Brands unhappy over switch to full rentals

18 February 2022, Mumbai:

Brands are unhappy that malls in India is once again switching to full rental models.

Around 85 percent of tenants are paying full rents in February, says Nirupa Shankar, Executive Director, Brigade Group, operator of three malls in Bengaluru.

Terming the decision unfortunate, Zorawar Kalra, Managing Director, Massive Restaurants, the operator of Masala Library and Farzi Café, says many restaurants and bars are still operating at 50 percent capacity.

ALSO READ ICRA: Omicron to lead to 20% decline in mall rentals in Q4FY2022

Hence, they should not be charged rentals on full occupancy basis. Priyank Sukhija, Promoter, First Fiddle F&B, which operates brands such as Lord of the Drinks and Warehouse, adds, it would have been fine to pay fill rental if we had been allowed to operate without restrictions. However, operations are still restricted to 50 percent capacity.

Mall footfalls in many cities halved in December and January as the third COVID- 19 wave hit India.

However, footfalls have recovered to about 70 percent of pre-pandemic levels are expected to rebound fully in the next one month, says Ashish Dikshit, Managing Director, Aditya Birla Fashion and Retail.

Follow us on Linkedin & Youtube.

Subscribe to our daily e-newsletter.