Malls, shopping centres hard hit by pandemic
Counting Covid-19 losses
A new parliamentary report paints a gloomy picture of the impact the pandemic had on retail properties and operations across Namibia.
A new report submitted to the government outlines the severe financial hardship experienced by major malls and shopping centres in Namibia due to the Covid-19 pandemic. The most significant losses were attributed to the reduced number of customers and lower rental fees.
The findings are contained in a report by the parliamentary standing committee on economics and public administration that looked into how the central business districts of Windhoek, Oshakati and Ongwediva and their associated shopping centres and malls were affected as a consequence of the pandemic.
Devastating
The report paints a gloomy picture of how retail properties in Windhoek were affected, most on account of reduced foot traffic and requests on the part of renters for reduced rental monthly fees.
Wernhill Park experienced a 75% loss in foot traffic from about 1.2 million customers to about 300 000 as a result of the pandemic.
“This had a significant impact on the income of the tenants, which made it very difficult for them to keep up with their rental fees and payments,” the report said.
At the Khomas Grove Mall, about 75% of the mall was empty, while approximately 200 employees lost their jobs and 100 were transferred. Before the pandemic, the Khomas Grove Mall was doing very well, with an occupation percentage of 95%.
Mearua Mall saw its vacancy factor increase by 6.69%, while N$50 million had to be written off across the portfolio to assist the mall’s tenants, the report noted.
The Black Chain Shopping Centre suffered a drop in rental income of 1% while its expenses increased by 11.6% without accounting for inflation, the report said.
Big impact
In the Oshana Region, the Kuku Mall, which was completed in 2020, saw the majority of its shops never occupied.
“The mall makes provision for 40 shops, but only eight to 10 were occupied, which translates to 20% [of occupancy],” the report said.
Most shops at Oshana Mall remained unoccupied, with 75% of the businesses that were supposed to open not opening. Commercial banking tenants like FNB and Bank Windhoek requested reductions in the size of their premises to lower rental fees, while Shoprite requested to pay only half the monthly rental fee to meet its budget.
The report revealed that the pandemic had an enormous impact on the economies of Windhoek, Oshakati and Ongwediva, leading to the closure of numerous businesses, shops and malls in the respective central business districts of these local authorities.
The findings are contained in a report by the parliamentary standing committee on economics and public administration that looked into how the central business districts of Windhoek, Oshakati and Ongwediva and their associated shopping centres and malls were affected as a consequence of the pandemic.
Devastating
The report paints a gloomy picture of how retail properties in Windhoek were affected, most on account of reduced foot traffic and requests on the part of renters for reduced rental monthly fees.
Wernhill Park experienced a 75% loss in foot traffic from about 1.2 million customers to about 300 000 as a result of the pandemic.
“This had a significant impact on the income of the tenants, which made it very difficult for them to keep up with their rental fees and payments,” the report said.
At the Khomas Grove Mall, about 75% of the mall was empty, while approximately 200 employees lost their jobs and 100 were transferred. Before the pandemic, the Khomas Grove Mall was doing very well, with an occupation percentage of 95%.
Mearua Mall saw its vacancy factor increase by 6.69%, while N$50 million had to be written off across the portfolio to assist the mall’s tenants, the report noted.
The Black Chain Shopping Centre suffered a drop in rental income of 1% while its expenses increased by 11.6% without accounting for inflation, the report said.
Big impact
In the Oshana Region, the Kuku Mall, which was completed in 2020, saw the majority of its shops never occupied.
“The mall makes provision for 40 shops, but only eight to 10 were occupied, which translates to 20% [of occupancy],” the report said.
Most shops at Oshana Mall remained unoccupied, with 75% of the businesses that were supposed to open not opening. Commercial banking tenants like FNB and Bank Windhoek requested reductions in the size of their premises to lower rental fees, while Shoprite requested to pay only half the monthly rental fee to meet its budget.
The report revealed that the pandemic had an enormous impact on the economies of Windhoek, Oshakati and Ongwediva, leading to the closure of numerous businesses, shops and malls in the respective central business districts of these local authorities.
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