INSUBCONTINENT EXCLUSIVE:
RMZ and Salarpuria developers, to create a strategy for tenants that are either seeking deferral in rent payments or invoking force majeure
clauses, three people familiar with the development said.
Other private equity players, such as Brookfield, Xander, GIC and Ascendas, are
also expected to adopt similar strategies, allowing rent deferral for a limited period to avoid the invocation of force majeure
lockdown period extends.
Blackstone declined to comment
Industry sources said the private equity company had already garnered 60 per cent of the rents for the month of April from the properties it
has leased out.
The lockdowns, in force since the third week of March, are expected to bleed businesses, with several economists projecting
hit and rework some terms to help them tide over these difficult times
office spaces have seen investments of nearly $15 billion, led by Blackstone, Brookfield Asset Management, GIC Pte Ltd, Ascendas-Singbridge
Group and Xander Investment Management Pte Ltd.
PE firms argue that since the servers of these companies were housed in the leased premises,
the tenants were continuing to use the space
maintaining the facilities even though no one is coming to work or staff members are working remotely
Most of the physical infrastructure of companies such as servers and other assets are still housed in the buildings, and we have to maintain
it.
Builders are now relying on a Hong Kong court ruling following the 2003 SARS breakout
The court had ruled that a tenant is not entitled for any relief
Another issue with most rental commercial real estate owners is that they avail LRD (lease rental discounting) loans against these rental
that while the larger, tier-1 MNC occupiers have not been requesting for lower rentals, many smaller entities have begun this discussion
space in terms of office equipment
The current phenomenon itself, while unprecedented, is also seen as strictly shortterm and once the lockdown lifts, offices will start
