels get a 40 per cent property tax rebate direct from the Government.

Among the tenants on the resort island is Sentosa Luge and Skyride. Its general manager Lyndon Thomas said he was ‘ecstatic’ about the rebate, especially since it was unexpected.

‘It is a really pleasant surprise. Any savings are great in my view,’ he said.

The rebates will cost the statutory board more than $600,000 in lost rental revenue for the year.

SDC chief executive Mike Barclay said the rebates were Sentosa’s way of channelling the savings it will get from the Government’s property tax rebates back to its island partners.

Overall tourism numbers are down, but SDC said its participation in promotions run by the Singapore Tourism Board have kept things humming on the island.

More than 6,000 free passes were given out over three weekends last month; this month, the promotional deal admits two children or senior citizens for free with every two paying adults.