The company that owns and manages many of the biggest shopping centres across the GTA and Canada, including the Eaton Centre, confirms that only about 20 to 25 per cent of its tenants paid rent this month due to financial hardships brought about by the COVID-19 pandemic.
In a statement sent to CP24 on Thursday, Cadillac Fairview confirmed that it has deferred April and May rents for a “significant number” of its retail clients.
“Cadillac Fairview recognizes that many of our retail clients are facing economic challenges,” the company said. “Companies cannot overcome the COVID-19 crisis on their own.”
In an effort to slow the spread of the virus, Premier Doug Ford ordered all non-essential businesses to close at the end of last month, forcing stores in malls across the province to close their doors.
While the province has released its “road map” for reopening Ontario, it is not yet known when malls and other shuttered shops will be permitted to reopen to the public.
Earlier this month, the federal government launched the Canadian Emergency Commercial Rent Assistance (CECRA) program to help struggling businesses.
The program reduces April, May, and June rents to 25 per cent of the regular cost for small businesses that have seen a 70 per cent or greater reduction in revenues.
Eligible businesses must have less than $20 million in gross annual revenue at the parent level and the program is available to companies with one or more locations each with gross rent not exceeding $50,000 per month.
The Canadian Retail Council of Canada says plans have not yet been released to assist larger businesses, or those which have not seen a 70 per cent or more dip in revenue.
Cadillac Fairview says it will continue to work with its clients and all levels of government to ensure the “long term success of the retail industry.”
