Key takeouts from the Impact of Covid-19 on East Africa Webinar, courtesy of moderator, Ben Woodhams.
- ‘Share the pain’ – landlords cannot be expected to shoulder the burden and grant 100% rent and Service Charge (SC) concessions to tenants.
- There is no ‘one size fits all’ solution. We cannot simply say full SC and 50% rent, we need to provide different deals for different tenants.
- Landlords and tenants must negotiate mutually beneficial solutions. We need to ensure that people still want to do business with you after the Pandemic. While also ensuring that your business is still around.
- Hospitality and Hospitality are the sectors likely to be hardest hit, but paradoxically retail anchors (and medical) are trading better than before the Covid-19 crisis.
- It’s estimated that the logistics sector is likely to perform better than before the crisis.
- It’s important for commercial developers to rethink how tenants will work and use their buildings in the post covid-19 future.
- Developers also need to talk to their financiers; refinancing options are available, which includes interest deferment and other measures. At this point it is important for tenants to realise that landlords are facing financial difficulties too.
- Investment decisions need to be deferred, investors are unable to make financial decisions in the current climate with so many unknown variables in play.
Thank you to moderator, Ben Woodhams of Knight Frank Kenya, and our panellists Gerhard Zeelie of Nedbank CIB, Jess Cleland of Broll Property Group, Dhruv Pandit of Fedha Group, and James Maclean of Fusion Capital.
Your perspectives provided attendees with specific and nuanced insights into how East Africa’s real estate sector is navigating this challenging period.
Brought to you by API EVENTS & the EAPI Summit, our panelists discussed the impact of Covid-19 on East Africa’s real estate sector.