Flamingo Tower tenants get three months rent relief

Friday, April 24th, 2020 00:00 |
Flamingo Tower tenants get three months rent relief.

Tenants who own private businesses at an office block located in Upper Hill, Narobi will for the next three months get rent relief to cushion the businesses against the impact of Covid-19 pandemic. 

Flamingo Tower, which is owned by real estate developer Fusion Capital, is offering 30 per cent rent relief to its tenants.

The building’s board of managers says they are monitoring the situation and are in talks with their tenants.

The board will also enforce the directive issued by the government to reduce VAT to 14 per cent on the above payments until further notice.

“We hope that the discount on the rent will offer relief to our partners during these uncertain times,” says Samuel Kimotho, Executive Director at Flamingo Towers.

He says the decision was reached upon realisation of the severity of the pandemic and the strain it has put on businesses across the country.

Fusion Capital’s Chief Executive Officer Daniel Kamau regrets that they cannot manage a 100 per cent waiver because of overheads, which must be paid —staff salaries, security, water, electricity and maintenance.

“Given the rent concession, we can achieve a win-win situation and ensure business continuity for all parties,” said the CEO.

Flamingo Tower has 18 floors. The building offers leasing and purchase options for people looking for office space within the Upper hill area.

Kamau urged other property owners to consider rent concessions especially for those into offices business considering that  a lot of the retail and office occupiers are Small and Medium Enterprises (SMEs).

“Landlords should play a role in getting them back to trading after the crisis.

Property owners can support SMEs through rent concessions, it’s in the landlord’s interest that these businesses continue surviving and so sharing of rent risk will be important,” adds Kamau.

He also urged the government to honour payment to its suppliers especially the SMEs to ensure there is cash in circulation. “Factories and supermarkets should also to improve their payment cycles.”

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