A Dubai Retail spokesperson said that the company - the management arm of Dubai Holding - is confident of an imminent economic recovery
Dubai Retail, the management arm of Dubai Holding, has vowed that it will work with its embattled tenants in Madinat Jumeirah to “overcome” the impact of Covid-19, according to a company spokesperson.
In an April 27 letter seen by Arabian Business, a number of F&B operators with popular venues in Madinat Jumeirah requested that some operating costs to be waived, including rents from March to December 2020, and the handling fee on licensed beverages - which is charged by landlords - until the end of the year.
They also propose a revision of rental terms in December “to provide that rent, including service charges and marketing charges, shall be variable and calculated at the rate of 10 percent of monthly revenues.”
The letter was signed by operators of popular venues including The Meat Co, Belgian Beer Cafe, Folly, Anar, McGettigan's, Trader Vic's and more. A number of these restaurants have since re-opened.
While Dubai Retail in mid-May agreed to waive basic rent and service and marketing charges during the period of the government-enforced mandatory closure period, a separate letter from the F&B operators claimed that “the response does not really help us in any way to plan the way forward in terms of cash flow and other business needs."
In a statement sent to Arabian Business, a Dubai Retail spokesperson said that it “places great value in our long-standing relationships with our loyal customers.”
Additionally, Dubai Retail said that it has overseen a “massive” refurbishment of Souk Madinat Jumeirah over recent months.
“That investment is designed to ensure the longevity of a destination that continues to provide an enriching experience for residents, visitors and partners alike,” the spokesperson added. “In these truly unprecedented times, Dubai Retail remains fully committed to working with our tenants to ease, where we can, any operational challenges.”
“We are confident in our emirate’s resilience and are certain that recovery is on the horizon,” the spokesperson added. “Until then, we will overcome these challenges with our tenants, together.”