Leasing companies: We provided discounts and flexibility in payment ... and our obligations towards banks prevent "expansion"

Gold shops demand rental facilities to counter the repercussions of "Corona"

Gold shops faced a period of closure and absence of tourists during the precautionary measures phase.

Photography: Ashok Verma

Officials of goldsmiths' shops demanded that they be granted rental facilities to confront the repercussions of the emerging corona virus (Covid-19), pointing out that these facilities could be temporary, until the recovery of economic activities and the improvement in demand appropriately. Rent values, or exemption from payment for periods ranging between four and six months.

In turn, rental real estate companies confirmed the provision of facilities for gold shops, including postponing rental payments, with one or two free months granted, while companies resorted to providing rental discounts at specific rates that reached 20%.

She explained that the expansion of granting facilities is a difficult matter, given the existence of financial obligations on the real estate companies themselves towards banks or construction companies, which necessitates them to fulfill their financial obligations.

Operating costs

In detail, the manager of the "Mashaum" jewelry store, Raj Obahi, said that since the beginning of the "Covid-19" pandemic, the gold shops have incurred several operational costs, at a time when sales have been greatly affected.

He stressed that obtaining facilities from rental companies is important, through reductions in rental values ​​and exemption from payment for a period of at least four months, so that the shops can bear the repercussions of the pandemic and improve their sales appropriately.

Sales decline

In turn, the director of the "Siroya" jewelry company, Shindo Siroya, stressed the importance of extensive cooperation between real estate companies with gold shops to face the repercussions of the pandemic, by granting them rental reductions or appropriate exemption periods ranging between four and six months, and payment facilities.

He pointed out that the gold trade shops witnessed a closing period, in light of the precautionary measures and measures that were applied in the markets, locally and internationally, and faced a remarkable decline in sales, which negatively affected the trade in goldsmiths and jewelry in various markets of the world.

Expanding support

As for the sales manager at Al Matroushi Jewelery store, Deep Rajesh, he believed that it is important for real estate management companies to expand the granting of facilities to gold shops, stressing that the limited facilities will not adequately support the activities of these stores, as they endured a closure period of more than 30 days, and what resulted Those affected by the sales that did not return to their previous rates.

The absence of tourists

In the same context, the manager of the "Baghdad Jewelry" store, Rowad Al-Saudi, pointed out that the shop did not receive any appropriate rental facilities, despite the operational costs it has incurred since the beginning of the pandemic.

He emphasized that the pandemic had repercussions affecting the sales movement, especially with the absence of tourist groups during that period from the markets, stressing the importance of the societal role of real estate companies, and the contribution to granting gold shops rental discounts, and a temporary exemption from rents for a period ranging between four and six months.

Temporary facilities

As for the sales manager at the "Anan Jewelry" store, Abdulaziz Al-Khatib, he emphasized that the cooperation of real estate companies in granting gold shops discounts, rental facilities, and exemption periods would contribute to supporting the capabilities and activities of these stores, especially with the continuing pandemic.

He added, "These facilities can be considered temporary, until the sales of gold shops recover, especially with the expectation of more tourism movement during the coming period."

Commitments and contracts

For his part, the manager of a real estate company that leased to golden crafts shops, A.H., said that the shops are bound by the terms and conditions of rental contracts, but despite this, the company has worked to provide payment facilities, including postponing rental payments, with a month grant Or two months free, depending on the study of the circumstances of each business.

He stressed that expanding the granting of facilities is a difficult matter, given the existence of bank obligations on the real estate company itself, which necessitates it to fulfill its financial obligations.

Two facilities options

In turn, a real estate company official (FA) said that it is difficult for the company to significantly expand its facilities granted to commercial stores, given the financial obligations of the real estate company towards banks and construction companies.

He emphasized that the company had given some shops two options: between obtaining rental discounts of up to 18%, or getting two months free.

Participate in endurance

In the same context, the director of leasing in a real estate company (MB) said that the repercussions of the "Covid-19" pandemic affected the market in general, and therefore, it is natural for stores to participate in bearing some of the burdens, with the difficulty of expanding the granting of facilities, given the presence of Obligations of real estate companies towards banks.

He added that despite the existence of binding contracts for the stores, the company classified the tenants of the gold jewelry according to the status of each store, and granted rental discounts ranging between 15 and 20%, but it is difficult to expand further now.

The Gold Group expects a significant recovery in sales

The Chairman of the Dubai Gold and Jewelery Group, Tawheed Abdullah, said that the group had received notes and demands during the last period from companies and shops of gold jewelry from its members, to obtain rental facilities that include discounts and exemptions from paying between four and six months, so that these shops can From facing the repercussions of the "Corona" pandemic, which caused slow sales, especially with those shops bearing operating costs, a period of closure, and a decline in the movement of tourists.

He emphasized that the group initiated contact with a number of real estate companies, and found interaction from some of them, at a time when other companies did not respond to their own circumstances or policies.

Abdullah pointed out that these proposed facilities could be temporary, until sales see an improvement, especially with the expected recovery of sales significantly with the return of flights to different destinations, and more tourist groups were expected during the winter season, pointing out that those groups used to account for the largest percentages of Sales before the pandemic.

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