Lower rents and no advertising contributions should bring savings of 75 million euros
In view of the second lockdown in Germany, ECE wants to relieve the burden on affected retailers and restaurateurs. Subject to the approval of the respective investors and banks, it will reduce the basic rents of tenants who are currently not allowed to open their shops by 50 percent for the period of the current and possible future shop closures. With a lockdown of one month, this means a rent waiver of up to around 50 million euros in Germany.
In addition, advertising contributions for the first quarter of 2021 and possible special advertising contributions in 2021 should not be collected. This should provide retailers with a further around 2021 million euros in relief at the beginning of 25. The respective investors had already foregone 75 million euros in the spring after the first lockdown.
“The lockdown before Christmas is the absolute worst case for all retailers and threatens the existence of many of them,” says Alexander Otto, CEO of the ECE Group. “Therefore, they now need quick relief, especially since the promised state aid has so far been flowing far too slowly and in many cases not at all. We see ourselves as partners of both retailers and investors and see it as our duty to achieve a fair balance of interests here.”
Overall, the basic approval of the respective investors has already been received for almost two thirds of the approximately 100 ECE centers in Germany, including pension associations for company pension schemes. Corresponding discussions are currently underway with others.
