5 May 2020 12:00 am
By Nishel Fernando
CT Land Development PLC, the owners of Majestic City, announced a rental-free policy for its tenants during the curfew period, with further plans to formulate a rental-free/reduced rental scheme for an additional period, until the shopping complex gets back to full operation.
The firm closed the Majestic City mall with effect from March 17, as an urgent preventive measure to control the spread of the COVID-19 pandemic in the country.
In a stock exchange filing regarding the impact of COVID-19, CT Land Development revealed that the management decided to implement a rental-free policy, excluding the electricity charges of individual tenants, for the curfew period.
In addition, the company has also pledged further relief to its tenants, until the mall gets back to full operation.
“We would also be taking into consideration the adverse economic impact of the closure on our tenants and will formulate a rental-free/reduced rental scheme for a further period until such time as the mall is fully reopened,” CT Land Development PLC Chairman/Managing Director J.C. Page said.
The management of Majestic City noted that the mall would come into full or partial operations once the situation is stabilised in the country while following the directives and guidelines issued by the government.
The government announced plans to relax the curfew in the Western Province, starting from May 11.
CT Land Development noted that it is unable to determine the losses that would accrue until the curfew is lifted and when it would be possible to return to normal operations.
“The recovery period of other countries, especially those from which most tourists come to Sri Lanka, will also have a substantial impact on the business at our complex and thereby on the company itself,” Page added.
The Majestic City tenants are also yet to fully recover from the adverse impact of the Easter Sunday attacks last year.
CT Land Development had offered discounted rentals during the past year to support the recovery of business activities of their tenants while foregoing the rental charge for the 10-day period last year in the immediate aftermath of the Easter Sunday attacks, due to the restrictions in access to the mall.
Majestic City has been undergoing a Rs.450 million refurbishment programme since mid-last year, which was scheduled to be completed in June this year.
CT Land Development is also in discussions with its bankers to avail itself of the relief measures that have been recommended by the Central Bank to support its business activities.
The Page family-controlled CT Holdings PLC owns 67.9 percent in CT Land Development PLC.