Following the agreement reached in April 2020 between the real estate and retail sectors on rent suspension for retailers due to the consequences of the corona crisis, there is now a support agreement 2.0.
The support agreement 2.0 of 3 June 2020 offers retailers in particular tools to reach agreements with lessors of retail space. Parties involved are the Association of Institutional Investors in the Netherlands (IVBN), Vastgoed Belang, association of private investors in real estate, VastGoedOverleg (VGO), INretail and Retail Netherlands. The starting point is that parties tackle problems together and show understanding for everyone’s interests in a period of great uncertainty and concern.
The aid agreement provides for a partial waiver of the rent for retail space
The most important agreement is that tenants and landlords of retail space propose to waive half of the rent for the months of April and May 2020 and that half of the June rent will be carried forward to next year.
However, agreements remain tailor-made between the lessor and the lessee of the retail space and can therefore not apply as a general rule to all parties. Often additional or alternative (custom) agreements have already been made between the lessor and the lessee of retail space.
The government support agreement calls on landlords and tenants in the retail sector to make agreements on
The government support agreement calls on landlords and tenants who have not yet made agreements to do so. It should be noted that the agreements as laid down in the first Support Agreement and its elaboration are sufficient and have been able to count on sufficient support from all stakeholders. In practice, the Support Agreement therefore provides workable tools for making agreements about rent payments in times of corona.
The government support agreement appeals to all stakeholders in the Dutch Retail sector
In addition to a guideline for talks between tenants and landlords of retail space, all stakeholders within the retail sector are called upon to work together constructively and to find solutions during the corona crisis:
“The Dutch spatial retail structure is unique and forms the basis of the way we live together in the Netherlands and is therefore partly decisive for how and how strongly we as the Netherlands can emerge from this crisis. In order to protect the quality of life in inner cities and central areas and the unique finely-meshed retail structure of the Netherlands, all stakeholders make an urgent appeal to give this subject all possible (political) attention in constructive consultation. Given the implications of social distancing and the uncertainties of the future, help each other where necessary and look for solutions together during this crisis”.
The support agreement is supported by the government and banks
Government and banks support the agreement and have taken measures to support entrepreneurs and businesses. According to the parties to the Aid Agreement, these measures are currently making a substantial contribution to the acute impact of corona on the retail sector.
Corona and the future for retail
The Government Support Agreement states that the consequences of Covid-19 will last longer than initially thought and cannot yet be sufficiently overseen. It has been agreed that the stakeholders will continue to follow the developments regarding corona closely together.
Lawyer tenancy law Rotterdam
Are you a landlord or tenant of business premises and are you curious about what the Government Support Agreement means to you? Or do you need advice on making agreements about rent payments for your shop or business premises? Please contact Yvonne Jansen via jansen@lvh-advocaten.nl.
