Lotte World Mall, Lotte Mall, and Lotte Fitin Offer Up to 30% Rent Reduction for Small and Medium Partners

[Asia Economy Reporter Seungjin Lee] Lotte Asset Development has introduced additional support measures for small and medium-sized partner companies struggling due to the novel coronavirus disease (COVID-19).

On the 9th, Lotte Asset Development announced that it has decided to reduce the rent by up to 30% for small and medium-sized partner companies operating in stores managed by Lotte Asset Development, such as Lotte World Mall, Lotte Mall, and Lotte Fitin, for March and April. Through this measure, a total of about 760 small and medium-sized partner companies are expected to benefit from the rent reduction. This accounts for approximately 67% of all brands.

Lotte Mall operates under a business structure where it is both a lessor attracting tenant brands and a lessee paying rent. In response to the COVID-19 crisis, while Lotte Asset Development is requesting rent reductions from lessors, it has proactively prepared support measures such as rent reductions for small and medium-sized partner companies located in Lotte World Mall, Lotte Mall, and others.

Prior to this, Lotte Asset Development had been striving to minimize the financial burden on tenant partners by deferring rent payments for March and April for three months (with installment payments over three months starting from July and August, respectively) and by providing advance partial payments of settlement amounts. Additionally, operating hours of stores were shortened as a measure to reduce operating costs such as labor and management expenses for partners.

This content was produced with the assistance of AI translation services.