Phoenix Mills defers rentals for retailers as investors cheer the reopening of malls
Phoenix mills share pricewas up by 6.25% in early trade as the markets cheered the opening of malls from June 8.
- Bengaluru-based Brigade enterprises, which runs three malls in the city, had also waived off 50% of the rental during lockdown. Its shares too were trading with a 2.16% jump.
- Malls are getting ready to reopen for business. The government has also given them SOPs to follow while reopening.
AdvertisementThe market is cheering the government’s move to reopen malls and shopping centres from June 8 triggering a rally in stocks like Prestige Estates, Phoenix Mills and Brigade Enterprises that own and operate
The shares of Phoenix mills, one of India’s largest owners of shopping malls in India, rallied nearly 20% cheering the government approval However, the rally cooled off to about 6.25% after the management told a television channel that it will defer the rentals for retailers who have shops in its malls.
Meanwhile, Bengaluru-based Brigade enterprises, which runs three malls in the city, had also waived off 50% of the rental during lockdown. Its shares too were trading with a 2.16% jump.
Prestige Estates too saw its shares trading at a 2.78% jump. Prestige runs eight malls in six cities across Bengaluru, Mangaluru, Chennai, Hyderabad, Mysuru and Udaipur with over 3 million sq. ft. retail space.
Shopping malls across the country have been shut even before the coronavirus lockdown took place. In March and April, shopping malls lost ₹90,000 crore according to the Shopping Centre Association of India (SCAI).
But come June 8, malls are getting ready with vigour to reopen for business. The government has also given them SOPs to follow while reopening.
In a seminar organised by SCAI, mall owners had said that while the next 90-120 days will be about ‘recovery, reimagine and re-energise the business model’, the broader idea is to focus on regrowth by Diwali by when the experts anticipate 80-100% consumers returning.
“We are in a phase, till the vaccine comes in for Covid, we will have to take the necessary precaution. Health and safety is of prime importance. We are not throwing caution to the wind and saying why have you locked us up when others are operational. The narrative is life has to go on, people have to live, they have to have some sort of an outlet/go somewhere,” said Irfan Razack, Chairman, and Managing Director, Prestige Group, which runs the Forum Mall chain in southern India.
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