Source : Straits Times – 8 Jul 2009
MR STEVEN Stearns had asked in his letter last Friday, (’13 weeks, but CPF Board yet to reply on rental cut’) why the Central Provident Fund (CPF) Board had yet to announce rental cuts to its tenants.
In addition to the 40 per cent property tax rebates passed on by the CPF Board which he had received, Mr Stearns had asked for a 15 per cent rental rebate.
The CPF Board manages a number of properties that are assets of the CPF. The Board has a duty to ensure that these assets are managed prudently and optimally to secure a reasonable market-based return. As such, the Board has to balance the interests of its stakeholders with those of its tenants in determining if rental cuts can be justified.
After careful consideration, the Board had decided not to extend rental concessions at the present time. We apologise for not having communicated this clearly to Mr Stearns. It was unfortunate that we had been unable to speak personally with him, despite repeatedly contacting his office for him to return our calls in the last three weeks.
We understand from his staff that he had been overseas or out of the office. We have since managed to contact him to clarify the matter.
We will continue to review the situation in the commercial property market, and adjust rents if necessary.
Winston Yean
Director, Finance & Planning
CPF Board
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