AA - June 2020

Author: Property Wheel
1 June 2020

The City of Cape Town has announced its adoption of rental relief options for its business lessees in recognition that lockdown circumstances are beyond their control. The relief options are aimed at softening the impact of the potential loss of business with a two-phased consumer journey put into play. 

Alderman James Vos, Mayoral Committee Member for Economic Opportunities and Asset Management comments:

I established the Real Estate Services Task Team (RESTT) as one of three key disaster response initiatives within EOAM to give full effect to the COVID-19 disaster response and mitigation”. 

“The rapid onset of the COVID-19 crisis and the national government’s swift introduction of a lockdown to contain its health impacts has undoubtedly disrupted the Cape Town economy.”

“We will continue to partner with as many stakeholders as possible to find innovative solutions to these difficult economic challenges.”

“This will be a difficult time for many of our companies and as a City, we also want to find ways in which we can best support those companies particularly hard hit.”

In recognition of these circumstances, the following two-phased consumer journey has been adopted:

  • Phase 1: rental remission afforded to commercial lessees based on an application made to the Property Management Department and evaluated in terms of a proven business case by the applicant.
  • Phase 2: repayment arrangements afforded to commercial lessees based on an application made to the Revenue Department and evaluated in terms of a proven business case and aligned to existing lease terms and conditions.

The City of Cape Town will be communication with each lessee in due course: “I encourage all of the City’s commercial lessees who were forced to close their businesses temporarily or permanently during the lockdown period to respond and to apply for a rental remission, for example, a restaurant or a tea room situated in a municipal park.”

In addition, payment arrangement options will be made available to lessees who may fall into arrears due to the indirect impact of the lockdown regulations, such as reduced income. Interest will not be charged, nor debt management actions be taken for the duration of the arrangements, provided the agreement is honored.

Lessees may apply for rental remission via email – realestate.service@capetown.gov.za

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